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KSL sees continuation fund as best fit for Alterra; Main Post goes for franchisee

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

We’ve heard from sources that exits should be a little easier in 2024 than last year. But for some portfolio companies, the secondaries route is still the best option. That’s according to KSL Capital Partners’ Peter McDermott, who talks Obey Martin Manayiti through the sale of ski resort business Alterra Mountain Co into a continuation fund.

Then we take a look at a business model that just keeps attracting private equity interest – franchising. This time it’s in the world of residential garage door repair, with Main Post Partners making the investment.

Après-ski

There have been tentative signs that exits are getting a little easier – over on PE Hub Europe yesterday we looked at a couple of listings by private equity firms, for instance – but for some types of portfolio companies, the best option right now is still a continuation fund, KSL Capital Partners’ chiefinvestment officer Peter McDermott told Obey Martin Manayiti.

Find out why in the subscriber version of the Wire.

Franchise building

Private equity just can’t get enough of the franchise business model, with firms investing in all sorts of companies that use the structure.

Main Post Partners has just made an investment in Highland Arms Enterprises.

Read more about the business in the subscriber version of the Wire.

For more franchise deals – and why dealmakers like them so much – check out Rafael Canton’sin-depth piece here.

OK that’s it from me. Your Wire franchisee tomorrow will be Chris Witkowsky.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Canadian pension system OPTrust is selling a small portion of its private equity portfolio in a targeted sale that is part of the larger flow of LP secondaries hitting the market this year, sources told Buyouts.

London-based Ancala Partners has completed its largest-ever fundraise to close the Ancala Infrastructure Fund III on €1.4 billion, above its original €1.2 billion target. The fund launched in early 2022. (Infrastructure Investor)

European buyout firm Astorg is seeking to tap the secondaries market for a second time for a GP-led process that could be worth more than €1 billion, Secondaries Investor has learned.

Inside Manulife Investment Management’s revamped real estate business: The Canadian insurer has new goals for its global real estate growth strategy, including expanding into third-party management. PERE spoke with the firm’s leadership on the path forward.

After nearly 27 years, Scott Lebovitz, who joined Goldman Sachs’ investment banking division as an analyst in 1997 and most recently served as co-head of infrastructure investing, will leave the firm this week. He joins private equity group TPG as partner and head of infrastructure for its TPG Rise Climate platform. (Infrastructure Investor)

The heightened pace of secondaries fundraising will likely produce a larger and more liquid market for sellers, speakers said at this year’s Private Funds CFO New York Forum during a panel focused on continuation funds.