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nVent thermal business carveout; Neuberger Berman joins Audax to recap FDH Aero; EnCap closes second energy transition LP

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

First we’ll have a look at my latest scoop on a potential PE carveout opportunity involving the thermal management division of publicly-listed nVent Electric.

Top deal news this morning involve two closings: Kline Hill Partners closing an equity investment in Agile Displays and Audax Private Equity closing a minority recap in a 2017 investment, FDH Aero.

And we’ll wind up today with two energy transition bits: Mercom Capital Group’s Q1 2024 solar market update, which highlights M&A activity across the US solar market, and EnCap Investments’ closing of its second energy transition fund, EnCap Energy Transition II.

Thermal corporate carveout

nVent Electric is pursuing a divestment of its thermal management division that includes the Raychem brand of heat tracing systems, sources briefed told PE Hub.

Upgrade to the premium version of the Wire to read more about the carveout.

Flashy grocery displays

Kline Hill Partners has announced the completion of an equity investment in Agile Displays, a provider of electronic shelf labeling systems for grocery stores and other retailers.

Aerospace recap

Audax Private Equity has announced the closing of a minority recapitalization of portfolio company FDH Aero, a distributor of C-Class hardware, electronics and chemical components for aerospace OEM and aftermarket companies.

Upgrade to the premium version of the Wire for more daily deal news.

Solar deal activity drops

Corporate M&A activity for the US solar market plunged in the first quarter of 2024, while a persistent large volume of project portfolio deal activity helped the solar market stay afloat, according to Mercom Capital Group, a clean energy PR and research firm.

Upgrade to the premium version of the Wire for solar M&A data from the report.

Sophomore energy transition funding

Elsewhere in the energy transition, funds are closing for new equity investments. EnCap Investments, a Houston-based energy PE investor,announced the closing of its second energy transition equities fund, EnCap Energy Transition II, with committed capital of $1.5 billion.

To read more about EnCap’s energy transition deal activity, including a slew of PE Hub exclusive articles, upgrade to the premium version of the Wire.

That’s it for me today. Stay tuned for the Friday Wire to wrap up the week with the one and only Obey Martin Manayiti.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

CenterOak Partners, launched by a group of ex-Brazos Private Equity executives, wants to raise its largest fund yet in the challenging fundraising environment, sources told Buyouts.

Quilvest Capital Partners is betting big on secondaries, with “nine live GP-led opportunities that need to close in the next four to six weeks,” Charles Aponso, newly made partner in April, told PE Hub Europe. “That’s just the near-term pipeline.”

In the latest 'Off-duty' column on Buyouts, FTV’s Brad Bernstein talks about being a BBQ pitmaster, wake surfing and Black Manhattans.

TJC, formerly known as the Jordan Company, is back out in the secondaries market seeking another continuation fund vehicle. The New York-headquartered investment firm is running a process to raise a multi-asset continuation fund, four sources told Secondaries Investor.

They said it

“We’re pleased to back Agile’s strategic growth initiatives as the demand for advanced wireless ESL products continues to increase worldwide, along with meeting the needs of today’s increasingly sophisticated global retail customers,”

— David Swanson, managing director at Kline Hill Partners, said about the firm’s investment in Agile Displays.