Lending Works receives £2m in private equity
London-based P2P lender, Lending Works has received £2m from NVM Private Equity to fund the development of additional loan distribution channels, recruitment and further investment in technology.

LDC has sold MSQ to One Equity Partners, generating a money multiple return of 3.9x. As part of the transaction, LDC will invest in the business as a minority shareholder, alongside One Equity Partners. LDC first backed the London-based marketing and technology group of agencies in May 2019. During the four-year holding period, LDC supported the management team to grow organically by expanding the executive leadership team, doubling the headcount, and becoming B Corp certified. The investor also supported its inorganic growth plans, with the completion of five add-on acquisitions. As such, revenues increased from £50m to £125m, and the Ebitda has grown from £6m to more than £20m. With new investors, the business plans to grow internationally, as well as building out its business model. LDC’s investment was led by investment director John Clarke and managing partner Jonathan Bell. LDC and MSQ were advised by Houlihan Lokey (corporate finance) and Squire Patton Boggs (legal). MSQ also received legal advice through Browne Jacobson.

Agrifood investor Unigrains has acquired a stake in Urbis Food through its Fondo Agroalimentare Italiano I, alongside Kayak Family Office, Marcap and GP Capital Partner. Illimity Bank was the sole lender on the transaction via its growth credit division, which is dedicated to its corporate clients. Founded in 2016 by Giorgio Longhi, Urbis Food is a family-owned Italian seafood supplier for Italian distributors and retailers. The business achieved sales of more than €30m in 2022, according to a statement from the main investor. Ungrains’ investment will look to support Longhi and his sons in implementing a growth plan based on nationwide expansion, strengthening Urbis Food’s GiorgioMare brand and doubling sales during the coming five years. To achieve this, the portfolio company will strengthen its management team, thereby bringing new skills and additional support. Urbis Food will also explore new expansion opportunities in its “fragmented” market by leveraging the company’s procurement skills, commercial network and product range, as well as further investing in the expansion of its production facilities. Unigrains added that its aim is to help Urbis Food consolidate the market and develop industrial synergies to fuel future growth. With this transaction, Fondo Agroalimentare Italiano I has completed its investment programme, mobilising more than €50m in five years across nine principal investments, three of which have already been divested. The GP said this is “fully in line” with its target. The firm is now focused on value creation for the six remaining portfolio companies in the fund, and is moving to deploy the new investment cycle of Unigrains Italia. Unigrains was advised by Gitti & Partners (legal), goetzpartners (commercial due diligence) and Grant Thornton Financial Advisory (financial due diligence), while Longhi was advised by CF&S Advisors (corporate finance) and Studio Legale Principi (legal). Illimity Bank received advice from Carbonetti Studio Legale (legal).

Livingbridge has exited Direct Ferries to ICG, the founding family and management, while also reinvesting in the portfolio company through a different fund. Established in 1999, Direct Ferries is an online travel agent and ferry ticket booking business. The company has 90 employees across its UK hubs of London, Brighton and Ipswich, and generated revenues of £270m in 2022. Livingbridge first invested in Direct Ferries in 2016, acquiring the business from its founders through its 2012 vintage fund, Livingbridge 5. The GP recruited the current executive team, led by Niall Walsh CEO, and said it has overseen a re-platforming of the technology, development of a new customer services model, a sophistication of the company’s digital marketing and greater use of data analytics. Direct Ferries added that Livingbridge brought “strategic guidance” and “unwavering support” throughout the holding period, particularly during Covid-19 when revenue dried up “overnight”. Livingbridge is currently investing from its £334m Enterprise 3 and £1.25bn Livingbridge 7 funds. So far, 60% of Enterprise 3 and 52% of Livingbridge 7 have been deployed. Livingbridge was advised by Harris Williams, Eversheds Sutherland, LEK, Deloitte and Intechnica, while Direct Ferries’ management team was advised by Liberty and Osborne Clarke.

Swedish private investment firm Fidelio Capital will hone in on building market leaders in the hope of creating “outsized” risk-adjusted returns by deploying a sector- as well as region-agnostic approach following the final close of its third vintage, founder and CEO Gabriel Fitzgerald has told Real Deals. His comments come after Stockholm-headquartered Fidelio last week announced it had surpassed its €1bn target for its third fund, while tapping into additional international investors. Fidelio III will target businesses operating in “niche” markets with sales of up to €200m, Fitzgerald said while elaborating on the firm’s investment strategy. The vehicle is more than triple the size of its predecessor, which collected approximately €300m in 2018. Fidelio III started raising capital last year, held a first close in August 2022 and a final close in May this year. The fund has been raised amid a muted fundraising environment. In spite of the industry slowdown, it managed to secure commitments from a group of entrepreneurs, families (including family offices), and individuals from Northern Europe and the US, it said. To ensure skin in the game, the team at Fidelio also invested close to €125m in Fidelio III. No pension funds or insurance companies were tapped by the Swedish sponsor. The Sweden-domiciled fund enjoyed a near 100% re-up from existing investors, Fitzgerald said. Commenting on the number of investments the firm plans to make this year, he explained: “We never set our targets in relation to the number of investments or invested capital per year.” The firm prefers to focus on idea generation and deal sourcing and value creation targets instead of capital deployment targets, Fitzgerald added. Fidelio was established in 2010 and also has an office in London outside of its base in Sweden. The firm likes to describe itself as a combination of the professional and active ownership model of traditional private equity, with an entrepreneurial, flexible and long-term approach to investing. Since its inception, the firm has invested in 12 platform companies and supported more than 150 bolt-ons across the world. According to the firm’s website, its investment typically ranges from €10m to €200m. The capital Fidelio injects in businesses is often used to provide liquidity to shareholders, act as expansion capital for growth and/or finance add-on acquisitions UBS Private Funds Group acted as the global placement agent for the fundraise to Fidelio. Proskauer Rose (UK) acted as the lead legal adviser, and Advokatfirman Vinge KB acted as Swedish legal adviser.

UK-based early-stage cleantech investor Earth Capital recently announced its investment in Ace Aquatec, a welfare-first aquaculture tech company. The Dundee-based supplier of global aquaculture solutions has raised more than £10m since its series-A investment with Aqua Spark and Chroma Ventures. Ace Aquatec will use this additional capital to expand its presence and distributor networks in these markets. “Ace Aquatec has been involved in aquaculture technology for a number of years, with a particular focus on the acoustic devices that they still run, but the future of the business is within the biomass camera, which is really where our investment will be going – that is, the commercialisation of that product and expansion into new markets, namely South America and the APAC region,” said Bradley Jones, senior investment manager at Earth Capital. The investment will also provide a boost in recruitment, with jobs expected to be created in engineering, software and sales support, in Dundee and Chile, Earth Capital said in a statement. Earth Capital joins existing investor Aqua Spark, a blue-growth investment fund. As part of the transaction, the board of Ace Aquatec will be joined by Jones. No corporate finance firm was involved in the transaction as the firm got to know of Ace Aquatec through Aqua Spark, a Netherlands-based aquaculture investor that invested in the business in 2018. Jones told Real Deals that the technology is currently only looking at the biomass of the fish to help farmers understand whether their produce is developing properly, and when they ought to take them out to harvest. But the next stage is looking at whether the cameras can detect diseases like sea lice, which is a big issue within aquaculture. “The business is really digitalising a traditionally manual job and in the process, pushing for the welfare of the fish and creating more high-quality fish for the end consumer in supermarkets and in restaurants,” he noted. In terms of value creation, on the financial side, Earth Capital will look to raise further investment down the line and advise the business leading up to an M&A process. The firm invests across a horizon of three to five years. Through Aqua Spark, the firm hopes to gain further knowledge of the industry. And with this minority investment, Earth Capital is trying to capitalise on a booming market, which to date has not used a great deal of technology. Earth Capital backs businesses that look to capitalise on different segments of ESG, especially around the E. According to Jones, the firm looks at investments that can provide a solution to environmental issues and challenges, instead of investing in a generic software company and then considering the impact. The aquaculture market is growing rapidly. Just 10 years ago, humans consumed five billion tonnes of fish that had been through an aquaculture process. That figure is now more than 65 billion tonnes and the trends Earth Capital is seeing suggest that more than 50% of fish consumed by humans will come from aquaculture farms by 2030 rather than traditional trawling, Jones observed. This investment has been made from Earth Capital’s co-investment strategy, with which it aims to make four to five investments each year. The majority of its investors are family offices. The UK-based growth equity investor seeks to invest in sustainable technologies mitigating climate change effects or assisting with the transition to net zero. The firm focuses on companies earning at least £1m in sales across energy, food and water in Europe. Field Seymour Parkes provided legal advice to Earth Capital. Gunnercooke provided legal advice to Ace Aquatec.

