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Inflexion Private Equity's portfolio buys a US manufacturer; 6 waste management PE backed deals

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter.

We are starting this morning with the news that Detectortesters, a portfolio company of London-based Inflexion Private Equity Partners, is acquiring a US-based testing equipment manufacturer.

Up next, there've been a couple of energy-focused deals, including one from KKR’s portfolio company Crescent Energy Company.

And for the trend of the week, we have a listicle featuring six PE-backed deals focusing on waste management services. I also have analysis from Brandon Bauer at William Blair on why waste management deals look attractive to PE.

Testing equipment

Detectortesters, a portfolio company of London-based Inflexion Private Equity Partners, has acquired the Hose Monster Company, a Lake Zurich, Illinois-based flow testing equipment manufacturer.

Premium subscribers to the Wire have access to more on this deal.

Power up

We had a couple of energy focused deals this week. Here's one:

Crescent Energy Company, which is backed by KKR, has agreed to acquire SilverBow Resources, a Houston-based energy company, for $2.1 billion.

Click here for our recent energy focused deal news.

Cleaning up

PE Hub has seen a flurry of deals in the waste management space. We rounded up half a dozen deals announced this year.

Premium subscribers have access to all the six deals.

Deeper analysis

I turned to Brandon Bauer, who is in the supply chain & commercial services investment banking team at William Blair, on why waste management deals are compelling to PE.

What makes this sector attractive to PE investors?

Waste and recycling services are regulatory-driven, non-discretionary, and critical to the operations of a customer’s facility or business.

Upgrade to the premium version of the Wire for the rest of what Bauer had to say.

That’s it for today. You can always reach me at obey.m@pei.group for news tips.

MK Flynn will be back with the newsletter on Monday.

Have a nice weekend,

Obey

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

PE firms have been busy picking up music catalogues and publishing assets to benefit from this growth. Blackstone recently joined the chorus with a bid to take London-listed music catalogue Hipgnosis Songs Fund private, with an offer that values Hipgnosis around $1.6 billion. PE Hub Europe looks at five more music catalogue deals that caught their attention.

A power play in Nepal: Most infrastructure GPs may not have yet considered Nepal as an investment destination but the country’s hydropower sector is rife with opportunity. (Infrastructure Investor)

From what Private Equity International learned during PEI Group’s second annual Women in Private Markets Summit in New York this week, it looks like the balance of power is set to stay with LPs for a little while longer before GPs can regain their footing. 

Three observations about Starwood’s takeover bid for ESR: The potential combination of two top 10 PERE 100 firms is unlike other private real estate M&A deals for multiple reasons. (Private Equity Real Estate)

Why hedging rates has become a wild ride: It may not sound the most interesting talking point on the face of it but looks can be deceptive: interest rate hedging is one of private debt’s hot topics in a period of wildly fluctuating rate moves (both actual and expected). (Private Debt Investor)

While impact secondaries transactions remain a relatively small part of overall secondaries volume, these vehicles can offer more certainty around impact-linked growth stories compared with their blind-pool counterparts. (Secondaries Investor)

An LP at this week's Women in Private Markets Summit North America says GPs need to understand the importance of managing reserves, especially in light of how dilutive new rounds of financing can be for companies that haven't yet broken out. (Venture Capital Journal)

They said it

“Compelling market tailwinds from US industrial output growth, manufacturing onshoring, bipartisan policy incentives such as the CHIPS and Science Act and outsourcing [are] increasing the need for industrial waste management services.”

— EQT, in a statement following its recent acquisition of Heritage Environment Services, a provider of industrial waste management services.