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Harlan Capital makes IP play; Kinterra adds to copper collection

Good morning, PE Hubsters! Rafael Canton here with the US edition of the Wire from the New York newsroom.

As we hit the middle point of the week, first, we’ll start with a deep dive into Harlan Capital Partners’ focus on IP in its recent investment in Nilly, a financial technology company with an online marketplace that allows college student athletes to maximize the value of their Name, Image, and Likeness (NIL).

Then, we have a deal from this morning. Kinterra Capital’s affiliate Southwest Critical Materials has acquired the Pumpkin Hollow Copper Project from Nevada Copper.

Finally, we have a Q2 update on the restaurant industry from Houlihan Lokey and a look at some past restaurant-related private equity deals in 2024.

IP state of mind

Private investment firm Harlan Capital Partners sees an opportunity investing in intellectual property. The firm had that mindset when it made an investment in Nilly, an online marketplace that allows college student athletes to maximize the value of their Name, Image, and Likeness (NIL). To learn more about the deal I spoke to Josh Harlan, founder and managing partner at Harlan Capital.

Upgrade to the premium version of the Wire to learn more about Harlan Capital’s focus on IP and the details behind the Nilly deal.

Headed upstream

Kinterra Capital’s affiliate Southwest Critical Materials has acquired the Pumpkin Hollow Copper Project from Nevada Copper.

There’s been additional interest in copper alloys recently. Yesterday, Luxembourg-based Astorg announced it has entered into exclusive negotiations to buy a majority stake in Lebronze Alloys (LBA). Headquartered in Suippes, France, LBA offers a wide range of specialty copper alloys, each with specific properties.

Premium subscribers to the Wire can learn more about this morning deal.

Restaurant review

M&A deals have slowed in restaurants, but there’s still been high-value and opportunistic deals according to Houlihan Lokey’s Q2 restaurants update.

In July, private equity firms Mistral Equity Partners and Verlinvest acquired a majority stake in Insomnia Cookies from Krispy Kreme. The deal is for $127.4 million and an additional $45 million after an Insomnia refinancing of intercompany debt. Insomnia is eyeing significant growth in terms of store openings both in the US and global markets as well.

In April, Blackstone acquired Tropical Smoothie Café from Levine Leichtman Capital Partners for $2 billion. LLCP managing partner Matthew Frankel told PE Hub that Tropical Smoothie Café grew from 840 stores to over 1,400 stores during the firm’s ownership. The annual pace of openings has grown by over 70 percent during LLCP’s ownership period.

PE Hub will be keeping an eye on restaurant related PE deals as we head into 2025.

Premium subscribers can read insights from the Houlihan Lokey report.

That’s it from me today. If you have any questions, thoughts, or want to chat, please email me at rafael.c@pei.group.

Tomorrow, Craig McGlashan will be with you for the Europe edition of the Wire, and Michael Schoeck will bring you the US edition.

Cheers,

Rafael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Lindsay Goldberg is back in the market with its sixth flagship buyout offering, aiming for its largest raise in over a decade. Lindsay Goldberg VI is targeting $4 billion, with a $4.5 billion cap, according to Teachers’ Retirement System of Louisiana’s board documents. (Buyouts)

David Perez, managing partner and co-founder of Avance Investment Management, believes certain principles and behaviors are vital to a successful emerging manager fundraise – especially a first-time fund. He spoke with Buyouts and gave 10 tips for raising a debut fund.

Booming growth in the GP-led market has driven investor demand in secondaries, LGT Capital Partners’ co-head of secondaries André Aubert told Secondaries Investor on the back of the firm’s more than $7 billion raise for its latest flagship.

DEG's non-financial objectives — which comprise KPIs relating to impact and CO2 reduction — does not mean it is willing to take a hit on financial returns, according to senior director Gunnar Stork. (New Private Markets)

Stephen Scherr, who left Wall Street after more than 28 years with Goldman Sachs (the last three of them as chief financial officer), has returned to the investment world after a two-year sojourn at troubled rent-a-car giant Hertz. Scherr has been named co-president at Pretium, a specialised investment firm focusing on US residential real estate, residential credit and corporate credit. (Private Debt Investor)

They said it

“We’ve been interested since day one in looking at media rights, royalties and other forms of intellectual property and trying to provide flexible financing solutions to innovative, high-growth companies that are doing interesting things with those kinds of assets and those companies tend to be pretty poorly served by the traditional banking system.”

— Josh Harlan, founder and managing partner, Harlan Capital Partners on the firm’s investment in Nilly