15 March, 2021 – Issue 858 penews.com

Online edition 22 February 2021

The news and analysis powering European private equity The Bright Alternative in Fund and Corporate Services If you are launching a fund, looking to outsource, or are considering migrating, we can support you. Please call James Duffield, our Head of Business Development, on +44( 0)20 3818 0250 Explore: aztecgroup.co.uk | .eu Aztec Group is authorised to carry on financial services in the jurisdictions which it operates. Aztec Group is authorised to carry on financial services in the jurisdictions in which it operates. 15 March, 2021 –Issue858 h rgtAlt Bright The Fund and Corporate Services Explore: Please call James Duffield, our Head of Business Development, on +44 If you arelaunching a fund, looking to outsource, or are considering migrating, we cansupport you. zegopc.k|.eu | aztecgroup.co.uk ernative in penews.com ( 0 ) 20 3818 0250 www.penews.com • 15 March, 2021 News 3

CONTENTS Charterhouse to sell drugmaker Cover Cooper to CVC in €2.2bn deal

Elisângela Mendonça reinvestment” in Cooper and over 35 years of activity. Its main

DANILO AGUTOLI DANILO continue to support the growth targets are transactions with an London-based private equity firm and international expansion of the enterprise value of between €75m Charterhouse Capital Partners business alongside CVC, it said. and €1.5bn in services, health- said it has entered into exclusive Headquartered in Paris, Cooper care, specialised industrials and talks with CVC Capital Partners manufactures and distributes a di- consumer sectors. Since 1994, its to sell a majority stake in French versified portfolio of branded and more than 50 investments have l Michael Moore: The BVCA boss and former MP on why private equity drugmaker Cooperation Phar- basic products on an international generated €19.7bn of proceeds at must create public value maceutique Française, known as basis, to 30 export markets. Its a return of 2x multiple of capital – Pages 6-7 Cooper. products offering includes over- contributed and a gross internal The deal, which could value the the-counter medicines, dietary rate of return of 39%. business at about €2.2bn, would supplements and medical devices. Throughout 2020, the pharma- News deliver a three times return to Under Charterhouse’s ownership ceutical sector has been resilient l Six Nations Rugby and CVC seal Charterhouse, according to peo- since 2016, the company has more to Covid-19 financial impacts and £365m deal ple familiar with the matter. than doubled in size and posted many PE firms have also taken As part of the transaction, Lux- revenues close to €500m, accord- advantage of investor appetite to embourg-headquartered CVC will ing to the firm. offload businesses to peer buyout partner with Yvan Vindevogel, The deal is still subject to work- groups. the founder of consumer health ers’ council information and con- CVC itself agreed to sell a ma- company Vemedia, as well as the sultation and to the approval of jority stake in French clinic chain specialised healthcare invest- relevant regulatory authorities. Elsan to KKR and Ardian for ment firm Avista Capital Partners One of the longest-established about $4bn. Ardian also exited a l EU sets out guidance on and Cooper’s management team, private equity firms operating in pharma business, Envision Phar- sustainability funds according to a statement. Char- Europe, Charterhouse has com- ma Group, in November, to GHO l Deals and company news terhouse will make a “significant pleted more than 150 acquisitions Capital, for example. – Pages 4-5 Analysis Gender balance progress stalls in Europe l Emerging markets outlook for private equity in Africa Elisângela Mendonça noted the industry is “finally She believes “women will be l Technology sector shines across continent’s deal landscape discussing diversity as a busi- attracted to work on firms that l Private equity closes more but Improvements to the gender ness imperative”, but stressed take diversity seriously”, which smaller deals so far this year balance in private equity have more needs to be done in a Pre- may contribute to pushing the – Pages 8-10 almost stalled, a new report has qin webinar to present the report agenda forward. found. on 11 March. “There is positive Momentum for improving At the end of 2020, 20.6% momentum, but we have to keep women’s representation in pri- People of people employed by buyout on pushing this topic…. to con- vate