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Stellex details early exit from Continental Global Material Handling, plus 5 sportwear deals

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter.

Stellex Capital Management said it rapidly grew a material handling conveyor systems company in three years. I had an interesting conversation with a managing director at the firm who detailed the opportunities that helped Stellex achieve that feat.

Next, we are looking at the growing popularity of “athleisure” and “fanwear” with a handful of recent PE-backed deals.

Also, we have some analysis from KPMG and EY on the first half of 2024. Deals are picking up, albeit at a slower-than-expected pace. More on that below.

And finally, we note a milestone for an advisory firm.

Strong future

Stellex Capital Management rapidly grew Continental Global Material Handling’s revenue during its three-year hold, buoyed in part by increased demand for automation, Michael Livanos, a managing director at the New York firm, told me in an in-depth interview about the portfolio company.

Earlier in June, Stellex announced the sale of Continental, a Winfield, Alabama-based manufacturer of material handling conveyor systems, to Precision Pulley & Idler. The company helps businesses transport bulk goods, such as gravel, sand, iron ore and agricultural products.

Premium subscribers of the Wire have access to more, including opportunities that pushed Continental’s growth.

Athleisure

Comfortable clothing, especially with a sports theme, is on trend these days, and private equity firms are playing the game, writes Rafael Canton.

Rafael rounded up five deals involving athletic apparel, and premium subscribers have access to all the deals in this story.

Survey says

We are halfway through the year, and it’s time to take stock.

Upgrade to the premium version of the Wire to learn about KPMG and EY’s analysis, including 2024 first half performance.

Celebrate good times

Shoutout to Monument Group, a Boston-based capital advisory firm, that is celebrating its thirty year anniversary this week.

Founded in 1994, Monument Group has grown into a global firm with more than 50 professionals and offices in the US, Europe and Asia, the firm said in its celebratory statement.

That’s it for today. You can always reach me at obey.m@pei.group for news tips.

MK Flynn will be back with the newsletter on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

GTCR is raising capital for a new strategy it launched this year, led by a former executive with Silver Point, Jason Prager. (Buyouts)

Climate capital needs far outstrip private equity’s ability to supply. If 20% of expected climate investment is accounted for by private markets, TPG executive chairman Jim Coulter said, "spending... will be bigger than the entire private equity industry is today." (Buyouts)

NPS shows LPs are keen not to miss the boat on continuation funds: Institutional investors can no longer ignore the fact that exposure to high-quality assets is increasingly accessed via the secondaries market. (Private Equity International)

Labor principles are rising up on LPs’ ESG agendas: CalPERS, the New York State Common Retirement Fund and the New York City public pension funds have adopted dedicated labor principles policies for their portfolios and fund managers in the past year. (New Private Markets)

Two fund closings this week demonstrate how targeting below-average deal sizes can give managers an edge. (Private Equity Real Estate)

Carbon Equity, which invests capital from individual investors into climate private equity and venture capital funds, has raised around half its Fund III target, the firm said this week. (New Private Markets)

Orix USA, an asset manager with private equity, real estate and private credit funds, is realigning its private credit business, and has hired Nik Singhal, formerly of BlackRock, as its group head of direct lending. (Private Debt Investor)

When it comes to implementing ESG principles, momentum has been lost among North American investors, according to a survey by placement agent Capstone Partners. (New Private Markets)

They said it

“We brought in a new operations team in an effort to improve the plant, operations and supply chain efficiencies and then unleash its engineering talent. That allowed the company to go from being effectively a money-losing enterprise with a negative EBITDA to being profitable. It happened in a shorter period than we imagined.”

— Michael Livanos, a managing director at Stellex Capital Management, after the firm announced the sale of Continental Global Material Handling to Precision Pulley & Idler.