LightBay makes PEO play; Verlinvest and Mistral take piece of Insomnia

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LightBay makes PEO play; Verlinvest and Mistral take piece of Insomnia

Happy Hump Day PE Hubsters! Rafael Canton here with this Wednesday edition of the Wire. First, we are beginning this journey with a scoop. We broke the news this morning that LightBay Capital has acquired professional employer organization (PEO) Questco.

Next on the PE docket, we have a sweet deep dive into Krispy Kreme selling a piece of its majority stake in Insomnia Cookies to Verlinvest and Mistral Equity Partners.

Then, we have a look at a 2024 Private Equity survey from BDO.

Finally, we have a deal from this morning by American Industrial Partners which has acquired Veolia North America’s sulfuric acid regeneration business

On the payroll

PE Hub reporter Obey Martin Manayiti was the first to report this morning that LightBay Capital has acquired professional employer organization (PEO) Questcofrom Parallel49 Equity. Dealmaking in HR has been something Obey has been covering throughout this year. Here are five deals he rounded up earlier in 2024 that highlight the talent shortage and other HR complexities.

Subscribe to read PE Hub’s latest exclusive story.

Late night snack

Earlier in July, it was announced that Krispy Kreme was selling its majority stake in Insomnia Cookies to firms Verlinvest and Mistral Equity Partners. I caught up with Clement Pointillart, managing director at Verlinvest, and Christopher Bradley, managing director at Mistral to learn more about the deal.

Upgrade to the premium version of the Wire to read more on the deep dive.

Potential headwinds

Now, we are looking at the big picture. Private equity dealmaking has been slow throughout the year as high interest rates have been a problem throughout 2024. Despite some clear headwinds, there is hope for a stronger close to the year, according to a 2024 Private Equity survey by BDO.

Subscribers can have access to the survey and learn more from BDO about potential headwinds.

Sulfuric acid

Finally, we have a deal announcement this morning. American Industrial Partners has acquired Veolia North America’s sulfuric acid regeneration business.

Subscribe to the full version of the Wire to learn about this morning’s deal.

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

Michael Schoeck is next up with the Wire tomorrow.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Knox Lane, an emerging manager that formed in 2019, has joined the $1 billion club. The San Francisco-based firm closed its second fund on its $1 billion hard-cap, beating its $850 million target. Fundraising commenced last year and was essentially finished around year-end but stayed open to allow in last-minute investors, sources told Buyouts.

Platinum Equity secured $12.6 billion for a sixth flagship buyout offering after a long stretch on the fundraising trail. (Buyouts)

Federated Hermes Private Equity has a run rate of around 300 top-of-funnel European opportunities a year, despite a more challenging dealmaking environment, Cameron Payne, principal and co-head of EMEA investment, told PE Hub Europe.

US private equity firms Ares Management and Lone Star have provided £755 million ($969 million; €895 million) of preferred equity to enable the manager of London’s Wembley Park to finish the development of 2,000 homes on the estate. (Private Equity Real Estate)

Blue Owl and Pantheon have emerged as the lead buyers on a single-asset continuation fund transaction run by California-headquartered mid-market private equity firm Altamont Capital Partners, Secondaries Investor has learned.

In Private Equity International's latest entry to its 'Meet the LP' series, we we get to know Infinitas Capital, a $750m Swiss family office that is set to double its AUM in the next three years, with roughly 40% in private equity assets.

OMERS Infrastructure “exercised the right fiduciary duty” in writing off its investment in beleaguered UK utility Thames Water, Michael Hill, the Canadian pension fund’s global head of infrastructure, tells Infrastructure Investor.

50 South Capital, the alternative investment arm of Chicago-headquartered financial services giant Northern Trust, has set a $1 billion hard-cap for its latest secondaries fund. (Secondaries Investor)

The International Finance Corporation has made a $50 million commitment to BTG Pactual Timberland Investment Group’s reforestation strategy. (Agri Investor)

GPs and their investors are at odds over key priorities including succession planning and AI implementation, according to a survey by law firm Barnes & Thornburg. (Private Funds CFO)

H1 fundraising returns market to its traditional footing: As some other private markets have recorded surprising figures to varying degrees, agri-food and forestry appears to have slipped back into its happy medium. (Agri Investor)

They said it

“The great resignation and workforce redesign is amplifying the need for PEOs to aid in talent recruitment and retention strategies.”

— Adam Stein, partner and co-founder of LightBay Capital on the firm’s deal to acquire Questco