The mid-market is poised to offer better entry points, an enhanced opportunity for growth and more attractive pricing than the larger end of the buyout market in the coming two years, Hani El-Khoury, a partner at Coller Capital, told Real Deals. He was speaking after the secondaries investor's latest Global Private Equity Barometer, released today. This year, the Barometer – which is now in its 38th edition – found more than 80% of surveyed LPs favouring mid- and lower mid-market buyouts in addition to special situations as attractive strategies for GPs in the coming two years. Significantly fewer LPs said they see attractive opportunities for large and mega buyouts as the rising cost of debt continues to cast a shadow on dealmaking. Mega buyouts have started to lose their shine since there is a bigger element of leverage in them. In El-Khoury’s view, there is more reliance on leverage and pressure on those transactions to make attractive returns. “Ultimately, when the financing element is more challenging, opportunities don’t appear as attractive and are a bit more difficult to execute,” he said. The way capital allocators perceive debt vs equity decisions also appears to have changed in the past 12 months in the face of changing macroeconomic conditions. On the credit front, 39% of surveyed LPs last year acknowledged their plans of increasing their allocation to the asset class – a figure that has topped 44% this year. Private equity on the other hand has seen a drop in the number of LPs who said their planned target allocation would increase. Some 42% of LPs expressed their intent to increase private equity allocation during the next 12 months when surveyed by Coller Capital for its summer 2022 edition of the Barometer. However, only 27% of LPs indicated the same this year. “Against the backdrop of higher interest rates, there's more focus on strategies involving private debt and direct lending funds, since they present an attractive risk-return proposition,” noted El-Khoury. But in spite of the headwinds that private equity is seeing in the form of muted dealmaking and fundraising activity, the proportion of LPs with net annual returns of 16%+ across their PE portfolios is “at record levels”. Some 39% of LPs reported net annual returns of more than 16% across the lifetime of their private equity portfolios, as against 42% last year, signalling that private equity continues to appeal and be attractive to LPs. Commenting on the figures, El-Khoury told Real Deals that the sentiment is still “very positive” on private equity. “Current vintages and future investments will present an attractive entry point from a valuation and pricing perspective. LPs who have multiple other alternative assets and investment strategies in their portfolio have seen private equity perform quite strongly, which is why the asset still appeals to them.” He maintains that private markets have consistently outperformed public markets and other asset classes, which underscores why they still appear to be promising. Coller Capitals’ summer 2022 Barometer flagged up cryptocurrencies and the metaverse. The report found that LPs viewed crypto-enabling businesses as a legitimate investment focus and would be keen to seek exposure to the metaverse. This year, the Barometer captured LPs' views on artificial intelligence and found that three quarters of them believe AI will emerge as an important tool when originating private equity transactions in the next five years. The LPs surveyed by Coller Capital also revealed that they view healthcare/pharma as the most attractive sector for PE investment in the next two years. Interpreting the statistics, El-Khoury explained that the sectors continue to shine because they are less cyclical, more defensive and more resilient, which bodes well in an uncertain and more volatile environment. The bi-annual Barometer gathered the opinions of 110 private equity investors in North America, Europe and the Asia-Pacific region (including the Middle East). The survey was undertaken on behalf of Coller Capital by Arbor Square Associates from 13 February to 31 March 2023.

MML Ireland has invested in Innopharma Education & Technical Services alongside the portfolio company’s management team and founder shareholder, subject to approval from the Competition and Consumer Protection Commission. Founded in 2009 and headquartered in Dublin, Innopharma is a provider of higher and further education, focused on up-skilling and re-skilling individuals to enter or progress within the pharmaceutical, medtech and food & beverage manufacturing sectors. Currently employing 130 people, the company is also a provider of contract technical resources to client companies within the pharmaceutical and medtech industries. It expects to deliver revenue of c. €15m across its two divisions in the year to 30 June 2023. Innopharma said that its plan is to grow its learners and industry base “significantly” over the next four years, seeking to double its team to more than 260 employees. In MML Ireland, the portfolio company believes it has found the “right partner” to complement its existing team as it pushes for further Irish and international growth. MML’s investment team for this transaction comprised Neil McGowan, Chris Walsh, Muireann MacAuliffe and Emma Jones, who were advised by McCann Fitzgerald (legal), BDO (financial due diligence and tax) and KPMG (commercial due diligence). Shareholders of Innopharma were advised by Mazars Corporate Finance (corporate finance) and Philip Lee (legal).

Just Climate, an investment business established by Generation Investment Management in October 2021, has closed its inaugural fund, Climate Assets Fund I, on $1.5bn, exceeding its $1bn target. The fund’s institutional investors include California State Teachers’ Retirement System (CalSTRS), PSP Investments, AP4, Colonial First State Investments, Builders Asset Management and AP2; as well as other unnamed pensions, sovereign wealth funds, insurers, financial institutions, endowments, foundations and family offices from North America, Europe and the Asia Pacific region. The fund will seek to invest in global growth-stage, asset-heavy companies that can “radically” reduce or remove emissions while generating “attractive” risk-adjusted financial returns. The firm said that these companies will have the potential to deliver “transformational” climate impact across some of the highest-emitting, hard-to-abate industries — including energy, mobility, industry and buildings — in order to generate outsized emissions abatement in the next decade. Just Climate’s integrated approach to impact management is embodied in the fund’s long-term incentive structure. Under the Fund’s integrated performance fee, financial returns drive the amount of performance fee accruable. How much of the performance fee is ultimately available is fully linked to the delivery of greenhouse gas abatement goals. With this approach, Just Climate looks to demonstrate that climate solutions for the hard-to-abate industries are capable of delivering both “attractive” risk-adjusted returns and the “highest” climate impact. Just Climate has already made three investments from its fund: ABB E-mobility, a Swiss-based electric vehicle charging company; H2 Green Steel, a Sweden-based industrial start-up aiming to accelerate decarbonisation of the steel industry; and Meva Energy, a Sweden-based provider of gasification technology to generate renewable energy for manufacturing sectors. Weil, Gotshal & Manges served as fund counsel. Aztec Financial Services (Luxembourg) is administrator for the fund.

Glide Healthcare has appointed Besmire Ahmati to its team as an investor relations and fundraising associate, based in the Netherlands. Ahmati joins Gilde Healthcare from PGGM Investments’ private equity team, where she spent almost two years investing in a global portfolio of private equity funds and co-investments as a junior investment manager. Prior to that, Ahmati worked as a portfolio analyst of distressed private asset transactions for FMO, the Dutch entrepreneurial development bank. In her new role, Ahmati will use her industry relationships and experience at LP investors PGGM and FMO to support Gilde Healthcare’s investor relations activities and fundraising strategy.

BGF has invested £15.5m in Troy UK, an independent network for industrial and engineering supplies to support its acquisitive growth strategy. A family-run business founded in 1986 and based in Exeter, Troy is an independent MRO (maintenance, repair and overhaul) product distributor in the UK serving the industrial, engineering and trade sectors nationwide via its distribution centres and buying group of 400-plus members. Under the leadership of Paul Kilbride, who acquired Troy in 2010, the business has topped a turnover of more than £300m. The minority investment was led by James Skade and Hannah Waters, investors in BGF’s Bristol-based South West team. Advisers to BGF on the transaction were Burges Salmon (legal). Advisers to Troy UK were Breeze Corporate Finance and Gateley (legal).

Accent Equity has agreed to acquire majority stakes in Linotol and C Holmqvist Entreprenad from their respective founders, in turn forming a new group through the combination of the two companies. The founders will retain a “significant” ownership stake in the new group and remain active in its operations, with “key personnel” also investing alongside Accent Equity and the founders. The transaction is expected to close during the summer of 2023. Founded in 1929, Linotol is a Scandinavian supplier of industrial flooring solutions for commercial, public and industrial use. The company has approximately 175 employees and generated sales of SEK680m (€58.4m) in 2022. C Holmqvist Entreprenad is an industrial flooring company, mainly operating in south-west Sweden. It employs about 15 people and generated sales of SEK130m (€11.2m) last year. The new group, therefore, has combined sales of c.SEK810m (€69.6m) in 2022 (pro forma) and about 190 employees. C Holmqvist Entreprenad said that, together with Linotol and Accent Equity, it will be able to deliver a “stronger” offering to its customers. The GP added that both companies enjoy a “great” reputation for their customer relationships and are “ideally positioned” to continue their growth journeys.

Main Capital Partners has acquired a majority stake in Sensire. Founded in 2001 and headquartered in Joensuu, Finland, Sensire is a vendor of health, safety, environment and quality software. With 20 employees, the business particularly seeks to support both the private and public sectors with regulatory requirements for medical and food safety. The business currently consists of 20 employees. Looking ahead, Main, with more than €2.2bn in AUM, will aim to grow Sensire by broadening its product offering and expanding into adjacent customer verticals, as well as entering into new international markets. The GP also said it will support Sensire with selective add-on acquisitions to complement its product portfolio, strengthen its market positioning in Finland and establish local footprints in new markets. Main now has a portfolio of more than 40 software groups.

Mid-market PE firm ECI Partners has appointed Isabella Fox as investment manager, based in London. Fox joins ECI from BGF’s London deal team, where she was responsible for originating and executing primary and secondary investments. During her two years there, she completed investments in Brompton Bicycles, Scrumbles Pet Food and Alpha Development, as well as holding positions as a board observer at Juriba and Alpha Development, and board director at Firefly Learning. Prior to BGF, Isabella worked in PwC’s corporate finance team, focusing on mid-market M&A advisory, which included a secondment to Amsterdam. At PwC, she advised ECI on its Travel Chapter deal in 2018. In her new role, Fox will be responsible for originating and executing investments in “resilient” businesses, as well as supporting management teams once they are part of the ECI portfolio. ECI invests in businesses valued up to £300m, either as a majority or a minority investor. It currently manages funds of more than £2bn.

Westbridge-backed APEM Group has acquired Macro Works. Headquartered in Dublin, Macro Works is a provider of landscape and visual consultancy services, with clients from industries including renewables, infrastructure and commercial development. As well as landscape and visual impact assessments, the company produces photomontages, 3D visual simulations, glint and glare reports, and landscape design. APEM is an environmental consultancy providing digital aerial wildlife surveys, specialist marine, freshwater, terrestrial ecology and geospatial services to the water, renewables, power and utilities, marine and ports, transport, construction and development industries. It employs 540 people across offices in the UK, Ireland, Australia, Germany and the US. Since receiving investment from WestBridge in 2019, APEM has seen its revenue grow from £10m to a forecast c.£60m in the current financial year, according to the GP. The Macro Works acquisition is APEM’s fourth in the past two years. Its first was in July 2021, when it acquired Woodrow, an environmental and sustainability consultancy based in County Sligo, Ireland. Then, in February 2022, APEM acquired Aquafact, a specialist in marine surveys, based in Galway, Ireland. In May 2022, the business acquired GoBe Consultants, a planning and environmental services consultancy based in Devon and Glasgow. APEM said Macro Works’ areas of expertise “perfectly” complement its range of services. Macro Works added that it is “business as usual” for its customers, who will now be able to access a wider pool of services. The business also said its own employees will benefit from the enhanced training and development opportunities that come with being part of a larger group. Earlier this week, APEM secured a debt package worth more than £50m and additional debt capacity through an accordion facility from Tikehau Capital, with an additional £7.5m working capital facility from Virgin Money to accelerate its growth strategy. APEM was advised on the acquisition of Macro Works by DSW Corporate Finance (corporate finance), DSW Transaction Services (financial due diligence), RSM UK Corporate Finance (financial due diligence), Capital Law (legal), Ogier Leman (legal), Pinsent Masons (legal), BDO Ireland (tax), Parisi Tax (tax) and CIL (commercial due diligence).