equity may have stalled be- l KKR eyes groups in Europe were women, tinue to drive the change cause of the pandemic. A Europe’s just slightly up from 20.4% at the we want to see,” she report this week by fertile hunting end of 2019, according to Preqin’s added. professional servic- ground for 2021 Women in Alternatives re- Women in lead- es firm PwC said tech deals port, released last week, which is ership positions, that due to the – Page 11 a follow-up to last year’s study. such as Simon 20.6% “disproportion- Preqin’s research used data continue to be ate effects” of from all the alternative invest- a rarity in pri- Proportion of people employed coronavirus pan-

Comment ments industry, including private vate equity. They by buyout firms in Europe in demic on women, 2020 that were women l How do buyout firms protect returns equity, venture capital, hedge account for only progress on gen- in an over-hyped technology market? funds, private debt, real estate 11.8% of senior pri- der equality in the l Digital transformation is giving and others. But even when look- vate equity roles glob- workplace in developed private equity managers a competitive ing into alternatives more broadly, ally, against 11.5%, according countries is set to be back edge progress is still slow. In 2020, to Preqin’s previous annual re- to 2017 levels. – Pages 12-13 20.3% of people working in the port. A more visible improvement Some firms, however, are whole alternative assets sector was seen at junior and mid-levels, making improvements to diver- Venture Capital were women – up from 19.7% in where women now occupy 32.2% sity. Last week, Equality Group l How to build diversity in venture 2019. and 24.7%, respectively, versus launched its first Inclusive Top capital “Achieving gender equality 30.6% and 26% a year ago. 20 PE & VC Index, shared exclu- l VC-backed Deliveroo plans London in alternative assets is slow, but “Female representation among sively with PEN (See issue 857, IPO listing progress is being made in most senior roles remains low. How- pages 6-7). The London-based – Page 14 parts of the industry,” said Shifra ever, women’s presence in the consulting firm analysed 400 Ansonoff, global head of research alternative assets industry is global PE and VC groups to rank Data and data operations at Preqin. slowly growing, registering gains them according to their recent l Latest Deals Pipeline Ivelisse Rodriguez Simon, that will hopefully hold over the efforts on improving diversity. – Page 15 managing partner at Los Angeles- longer term,” Preqin’s Ansonoff “How to build diversity in based Avante Capital Partners, added. venture capital”, page 14. www.penews.com • 15 March, 2021 News 3

CONTENTS Charterhouse to sell drugmaker Cover Cooper to CVC in €2.2bn deal

Elisângela Mendonça reinvestment” in Cooper and over 35 years of activity. Its main

DANILO AGUTOLI DANILO continue to support the growth targets are transactions with an London-based private equity firm and international expansion of the enterprise value of between €75m Charterhouse Capital Partners business alongside CVC, it said. and €1.5bn in services, health- said it has entered into exclusive Headquartered in Paris, Cooper care, specialised industrials and talks with CVC Capital Partners manufactures and distributes a di- consumer sectors. Since 1994, its to sell a majority stake in French versified portfolio of branded and more than 50 investments have l Michael Moore: The BVCA boss and former MP on why private equity drugmaker Cooperation Phar- basic products on an international generated €19.7bn of proceeds at must create public value maceutique Française, known as basis, to 30 export markets. Its a return of 2x multiple of capital – Pages 6-7 Cooper. products offering includes over- contributed and a gross internal The deal, which could value the the-counter medicines, dietary rate of return of 39%. business at about €2.2bn, would supplements and medical devices. Throughout 2020, the pharma- News deliver a three times return to Under Charterhouse’s ownership ceutical sector has been resilient l Six Nations Rugby and CVC seal Charterhouse, according to peo- since 2016, the company has more to Covid-19 financial impacts and £365m deal ple familiar with the matter. than doubled in size and posted many PE firms have also taken As part of the transaction, Lux- revenues close to €500m, accord- advantage of investor appetite to embourg-headquartered