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Wafra outlines GP stakes model, Citation Constellation investment; Blackstone to buy backup power biz; Apollo in travel company play

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

GP stakes are the opening theme of the day, as more and more firms look to take stakes in other private equity companies. We take a deep dive into one of the most recent deals, as we speak to Gustavo Cardenas, a managing director at Wafra, about his firm’s investment in Citation Capital via its Capital Constellation vehicle.

We also have news over on PE Hub Europe about another GP stakes investment by Wafra in Europe.

Speaking of red-hot markets, we have another deal in the data center sector to report. This time it’s Blackstone acquiring a company in the backup power sub-sector. The PE firm’s Bilal Khan talks us through the rationale behind the deal.

Finally, we finish in a holiday mood, as Apollo agrees to acquire the Travel Corporation.

Consistency

The GP stakes business model – where private equity firms take stakes in fellow private equity firms – is becoming ever more popular, so PE Hub’s Obey Martin Manayiti decided to take a deep dive into one of the latest deals. Obey spoke to Gustavo Cardenas, a managing director at Wafra, about his firm’s Capital Constellation vehicle investing in Citation Capital.

Find out what drove the deal in the subscriber version of the Wire.

Check out the full article to hear from Citation co-founder and president Lydie Hudson on why her firm saw an advantage in taking investment from Capital Constellation, as well as more on Citation’s business model and plans.

Meanwhile, over on PE Hub Europe, you can read Iris Dorbian’s coverage of a brand-new European deal by Wafra’s Capital Constellation platform.

Data hungry

Blackstone has entered a definitive agreement to acquirea provider of electrical equipment for backup power systems.

Read about Blackstone’s rationale for the deal with comment from senior managing director Bilal Khan in the subscriber version of the Wire.

Travel plans

It’s that time of year when thoughts turn to summer vacations – and it looks like Apollo has been thinking more than most about travel.

The private equity firm has agreed to acquire a travel business comprising 18 brands – find out more in the subscriber version of the Wire.

Right, that’s all from me today. Rafael Canton will be in the chair tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

NY alternative manager Wafra is via its Capital Constellation platform adding a European software data-focused PE firm to its sizable portfolio of GP investments. (Buyouts)

The past year has seen an evolution in the advisory space as co-advisory mandates have become an increasingly common outcome with advisers divvying up services on deals, according to Secondaries Investor’s latest survey of intermediaries.

France’s Access Capital is set to be back in the market with its sophomore secondaries fund in early 2025, following closes for its flagship and emerging markets funds. (Private Equity International)

The Eurazeo Transition Infrastructure Fund – launched with a target of €525 million – has had a final close on €663 million, with another €43 million in co-investments. The strategy is the first equity infrastructure fund from the Paris-based outfit and focuses on transitioning essential infrastructure services. (Infrasctructure Investor)

CalPERS’ Cashion: Private debt and real estate climate pipelines are "ripe for growth." (New Private Markets)

EverBank is planning to bind multiple teams closer together in a move to enhance service to private credit GPs, Private Funds CFO has learned. The bank’s fund finance and asset-based lending teams are among those included in the plans, a source familiar with the situation said.

Patria Investments has launched its first secondaries fund (with a $500 million target) after acquiring the European private equity business of asset management giant Abrdn. (Secondaries Investor)

They said it

“The idea is to be seeding new firms like Citation, providing them with $100 million-$200 million of capital so that they can hire a team or close on initial investments and in exchange for that, we have a permanent partnership with them as they continue to grow their business.”

— Gustavo Cardenas, managing director, Wafra