With a mismatch in terms of valuation expectations between buyside and sellside, GPs are finding alternative routes to achieve liquidity for their LPs. Additionally, the tight credit environment has contributed to the fall in deal numbers this year so far. But here, GPs are tapping non-bank lenders. Watch this webinar in association with Intralinks to find out more:

Northern Ireland-based technology solutions company GoReport is set for further expansion after receiving new investment from ScaleUp Capital. The private investment firm has invested in GoReport to expand its product development and enable further growth into core markets. The transaction represents the first investment from ScaleUp’s fourth fund. As part of the investment, existing investor Co Fund NI (which is managed by Clarendon Fund Managers), Crescent Capital and "a number of private investors" have sold their stakes in GoReport and exited the business. Northern Ireland-based GoReport is a SaaS solution provider to the property sector, helping surveyors digitalise their inspecting, reporting and analysis process, driving efficiency and a more effective workflow. London-based ScaleUp Capital focuses on the scale-up phase of companies. It seeks to acquire and/or invest £2-10m into businesses with an enterprise value of £2-30m, and help to scale them to an enterprise value of £20-200m over four to eight years. The firm invests in digital businesses across technology, software, content and business services. Real Deals Media is a portfolio company of ScaleUp Capital.

Shareholders of CPC Food, Eurodolce, Marper and Nuova-Neue Serpan, backed by Unigrains Italia, a subsidiary of agrifood investor Unigrains, have established Vivaldi Group, marking the first investment from Unigrains Italia’s new investment vehicle. The entrepreneurs of all four companies have “significantly” reinvested in the project and will managerially support Vivaldi Group. Illimity Bank participated in the transaction as the sole lender via its Growth Credit division, dedicated to corporate clients. Vivaldi Group, composed of CPC Food, Eurodolce, Marper and Nuova-Neue Serpan, is a new Italian distributor of ingredients and semi-finished products for bakeries, pastry shops, ice cream parlours, the hotel-restaurant-catering, retail and cafeteria channels. It boasts aggregated sales of more than €40m. In what the GP described as a “highly fragmented” sector with a plurality of small operators, Vivaldi Group is a consolidation platform of Italian bakery-pastry ingredients and semi-finished products distribution channels, aiming to meet the needs of Italian bakery and pastry shops. Vivaldi Group's ambition over five years is to invest €80-100m, directly and via equity capital in a dozen companies all across the agrifood value chain in order to support their development projects through organic and external growth, internationalisation or shareholder transitions. The Unigrains Italia deal team for the transaction comprised Francesco Orazi, Alfredo Cicognani and Julien Becquet, who were advised by Marco Polo Advisor (corporate finance), Gitti & Partners (legal), Grant Thornton Financial Advisory Services (financial due diligence) and Bernoni & Partners. CPC Food, Eurodolce, Marper and Nuova-Neue Serpan were advised by Marco Polo Advisor (corporate finance), Cartwright Fisherman (legal) and Aicardi & Partners (financial due diligence and tax). Illimity Bank was advised by Pedersoli Law Firm (legal).

Innova Capital Group’s portfolio business Prime Label Group has signed an agreement to acquire a 100% stake in Pegwan Printing House. Established as a family business in 1983, Pegwan is a label manufacturer of offset-printed wet glue paper labels for beer and food products. Operating out of a facility in Lubartow, Poland, its turnover exceeded PLN65m (€14.5m) in 2022. Prime Label has four label printers in its portfolio: Chemes from Poznan, Poland; Embe Press from Lublin, Poland, which specialises in flexo printing; LabelProfi, a Slovenian digital printer; and LabelPrint, an Estonian printer dedicated to the Baltic markets and Scandinavian clients. Apart from Central and Eastern Europe (CEE), its key markets at the moment are Germany, Austria, Switzerland and Scandinavia. CEE investor Innova Capital backed the group through its Innova/6 fund. The GP said this bolt-on is a “natural continuation” of the path it started in 2020, when LabelProfi joined Prime Label. The firm added that LabelProfi has grown by more than 100% in three years, which it claims was helped by the demand for digitally printed labels rising faster than that for analogue technologies. Consequently, it wants to continue investing in this segment and lead the consolidation of high-quality label printing service providers in the CEE region, confirming that Prime Label is already working on further acquisitions in the region. Prime Label said that incorporating Pegwan into its group will allow it to benefit from economies of scale, make wider use of the team’s knowhow in developing and implementing innovative products, and generate purchasing and sales synergies. Pegwan added that Prime Label has a “much better” negotiating position with suppliers and a well-developed sales network across Europe, arguments which the sellers said convinced them of the transaction. On the back of this acquisition, Innova Capital said Prime Label will reach its sales target of almost €100m in 2023, which it claims is 12 months ahead of schedule. Prime Label was advised by CMS (legal) and JP Weber (financial due diligence and tax), while Pegwan was advised by Enterium Sp. z o.o. (financial due diligence) and Enterium Sp. z o.o. of Artur Skiba Kancelaria Radcy Prawnego (legal).

Complex transactions completed within the mid-market have increased by 50% within the last five years and are expected to rise even further, research from Accenture has found. This goes hand in hand with prolonged holding periods, with a 14% increase in the average holding period compared to 10 years ago, giving a greater runway to deliver a more significant enterprise value. The Accenture report, Conquering The Next Value Frontier in Private Equity, is based on a survey of 170 industry professionals who were asked for their hot-takes on how deal-doing has developed, and how they view value creation. Speaking to Real Deals, Jay Scanlan, global private equity lead, said: “People recognise that PE firms have a traditional set of levers to drive value creation – the programmatic procurement of strategic sourcing types of initiatives, the SG&A cost reduction initiatives – the traditional playbook of private equity’s value creation.” Financial engineering was deemed by the respondents as the first step in generating value, albeit 75% agreed that isn’t enough. As such, the focus predominantly surrounds operational value creation, plus revenue, cost and cash, as the most effective methods of growing a business. However, that doesn’t mean the holding periods are all smooth sailing. Some 34% of respondents reported that 'lack of value creation planning' is their biggest concern within their portfolio companies. This was followed by 'broken operating models' (32%) and 'inability to scale operations' (31%). Since the top three responses were focused on the internal operations of portfolio companies, Scanlan said GPs have focused their efforts on growing their own operational talent and capabilities, to ensure they’re going into each business well equipped. “As you look at the pressure to deploy and the relationships that they now have with LPs, there’s an understanding that GPs are going to evolve,” Scanlan explained. “They’re going to have more operational capabilities within themselves, partnering more broadly and deeply across the ecosystem to bring capabilities and business processes into tools they wouldn’t have used previously, namely in data analytics, artificial intelligence and the fundamentals for enterprise technologies.” The study additionally found that “lack of insights from due diligence” was the least common challenge for GPs with their portfolio companies. Scanlan believes that as the process of diligence is professionalised far beyond the financials, GPs are more equipped than ever to understand every element of a business before day one. “The traditional diligence process historically had a very strong orientation on the financial and contractual element. Today, there are newer and more emerging areas that need to be covered during the due diligence process – such as technology and ESG,” he said. That said, Scanlan believes GPs that rely on the traditional methods of due diligence will be at a disadvantage, as the boutique advisories have become more than a nice-to-have. “Now that technology needs to be linked to top-line growth, the consumer experience and operating platform rewiring, you’d be underserved by doing the traditional, red-flag technical due diligence," he explained.