CVC will ing to the firm. offload businesses to peer buyout partner with Yvan Vindevogel, The deal is still subject to work- groups. the founder of consumer health ers’ council information and con- CVC itself agreed to sell a ma- company Vemedia, as well as the sultation and to the approval of jority stake in French clinic chain specialised healthcare invest- relevant regulatory authorities. Elsan to KKR and Ardian for ment firm Avista Capital Partners One of the longest-established about $4bn. Ardian also exited a l EU sets out guidance on and Cooper’s management team, private equity firms operating in pharma business, Envision Phar- sustainability funds according to a statement. Char- Europe, Charterhouse has com- ma Group, in November, to GHO l Deals and company news terhouse will make a “significant pleted more than 150 acquisitions Capital, for example. – Pages 4-5 Analysis Gender balance progress stalls in Europe l Emerging markets outlook for private equity in Africa Elisângela Mendonça noted the industry is “finally She believes “women will be l Technology sector shines across continent’s deal landscape discussing diversity as a busi- attracted to work on firms that l Private equity closes more but Improvements to the gender ness imperative”, but stressed take diversity seriously”, which smaller deals so far this year balance in private equity have more needs to be done in a Pre- may contribute to pushing the – Pages 8-10 almost stalled, a new report has qin webinar to present the report agenda forward. found. on 11 March. “There is positive Momentum for improving At the end of 2020, 20.6% momentum, but we have to keep women’s representation in pri- People of people employed by buyout on pushing this topic…. to con- vate equity may have stalled be- l KKR eyes groups in Europe were women, tinue to drive the change cause of the pandemic. A Europe’s just slightly up from 20.4% at the we want to see,” she report this week by fertile hunting end of 2019, according to Preqin’s added. professional servic- ground for 2021 Women in Alternatives re- Women in lead- es firm PwC said tech deals port, released last week, which is ership positions, that due to the – Page 11 a follow-up to last year’s study. such as Simon 20.6% “disproportion- Preqin’s research used data continue to be ate effects” of from all the alternative invest- a rarity in pri- Proportion of people employed coronavirus pan-

Comment ments industry, including private vate equity. They by buyout firms in Europe in demic on women, 2020 that were women l How do buyout firms protect returns equity, venture capital, hedge account for only progress on gen- in an over-hyped technology market? funds, private debt, real estate 11.8% of senior pri- der equality in the l Digital transformation is giving and others. But even when look- vate equity roles glob- workplace in developed private equity managers a competitive ing into alternatives more broadly, ally, against 11.5%, according countries is set to be back edge progress is still slow. In 2020, to Preqin’s previous annual re- to 2017 levels. – Pages 12-13 20.3% of people working in the port. A more visible improvement Some firms, however, are whole alternative assets sector was seen at junior and mid-levels, making improvements to diver- Venture Capital were women – up from 19.7% in where women now occupy 32.2% sity. Last week, Equality Group l How to build diversity in venture 2019. and 24.7%, respectively, versus launched its first Inclusive Top capital “Achieving gender equality 30.6% and 26% a year ago. 20 PE & VC Index, shared exclu- l VC-backed Deliveroo plans London in alternative assets is slow, but “Female representation among sively with PEN (See issue 857, IPO listing progress is being made in most senior roles remains low. How- pages 6-7). The London-based – Page 14 parts of the industry,” said Shifra ever, women’s presence in the consulting firm analysed 400 Ansonoff, global head of research alternative assets industry is global PE and VC groups to rank Data and data operations at Preqin. slowly growing, registering gains them according to their recent l Latest Deals Pipeline Ivelisse Rodriguez Simon, that will hopefully hold over the efforts on improving diversity. – Page 15 managing partner at Los Angeles- longer term,” Preqin’s Ansonoff “How to build diversity in based Avante Capital Partners, added. venture capital”, page 14. 4 News in Brief 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 News in Brief 5

