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Hg details plans to grow AuditBoard; EQT acquires majority stake in CluePoints

Good morning, PE Hubsters! Rafael Canton here with the Wire. I am continuing to fill in for Chris Witkowskyon Wednesdays over the next few weeks.

Today, we’ll start with a deep dive into private equity firm Hg’s $3 billion acquisition of AuditBoard.

Next, we have an exclusive interview on a deal that will see EQT take a majority stake in AI software provider CluePoints.

Finally, we have the debut of the third season of the Disruption Matters podcast miniseries, which delves into the role AI is playing in the private markets.

Pursuing organic growth

In May, Hg announced that it acquired AuditBoard for $3 billion. I chatted with Hg directors Alexander Johnson and Jonathan Wulkan about the deal and what opportunities the firm sees to grow the company.

Subscribe to learn more about Hg’s interest in AuditBoard.

Huge momentum

PE Hub Europe broke the news today thatEQT is acquiring a majority stake in CluePoints, a provider of AI software provider for data interrogation and analytics in clinical trials. It is a joint strategy investment EQT, involving its Healthcare Growth Strategy and its Growth Fund.

Upgrade to learn more about this AI-related deal.

What AI can and can’t do

Continuing the AI theme, we now have a look within the private equity industry. PEI podcast miniseries The Disruption Matters has returned for season three. The season will highlight discussions from industry experts on how private markets can best use today’s technology to create value.

To kick off this technology focus, the first episode will revolve around what current AI technology can and can’t do. Other topics that come up in the season three debut include the potential of AI-related tech, how firms need to select their use cases wisely, tailored to the unique needs of a given business. 

How PE firms use AI has been a focus for PE Hub. I covered in March how private equity firms are continuing to explore how to utilize generative AI in dealmaking and dealsourcing. While it’s still early, it’s something worth monitoring especially if it can help PE firms find the right targets or grow portfolio companies.

Subscribe to read more about the podcast.

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

Michael Schoeck will have the Wire for you tomorrow.

Cheers,

Rafael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Vista Equity Partners is out with its next batch of funds, launching its mid-market-focused Foundation and Endeavor pools shortly after closing the extended fundraising for its flagship vehicle, two sources told Buyouts.

Consultancy Bain & Company found the agribusiness sector was among a select quartet to register growth in 2023 by passing on price increases to consumers as input costs rose. (Agri Investor)

Investment in broadband connectivity remains inadequate to deliver the many economic and social benefits that internet access can deliver. Public and private sector alignment could change that. (Infrastructure Investor)

With private equity impact funds launched by TPG, Bain Capital and KKR now maturing, a picture of generalist private equity impact returns is starting to emerge. (New Private Markets)

The California Public Employees’ Retirement System has committed $100 million to Nuveen Real Estate’s US affordable housing fund, marking the pension plan’s inaugural investment with the New York-based manager. (Private Equity real Estate)

They said it

“AuditBoard has had some nice international traction, but it’s still relatively early days. 10 percent of its revenues are international, and that is growing faster than the rest of the business. We think we can help the management team accelerate that international growth, which is something we’ve done before.”

— Jonathan Wulkan, director at Hg told PE Hub about growth opportunities at AuditBoard