EQT’s Arvindh Kumar reve als motivation for Avetta acquisition; Stellex, Al pine companies in add-ons

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EQT’s Arvindh Kumar reveals motivation for Avetta acquisition; Stellex, Alpine companies in add-ons

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

We’re taking a deep dive this morning into one of the biggest deals announced so far this year.

EQT added to signs that big deals are back in private equity after announcing last week that it would acquire supply chain risk management software company Avetta. EQT’s Arvindh Kumar tells PE Hub on the Wire today just what it was that made Avetta worth the money.

Switching to add-ons, we take a look at an acquisitive Stellex Capital Management portfolio company in the auto parts sector making another acquisition and an Alpine Investors commercial door platform adding a quartet of companies.

Finishing up, we have another of our Deals of the Year, this time looking at which of the secondaries deals of 2023 eclipsed* the rest.

*I had to mention it, didn’t I?

Supply in demand

There were several factors behind EQT’s decision to acquire Avetta from Welsh, Carson, Anderson & Stowe, a deal announced earlier this month, EQT partner Arvindh Kumar told PE Hub’s Obey Martin Manayiti.

Read the subscriber version of the Wire for more on why EQT invested in Avetta and details including the enterprise value and how the company uses artificial intelligence.

Buying in parts

Stellex Capital Management portfolio company Fenix Parts has made another add-on.

Details in the full version of the Wire.

Deal closing

Alpine Investors-backed Cobalt Service Partners, a platform for buying and operating commercial door businesses, has made another four add-ons.

Find out more in the subscriber version of the Wire.

Kaiser king

We’re featuring another of our Deals of the Year series collaboration with Buyouts this morning, with the Secondaries Deal of the Year next up.

Read the full version of the Wire to learn not just the winner – but why they won.

OK that’s all from me today. We’ve got a slight change to the schedule this week, so Michael Schoeck will be on duty tomorrow, with Chris Witkowsky chatting to you on Thursday.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

NGP Energy Capital Management is raising its next flagship pool without its long time leader, Tony Weber, who has been in the process of retiring over the past few years, sources told Buyouts. Chris Carter, who has been a managing partner at the firm since 2015, heads the company.

Intermediate Capital Group scored an attractive IRR and an equally attractive money multiple on its exit from Amolyt Pharma given that the private equity firm invested just 14 months ago, Toby Sykes, MD on ICG’s life sciences team, told PE Hub Europe.

In what is a sizable deal in general and perhaps the biggest this year so far in France, the EQT Active Core Infrastructure fund is buying French smart water and heating company Ocea Group from ICG for a reported €600 million. (Infrastructure Investor)

"I applied for this fellowship a few months ago and someone asked me, ‘Are you a risk taker?’ To me a risk is something where I might die, so in that case, no, but am I a risk taker starting a fund, taking a job, moving somewhere new? I went to prison, I was homeless, so what’s the worst that could happen? I’m going to fail? Then I’ll start over again." — Daniel Dart, who launched Rock Yard Ventures in 2022. Dart’s debut fund recently held a first close on just over $2m with support from former Goldman Sachs president Gary Cohn, Wingspan Capital co-Cio Andrew Eberhart and Fifth Third Bank chief economist Jeff Korzenik. (Venture Capital Journal)

GID Investment Advisers has hired Grant Berlin in the newly created role of global head of capital raising, Private Equity Real Estate has learned.

Canadian investors into climate VC operate with a conservatism that is slowing down the country’s climate venture scene, according to Vancouver-based VC shop Active Impact Investments founder Mike Winterfield. (New Private Markets)

They said it

“Avetta’s solution fuels a two-sided network between hiring clients and suppliers, a model proven to be highly effective in mitigating risk and increasing supply chain resilience across the board.”

— Arvindh Kumar, partner, EQT