PRIVATE EQUITY NEWS Deals of the week EU sets out guidance on sustainability funds The News Building, Anna Hirtenstein its cleaner gas-fired power stations, a banker 1 London Bridge Street, Nordic Capital invests in waste involved in the deal said. The kingdom was London SE1 9GF, recycling and AI companies The European Union has brought in rules that able to raise money at a negative interest rate Sweden’s Nordic Capital has seek to regulate the fast-growing sustainable for the first time, although it didn’t label the United Kingdom agreed to acquire recycling and finance industry for the first time. bonds as green. Some money managers have waste handling company Sortera. GETTY IMAGES Managers of funds that invest in line with included Saudi debt in ESG funds. The Stockholm-based company environmental, social or governance consid- The rules dictate that all financial firms that Editorial engages in collection, recycling, erations, known as ESG, will have to put for- have investors in the EU, including US money processing and broking of unused ward a tangible, measurable plan for how they managers, will have to put forward a new kind Editor materials from the building will do so. This applies to all asset managers of disclosure to investors: how environmental, Mark Latham and construction sector and that raise money in the EU, whether they are social or governance issues such as climate +44 (0) 20 3426 1254 operates in Sweden and Finland. based within its borders or not, from 10 March. change or poor corporate ethics could affect [email protected] The company has around 420 “Today there’s quite a bit of variability, too the value of their investments. They will also @mark_latham_ employees and generated about much variability” in how ESG investments have to put out a statement about the impact of 1.4bn Swedish kronor (about are defined, said Jeff McDermott, managing their portfolios on the wider world such as the Reporter GETTY IMAGES Elisângela Mendonça €138m) last year. The Swedish partner of Nomura Greentech, a sustainable The rules will give investors clarity on ESG funds carbon emissions of companies they contain. +44 (0) 203 426 1161 private equity firm is also backing infrastructure-focused investment bank that is Private market funds are also included, [email protected] artificial intelligence company part of Japanese financial services conglomer- a consistent basis,” McDermott said. “This is marking a shift in the regulation of an opaque @lilimendonca Boost.ai. The Norway-based ate Nomura Group. “Investors think they’re going to, I think, make it much more difficult corner of finance that sells directly to inves- company’s products are designed investing behind a manager doing ESG, but to greenwash.” tors without exchanges or public disclosure. Sub-editor to let users develop computer when you peel back the onion, it’s a different Sustainable investing has attracted huge “When deciding what assets to buy or build, Keith Sellick programmes using natural Six Nations Rugby and CVC seal £365m deal story.” volumes of capital as the financial services in- we will want to make sure that they work with [email protected] language instructions. Nordic Six Nations Rugby, which runs the annual European Six The rules, known as the Sustainable Fi- dustry has come under greater scrutiny for its these standards,” said Anthony Gordon, a part- Capital is investing alongside Nations Rugby Championships and Autumn Internationals, nance Disclosure Regulation, or SFDR, ad- role in pollution and climate change. Investors ner at Avaio Capital, a New York-based private existing backers. has entered into a long-term strategic partnership with the dress a long-running concern for the industry: directed $152bn into investments marketed as equity fund. “If not, it could create a liability.” SVP of Barron’s Group, Dow Jones Luxembourg-headquartered private equity giant CVC. CVC’s ESG’s lack of supervision. There is no hard ESG in the fourth quarter of 2020, an 88% rise This is the latest in a series of EU legislation Mae Cheng Preservation Capital acquires seventh fund will invest up to £365m in Six Nations Rugby definition of what constitutes a sustainable in- from the previous one, according to data from with a wide-ranging impact, a list that includes [email protected] Parmenion in £102m deal in return for a one seventh share in the organising body. The vestment