European private companies are holding up “robustly” in the current challenging economic environment, according to Lincoln International’s European Private Market Q1 2023 Insights & Q2 Outlook. The Chicago-headquartered investment bank noted that the revenue and Ebitda performance of these private companies is “better” than their public company counterparts, and they don’t appear to be as impacted by the volatility of the public markets with regard to valuations. European financials are showing some weakening in revenue growth but strengthening in Ebitda margins and growth, the analysis shows, which is based on a review of what the bank’s clients are invested in, which includes more than 230 PE-backed mid-market European companies and more than 300 PE and private credit securities for the period. More than three quarters of companies (76.7%) reported year-over-year (YoY) revenue growth compared to 85.3% in Q4 2022, while 68.0% reported YoY Ebitda growth versus 61.7% in Q4 2022. Ebitda margins declined by 1.0% to 22.9% as of Q1 2023 versus the prior year, but are showing signs of stabilisation. Ebitda growth for 2023 is forecast by private companies to be up 7.9%. Public and private disconnect To assess the difference between public and private market valuations, the corporate financier used enterprise values of the S&P500 and enterprise values of companies held by private equity, respectively. Typically the two move in tandem, but there has been volatility in public market valuations during the last 12 months. Speaking to Real Deals, Richard Olson, managing director of Lincoln International’s European valuations and opinions group, said, “When Covid first hit and lockdowns began, public market and private market valuations moved in the same direction, but to a different degree. “But when things started to stabilise post-Covid lockdowns, the public markets bounced back extraordinarily quickly and to a higher degree, whereas we saw private markets rebound more slowly. As a result, based on Lincoln’s Private Market Index, there was a valuation retracement which happened during the second half of 2022 within the public markets, which we haven’t observed within private markets.” The retracement has seen public market valuations and private market valuations come together, with Lincoln’s Private Market Index converging with the S&P500 enterprise values for Q1 2023. But how might this look going forward? “During the first half of 2023 we've seen public markets stabilising, volatility-wise and earnings-wise, so public markets have remained up,” answered Olson. “We're just starting down the road on Q2 valuations for private markets, but what I can say is that the financial performance has remained relatively stable as we've seen it move forward. On that basis, I would expect private market valuations to be directionally similar.” The MD noted that liquidity needs tend to inflict a degree of influence on the public markets, explaining why they rise and descend more rapidly than we would see in private markets. The lack of fluctuations in private market valuations has been a long-term hallmark since the bank began observing the market, with Olson citing manager selectivity as a reason: “The fundamentals and the performance of these private equity-backed businesses has been stable, which in large part points to the selectivity of the managers themselves when picking these businesses.” Feeling picky Through statistics now coming out for Q1, Olson’s practice has seen a shift to larger-scale businesses, as well as a shift to private markets overall, which it deduced from enterprise value multiples at which businesses are being held in the private markets. “More and more, we're seeing bigger companies and larger private credit and acquisition deals being funded through private markets,” said Olson. “Financings for large companies that would normally have been syndicated deals in the public markets are now shifting to the private markets for sourcing of capital, either for acquisition finance or for traditional funding of operations. And we expect that to continue.” The current challenging macro environment plays a role in this transition, with a “dramatic” fall in quarterly transactions from what was observed in 2021. Lincoln charged the “very low” levels of completed deals to the higher cost of borrowing, in turn driving lower leverage availability and leading to a gap between buyer and seller expectations. However, as dry powder from private equity and credit funds remains historically high, transaction multiples have been maintained for the selective deals that are getting done. “So far, the best quality deals are getting done in this environment,” said Olson. “Given the large amount of private capital available to do these deals, there's a lot of competition over them. So, as a result, the available multiples and the leverage at which these deals are getting done remains quite stable, albeit there is upward pressure on equity cushions.” Even for the A+ deals that are getting done in the current environment, Olson pointed to how the transaction leverage multiples have tapered off “pretty dramatically”, going from as high as 5.6x total leverage multiples in the period leading up to mid-year last year (Q3 2022), to now tapering off to 4.7x to in Q1 2023. The MD believes this is likely to remain the case as base rates remain elevated. Assessing the broader market, Olson said: “Beyond that, companies are having more difficulty refinancing and/or finding acquirers, just because there are concerns regarding companies’ ability to service rising interest expenses and therefore there is not the same level of leverage available to do those deals as there was in 2021 or pre-pandemic.” Realest deals For the “A+ deals” that are closing – largely occurring in healthcare, technology and business services – Olson stated that transaction multiples remain “quite healthy”. He revealed that the two top gross margin businesses for Europe are technology and healthcare, and they have been consistently growing since Q4 2019. “Looking at expectations for revenue and Ebitda growth for Europe, it’s lower than in 2022,” said Olson. “But growth is certainly positive across all industries and, in many cases, more positive than it was in 2022.” “In Europe, TMT has seen less strong growth forecasts, as businesses have already factored in a lot of the technology needs and have started to adopt those,” said Olson. “Similarly for clinic-based healthcare in Europe, what we're now seeing is a lot more labour costs having an impact on gross margins, so that's having a dampening effect on the ability to grow Ebitda at the same rate that those companies were able to.” But how will financing for those businesses look in light of the current interest rates environment? As it is more expensive to finance a deal, there is less leverage available to those companies, resulting in the possibility of sponsors putting in more equity. The jury is also out on whether sellers will be willing to accept a lower multiple if there is not the same amount of equity. In terms of revenue and Ebitda growth, the consumer sector is showing more rapid expansion than other industries, as the lingering effects of the lockdown, which were still seen even four quarters ago, have largely gone away. “It's a complete reversal of fortune for European consumer companies, as we start to move forward from Covid-impacted quarters,” said Olson. “You're seeing a lot more people returning to the office, returning to the high street. People are getting a lot more comfortable being out and about, which is reflected in those companies’ performance this year. “The impact of energy prices over this winter for Europe was minimal. Also, consumer businesses have started to take into account temporary labour and other means of having flexible labour costs as part of the equation, so that's leading to more profitability for these businesses.” Cracks in the veneer The investment bank also takes a look in its study at covenant breaches, which are often an indication of financial distress. Olson noted that higher interest rates are “clearly” having an effect on borrowers, as it becomes ever more expensive to hold high levels of leverage. This can increase the likelihood of a firm entering restructuring discussions with lenders to restructure its debt, calling for additional capital from sponsors to support the business, or liquidity concerns. “For Q4 2021, we were at an all-time low of 2.2% for all covenant breaches that we observed. That rate has been ticking up steadily over the last five quarters, so it's now doubled to 4.5% for Q1 2023,” said Olson. “We would fully expect this number to grow into Q2, as interest rates remain high. “Base rates probably haven't peaked yet; we're not even yet through four consecutive quarters of higher base rates,” continued Olson. “The US is talking about further base rate increases in 2023, and the Bank of England is mulling an increase, as well as the European Central Bank. Debt markets continue to factor in between 25 and 50 basis points of continued base rate increases.” Covenant breaches are likely to increase above current levels but are expected to peak below the breach levels at the height of Covid lockdowns in Q2 2020 (i.e. less than 9.4%). In addition, lenders appear to be acting patiently and there remains plenty of dry powder available among equity sponsors. Although covenant breaches and payment defaults are not like for like, comparing them to public default rates can be helpful. European default rates for the Public Index indicate a low level of distress, as it sits well below 1% on 0.85% in March 2023, compared to 4.5% for covenant breaches. Olson concluded on the outlook: “From what we can see this quarter, the outlook for European private companies remains uncertain, although any progression of financial stress through those companies appears likely to be isolated among companies highly exposed to energy, rising base rates and interest margins, and increased labour costs.”

Main Capital Partners has announced a majority investment in RailCube, a software provider for railway undertakings. The firm declined to comment on the financial details, including information on advisers. Founded in 2011, RailCube is an enterprise resource planning (ERP) software provider for the railway market. Its team of 45 professionals work across Europe and Australia, enabling its users to efficiently allocate human resources while ensuring compliance with local and international safety and quality standards. RailCube offers a broad range of features for railway undertakings within a single application, including modules to manage operations and safety, staff and HR, finance and business intelligence capabilities. Today, it serves more than 85 railway undertakings across 20 European countries and Australia. The Netherlands-headquartered GP foresees “great” potential for further market expansion, within Europe and beyond, and will aim to enhance RailCube’s value proposition for customers and partners through a combination of autonomous growth and selective strategic buy-and-build opportunities, it said in a statement.

Alantra’s gaming team, Sanjit Benawra and Nicolas Vienot, recently sat down with Real Deals to discuss resilience in the sub-sector, and the motivations fuelling an increase in private equity interest. Private equity’s attraction to the gaming sector has stood the test of time, due to recent turbulence. Last year, Real Deals reported on the untapped potential within video gaming – and the last 12 months have shown that GPs are willing to broaden their approach to the sector in order to secure interesting assets for their portfolios. A recent report from PitchBook Data found that gaming startups raised $1.1bn in Q1 2023, an increase of 10.7% quarter on quarter. Benawra, a director at Alantra, told Real Deals that the approach from GPs is adapting as they learn more about the sector, and as such, assets are filtering through across a variety of sectors. “Video gaming as a form of entertainment and digital media consumption are already much bigger than they've ever been,” he explained. “It is filtering across sectors too – for example we are seeing the gamification of learning tools and platforms increasingly in the market.” As GPs become more educated on the benefits of investing in the sector, they too are becoming increasingly open-minded about the emerging opportunities it presents. Not only in edtech as Benawra mentioned, but also in protecting game developers from cyber threats, and content creation from generative AI tools. There’s also an abundance of opportunities among businesses that contribute to the gaming supply chain. As this ecosystem grows, so too can PE’s interest in the businesses that provide services to the industry. Alantra managing director Vienot said: “The assets that PE would be investing in in this space will have the characteristics and mitigating factors to be deemed ‘safer’ than otherwise risky models. For example, publishers who mitigate risk by investing in multiple games and studios; quality assurance and testing businesses; work-for-hire studios that have significant visibility in their upcoming revenue streams; and evergreen models or studios with their own IPs and a significant track record of shipping games successfully." The transition from traditional gaming assets into edtech has helped to drive that interest, even though GPs were more likely to have turned down a pitch just five years ago. “The pandemic definitely contributed to a shift in mentality, as more investors realised the growth potential of the sector and how the best performers managed to mitigate risks and became less hit-driven,” Vienot added. As GPs look to go the next level in the gaming sector, they are therefore adopting and learning more about the characteristics and requirements that a business within the space would need, in order to secure their investment.

MML Capital Partners has invested in Arηs Group, with the IT services firm's co-founders and key employees reinvesting alongside the GP. As part of the deal, the portfolio company said it will remain “independent”. Founded in 2003 and headquartered in Belvaux, Luxembourg, Arηs is an IT services firm that focuses on the Benelux and European institutions markets. MML said it will support Arŋs to accelerate its international development, strengthening its geographic footprint and service offering both organically and through targeted acquisitions. Arηs added that the investment will help it sustain its growth through targeted acquisitions, complementing its core activities and expanding its portfolio of customers into verticals in which it is not yet present. The MML deal team comprised Henry-Louis Mérieux, Louis de Montille, Charles Le Texier and Antonin Kratiroff, who were advised by REYL Intesa Sanpaolo, 8 Advisory and DLA Piper. Arηs Group was advised by EY Strategy and Transactions and EY Law.

Maxburg Capital Partners has acquired Aracom IT Services, representing the second investment from its latest fund, Maxburg Beteiligungen IV. Founded in 1998, Aracom is a specialist in custom software development services for SME and enterprise customers. With four sites in southern Germany, the company has more than 200 employees. The GP was impressed by the “entrepreneurial success story” of Aracom’s founders Lothar Härle and Alexander Waidmann, read a LinkedIn post from the PE firm. The same post noted that Maxburg Capital was “supported” on the transaction by Oldenburgische Landesbank, Willkie Farr & Gallagher, KPMG, Clifford Chance, KNPZ Rechtsanwälte, Poellath, HWF Partners and CMS.

