Good morning, Hubsters. MK Flynn here with the Wire.
As supply chain disruptions mount from covid and the war in Ukraine, we expect to see more and more interest from PE firms in logistics. Today, family office investor Kidd & Company and private investment firm Firmament said they have sold Logistyx Technologies, which makes software for the shipping industry, to E2open Parent Holdings for $185 million.
And earlier in the week, STG Logistics, which is backed by Wind Point Partners and Oaktree Capital Management, said it has acquired the intermodal division of XPO Logistics, a provider of container transportation services.
Obey is looking into PE deals that aim to solve supply chain problems. If you’re working on one, shoot him an email at obey.m@peimedia.com.
Healthcare spotlight. PE Hub’s series on private equity firms investing in healthcare continues with insights from Elliot Cooperstone, founder and managing partner of InTandem Capital Partners. InTandem’s recent investments include Vivo Infusion in March and Providence Care in January. The firm also made add-on acquisitions in January for its platform investment Ivy Fertility.
“There is also a chink in the PE compensation model where approximately 10 percent of company equity is set aside for management from the start of a new deal, in the form of a stock option plan for them,” Cooperstone said. “The conventional wisdom in PE has been that management should play in that pool and everyone else would not value or understand or be motivated by it. We believe that is wrong.”
He noted that when there is a big capital gain, shareholders and senior management share in that success and everyone else does not.
“For all of those reasons, we launched Private Equity for Greater Good which is a commitment to share the success that is achieved during the investment period with all employees,” he said.
Read Aaron’s full story, and contact him with healthcare deals and profile pitches at aaron.w@peimedia.com.
SPAC watch. Tough new SEC rules could chill SPACs, which raised a record $162.5bn through 613 IPOs last year, writes Regulatory Compliance Watch’s Bill Myers. For more, read the full story.
Women’s History Month. As March comes to an end, it’s a good moment to take another look at the dealmakers PE Hub and Buyouts named Women in private equity: The class of 2022.
Read the report, in which we profile 10 stellar dealmakers, including Sherrese Clarke Soares, founder, HarbourView Equity Partners; Angela Zhang, director, GI Partners; Clara Jackson, director, TA Associates; and Anjali Jolly, partner, Acon Investments.
Last chance. The deadline for nominations for Private Equity International’s Women of Influence in Private Markets has been extended to end of day tomorrow, Friday, April 1. Submit your nomination here.
That’s all for now.
Until tomorrow,
MK
Read the full wire commentary on PE Hub ...