and no watchdog to enforce it. Fund Morningstar. the GDPR data-privacy law and the Mifid rules Standard Life Aberdeen has sold rugby unions of the competing countries – England, France, managers and ESG ratings firms have been ESG is cropping up in corners of finance that that govern securities markets. Editor, Financial News its financial advisory business Ireland, Italy, Scotland and Wales – will together retain the free to set their own definitions, which has aren’t sustainability-focused at first glance. In this case, the rules won’t be directly en- Shruti Tripathi Chopra Parmenion to London-based remaining six-sevenths share. Under the agreement the six sparked concerns that claims may be exagger- When Saudi Arabia held an investor call ahead forced by EU authorities in Brussels. Instead, +44 (0) 758 433 6897. private equity firm Preservation national rugby unions will retain sole responsibility for all ated, a practice known as greenwashing. of a euro-denominated government-bond sale it will be up to the regulatory authorities in @shrutitripathi6 Capital Partners in a deal worth sporting matters as well as majority control of commercial This “is a first step in really trying to get to last month, it touched on topics such as the each member state. £102m. Parmenion, which decisions, the statement said. a place where companies are reporting data on rising number of women in its workforce and From The Wall Street Journal Art Director, Barron’s Group EMEA Standard Life Aberdeen put up for Barry Ainsle sale in November, manages more +44 (0) 203 217 5299 than £8bn in assets on behalf of $1.4bn. EQT Mid Market Europe acquired Humvee maker AM about 2,500 advisers, with more acquired 40% in Epidemic Sound General from MacAndrews & than 68,000 clients. Parmenion in 2017 and through this deal is Forbes. Company news Advertising and was acquired by Aberdeen Asset partially exiting its stake but will sponsorships Management for £50m under remain Epidemic Sound’s largest Thoma Bravo to acquire Apax Partners starts pitching mid-market fund. The vehicle, businesses in Africa and Asia that Avenir Growth Capital and Tiger Massimo Valeri the leadership of former chief shareholder. Epidemic Sound French data company Talend for mid-market digital fund PAI MMF, was raised entirely have a positive impact. Global Management. Although Client specialist executive Martin Gilbert just provides a subscription service Talend has entered into a Buyout firm Apax virtually and surpassed deal volume in Africa has slowed + 44 (0) 778 066 2327 before Aberdeen completed its that gives customers royalty-free memorandum of understanding Partners is pitching its original €800m BlackRock to raise $4.5bn for during the coronavirus pandemic, [email protected] landmark merger with Standard access to a library of music for to sell itself to private equity firm its second digital hard cap, the firm renewable power fund technology startups have Life Investments in 2017. use on social media, in online Thoma Bravo for about $2.4bn. fund focused on said. Its main BlackRock’s global renewable remained a bright spot. Corporate licences/subscriptions videos, TV and films. As a private company, Talend said mid-market targets will be power group expects to collect See pages 8-9 for more on Africa. Niall Hickey Ardian makes first investment it would continue investing in its technology $ bn companies sized between $4bn and $4.5bn for its Relationship Manager in Germany via growth fund KPS carves out aluminium unit cloud transition. Talend reported companies just 1.5 between €100m third flagship fund which it aims Goldman to invest $10bn in + 44 (0) 217 5130 Amount Apax is seeking Ardian is investing in online of Norway’s Norsk Hydro a fourth-quarter net loss of about weeks after and €300m in to close by the end of March. Black women initiatives [email protected] for its second digital fund fashion retailer Kapten & Son, KPS Capital Partners is $19.6m on revenue of $78.9m, collecting $11bn sectors such as The fund, BlackRock Global Goldman Sachs plans to invest making its first investment in acquiring the global aluminium compared with a nearly $11.7m for its latest main business services, Renewable Power Fund III, has $10bn over the next decade in Germany through its growth arm. rolling business of Norwegian loss on $67.5m in revenue in the investment pool. food and consumer, raised $3.7bn so far for the fund businesses and organisations