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Northlane sells VMG to Incline; KKR bets on healthtech; Ray Hill joins Arsenal Capital

Good morning, Hubsters. Michael Schoeck back with you for the Thursday Wire.

There’s encouraging news for dealmakers in Blackstone’s earnings, announced earlier this morning.

“Blackstone reported strong first-quarter results, highlighted by accelerating momentum in our private credit and private wealth businesses,” Stephen A. Schwarzman, chairman and CEO, said. “We are seeing a strengthening transaction environment and attractive opportunities to deploy capital. We are well positioned to navigate today’s dynamic market landscape, with a portfolio concentrated in compelling sectors and nearly $200 billion of dry powder available to invest.”

In deal news, healthcare is the big theme of the day on the Hub.

First up is an exit by Northlane Capital Partners of a healthcare compliance, risk and transactional services company to Incline Equity Partners.

And we’ll share an excerpt from my colleague Rafael Canton’s interview with KKR partner Ali Satvat about the buyout firm’s recent acquisition of SunFire, a healthcare software provider catering to the Medicare market.

Elsewhere in the healthcare market, we’ll hear about a new senior-level operating partner hire at Arsenal Capital Partners.

And lastly today we’ll take a look at my latest scoop.

First up to plate is Northlane.

Growth trajectory

Northlane Capital Partners today announced an exit of VMG Health to Incline Equity Partners. The company’s employees will retain an equity ownership position following the deal closing.

Upgrade to the premium version of the Wire to learn more.

Medicare efficiencies shine through

The intersection of healthcare and information technology is of rising interest to PE firms, including KKR. Earlier in April, KKR announced the acquisition of SunFire, a developer of software and services for the Medicare market, from Stone Point Capital, which retained a minority interest.

To find out more, PE Hub’s Rafael Canton spoke to Ali Satvat, partner and head of KKR’s healthcare strategic growth platform.

Subscribers may read the interview.

Adding to the Pharmaceutical Arsenal

Arsenal Capital Partners today announced the hiring of Raymond Hill as an operating partner in its healthcare group. Hill focuses on pharmaceutical services.

Upgrade to read more.

Electrifying the grid

Wrapping up today I’m highlighting my latest scoop on a power maintenance company in an advanced sale process. First Reserve recently advanced bidders into the second round of an auction for an electrical transmission and distribution maintenance service company, sources told me.

To find out more, subscribe to the premium version.

That’s it for me today. As always, you can reach me at michael.s@pei.group

Obey Martin Manayiti will be here tomorrow to close out the week.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

GP-led secondaries tipped as ‘new normal’ for private equity exits. Reach Capital is seeing non-traditional buyers in secondaries syndications, says co-founder and managing partner William Barrett. (PE Hub Europe)

Evergreen fund valuations should be ‘as current as possible’, says Partners Group: Speaking at an event in Hong Kong, the firm's head of APAC private wealth said its 'critical' that open-ended funds are valued frequently enough to assist subscriptions and redemptions. (Private Equity International)

Astarte Capital closes $325m impact forestry fund: The debut forestry fund surpassed its $200m target and will be deployed exclusively in Paraguay. (New Private Markets)

Thames Water is a public-private failure: An inability to think long term has created a straitjacket that will be hard and costly to break out of. (Infrastructure Investor)

SOSV raises largest deep tech fund yet, but misses target: 'We did have indications that the fundraise could close at over $400m right up until the crash of Silicon Valley Bank in March of 2023,' founder Sean O’Sullivan tells Venture Capital Journal.

They said it

“Since our investment in 2020, we have worked closely with (VMG Health) to enhance its growth trajectory through service line expansion, strategic acquisitions, and key personnel additions – during this time period, the employee base has almost doubled. VMG Health has solidified its position as a leading healthcare advisory firm, offering indispensable solutions to its clients.”

— Eugene Krichevsky, partner at Northlane Capital Partners, on the firm’s exit of VMG Health to Incline Equity Partners