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Hg brings on ex-Vista big for North America push; Morgan Stanley Capital to acquire Apex Companies

Morning Hubsters!

Before we get started, a quick reminder that we’ve opened nominations for our Deal of the Year awards for top exits in 2022 (a concept that seems to have gained even more significance in the tough exit environment).

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year. Deadline is Monday, Feb. 13.

To answer the perennial question – we need as much info as possible, financial and otherwise, and yes, we keep it all strictly confidential. In the case of winners, we’ll get back in touch to find out exactly what info we can use in our write-ups.

For more information, the application and a review of past winners, visit us here.

Big hire: We’ve been waiting to see where this person landed. Software investor Hg said today it is hiring ex-Vista Equity executive Alan Cline to lead its activity in North America. Cline left Vista in 2021 after spending more than a decade at the firm, first building up its middle-market focused Foundation funds and then co-leading its smaller-market Endeavor strategy. He worked on Vista's acquisitions of software firms like Accruent, Autotask Corp, LogicMonitor and Bullhorn, Reuters reported. Read more here on PE Hub.

Consulting: As the US contends with its crumbling infrastructure, deals targeting the sector, especially companies that provide services to infra companies, have become more of a target for private equity.

Morgan Stanley Capital Partners will announce today that it will acquire Apex Companies, which provides environmental and infrastructure consulting and engineering services, from Sentinel Capital Partners, writes Obey Martin Manayiti on PE Hub. Apex works with clients at the federal, state and municipal level as well as private sector clients in the retail, industrial, real estate, technology, energy and financial services market. This includes municipal water infra markets, which are regulatory-driven.

Some of the opportunities lie in the work that Apex does to help companies provide safe environments for workers through its health and safety division, according to Gian Turco, vice president with Morgan Stanley Capital. Read more here on PE Hub.

Exit: Orangewood Partners will announce today it’s exited ABTB, a Louisville, Kentucky Taco Bell franchise. The firm doubled Ebitda during its ownership period, writes Aaron Weitzman on PE Hub.

“We have a specific investment model, which starts with a theme. With regards to our Taco Bell franchise investment, we are investing behind food service, sophistication, and convenience – which we think are long-term tailwinds in the consumer and food sectors – not just restaurants or quick service restaurants more broadly,” said Alan Goldfarb, founder and managing partner of Orangewood. Read more here on PE Hub.

That’s it for me! Reach me with tips n’ gossip, feedback or book recs at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Ten big changes in fundraising: The record-breaking windfall of recent years is over. Steep challenges abound in the new landscape, but nimble thinking offers rarefied opportunities. (Buyouts)

Private Equity International is out with a couple of special reports, each with a slew of features and analysis: "Responsible Investment 2023," which examines how managers are working to align with industry best practices on ESG, while responding to the needs of investors, regulators and other stakeholders; and "Democratisation Report 2023," which examines the hurdles faced by retail investors and fund managers alike as the industry is opened up, as well as the opportunities that await should the process be completed successfully.

Emerging manager fundraising remains exceptionally tough. But some sector specialists are still succeeding. (Infrastructure Investor)

Fund managers are pushing DEI initiatives at the portfolio company level, with board level measurement and representation targets and company-wide inclusion initiatives. (New Private Markets)

Blackstone's Jon Gray talks investor reactions to redemption issues: "Rebuilding momentum takes time," the firm's president and chief operating officer said, but "the tone of conversations with clients has improved." (Private Debt Investor)

Scott Ramsower, head of private equity funds at Teacher Retirement System of Texas, explains why the public pension fund is leaning into partnerships and spending more time on due diligence. (Private Debt Investor)

"Ariel Investments is expanding into private equity with a new fund aimed at filling what the asset manager sees as unmet demand for minority-led suppliers to Fortune 500 companies." (Wall Street Journal)

"Greybull Capital, the private equity group associated with the 2019 collapse of British Steel, has emerged as a potential late bidder for Britishvolt." (Financial Times)

"Cvent Holding Corp. is exploring a sale that could value the cloud-based event-software provider at upward of $4 billion, according to people familiar with the matter." (Wall Street Journal)

"A special-purpose acquisition company formed by private-equity firm L Catterton has agreed to combine with the electric-vehicle maker Lotus Technology. The deal would value the combined entity at about $5.4 billion, including cash in the SPAC’s trust account." (Wall Street Journal)

"Credit Suisse Group AG plans to shift an asset management business that helps buyout firms raise funds to its First Boston spinout as the firm works to reshape its investment bank after losses." (Bloomberg)

"The Enterprise Center is blazing a trail with its $50 million Innovative Capital Growth Fund, demonstrating how private sector investment can be leveraged through the Small Business Administration's Small Business Invest Companies program to increase private-equity investment in Black-owned businesses." (Forbes)

"US healthcare companies are sinking into debt distress as they struggle to contend with rising interest rates and labour costs after the sector borrowed heavily to fund a dealmaking boom." (Financial Times)