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The Wire Sept. 7, 2021
GTCR's Antylia divests Masterflex to Avantor in $2.9bn all-cash deal, Astorg doubles down on US strategy with ambitious hiring plans
Morning!
With the US representing the largest piece of the global private equity industry - and hence, the biggest geographic opportunity set for investment -- we’re continuing to see European firms bolster their resources in the country via both physical offices and talent.
Astorg, which started as a French-only private equity firm just over 20 years ago, is no exception. After launching its third global hub in September in the US (following London in 2012), the Paris-headquartered firm is now ramping up its US expansion with several new hires that are intended to turbocharge its healthcare and software efforts in the region, sources familiar with the firm’s plans told PE Hub. One of some four new hires joining this year is former Cerberus Capital Management investor John Chun, who will expand its US healthcare presence, three sources told PE Hub. Astorg aims to grow its US investment bench to some 15 to 20 individuals by the end of 2022, they said. Around 30 percent of Astorg’s cumulative portfolio company sales were... read my full report on PE Hub.
Good move: GTCR’s decision to reinvest in life sciences tools company Antylia -- formerly known as Cole-Parmer -- is so far looking like a good strategy. Just two years after reinvesting in the company at a $2 billion-plus valuation, according to PE Hub sources, Antylia is selling its Masterflex unit to Avantor for $2.9 billion in all cash. Masterflex, one of two Antylia business arms, is used by pharma and biotech customers for research and production of biologic drugs, vaccines and cell & gene therapies. GTCR will continue to own Antylia’s portfolio of life sciences products under the leadership of CEO Bernd Brust. Read PE Hub’s brief on the deal, and more on GTCR’s 2019 transaction here.
That’s it! Have a great week ahead, and as always, write to me at springle@buyoutsinsider.com with any tips, comments or just to say hello!
Read the full wire commentary on PE Hub...
Also of note (may require subscriptions) Under the radar: Intermediate Capital Group has built a reputation as one of the prominent investors in GP-led secondaries deals over the past few years. But quietly, the firm also has built up an LP fund investing group, led by ex-Pomona Capital executives. ICG recently completed its first LP portfolio deal of size, around €400 million ($475 million) of PE fund stakes from Aberdeen Standard Investments, sources told Buyouts. Read it here.
Double-take: Limited partnership agreements may be starting to put LPs at a disadvantage when it comes to co-investing, according to research by MJ Hudson. Although 94 percent of funds contemplate co-investments in their LPAs, just 45 percent require co-investments to be on “substantially similar terms” to the investment made by the main fund, according to the alternative asset management consultancy’s latest Private Equity Fund Terms Research report. Check it out on Secondaries Investor.
Listing: Goldman Sachs Group Inc.’s Petershill Partners said Monday it plans to list an investment vehicle on the London Stock Exchange, taking advantage of a sizzling market for private equity, writes the Wall Street Journal. The London-based business, which invests in private equity and hedge fund firms that collectively manage $187 billion in assets, is tapping into global investors’ desire for juicy returns amid perennially low interest rates, the report says. Read it on WSJ.
PE Deals
They said it “You will see fewer consortium deals, but you will see more co-underwriters partner with GPs to fill that capital structure need that used to be filled by other PE firms.” A managing director at a global asset manager that runs a co-investment program told Private Equity International that co-investments will continue to grow as GPs still prefer to partner with LPs over being a member of a consortium deal.
Today's letter was prepared by Sarah Pringle Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. FIND OUT MOREPlease visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.
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