Happy Fri-yay, Hubsters! Aaron here with a surprisingly jam-packed summer Friday edition of the Wire.
OMERS Private Equity has acquired Pueblo Mechanical & Controls from Huron Capital Partners for an undisclosed amount. Pueblo provides HVAC and plumbing installation, retrofit and repair services to customers in education, municipal, and healthcare end markets.
OMERS will provide resources and expertise to further accelerate the company’s growth and support its strategic expansion through M&A.
This goes hand and hand with a story my colleague Iris Dorbian wrote this week about how plumbing and HVAC services will prove recession resistant. PE buyers are snatching up these businesses.
Read the story by Iris here.
Strategic alliance. KKR is teaming up with Loop Capital, a Black-owned and led investment bank headquartered in Chicago. Loop will provide services to KKR's equity capital markets (ECM) clients, which include private companies and private equity sponsors.
According to the press release, this move will bolster KKR’s capacity to serve as a full-service underwriter for initial public offerings for both KKR portfolio companies and non-KKR affiliated companies. The strategic alliance will also broaden KKR’s distribution base for ECM transactions by providing the firm with access to Loop Capital’s complementary base of institutional investors.
Future of healthcare. You should not be surprised I am talking about this topic. A recent survey by Bain & Company shows that “new models” of healthcare will capture 30 percent of the US market over the next eight years as retailers, payer-owned providers and advanced primary care disruptors continue to take market share.
“As the industry continues to shift toward value-based reimbursement, there has been an increase of nontraditional players and models in primary care,” said Dr. Erin Ney, an expert associate partner at Bain & Company. “As we look ahead, rising costs, physician shortages, consumerism and digital disruption will continue putting pressure on traditional healthcare models, paving the way for additional growth of models that promote more efficient care, improved outcomes and reduced total cost.”
This survey is pretty telling about where the sector is heading. To read more, click here.
The time is now. Sticking on the healthcare beat: there is no better time to invest in healthcare, according to Rick Elfman, managing director at Sterling Partners.
Elfman has been with Sterling since 1987 (the year I was born, yikes!) and has been a healthcare investor throughout the years. I spoke with him about the firms’ approach and how Aging baby boomers are driving rollups of physician practices in areas like dermatology, vision and physical therapy.
Read the whole story here.
Sayonara. Finally, PE pros can rest easy this weekend. It looks like the tax on carried interest won't be raised after all. It seems Senator Kyrsten Sinema (D-AZ) has succeeded in removing the carried interest provision from the Inflation Reduction Act of 2022, which needs all 50 members of the Democrat caucus to pass. That's one less thing to worry about – at least for now.
That is a wrap for me! I am going to be in Cape Cod for the first time ever this weekend. I had many great accomplishments as an athlete when I was younger but one thing that I never achieved was to be invited to play in the CC summer baseball league. The league playoffs start today, and I am going to watch the best college players in the country! Until next week…
Cheers,
Aaron
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