Private property be careful; offers in Japan are increasing | Jobi Cool


S&P Global Market Intelligence offers our selection of global private equity news and more published this week.

Private equity fund managers have plenty of investable capital at their disposal, but they have been slower to put that money to work this year amid high inflation and signs of a global recession.

The total value of private equity companies worldwide fell more than 60% year-over-year in September to $34.91 billion. The industry recorded $587.99 billion in transactions between Jan. 1 and Sept. 30, about 30% lower than the total of $853.01 billion in the first nine months of 2021. In fact, private equity totals have declined every quarter since peaking in fourth quarter of last year.

It’s not that there aren’t opportunities out there. Private equity executives have been talking for months about taking advantage of market shifts to buy cheap companies, and global listings this year are still well ahead of what they were at the same time in 2018, 2019 or 2020.

General partners are also cautious, aware that the same market forces that create buying opportunities, including rising interest rates and slower economic growth, could reduce their investments.

For example, in Blackstone Inc.’s performance interview. in the third quarter, president Jonathan Gray weighs the current opportunities the company sees in Europe and the UK, where a strong dollar is meeting declining public sector valuations, against the risks of a growing energy crisis and rising housing costs on the continent, as well as rising interest rates and inflation. Gray said Blackstone is keeping a close eye on potential targets in Europe, but warned analysts and investors that it could take years to finalize deals.

Learn more about global private equity trends, including September’s top performing sector, here.

CAPTION OF THE WEEK: Increased US private equity investment in Japan

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⮞ With $11.26 billion in combined deal value recorded between January 1 and September 12, US private equity firms have already invested more in Japanese companies in 2022 than in all of 2021.

⮞ The relative strength of the US dollar against the Japanese yen and lower corporate valuations are two factors driving acquisition activity by US companies.

⮞ Also attracting private investment to Japan are the country’s low interest rates and stable regulatory environment.

OFFERS AND INVESTMENTS

* General Atlantic is buying investment manager Iron Park Capital Partners LP to create General Atlantic Credit. The deal could close in the first quarter of 2023.

* KKR & Co. Inc. agreed to acquire Ness Technologies Inc., the turnaround company Ness Technologies Inc., from Rohatyn Group.

* NovaQuest Private Equity management firm QHP Capital LP completed the acquisition of AutoCruitment, a digital patient recruitment company.

* TPG Capital LP’s TPG Real Estate closed its opportunistic real estate equity fund TPG Real Estate Partners IV with $6.8 billion in commitments.

* Ridgemont Equity Partners closed Ridgemont Equity Partners IV LP on the hard target with $2.35 billion in commitments. The fund’s initial target was $2.0 billion.

ELSE IN THE INDUSTRY

* French digital platform and services company Plus que PRO SAS received a capital injection from IK Partners.

* MSP Sports Capital acquired a majority stake in action sports and entertainment brand X Games from ESPN Inc. entity ESPN Productions Inc.

* Sky Peak Capital completed the acquisition of Hicks Machine Inc., a precision machine shop.

* Long Ridge Equity Partners LLC completed the acquisition of a majority stake in Acqueon, a provider of comprehensive business software, from Everstone Capital Asia Pte. Ltd. Everstone will retain a minority stake in Acqueon.

Emphasis on: ASSESSMENT

* Suja Life LLC, a portfolio company of Paine Schwartz Partners LLC, acquired Vive Organic Inc. The marketing company produces organic juices.

* Ara Partners Group LLC committed $65 million in additional capital to BioVeritas, an organic ingredients company. Ara already owns a majority in the company.

* BRS & Co. and Rosser Capital Partners agreed to jointly acquire Tumble 22 Holdings LLC. The marketing company is a hot chicken restaurant with five locations in Texas.



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