No part of this publication may Acquiring a minority stake and energy company Norsk Hydro year-earlier period. London-based Apax is industrials, and from 85 investors, according that benefit Black women. be reproduced or used in any form of advertising without prior investing alongside the company’s for €1.38bn. The transaction seeking $1.5bn for Apax healthcare. to documents presented to the The plan includes investing in permission in writing from the founders, Ardian said it will help includes seven plants, one CIP offloads stake in Spanish Digital II and expects to hold a Connecticut Retirement Plans housing, healthcare and other editor. All rights reserved. the business expand into other research and development wind farm portfolio Monegros first close for it in May or June, Temasek forges $500m tie-up and Trust Funds. At $4.5bn, the programmes with the ultimate ISSN 1741-9085 parts of Europe. Cologne-based centre, global sales offices, and Copenhagen Infrastructure according to documents with impact investor LeapFrog new fund would be more than 2½ goal of narrowing the wealth Kapten, which also operates six around 5,000 employees of which Partners has agreed to sell presented to the Pennsylvania Singapore state investment firm times as large as its predecessor. gap between Black women retail stores, generates more than 650 employees are in Norway a 49% stake in Monegros, Public School Employees’ Temasek announced its largest- and others. The bank also will

Printed by: Pureprint Group €50m in revenue. and the remaining mainly in a wind energy portfolio in Retirement System. Apax raised ever commitment to an impact African fintech Flutterware commit $100m to philanthropy. Distributed by: Citipost Germany. In 2020, Hydro Rolling Spain, to Arjun Infrastructure $1bn for its debut Apax Digital investor, forging a half-a-billion gathers $170m Published by: eFinancialNews Ltd©2021 EQT and Blackstone put $450m contributed 24 billion kroner Partners. The assets include 12 fund in 2017. dollar partnership with impact Flutterwave has joined the ranks into Epidemic Sound (€2.37bn) in revenue, 17% of generating sites in Aragon with private equity firm LeapFrog of African financial technology Contributors Private equity firms EQT and Hydro’s total. KPS has a history capacity to produce as much as PAI Partners pockets €920m Investments. Temasek, which companies attracting private- Elisângela Mendonça, Mark Blackstone Group have together of acquiring business units of 487 megawatts of power. The for debut mid-market vehicle manages a portfolio of about equity investments. The Latham, David Ricketts, Dave invested $450m in Swedish larger companies and growing seller invested in the project France-headquartered private $232bn, will make a $500m payments technology provider Sebastian, Dominic Chopping, music platform Epidemic Sound those units before selling them. through its €3.5bn Copenhagen equity firm PAI Partners has multi-fund investment in has received $170m through a James Booth, Fabiana Negrin in a deal valuing the company at Last year, for example, the firm Infrastructure III fund. collected €920m for its inaugural LeapFrog, which invests in Series C financing round led by Ochoa, Preeti Singh 4 News in Brief 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 News in Brief 5

PRIVATE EQUITY NEWS Deals of the week EU sets out guidance on sustainability funds The News Building, Anna Hirtenstein its cleaner gas-fired power stations, a banker 1 London Bridge Street, Nordic Capital invests in waste involved in the deal said. The kingdom was London SE1 9GF, recycling and AI companies The European Union has brought in rules that able to raise money at a negative interest rate Sweden’s Nordic Capital has seek to regulate the fast-growing sustainable for the first time, although it didn’t label the United Kingdom agreed to acquire recycling and finance industry for the first time. bonds as green. Some money managers have waste handling company Sortera. GETTY IMAGES Managers of funds that invest in line with included Saudi debt in ESG funds. The Stockholm-based company environmental, social or governance consid- The rules dictate that all financial firms that Editorial engages in collection, recycling, erations, known as ESG, will have to put for- have investors in the EU, including US money processing and broking of unused ward a tangible, measurable plan for how they managers, will have to put