Foresight Group has exited WeTrack Software to Momentus Technologies, realising a 2.8x return for the sellers’ investors. Born out of the founders' experiences from the London 2012 Olympic Games Organising Committee, WeTrack is a tech firm that creates management software for the sports and events industries. Foresight’s Thames Ventures fund first invested in WeTrack in 2015, marking the “first” equity investment into the portfolio company. During the investment period, WeTrack grew its team from two to 17, and developed its service range by offering four new modules, Foresight said in a statement. Headquartered in the US, Momentus Technologies is a venue and event management software business. According to the exiting GP, WeTrack offers a project management and incident tracking software with a sustainability focus, which “perfectly” complements Momentus Technologies’ platform. The deal is the fourth exit in the last nine months from Foresight’s Thames Ventures funds; all four of which have attracted US-based acquirers.

After CEE-focused private equity firm Innova Capital held a second close for its seventh fund on €324m, Krzysztof Kulig, a senior partner at the GP, told Real Deals that its newest fund will focus on similar targets as previous vintages. “Our aim is to invest equity tickets of €25-40m. Similar to what we have done in the past, Innova will focus on making controlling investments in companies with enterprise values of €50-150m,” Kulig said. The commitments thus far represent more than 90% of the vehicle's target, which has been set at €350m. The GP hopes to hold a final close in the coming months while working on new investment opportunities. The vast majority of the capital was committed by existing LPs, including commercial investors and international financial institutions. Foreign investors have contributed 70% of the commitments, while the remainder has come from Polish investors. Headquartered in Poland, Innova Capital is an active CEE-focused investment firm. The GP, which will celebrate its 30th anniversary next year, focuses on mid-market buyouts across business services, industrials, and consumer and lifestyle. The Innova/7 fund has been on the road since Q4 2021 and has earmarked a hard-cap of €400m. The vehicle is nearly 20% bigger than its predecessor, which closed on €271m. Innova/6 has made nine investments to date including an exit, and the GP is planning to use these assets to make further acquisitions within the existing portfolio. Last month, the vehicle sealed its maiden deal by agreeing to acquire Netopia Group, a Romanian payment service provider. Spotlight on CEE When asked if the effects of the Ukraine war have started to dissipate in the region, Kulig noted that the effects are “certainly” still visible, and that fundraising no longer looks like it did before the war. “Investors are more distrustful and cautious. From our observations, however, there has been some improvement in their sentiment in recent months. They are certainly taking an individual approach to each proposal and that is why over the past few months we have been very much focused on showing investors the huge potential of Innova’s investment strategy.” Most investors generally believe that cooperation with Ukraine will increase after the conflict, mainly benefiting construction, industrials and business services, he added. When it comes to how fundraising in CEE might look in the coming months, Kulig said there is a fairly strong feeling among LPs that the fundraising market in the CEE region is not looking too good, as difficult geopolitical situations and macroeconomic turmoil continue to cast their shadow. However, Kulig added that GPs are confident this will change in the coming years, which will “undoubtedly” be influenced by current and future investment returns. “The CEE region will defend itself by proving the potential of investment opportunities.” Innova Capital is not using a placement agent in its fundraising process.

LDC has made a “significant” investment in Star Live, a Bedford-headquartered production agency delivering live event and specialist build solutions. While the mid-market private equity firm did not reveal financial terms, LDC typically invests between £10m and £50m initially. Star Live was responsible for the bespoke stage, grandstand seats and the royal box at the Coronation Concert that took place at Windsor Castle in May. The company has also worked on the 2020 Olympics in Tokyo, the 2022 Commonwealth Games in Birmingham, BST Hyde Park and the Platinum Jubilee. Outside of the UK, it also has offices in Kuala Lumpur and Shanghai. According to LDC, the business increased revenues by more than 30% last year to reach over £24m. It has also secured major projects both in the UK and internationally, including the Wimbledon Tennis Championships and the 2023 Ryder Cup in Italy. The investment will facilitate the business’s overseas expansion and support investment in its people, brand, facilities and inventory of equipment. As part of the transaction, the founding investors of Star Live, including event entrepreneur David Walley, will exit the business. Mark Howden, investment director at LDC, and Chris Handy, partner and head of West Midlands at LDC, will join the company's board following the investment. LDC has so far inked 20-plus investments in the media sector. In the past, the firm has backed several companies working in the events space, namely: loudspeaker manufacturer Martin Audio; global B2B events specialist FC Business Intelligence; and hospitality and leisure operator Boxpark. LDC was advised by Freeths (legal), KPMG (financial and tax due diligence), Fairgrove (commercial due diligence), and Clearwater International (corporate finance). Star Live was advised by Regent Assay (corporate finance) and The Wilkes Partnership (legal).

Freya Bidco, a newly-formed vehicle indirectly owned by EQT Funds and Luxinva, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) managed by the private equities department of ADIA, has reached an agreement with Dechra Pharmaceuticals on the terms and conditions of a recommended cash acquisition of the entire issued, and to be issued, ordinary share capital of Dechra. It is intended that Bidco will be indirectly owned in the following proportions: EQT will own 74% and Luxinva will own 26%. The acquisition, which is currently expected to complete towards the end of 2023 or early 2024, values Dechra's entire issued, and to be issued, ordinary share capital at approximately £4.459bn on a fully diluted basis, and implies an enterprise value of £4.882bn and a multiple of approximately 25.9x Dechra's Ebitda for the 12 months ended 31 December 2022, of £188m. Formed 26 years ago and with more than 2,400 employees, the Dechra Group is a global developer, manufacturer and supplier of products to service the veterinary profession, listed on the premium segment of the London Stock Exchange's main market. Its products can be largely split into four main categories: companion animal products, food-producing animal products, equine and nutrition. Bidco views Dechra as a high-quality and leading company operating in the attractive animal health pharmaceuticals market, which it expects to benefit from long-term growth drivers, including “positive demographics”, increasing pet ownership, medical innovation and a greater focus on animal care within the family. Bidco believes it can support Dechra's management team in accelerating its long-term growth potential by providing access to additional capital, “expertise” and “resources”. This will enable further investment in its pipeline and execution of its global expansion potential, including via inorganic opportunities. Dechra’s board considers EQT, together with ADIA, to be highly experienced investors with a strong sector understanding who will further accelerate the Dechra Group's growth. EQT and Luxinva were advised on the deal by BofA Securities and Morgan Stanley, while Investec Bank was the sole financial adviser and corporate broker to Dechra.

UK and Ireland growth capital investor BGF has backed IDR Law with a £3.25m growth capital investment. Launched in 2022 by Martin Holdsworth (pictured) and headquartered in Harrogate, IDR Law is a UK law firm specialising solely in the resolution of contentious wills, probate and trust disputes. Now with 20 employees, the business provides its members with an online referral and support space, along with extensive training, general resources and commentaries. BGF’s minority investment will help IDR Law to invest in talent and legaltech, as well as expand its office network to the Midlands, North East and London. Following an introduction through BGF’s talent network, Charles Layfield will join IDR Law’s board as non-executive chair. Following a career as a solicitor and law firm partner, Layfield chairs a number of businesses in the legal and connected sectors. The portfolio company’s new management board comprises existing BGF partners Richard Thomas, Cara Hough and Eleanor Stenson, along with head of marketing Lindsay Gibson and Richard Stewart as the incoming new head of finance. The deal was led by investors in BGF’s Yorkshire team, Chris Boyes and Linda Nguyenova, who were advised by Freeths (legal) and Tax Advisory Partnership (tax). IDR Law was advised by ALT Legal (legal) and corporate finance consultant Paul Lupton.

London-based Isomer Capital has held the first close of its latest fund, Isomer Capital III. According to media company Sifted, the fund raised capital commitments of €250m. The publication reported that returning investors from previous Isomer Capital funds include the European Commission, British Business Investments, Italmobiliare and a US endowment. Aiming to deploy the fund-of-funds over three years, the firm will invest between €5m and €10m in 20 early-stage funds in the UK and Europe, across all sectors, noted the startup news agency. It will also invest about €1.5m each in six to eight "micro VCs". Isomer Capital managing partner Joe Schorge said he expects these to be “some of the best vintage years in the VC sector”.

Privately-owned Swiss investor group Ufenau has acquired Viataurus Group through its Ufenau Fund VII. Headquartered in Reinbek, Germany, Viataurus is a full-service provider of security technology for non-residential buildings. The group – with more than 110 employees across its companies Deltron Elektronic, ESB Solutions, Heikotec and Mesafox Handelskontor – offers a range of technology, including mobile and stationary fire alarm systems, intruder and voice alarm systems, access control services, as well as video surveillance. Together with Ufenau, Viataurus’s objective is to expand its position in the “highly fragmented” building security technology market through selective acquisitions and organic growth. Furthermore, the portfolio company will aim to invest in the expansion of its service offering and employee recruitment.

