S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity investments in the Middle East fell to $11.60 billion in 2023 and remained on a downward trajectory into the first quarter, according to S&P Global Market Intelligence data.
It was the second consecutive annual decline after investment peaked in 2021, at $19.10 billion, across 762 deals.
With just $920 million in announced deal value from Jan. 1 to March 12, private equity-backed investment in the Middle East was on track for the lowest quarter since at least the first three months of 2020.
A smaller number of big-ticket deals in the region is one factor in the decline, Jeff Schlapinski, managing director of research at Global Private Capital Association, told Market Intelligence. Despite the shrinking deal value, venture capital activity in the Middle East has actually held up well compared with other regions, Schlapinski said.
Read more about the 2023 decline in private equity investment in the Middle East.
CHART OF THE WEEK: Ares’ sports investments
⮞ Alternative asset manager Ares Management Corp. is among the new breed of sports investors drawn by the industry’s improving economics, including lucrative media rights deals, better profitability and rising valuations, according to a Market Intelligence analysis.
⮞ In 2023, private equity and venture capital investors dominated deal activity in the broader sports services sector, accounting for 76% of aggregate deal value in 2023, including investments in teams, leagues and sports training businesses.
⮞ Ares participated in a $500 million funding round for Chelsea Football Club Ltd., the second-largest deal in the sector the past year.
TOP DEALS AND FUNDRAISING
– KKR & Co. Inc. agreed to buy a majority stake in solar energy company Avantus LLC. Following the close of the deal, KKR and existing investor EIG Global Energy Partners will invest at least $1 billion in Avantus.
– An H.I.G. Capital LLC affiliate agreed to buy the payroll and professional services business of Alight Inc. for as much as $1.2 billion in cash and seller notes. The transaction is expected to close by mid-2024.
– Francisco Partners Management LP agreed to buy Jama Software Inc. from shareholders including Insight Partners and Madrona Venture Group LLC for $1.2 billion.
– Comvest Partners pulled in $881 million for its sixth flagship private equity fund at final close. The Comvest Investment Partners VI LP fund seeks to invest in middle-market companies across North America.
– Kester Capital LLP raised £200 million at the final close of its Kester Capital III LP fund. The fund, which closed at its hard cap, will pursue primary buyouts in the healthcare and technology markets.
MIDDLE-MARKET HIGHLIGHTS
– Ampersand Management LLC added biologics manufacturer Biologos LLCto its portfolio.
– Wynnchurch Capital L.P agreed to sell valve maker LPW Group Holdings Inc. to funds managed by Oaktree Capital Management LP.
– Dubin Clark & Co. Inc. sold party and event rental company Peak Event Services to Bright Event Rentals.
FOCUS ON: FOOD
– Food delivery app Wonder Group Inc. raised $700 million in a funding round with investors including New Enterprise Associates Inc., GV Management Co. LLC and Dragoneer Investment Group LLC.
– Irish food manufacturer Valeo Foods Ltd. secured €50 million in capital from Bain Capital Private Equity LP.
– Fondo Italiano d’Investimento SGR SpA, through Fondo Italiano Agri & Food, agreed to buy a 60% stake in Italy-based pasta maker Pasta Berruto SpA from Webcor Investments Ltd.
For further private equity deals, read our latest In Play report, which looks at potential private equity-backed M&A, including rumored transactions, each week.
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