forward a new kind Editor materials from the building will do so. This applies to all asset managers of disclosure to investors: how environmental, Mark Latham and construction sector and that raise money in the EU, whether they are social or governance issues such as climate +44 (0) 20 3426 1254 operates in Sweden and Finland. based within its borders or not, from 10 March. change or poor corporate ethics could affect [email protected] The company has around 420 “Today there’s quite a bit of variability, too the value of their investments. They will also @mark_latham_ employees and generated about much variability” in how ESG investments have to put out a statement about the impact of 1.4bn Swedish kronor (about are defined, said Jeff McDermott, managing their portfolios on the wider world such as the Reporter GETTY IMAGES Elisângela Mendonça €138m) last year. The Swedish partner of Nomura Greentech, a sustainable The rules will give investors clarity on ESG funds carbon emissions of companies they contain. +44 (0) 203 426 1161 private equity firm is also backing infrastructure-focused investment bank that is Private market funds are also included, [email protected] artificial intelligence company part of Japanese financial services conglomer- a consistent basis,” McDermott said. “This is marking a shift in the regulation of an opaque @lilimendonca Boost.ai. The Norway-based ate Nomura Group. “Investors think they’re going to, I think, make it much more difficult corner of finance that sells directly to inves- company’s products are designed investing behind a manager doing ESG, but to greenwash.” tors without exchanges or public disclosure. Sub-editor to let users develop computer when you peel back the onion, it’s a different Sustainable investing has attracted huge “When deciding what assets to buy or build, Keith Sellick programmes using natural Six Nations Rugby and CVC seal £365m deal story.” volumes of capital as the financial services in- we will want to make sure that they work with [email protected] language instructions. Nordic Six Nations Rugby, which runs the annual European Six The rules, known as the Sustainable Fi- dustry has come under greater scrutiny for its these standards,” said Anthony Gordon, a part- Capital is investing alongside Nations Rugby Championships and Autumn Internationals, nance Disclosure Regulation, or SFDR, ad- role in pollution and climate change. Investors ner at Avaio Capital, a New York-based private existing backers. has entered into a long-term strategic partnership with the dress a long-running concern for the industry: directed $152bn into investments marketed as equity fund. “If not, it could create a liability.” SVP of Barron’s Group, Dow Jones Luxembourg-headquartered private equity giant CVC. CVC’s ESG’s lack of supervision. There is no hard ESG in the fourth quarter of 2020, an 88% rise This is the latest in a series of EU legislation Mae Cheng Preservation Capital acquires seventh fund will invest up to £365m in Six Nations Rugby definition of what constitutes a sustainable in- from the previous one, according to data from with a wide-ranging impact, a list that includes [email protected] Parmenion in £102m deal in return for a one seventh share in the organising body. The vestment and no watchdog to enforce it. Fund Morningstar. the GDPR data-privacy law and the Mifid rules Standard Life Aberdeen has sold rugby unions of the competing countries – England, France, managers and ESG ratings firms have been ESG is cropping up in corners of finance that that govern securities markets. Editor, Financial News its financial advisory business Ireland, Italy, Scotland and Wales – will together retain the free to set their own definitions, which has aren’t sustainability-focused at first glance. In this case, the rules won’t be directly en- Shruti Tripathi Chopra Parmenion to London-based remaining six-sevenths share. Under the agreement the six sparked concerns that claims may be exagger- When Saudi Arabia held an investor call ahead forced by EU authorities in Brussels. Instead, +44 (0) 758 433 6897. private equity firm Preservation national rugby unions will retain sole responsibility for all ated, a practice known as greenwashing. of a euro-denominated government-bond sale it will be up to the regulatory authorities in @shrutitripathi6 Capital Partners in a deal worth sporting matters as well as majority control of commercial This “is a first step