While M&A activity for larger PE transactions and secondary deals contracted in the first months of 2023, NB Renaissance’s (NBR) co-founder and senior partner, Stefano Bontempelli, has told Real Deals he is still seeing “quite a nice” primary dealflow in the Italian mid-market. Reflecting on the number of assets, he said: “There are about 8,000 Italian mid-market companies that we have mapped, of which 5,000 are still family owned. About 60% of these 5,000 companies have leaders in their 60s or 70s, so the deals are largely driven by the need to manage succession rather than the timing of the market.” Bontempelli cited NBR’s acquisition of safety shoes and workwear company U-Power as a typical case of these situations, revealing that the portfolio company’s 73-year-old founder wanted a succession for the company, which makes approximately €300m in revenue. On pricing, Bontempelli said he didn’t see a “real” price correction for quality assets in the mid-market. “There was probably a decrease in valuations for lower-quality assets, but I think the correction has been more substantial on large deals; not because they were not good assets, but because they couldn’t get the right price as a result of the more expensive and challenging financing conditions,” he said. Regardless, NBR has exited two businesses in the last few months to strategic buyers – bioplastics company Novamont was sold to Eni, while Biolchim, a producer of fertilisers for agriculture, was offloaded to US-based JM Huber. But do economic conditions affect the firm’s own exit timetable? Bontempelli responded: “We like to invest in global leaders in industry niches, and in our experience, the strategic interest for these assets remains strong, even when the M&A market slows down. There is always strategic interest for strategic assets.” A challenging year Reflecting on last year, the NBR co-founder said one of the major challenges was energy costs and the sudden sharp increase in raw material prices, which generated inflation across both Italy and the rest of Europe. During 2022, NBR’s portfolio companies’ revenues, on a consolidated level, increased by 16%, of which about 10% was organic, with the rest comprised of M&A. Ebitda growth, meanwhile, was lower, as it only increased by 11%. Bontempelli confirmed this to be a result of some NBR portfolio companies having issues with the sharp increase in energy and raw material prices. Since then, Bontempelli said energy prices have stabilised to “more normal” levels, which will help the economy to recover. “Gas prices at their peak last summer were €200 per megawatt, whereas now it's €30 per megawatt. The energy price was more than €500 per megawatt; now it's €100 per megawatt,” noted Bontempelli. “Italy has also substantially reduced its dependence on Russia for its gas supply, contributing to lower volatility for the country going forward.” Discussing NBR’s portfolio performance in 2023, the senior partner expects more than 10% growth in organic revenues for the firm’s portfolio companies, with additional growth potentially coming from bolt-on acquisitions. Regarding Ebitda, he believes it will grow more relative to revenues as a result of taking actions to address the rise in costs in 2022. Bontempelli remains positive on the outlook, taking the view that current market changes are temporary rather than structural: “As inflation recedes, we also expect interest rates to decrease, although probably not in the immediate short term, but more so in the medium term. It will take a bit of time but we expect the overall economic situation to get better.” The Italian job Honing in on Italy, Bontempelli, who has been working in the country for almost 30 years, observed that the Southern European market offers a “very attractive opportunity” for PE investors, which he attributed to the economic transition from mass production to speciality industries. “If you think about the Italian automotive industry, we still produce Ferrari, Lamborghini and Maserati. Meanwhile, the production of medium-priced cars has been moved to other countries,” he explained. “This change was also seen in the pharmaceutical, chemicals, advanced machinery, fashion, cosmetics and furniture industries. In these sectors, companies are becoming the premium suppliers to premium consumers, and the premium consumers are growing worldwide.” For Bontempelli, these changes in the economy are reflected in the growth of Italian exports, which he said have achieved a compound annual growth rate of 6% since 2019. “In Italy, many global leaders in industry niches are prepared to make the transition to a different ownership model in order to become more competitive in the international markets. Opening their capital offers great opportunities for investors.” And what to make of the broader European picture? Bontempelli envisages that the market will adjust, find the right price equilibrium and activity will pick up again. “In the past, when there were macro challenges and M&A slowed down, sometimes it was hard to get a deal done because there was a pricing gap between bid and ask. We’ve realised that as time passes by, there is generally an adjustment and this gap gets smaller and the M&A market recovers,” he stated.

Archimed, the healthcare-focused investment firm, has amassed €3.5bn for its latest vehicle. MED Platform II was oversubscribed and surpassed its initial target of €2bn target after 17 months of fundraising. The final closing includes main fund commitments amounting to €3bn, while the remainder will be committed to co-investments as part of a side vehicle. According to a statement shared by the GP, MED Platform II attracted new investors from across the globe and enjoyed a re-up rate of almost 100% from existing investors. “Among the wide range of institutional investors and family offices investing in the fund, 40% come from Europe, 30% from North America and the remainder from other global regions, especially in Asia. MED Platform II is targeting 14 trans-Atlantic investments – exactly twice the number its predecessor backed. MED Platform I closed on commitments of €1.5bn in 2020. The vehicle has returned two-thirds of invested capital to investors and its total return exceeds 2x multiple on invested capital (MOIC). The fund has already deployed close to €1bn in formerly Nasdaq-listed Natus (through a $1.2bn take-private deal), and in Plasmid Factory. Earlier this year, Archimed executed a record-beating sale of Polyplus to Sartorius for more than 300x MOIC.

GPs should work on improving the public image of their portfolio companies on digital platforms before exiting, 14:46’s founder Tom Sutton has told Real Deals. While the awareness of this is growing, he noted that GPs are often seeing the odd success story, where they’ve been open about the growth and the story within the company, and that can inspire a more thoughtful outlook to the rest of the portfolio. However, widespread adoption of these practices within the mid-market is yet to be seen. He said: “There’s been a shift in mentality over the last few years, with an increasing number of GPs starting to understand the importance of external communications and marketing of their portfolio companies. However, even those who are really good at it are starting this process too late.” “If GPs are holding a portfolio company for five to seven years, on average, then why aren’t they beginning this groundwork earlier? In my opinion, it feels like too much of a reactive approach at this point in the fund’s lifecycle,” Sutton added. The material wins of doing so can include better credibility within business communities, as well as attracting future employees. Additionally, this too can attract potential future investors. That said, neglecting to improve the output of the business may result in “conflicting messaging” for prospective investors. “It needs to be aligned, because if the GP’s investment vision isn’t being played out in the public domain, it weakens any initial conversations with prospective buyers. It’s therefore so important to iron out any issues and difficulties early on in the process, so that everyone’s clear on the key messages to promote and the range of external comms channels to utilise,” he said. He added that improving the external comms will more appropriately reflect the investment vision of the business during the GP’s ownership, which may even come up in the due diligence process of an exit. The communications specialist explained that by working on this as part of the value creation plan during the holding period, the traction could lead to a GP bagging a better price on exit, or even an earlier-than-expected sale process. “Put simply, perception is greater than reality. If you do a really good job with your communications, potential investors will look at the company and see an attractive proposition,” he explained. “While due diligence may inevitably knock down the valuation, by starting at a higher place, you could well end up with a higher result.”

Texas-headquartered private equity firm Ara Partners has hired Kaitlin Fronczek as director of investor relations in London. Fronczek joins Ara from Apax Partners where she most recently served as vice-president responsible for capital raising and relationship management. In her 15-year career, she has also worked with Lionhart and Tailwind Capital. In her new role, Fronczek will focus on building and maintaining relationships with Ara’s existing base of institutional investors, as well as global investor outreach. The GP – from its offices in Houston, Boston and Dublin – focuses on industrial decarbonisation investments.

Phoenix Equity Partners has made a growth investment in Logiq, a cyber security specialist. Founded in 2018 and headquartered in Bristol, Logiq provides its cyber-related services to the UK-based public sector, particularly within the defence sector. After acquiring a “significant minority” shareholding, Phoenix will support the business plans to enhance its operational platform and expand into new end markets. Phoenix’s investment will be led by Tim Dunn, partner, and Richard Hill, investment director. As part of the transaction, both will join the board. The investment represents the third from Phoenix’s 2022 fund, with its investments so far including 4most, a risk analytics and modelling solutions provider, and Dufrain, a data analytics business. Phoenix was advised by Lincoln (corporate finance), BDO (debt advisory), Travers Smith (legal), EY (tax advisory & financial due diligence), EY Parthenon (commercial due diligence), Mactavish (insurance due diligence) and Corporate Balance (ESG due diligence). Logiq was advised by BDO (corporate finance & commercial due diligence), RSM (tax advisory & financial due diligence) and IBB (legal).

Limerston Capital-backed Largo Leisure has completed its maiden bolt-on acquisition, via holiday park Cruachan Farm. UK-based Cruachan Farm is located adjacent to Largo Leisure’s pre-existing Loch Tay property. As part of the transaction, the two sites will retain operational independence as separately branded sites. Limerston first backed Largo Leisure in March 2022, supporting the operational upgrades within the business. The GP targets businesses with EBITDA of between £5m and £15m. Investing via its Limerston Capital Partners II, Limerston plans to continue supporting the business in driving its acquisitive-driven growth plan. Funding for the add-on acquisition was provided by HSBC.

Listed PE firm Gimv has acquired a stake in ERS Electronic through the GP’s smart industries platform. Managing directors at ERS, Klemens Reitinger and Laurent Giai-Miniet, will retain a stake in the company and continue in their current positions. Based in Germering near Munich, ERS is a provider of thermal management solutions for semiconductor manufacturing, aiming to support the semiconductor industry to undertake thermal tests during microchip production. ERS said it is “certain” that Gimv will help to grow the company by virtue of the firm’s “proven” capabilities in supporting companies like ERS before. The portfolio company added that the deal provides it with the resources and flexibility for strengthened product research and development. As part of the deal, Gimv stated it will seek to further strengthen ERS’ market position and capture the “sustained increased” demand.

Epiris’ portfolio company Delinian has completed the planned demerger of its Fastmarkets division. Headquartered in London, Delinian is a B2B information services business formerly known as Euromoney Institutional Investor PLC. Its portfolio of 16 brands – including Institutional Investor, Insider Publishing Group and BCA Research – provide industry information and events to customers across the financial services and asset management sectors. The company currently has more than 2,200 employees located in North America, South America, Europe and Asia. Funds managed by Epiris and Astorg acquired Euromoney in November 2022 and rebranded it as Delinian in January 2023. As part of the transaction, it was agreed that the company would be separated into two businesses, with Fastmarkets owned and controlled by Astorg, and the remaining Delinian businesses under the majority ownership and control of PE firm Epiris. Epiris said that the separation will enable Delinian to pursue a "tailored" strategy as an independent portfolio of businesses as it introduces a new leadership team led by CEO Andrew Pinder. The GP will seek to enhance Delinian by targeting operational improvements and, where appropriate, bolt-on acquisitions.

LDC's portfolio company Independent Governance Group (IGG), a provider of professional pensions trusteeship and governance services has acquired communications agency Like Minds as it eyes the expansion of its service portfolio to include member and employee engagement. In February this year, LDC backed the creation of IGG by merging Ross Trustees and Independent Trustee Services. The same month, IGG acquired Clarity Trustees, inking its first bolt-on. London-based Like Minds is a creative communications agency which specialises in employee engagement, specifically in relation to pensions and benefits, as well as financial wellbeing, reward and branding. The acquisition, in LDC’s view, will therefore widen IGG’s offering to include the provision of similar services for both schemes and employers. Directors and founders Nick and Moira Throp will be taking a step back from the business, however, current managing director Judith Groves will lead the company and join the IGG team as a director, following the transaction. The Like Minds team will continue to operate as a distinct business and brand in the wider IGG portfolio.

