Private equity deal news and insights from the London newsroom

European GP stakes market grows as Armen talks up heterogeneity; General Atlantic joins Bridgepoint in liquidity tech biz Kyriba

Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.

The European GP stakes market is well behind the US in terms of deal volume but is picking up – and offers some advantages over its North American variant. That’s the view of Armen managing director and head of UK Catherine Haumesser, who talks us through what has been a busy year for the GP stakes specialist and sheds light on its latest investment in private credit firm Signal Capital.

Next up, we look at another deal in the finance world. General Atlantic is making a minority investment in liquidity performance software provider Kyribaalongside majority owner Bridgepoint.

Finishing up, we’ve got news of Warburg Pincus bolstering its European team.

Raising the stakes

GP stakes firm Armen’s CEO Laurent Benard and deputy CEO and COO Renaud Tourmente told us at the start of the year that they expected European interest in GP stakes to pick up in 2024.

So, with the firm just completing its third investment of the year, it was the perfect time to catch up on how the year has turned out.

Armen’s investment pace “is reflective of the growth in the GP stake market in Europe,” on which it is cautiously optimistic for next year, Catherine Haumesser, managing director and head of UK at the firm, told PE Hub. The heterogeneity of European GPs offers valuable diversity to GP stake specialists like Armen, she added.

Find out why, as well as how the firm's latest investment fits into its portfolio, in the premium version of the Wire.

Teaming up

Sticking with investments in financial firms, General Atlantic is becoming a minority shareholder in liquidity performance software provider Kyribaalongside majority owner Bridgepoint, which is reinvesting.

Details including the valuation are in the premium version of the Wire.

Note: Bridgepoint owns PEI Group, the publisher of PE Hub.

European push

Monday’s special combined Europe and US Wire took a deep look at why US private equity firms are investing in Europe and now we’ve got yet more evidence of GPs bolstering their presence in the continent.

New York-headquartered Warburg Pincus has just appointed two senior advisers to work with the growth investor’s European business and global healthcare group.

Find out more in the premium version of the Wire.

OK that’s a wrap from me. Rafael Canton will bring you the US Wire later today, while I’ll be back on Europe duty tomorrow.

Happy dealmaking...

Craig

Read the full Wire commentary on PE Hub ...

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Schroders Capital renames PE secondaries funds after leaning into GP-leds: The new designation reflects Schroders Capital's commitment to the increasing GP-led opportunity set, a spokesperson tells Secondaries Investor.

New Zealand keen to shed ‘most restrictive’ foreign investment policy: Successive governments have made alterations to New Zealand’s Overseas Investment Act, creating a complicated regime for investors to navigate. (Infrastructure Investor)

Sydney’s Global Nature Positive Summit shines spotlight on biodiversity: The event, backed by the Australian government, was something of a mixed bag – but did highlight how large the focus on nature-positive initiatives is becoming. (Agri Investor)

Index partner Heymann departs for JPMorgan Growth Equity Partners: Heyman is now co-managing partner of JPMorgan Growth Equity Partners, which closed on a $1bn fund last year. (Venture Capital Journal)

Golden age talk tempered by concern over recent vintages: Amid concerns over pressure on existing loans and revived competition from the syndicated market, there is still an overall positive tone at the Private Debt Investor Germany Forum in Munich.

“The legal structures vary significantly between different jurisdictions in Europe which can add complexity. Also in Europe, GP ownership can be more widespread. We see that as a positive but it means you have to bring on board more people – the decision making is among a bigger group of partners. It can take more time.”

— Catherine Haumesser, managing director and head of UK, Armen, on the advantages of the European GP stakes market

Today's letter was prepared by Craig McGlashan

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