Private Equity Wire Newsletter

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NEWSLETTER | 29 May 2020

Social media and data platforms take centre stage

Monday was a bank holiday in the UK and many took advantage of the newly relaxed lockdown rules to enjoy the sunshine in open spaces. Meanwhile, the handling of the ongoing pandemic and its effect on the economy continue to dominate the news.

Dominic Cummings, Chief Adviser to Prime Minister Boris Johnson came under fire after it was revealed that he potentially broke lockdown rules to travel from London to Durham while displaying coronavirus symptoms.

Calls for his resignation were waved aside by Boris Johnson when he addressed the nation on Monday. The government's response to the Cummings incident though has continued to inflame public sentiment through rest of the week.

In the US, riots broke out following the death in police custody of George Floyd. The incident has brought race relations to the forefront of the news once more, and opened a discussion about the role of social media in spreading information, as well as misinformation.

Twitter flagged President Donald Trump’s tweets regarding the riots as violating the platform’s rules surrounding inciting violence, just a day after Facebook CEO Mark Zuckerberg said he does not believe social media platforms should be ‘arbiters of truth’ and responsible for fact-checking.

As the world largely continues to self-isolate and work from home, social media and online conferencing platforms have become the new backbone of businesses.

PE Wire has reported on GPs increased interest in these tools in the past and this week we learned that KKR, together with tech entrepreneur Franek Sodzawiczny, are set to form Global Technical Realty, a new build-to-suit and roll-up acquisition data centre platform, for large tech companies to cater to the increased global demand for more data.

In our guest article this week, Paul Aversano and Rino Nori of Alvarez & Marsal’s Transaction Advisory Group discuss how constant communication and a quick adoption of online tools and new technologies is essential for investors to maintain robust relationships with their clients and continue to practice good due diligence from the home office.

The inability of governments and its leaders to project a calm and steady front against current existential, social and financial issues is being felt the world over.

Correspondingly, the private equity industry is facing a crisis of uncertainty, with many firms opting to invest in minority stakes to mitigate risk at this time. In our interview with Franz Hoerhager, founder and head of Mezzanine Management, we discussed what the future might look like for healthcare investments in the CEE region.

Karin Wasteson,
Editor, Private Equity Wire

"We still have dry powder and expect to see more opportunities later this year," says Mezzanine Management founder

Fri | 29 May 2020, 12:28

Q&A with Franz Hoerhager, founder and head of Mezzanine Management, manager to the AMC funds which recently exited Zagreb-based contract research organisation Optimapharm.

Fri | 29 May 2020, 12:28

By Paul Aversano and Rino Nori of Alvarez & Marsal’s Transaction Advisory Group – Historically, the field work phase of pre-acquisition due diligence was almost always performed on-site and in-person. However, that shifted almost instantly in early March to being performed exclusively on a remote basis following wide-spread social distancing and shelter-in-place protocols.

Fri | 29 May 2020, 12:28

Aquiline Capital Partners, a private equity firm that specialises in financial services and technology, has held a final close of its fourth fund, the Aquiline Financial Services Fund IV.

Fri | 29 May 2020, 12:28

Warranty & Indemnity (W&I) insurance is likely to become more sought after in the coming months as a result of Covid-19, according to Lockton, one of the world’s largest privately held independent insurance brokers.

Fri | 29 May 2020, 12:28

KKR and data centre entrepreneur Franek Sodzawiczny are forming Global Technical Realty, a new build-to-suit and roll-up acquisition data centre platform, to develop and operate data centres for large tech companies across Europe as the PE group sees continued demand for data.

Nordic Capital to acquire Max Matthiessen

Fri | 29 May 2020, 12:28

Nordic Capital has agreed to acquire Max Matthiessen, a financial advisor focused on pensions, insurance and investment in the Nordics, from Willis Towers Watson.

Fri | 29 May 2020, 12:28

Alternatives allocators, to both hedge fund and private equity style vehicles, have assets ready to deploy as standardisation of ESG standards occurs, according to Jim Neumann, CIO of Sussex Partners.