Trilantic Europe has promoted Javier Olascoaga to managing partner, reporting to the three founders. As part of his appointment, the three founders will continue to chair the investment process and monitoring of the portfolio. In his new position, Olascoaga will take responsibility for the day-to-day activities of the group. Having begun his career at Goldman Sachs, Olascoaga joined Trilantic as it was Lehman Brothers Merchant Banking in 2004. He joined its partnership 11 years later, leading the firm’s origination and investment activity in Spain.

LDC-backed Evolution Funding has acquired Motion Finance. Founded in 2007 and headquartered in Warrington, Motion Finance is a broker focused on sourcing finance for small-to-medium sized used car dealerships, across the UK. Evolution Funding is an independent motor finance and technology provider. LDC first backed the business in 2019 As part of the transaction, Motion Finance will continue to operate under its own brand, with its existing management team continuing to lead the business. The add-on acquisition supports Evolution’s growth, making the second bolt-on since LDC’s investment - following Click Dealer in 2021. During LDC’s investment so far, the business has expanded its management team and invested significantly in its technology and digital capabilities. Evolution Funding was advised by Si Heath of Heligan Corporate Finance, Gowlings and BDO. Motion Finance was advised by Gareth Hughes & Co, Bennett Brooks, and Taylor Rose.

Jolt Capital’s portfolio company BC Platforms (BCP) has acquired 4Pharma in a deal due to be completed by the end of Q2 2024. Based in Turku, Finland, 4Pharma is a contract research organisation providing medical research data and analytics services to pharmaceutical, biotechnology and medical device companies. Founded in 1997 from an MIT Whitehead project spinoff, Zurich-headquartered BC Platforms builds data networks for the life sciences industry and provides technology platforms for personalised medicine. The business aims to convert complex biological information collected in healthcare settings into actionable insights. In November 2022, Jolt Capital acquired a minority stake in BC Platforms as it led a $20m growth equity investment into the company. The bolt-on of 4Pharma expands BCP’s capabilities in providing data analytics services, drug development and clinical research to its pharma and biotech clients. Meanwhile, 4Pharma’s customers benefit from additional services in the field of real-world data through BCP’s technology. 4Pharma added that there are “clear” synergies between it and BCP, citing a possibility to combine technology, BCP’s data network and 4Pharma’s biostatistics and data management services. Jolt Capital commented that 4Pharma’s knowhow in life sciences research and development, including regulatory knowledge, boosts BCP’s genomic data discovery and analytics platforms. As part of the deal, 4Pharma CEO Tero Oinonen will become executive VP of North Europe for BCP.

Argos Wityu has agreed to become the majority shareholder of TKH France and its two subsidiaries, CAE Data SAS and ID Cables SAS. Listed technology company TKH Group will remain invested in the newly formed entity as a 40% shareholder. The deal, which is expected to close in Q3 2023, is Argos Wityu’s seventh investment from its Mid-Market Fund VIII. With 186 employees, TKH France and its two subsidiaries, CAE Data SAS and ID Cables SAS, design and distribute cabling and connectivity products, serving mainly the smart building, industrial, marine, offshore, nuclear, infrastructure, healthcare and entertainment markets. The business had turnover of €129.3m in 2022. Argos Wityu said it is “proud” to have been chosen by TKH Group to further develop the French connectivity company. TKH Group added that Argos Wityu brings the “right experience” to grow the portfolio company’s activities to the next stage. With more than €1.4bn in AUM, Argos Wityu will support TKH France to accelerate growth in France and internationally, both organically and through a buy-and-build strategy, as well as increasing digitalisation and better addressing trends such as ‘power over ethernet’. By reinvesting part of the proceeds of its divestment for a 40% share, TKH Group said it has the opportunity to further benefit from TKH France’s value creation potential in the near future. The group will continue to be active in France’s smart connectivity market under the brand TKF Telecom. Argos Wityu’s deal team comprised Thomas Ribéreau, Vincent Yacoub, Pierre Cassignol and Stanislas Guichot-Pérère, who were advised by August Debouzy (legal), EY (financial due diligence), Strategia (commercial due diligence), Arsene Taxand (tax) and Axa Climate (ESG due diligence).

Employee-owned Adams Street Partners has secured more than $3.2bn in capital commitments for its latest secondary investment programme, confirming the closure of its Global Secondary Fund 7. The latest programme is 50% larger than the firm’s previous fundraise, which included the close of Global Secondary Fund 6 in 2019. The firm said the latest vehicle enjoyed “strong” investor demand from new and existing institutional investors globally. Jeff Akers, partner and head of secondary investments at Adams Street, commented: “The aggregate fundraise exceeded our expectations and leaves the team well positioned to capitalise on our strategy in today's evolving market.”

Copenhagen-based GP Polaris has acquired a majority stake in Micropower Group. As part of the investment, the group’s management and former owners will retain a “significant” minority ownership. Headquartered in Växjö, Sweden, Micropower produces and supplies charging products for batteries and power supplies, as well as modular Li-ion batteries for industrial applications. The group has about 460 employees and recorded more than SEK1.5bn (€128.6m) in revenue in 2022. Micropower said the timing was “right” to bring in a new partner and develop the business according to its existing strategy and business plan. It added that, through Polaris, the group has gained access to industrial expertise and an extensive network, as well as the opportunity to continue investing in production. CEO of Micropower Group, Torbjörn Gustafsson, will continue in his role, while Per Nordgren, who has a background of working with Nordic industrial companies, has been appointed as the new chair of the group's board. In addition, the board has also been strengthened with Daniel Westberg, CEO of Ewellix, and Polaris partner Johan Pernvi. Jan Sandberg and Mikael Forslund remain on the board. Nordgren acted as an industry adviser to Polaris during the acquisition process.

Iberia-focused private equity firm Corpfin Capital has secured a majority take in Grúas Fuentes, a provider of roadside assistance services in Spain, to accelerate the company’s growth at a national scale. The GP is making the acquisition via Corpfin Capital Fund V, which hit its hard-cap on €278m in 2018. The GP also secured debt to finance the acquisition. Established in 1999 in the Madrid region, Grúas Fuentes provides roadside assistance services such as towing and onsite repair for passenger and industrial vehicles. The company currently has a fleet of more than 130 vehicles and performs more than 250,000 services per year. When asked what company- and sector-specific characteristics attracted the GP to the deal, managing partner Alvaro Olivares told Real Deals that roadside assistance is an indispensable service for clients amid a "highly fragmented and non-professionalised" supply market. The Spanish sponsor sees strong organic growth potential as insurance companies shift services to “best quality” providers like Grúas Fuentes and additional growth opportunities through a buy-and-build strategy to accelerate the national rollout. Corpfin Capital focuses on mid-market investments in the Iberian Peninsula and looks to back companies with turnover above €30m, and Ebitda between €5 and €25m. The GP focuses on assets with enterprise value of up to €200m. Since its inception in 1990, Corpfin Capital has managed five institutional funds totalling €1bn. Corpfin Capital was advised by Garrigues (legal). The Puebla Fuentes family was advised by Auren International (corporate finance).

Columna Capital has secured a controlling stake in home hemodialysis solutions provider Physidia. France-headquartered Physidia’s dialysis monitors are currently commercialised across 16 markets in EMEA. Since its inception in 2010, these monitors have completed close to one million dialysis sessions within a home setting. As part of the transaction, existing shareholders, including the Plowiecki family, founders Cyril Balas and Michel Houdou, will remain as minority shareholders. Columna Capital, which has offices in London, Switzerland and Luxembourg, invests in profitable companies in the European lower mid-market with revenue of €15-100m. The fresh cash provided by the private equity firm will be used to "triple the size" of the business in the next five years. The transaction represents Columna’s fourth investment from its Fund III. The vehicle had collected €105m as of July last year. A spokesperson at the firm told Real Deals that it foresees its role as a long-term operational and financial partner to help accelerate growth in terms of sales and international expansion in European markets (Italy, Spain, the UK and Germany), and in the Middle East and the US. The GP will also support the company by “significantly” investing in the organisation and the team. The deal was led by Bryan, Garnier & Co, which served as the exclusive corporate financial adviser. DLA Piper, Stance Avocats and Gate Avocats served as legal advisers. PwC, Germain Maureau and Voisin Consulting acted as due diligence providers to Columna Capital.

Pemberton has appointed Niamh Whooley as managing director and head of sustainable investing. Bringing more than 15 years of experience in sustainable investing, she most recently served as global head of fixed income ESG research at Goldman Sachs Asset Management, where she worked to integrate ESG across the asset classes, while maintaining regulatory alignment. She is also a consortium member of the UN Principles for Responsible Investment’s Inevitable Policy Response, and sits on the PRI’s Sustainable Development Goals advisory committee and the Bondholder Engagement Working Group. In her new role as the alternative credit manager, she will work across all areas of the business to develop Pemberton's sustainable investments and communications with stakeholders. Whooley will report to Harriet Steel, partner and global head of clients.

Baird Capital is to acquire a minority stake in JMAN. Founded in 2013, JMAN is a commercially focused data consultancy business. With an operational footprint in London and Chennai, India, its data science and data engineering capabilities have a primary focus on the PE industry. Investing through its Global Private Equity Fund II, Baird plans to support the business in entering the North American market. Its second global fund closed at $340m in July 2021. Baird’s investment will be led by partner Michael Holgate, director Louise Kingston and investment manager Aidan Elliott. The firm told Real Deals that the deal originated from hearing the company’s founder and CEO at a private equity data panel 12 months ago. As part of the transaction, the management team will maintain a majority shareholding. Baird Capital was advised by Eversheds Sutherland (legal), Canaccord Genuity (corporate finance), Armstrong (commercial due diligence), Ernst & Young (financial due diligence and tax advisory), Seedcloud (technical due diligence), BDO (tax advisory), New Street Consulting (management), WTW (insurance due diligence) and Humatica (organisation due diligence). JMAN was advised by Alantra (corporate advisory), Grant Thornton (tax advisory) and Gowlings (legal).

