GA doubles down on Joe & the Juice; Orangewood among PE firms betting on franchises

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GA doubles down on Joe & the Juice; Orangewood among PE firms betting on franchises

Good morning, Hubsters. MK Flynn here with the Wire.

Today, we’re focusing on the consumer and retail sectors and exploring several private equity strategies.

A deal announced today that caught both PE Hub and PE Hub Europe’s attention is General Atlantic’s upping its stake in Joe & the Juice. We’ll take a quick look at that deal.

The franchise business model is gaining momentum, and private equity firms are going along for the ride. We’ll take a Deep Dive.

And tomorrow, I’ll be talking with BC Partners’ Michael Chang about the growth of PetSmart since BC bought the pet retailer for $8.7 billion in a take-private deal back in 2015. I hope you’ll join me for that complimentary webinar.

Cup of Joe

General Atlantic announced today that it is increasing its investment in Copenhangen-based Joe & the Juice, Irien Josephreports. GA is buying the majority stake from Valedo Partners. With the deal, Valedo will fully exit its investment.

Subscribers to the premium version of the Wire may learn all about the deal.

Family-owned and founder-led

The franchise business model is in style, writes Rafael Canton. According to the International Franchise Association, the total output of franchised businesses will increase by 4.2 percent from $825.4 billion in 2022 to $860.1 billion in 2023.

PE Hub has reported on a slew of private equity-backed franchise deals over the last few months.

To find out what’s driving the activity, Rafael spoke with some of the dealmakers involved.

Subscribers to the premium version of the Wire may read the interviews and see the deal details.

Tune in

With many exit routes blocked – most notably the IPO path – private equity firms are turning to other PE firms for help growing big businesses.

Back in July, BC Partners brought in Apollo Global Management to take a minority stake in PetSmart, a business BC bought in a take-private deal back in 2015.Rafael did a Deep Dive on the deal at the time.

Tomorrow, I’ll be talking with Michael Chang, partner, private equity, at BC Partners about the co-investment.

I hope you’ll join us for PE Hub’s complimentary webinar titled, BC Partners Takes the Long-Term View on PetSmart on Tuesday, November 14 from12pm - 12:45pm ET.

Click here to register.

The webinar is a glimpse of what’s to come at Private Equity International’s NEXUS 2024, which we’re hosting March 6 – 8 at the JW Marriott Orlando, Grande Lakes.

NEXUS 2024 promises to set the stage and provide a preview of what’s to come for dealmakers as the year unfolds. Meet the GPs and LPs you’ve seen quoted in PE Hub over the years. Hear from luminaries about how the challenging economy is playing out in the deal landscape.

Keynote speakers include: Jonathan Gray, president and chief operating officer, Blackstone; Howard Marks, co-founder and co-chairman of Oaktree Capital Management; and David M. Rubenstein, co-founder and co-chairman of The Carlyle Group.

Click here to learn more about NEXUS 2024.

I hope you’ll join us online on tomorrow at 12:00 ET and in Orlando in March!

That’s all for today. Obey Martin Manayiti will be with you tomorrow. Michael Schoeck will write the Wednesday Wire, and I’ll be back on Thursday.

All the best,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Kansas City Public Schools Retirement System may make its first commitments to private equity in several years to reduce its overallocation to the asset class. (Buyouts)
The size of private equity funds continued to rise in the third quarter, a trend that says a lot about conditions in the market. (Buyouts)
Agri Investor is out with a special report on timberland, looking at how investors are prioritising a switch to make the sector more climate-conscious.
EQT clinches £500m first UK battery deal: Partner Francesco Starace praises Statera Energy’s 16GW pipeline, ‘a sizable portion’ of which has secure or nearly secure connectivity. (Infrastructure Investor)
PJT Park Hill has hired Jefferies’ former co-head of private capital advisory Brenlen Jinkens as a senior adviser in its private capital solutions group, a source familiar with the matter told Secondaries Investor.
Indigenous VCs form new alliance to support Native American founders: Native American Capital and Investment Alliance is a platform where equity investors, investment advisers and alternative lenders can learn about investment opportunities in Native-founded companies. (Venture Capital Journal)