Newsletter 4th April

What is going on in the private Equity World this week?

Brookfield in talks over €3.5bn data centre operator deal

Brookfield Asset Management is in negotiations to acquire a majority stake in data centre operator Data4, in a deal that values the business at close to 3.5 billion euros, including debt, according to a report by Reuters.

Unnamed Reuters sources have revealed that Brookfield has beaten off other investment firms in the battle to strike a deal for Data4 following an auction held by Axa Investments Managers, the company's majority shareholder and a division of French insurer Axa.

Negotiations are said to be ongoing, and while a deal is not yet guaranteed to happen, the sources believe an agreement could be reached by as early as next week.

According to its website, Data4 operates at least 25 data centres across France, Italy, Spain and Luxembourg.

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Global dealmaking falls to a ten-year low

Rising interest rates, high inflation and concerns over a global recession saw global mergers & acquisitions dealmaking fall to its lowest level in more than ten years in the first quarter of the year, according to a report by Reuters, citing data from Dealogic.

Global deal volume in the first three months of the year shrank by 48% to $575.1 billion as of 30 March, according to Dealogic as "extraordinary levels of volatility and uncertainty" impacted M&A markets.?

Dealogic's research shows that Europe saw the biggest fall with deal volumes down 70% to $81.87 billion, while the US dropped 44% to $282.7 billion, and Asia-Pacific fell 29% to $176.1 billion.

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M&G to oppose PE bid for UK events group HyveM&G Investments, along with two other large shareholders, is to vote against a proposed private equity takeover of British events group Hyve PLC because the bid significantly undervalues the international exhibition company, according to a report by the Financial Times.

Redwheel and Blackmoor Investment Partners are to join M&G in opposing the deal, struck last month by US private investment firm Providence Equity Partners, to pay 108p per share to acquire London-listed Hyve in a deal that values the business at ￡481 million.?

Hyde's largest investor, Strategic Value Partners has said it will back the buyout which Hyve's board has said "represents value for shareholders”.?

For the deal to go ahead, Providence needs 75 per cent of shareholder capital voting in favour.

The Big Interview with Moonfare’s Steffen Pauls

Moonfare boss says Breit saga was 'a dramatic setback' but he is still confident about PE's push into the retail market

"Does your local doctor invest in private equity? It would have been an unfathomable question just a decade ago when the asset class was still closed?off to all but the wealthiest institutions.?

But now buyout bosses are opening up their?funds to the masses, looking to raise billions of dollars of dry powder from 'mom-and-pop'?retail investors.

'In the US, our largest group of investors are doctors,'?says Steffen Pauls, the founder of Moonfare, a tech platform that allows wealthy individuals to invest in private equity.

He adds: 'We’ve also got people from the media and advertising industry, and we even have former biotech entrepreneurs who have no clue about private equity. It’s becoming more and?more mainstream."

Since our last newsletter, it is clear that the Private Equity Healthcare industry is continuing to grow as Steffen makes it?clear that Private Equity is changing and that doctors are now the largest group of investors.??

Pauls says he is looking to back GPs who have proven M&A buy-and-build capabilities and?experience doing take-privates, “which will be a big topic as we see valuations come down in?the stock market."

Alongside fund managers with active operating teams, he plans to allocate capital to “more niche strategies”, such as small and mid-cap players in industries such as healthcare or AI.

Despite these ambitions, perhaps the biggest goal for Pauls and his team is to convince the sceptics that private equity can truly open itself?up to individuals.

The Private Equity channel and Podcast?houses our podcast recordings, PE and Portfolio advice, plus recent case studies conducted on new talent and their firm

We keep you updated on our latest podcast stars and the hot topics of Private Equity.?You can watch our podcast recordings over on our YouTube channel or tune in?on Spotify, Apple Podcasts,?and Google podcasts.

Keep?informed about what we are doing?through our LinkedIn page or change your thinking by getting stuck into an advice episode on the Private Equity channel, hosted by Alex Rawlings.?

In this episode, we welcome?Tim O'Reilly to The Private Equity Podcast. He discusses increasing EBITDA by 4X, his M&A and integration process, and the Software and Industrial Services industry

What You Will Learn:

??New Solutions for Greater Returns to Investors

??How to Set Your Businesses Long-Term

??Technology and Software, as well as Industrial Service-Based Industry

Catch up on the links below to tune in...

We are always looking for people in the Private Equity space who have great conversations, can provide an interesting perspective, and are on top of their game.

If this sounds like you, give Alex Rawlings our podcast host, a message either on?LinkedIn?or drop him an email at [email protected]

NEW YORK: WHY IT IS THE CURRENT HOT SPOT FOR PRIVATE EQUITY

New York: Why It Is The Current Hot Spot For Private Equity.Over the years, New York has emerged as a global hotbed for Private Equity investments. According to recent reports, New York City alone accounts for approximately 50% of all Private Equity activity in the United States. In this article, we explore why New York has become such a popular destination for Private Equity investments.

Firstly, New York is home to some of the world’s largest financial institutions and investment banks, making it an ideal location for Private Equity firms to set up shop. These institutions provide access to capital, expertise, and deal-making capabilities that are essential for private equity investments. Furthermore, New York has a well-established legal and regulatory framework that protects the interests of investors and ensures a level playing field for all parties involved in private equity transactions.

Secondly, New York boasts a diverse range of industries that offer attractive investment opportunities for firms. The city’s robust economy includes but is not limited to thriving sectors such as technology, healthcare, real estate, and media. These industries provide a wealth of investment options for firms looking to diversify their portfolios and generate attractive returns for their investors.

Thirdly, New York is a global hub for talent, with some of the world’s most talented and experienced professionals in finance, law, and business. This deep pool of talent provides PE firms with access to top-notch dealmakers and advisors who can help them identify and execute profitable investment opportunities.

Finally, New York has a reputation for being a city that fosters innovation and entrepreneurship. This culture of innovation attracts startups and early-stage companies, which are often prime targets for Private Equity investments. These companies are typically innovative, nimble, and have the potential for rapid growth, making them an attractive investment option for Private Equity firms.

In conclusion, New York holds the position of a global financial hub, with a diverse range of industries, a deep pool of talent, and a culture of innovation and entrepreneurship. All of these attributes contribute to making it a hotbed for PE investments. As the Private Equity industry continues to grow, New York will likely remain at the forefront of this trend, providing a fertile ground for private equity firms to invest and generate attractive returns for their investors.

To secure the talent for your private equity firm in New York, please reach out to Raw Selection, an executive search firm working with Lower and Middle market PE firms across Europe and North America.

For further information reach out to Oliver Burns at?[email protected]

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