Carlyle is to acquire Meopta Optika. Founded in 1933 and headquartered in the Czech Republic, Meopta is a manufacturer of optical, optomechanical and optoelectronic solutions. Investing through both its Carlyle Europe Partners platform and Carlyle Europe Technology Partners platform, Carlyle plans to support the management team by focusing on R&D, making operational improvements, expanding internationally and creating a direct sales network. As part of the transaction, the Rausnitz family will retain a minority shareholding. Meopta was advised by Goldman Sachs and Deloitte (financial due diligence), and Dentons (legal).

Reed Smith has appointed Francois Feuillat as a private equity partner within its London office. Feuillat joins Reed Smith from Willkie Farr & Gallagher, bringing more than 25 years’ experience advising PE and corporate clients within the energy, infrastructure, industrials and technology sectors. Prior to that, he was a partner at Vinson & Elkins up until 2015. Reed Smith has significantly grown its PE practice in 2023 so far, welcoming both Dr Nikolaus von Jacobs and Christian von Sydow from McDermott Will & Emery to its Munich office last month.

IK Partners has made a growth investment in Linxea Finance Group, Linxea.com and Irbis Solutions, alongside its existing investors. Linxea is a French online platform for savings products. NextStage AM and Matignon Investissement (M3I) first backed the business in 2015. During their investment, the business’s AUM has grown from €800m to €2.8bn. Acquiring a minority shareholding via IK Small Cap III Fund, IK will support plans to offer new services, improve the platform, as well as strengthen the team. IK’s investment will be supported by Pierre Gallix, head of development capital strategy; Thibaut Richard, director; Florent Labiale, associate director; and analyst Paola Ismail. The transaction is subject to approval from the French financial markets regulator, the AMF. IK was advised by Winston & Strawn (legal), FIG Partners (M&A), Exelmans (financial due diligence), Ares&Co (commercial due diligence), Singulier (technical due diligence), KPMG (legal), Albane Eglinger (social due diligence), Vincent Maurel (regulatory due diligence) and Cédric Philibert (tax advisory). Management was advised by 8 Advisory (vendor due diligence), Cambon Partners (M&A), Joffe et Associés (consulting), and Jeausserand-Audouard (management consulting).

In order to offer you a much more streamlined user experience (including easier registration and account management options), we have now implemented a new login system on the Real Deals website. Your subscription will not be affected, and the only thing we will need from you is to reset your password upon your first login for security purposes. This will take just a few seconds: either when logging on to see a specific article, or via the 'Login' link at the top of the site, click on the 'Forgotten password?' link. Enter the email address associated with your account and you will receive an email containing a one-time code to reset your password. If you have any questions or experience difficulties logging in, please do not hesitate to reach out to us anytime.

CVC Capital Partners has sold its minority shareholding in Messer Industries to Messer, a supplier of industrial, medical and speciality gases. In parallel, Messer will bring in GIC as a “long-term” minority shareholder in Messer. The proceeds of this investment will be used to finance the acquisition of shares in Messer Industries. The transaction between Messer and CVC, as well as the entry of GIC, are still subject to the usual regulatory approvals, with the acquisition of the shares expected to complete by year-end 2023. Messer Industries was a joint venture established in March 2019 as a strategic partnership between Messer and CVC Capital Partners through its Fund VII. It comprises the majority of the former gases business of Linde AG in North America, as well as individual business activities of Linde and Praxair in South America, which both groups had to sell in the course of their merger. In 2019, Messer's activities in Asia and in Central and South Eastern Europe, which have also been expanded in recent years, mainly remained in the separately managed Messer SE & Co KGaA. Messer also contributed the majority of its Western European activities to the joint venture. CVC stated that the cooperation between itself and Messer was designed to be temporary from the outset, adding that it realised a “significant” increase in value for all parties involved. In the past financial year, the turnover of Messer Industries rose steadily to reach €2.59bn. The company generated Ebitda of €749m. Overall, Messer posted sales of €4.16bn and Ebitda of €1.17bn in the past financial year. Going forward, the plan is to bring together Messer's global activities under one roof into Messer SE & Co KGaA, as it seeks to differentiate itself from its listed competitors. Bernd Eulitz, CEO of Messer, said: “Now is the ideal time to fully integrate Messer Industries with all its national entities.” GIC said the global market for industrial gases is “attractive” and growing, claiming that it is a durable industry that will see new opportunities from the green transition in the long term. Messer, which currently has 11,000 employees, agrees that there is considerable growth potential. As an integrated company growing both organically and through acquisitions, Messer expects “significant” increases in sales and earnings in the coming years and said it sees opportunities to more than double its business volume by the end of the decade.

London-headquartered VC firm Talis Capital has held the first close of its Talis Ventures III fund on $175m, marking its largest fund to date. Led by equal general partners Matus Maar, Thomas Williams and Kirill Tashilov, the new fund will seek to lead seed and series-A rounds in tech infrastructure, climate and synbio, and consumer internet companies across the UK, Europe and the US. On identifying potential businesses to invest in, Tashilov said: “We invest when we see the outlines of sustainable competitive advantage and potential for path dependence. As a result, we think more like biologists than physicists – we think of economic webs and complex adaptive systems more than we do of simple value chains.” Williams added: “We take a different approach to the fiscal recklessness and linear thinking that’s caused many in the last decade to ignore the core principles of company building and value creation. We know progress is cumulative in science and engineering but cyclical in finance and this time is no different – there is no such thing as good times or bad times to start a company, there are trade-offs.” According to Talis, the firm partners with just a handful of founders each year. So far, the new fund invested in three founding teams, including London-based credit security platform Bondaval and San Francisco-based carbon-negative textile company, Rubi Laboratories. Since its launch in 2012, Talis has invested more than £250m, which has been pumped into companies including Darktrace, Onfido, Ynsect, Pricefx, Seqera Labs, PortalOne and Howl.

Food & beverage PE investor Cerea Partners has acquired a majority stake in AB Process Ingénierie, alongside investments from the group’s CEO and founders, Bpifrance Investissement and regional partners SoderoGestion and Unexo. Former majority shareholder Trajan has also reinvested in the new deal. Senior financing on the deal was provided by Crédit Agricole du Finistère, Caisse d'Epargne Bretagne Pays de la Loire (CEBPL) and Hélia Conseil. The transaction is the third investment from the Cerea Capital III Fund, which completed its first close in the summer of 2022. Founded in 2008 by Christophe Abjean, Michel Bris and Stéphane Pluchon, AB Process Ingénierie is a French company that designs and integrates custom robotic and automated products, particularly for end-of-line automation in the food industry. The group generates revenue of about €25m, and has achieved annual growth of about 12% on average since 2020, Cerea Partners said in a statement. Trajan completed the first investment from its Transmission & Croissance 1 fund by investing in AB Process Ingénierie in 2020. This deal paved the way for the arrival of CEO Brian Boulanger. In 2022, the group carried out its first external growth transaction, tying up Coaxial Technologie, which specialises in the turnkey delivery of production lines for the food industry. Founded in 2010, the company serves fish, meat and egg processors in particular, and is said to have built up knowhow in manufacturing container washers. Backed by Cerea Partners, which has €1.3bn under management, the GP listed four “key” priorities for the portfolio company – further hires, consolidating the group’s position at the regional level while continuing its international development, expanding through bolt-on acquisitions, and navigating the corporate social responsibility transition. The GP added that the portfolio company operates in a market buoyed by favourable underlying trends, which includes a labour shortage in physically strenuous jobs, a push to achieve productivity gains in the food industry given even greater priority in an inflationary environment, and a general trend toward automation and robotics. Cerea Partners’ deal team comprised Xavier Renault, Laurent Brossaud-Monty and Gabrielle Poitrinal. They, alongside the other buyers, were advised by Oaklins (corporate finance), Mortier & Co (financial due diligence), Goodwin (legal), Bichot & Associés (legal), Mamou & Boccara (tax), Advention (commercial due diligence) and Axa Climate (ESG due diligence). The vendors were advised by Capitalmind (corporate finance), Exelmans (financial due diligence), Squire Patton Boggs (legal), Moncey (legal) and LEXPRO (legal), while Crédit Agricole du Finistère, CEBPL and Hélia Conseil were advised by CVS Avocats (legal).

Nexxus Iberia has closed a €56m continuation fund, capitalised by Headway Capital Partners and Mill Reef Capital as the leading investors of a consortium, which also includes the EIF (as adviser to AMUF), Columbia Threadneedle, several family offices and various follow-on investors. The continuation fund was established to acquire a single asset, OFG Telecomunicaciones, which is a portfolio company of Nexxus Iberia. Headquartered in Córdoba, Spain and employing 1,600 members of staff, the company is a provider of integrated telecom services to equipment providers, global telecom carriers and tower companies across Europe, Latin America and the US. According to the GP, the purpose of establishing the fund was to offer liquidity to the existing investors from Nexxus Iberia Private Equity Fund 1 through an election process, while permitting continuity in the partnership between Nexxus Iberia and OFG. OFG was the first investment from Fund 1 in July 2018, when the firm backed the portfolio company alongside the incumbent management team in a primary buyout from the original founder. During the holding period, OFG has internationalised through the consolidation of its presence both in Europe and the Americas. As a result, sales almost doubled organically between 2018 and 2022, the PE firm said in a statement. Under the GP’s continued ownership, the plan is to further support OFG’s internationalisation journey, as the firm seeks to add new regions like the US and ride the tailwinds of the industry, which the firm believes to include the deployment of new technologies as well as the growing global consumption of data. Today, Nexxus Iberia has commitments of €170m for its Fund 1. Currently, the PE investor is in the process of raising its second fund, Nexxus Iberia Private Equity Fund 2. Cornerstone Fund Placement advised Nexxus Iberia on the transaction, while KWM served as the GP’s legal counsel. OFG was advised by Pinsent Masons.

Lower mid-market buyout firm Value4Capital (V4C) 