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Transportation companies coming to market; Chickasaw Nation taps Hicks’ Curt Crofford to form PE firm

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

Today we’re featuring my reporting on freight, transportation and logistics companies entering the M&A pipeline via investment banks.

Shifting to industrials, Innomotics, a Siemens heavy motor business, has reportedly drawn the interest of KPS Capital Partners and Nidec, a Japanese strategic.

Tribal authorities across the US have been queuing up new investment strategies, including middle market PE groups. There’s news on that front today.

And I’ll share a look at a Harris Williams report titled, “Power Components: Systems Control Highlights Growth Opportunity.”

First off is my latest trail of reporting on trucking and shipping companies.

Shipping and trucking companies hit the auction block

Over the past few weeks a number of sources have told me of new M&A opportunities entering the market in the freight, transportation and logistics market.

Backed by CVC Capital Partners and Providence Equity Partners, Dallas-based WWEX Group, the rebranded company formed from the 2021 merger of Worldwide Express and GlobalTranz Enterprises, is newly in the market this month, sources briefed on the matter told PE Hub.

BDT & MSD Partners is exploring buyout interest for Marquette Transportation, a marine towing services company that operates on major US riverways.  

Find more transportation leads by upgrading to the premium version of the Wire.

Heavy motor interest

Carveouts from global industrial companies continue to see steady PE buyout interest. Innomotics, a heavy motors business of Siemens, has reportedly drawn the interest of KPS Capital Partners and Nidec, a Japanese strategic, in an auction worth 3 billion euros ($3.28 billion), Bloomberg reports. 

Tribal PE investing

This week the Chickasaw Nation of Oklahoma announced the formation of Pennington Creek Capital, a private equity firm. The tribal nation hired Hicks Equity Partners managing director Curt Crofford to lead the Pennington Creek investment team, which will be based in Dallas. 

At Hicks, Crofford identified $10 million to $100 million middle market opportunities in specialty manufacturing, food and beverage, and oil and gas, among other markets.

To read more on Pennington Creek, upgrade to the premium version of The Wire.  

Power distribution revitalization

Engineering, procurement and construction (EPC) service providers and equipment suppliers to the US utility grid are seeking new PE investors this year based on increased demand. This is the topic of a new report titled, “Power Components: Systems Control Highlights Growth Opportunity,” published by Harris Williams.

Aging grid infrastructure needs to be upgraded or replaced to mitigate failure rates and outages, while investments in grid resiliency solutions has increased in urgency due to increasingly extreme weather and natural disasters. 

Upgrade to the premium version of The Wire to read more on energy transition PE developments.

That’s it for me today. Enjoy the rest of the week and keep your eyes peeled for the Friday Wire tomorrow with Obey Martin Manayiti at the helm.

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Universities Superannuation Scheme, a UK pension fund administrator, is shopping a portfolio of private equity fund stakes valued at $800 million or more as secondaries pricing continues to strengthen, three sources told Buyouts.

In the latest in PE Hub Europe’s interviews with senior women in private equity, Nathalie von Niederhaeusern, head of EMEA, BlackRock Private Equity Partners, gave a glimpse of her journey in the industry.

Private equity needs to do more in investor and adviser education, along with creating products that address investors’ liquidity needs, according to panellists at NEXUS 2024. (Private Equity International)

Kline Hill Partners unveiled its latest multi-strategy fundraising for small-market secondary opportunities, targeting a combined $3.2 billion. (Buyouts)

In an interview with Venture Capital Journal chief Lawrence Aragon, New Mexico State Investment Council CIO Robert 'Vince' Smith says the sovereign wealth fund is gaining access to top-tier venture funds in part because other LPs are overallocated.

Moore’s law: data center investors should look to Maryland. After losing investment from Macquarie’s Aligned Data Centers, the US state has set a telling precedent in the battle for clean data centers. (Infrastructure Investor)

Two months after closing its fifth flagship hospitality fund, Noble Investment Group has named a new managing partner to help pounce on its next crop of opportunities. (Private Equity Real Estate)

The European Central Bank has said it is looking “very carefully” at alternative real estate debt providers, identifying such lenders as a key risk to financial stability in the region. (Private Debt Investor)

Intermediate Capital Group’s private equity business is eyeing the secondaries market for one of its assets, Secondaries Investor has learned.

New Enterprise Associates, which last year closed on the world’s largest venture fund, has named former Microsoft deputy chief technology officer Lila Tretikov as partner and head of AI strategy. (Venture Capital Journal)

They said it

“I have admired the Chickasaw Nation’s business acumen for many years, and I have profound respect for the leadership of Governor Anoatubby and Secretary Boren. I am looking forward to this next chapter of my career. I believe strongly that the patient, long-term capital of the Chickasaw Nation is a compelling alternative to the increasingly short hold periods of institutional private equity firms.”

— Curt Crofford, managing director of Hicks Equity Partners, on the formation of Pennington Creek Capital, a tribal PE investment firm which Crofford is leading.