in really trying to get to last month, it touched on topics such as the each member state. £102m. Parmenion, which decisions, the statement said. a place where companies are reporting data on rising number of women in its workforce and From The Wall Street Journal Art Director, Barron’s Group EMEA Standard Life Aberdeen put up for Barry Ainsle sale in November, manages more +44 (0) 203 217 5299 than £8bn in assets on behalf of $1.4bn. EQT Mid Market Europe acquired Humvee maker AM about 2,500 advisers, with more acquired 40% in Epidemic Sound General from MacAndrews & than 68,000 clients. Parmenion in 2017 and through this deal is Forbes. Company news Advertising and was acquired by Aberdeen Asset partially exiting its stake but will sponsorships Management for £50m under remain Epidemic Sound’s largest Thoma Bravo to acquire Apax Partners starts pitching mid-market fund. The vehicle, businesses in Africa and Asia that Avenir Growth Capital and Tiger Massimo Valeri the leadership of former chief shareholder. Epidemic Sound French data company Talend for mid-market digital fund PAI MMF, was raised entirely have a positive impact. Global Management. Although Client specialist executive Martin Gilbert just provides a subscription service Talend has entered into a Buyout firm Apax virtually and surpassed deal volume in Africa has slowed + 44 (0) 778 066 2327 before Aberdeen completed its that gives customers royalty-free memorandum of understanding Partners is pitching its original €800m BlackRock to raise $4.5bn for during the coronavirus pandemic, [email protected] landmark merger with Standard access to a library of music for to sell itself to private equity firm its second digital hard cap, the firm renewable power fund technology startups have Life Investments in 2017. use on social media, in online Thoma Bravo for about $2.4bn. fund focused on said. Its main BlackRock’s global renewable remained a bright spot. Corporate licences/subscriptions videos, TV and films. As a private company, Talend said mid-market targets will be power group expects to collect See pages 8-9 for more on Africa. Niall Hickey Ardian makes first investment it would continue investing in its technology $ bn companies sized between $4bn and $4.5bn for its Relationship Manager in Germany via growth fund KPS carves out aluminium unit cloud transition. Talend reported companies just 1.5 between €100m third flagship fund which it aims Goldman to invest $10bn in + 44 (0) 217 5130 Amount Apax is seeking Ardian is investing in online of Norway’s Norsk Hydro a fourth-quarter net loss of about weeks after and €300m in to close by the end of March. Black women initiatives [email protected] for its second digital fund fashion retailer Kapten & Son, KPS Capital Partners is $19.6m on revenue of $78.9m, collecting $11bn sectors such as The fund, BlackRock Global Goldman Sachs plans to invest making its first investment in acquiring the global aluminium compared with a nearly $11.7m for its latest main business services, Renewable Power Fund III, has $10bn over the next decade in Germany through its growth arm. rolling business of Norwegian loss on $67.5m in revenue in the investment pool. food and consumer, raised $3.7bn so far for the fund businesses and organisations No part of this publication may Acquiring a minority stake and energy company Norsk Hydro year-earlier period. London-based Apax is industrials, and from 85 investors, according that benefit Black women. be reproduced or used in any form of advertising without prior investing alongside the company’s for €1.38bn. The transaction seeking $1.5bn for Apax healthcare. to documents presented to the The plan includes investing in permission in writing from the founders, Ardian said it will help includes seven plants, one CIP offloads stake in Spanish Digital II and expects to hold a Connecticut Retirement Plans housing, healthcare and other editor. All rights reserved. the business expand into other research and development wind farm portfolio Monegros first close for it in May or June, Temasek forges $500m tie-up and Trust Funds. At $4.5bn, the programmes with the ultimate ISSN 1741-9085 parts of Europe. Cologne-based centre, global sales offices, and Copenhagen Infrastructure according to documents with impact investor LeapFrog new fund would be more than 2½ goal of narrowing the wealth Kapten, which also operates six around 5,000 employees of which Partners has agreed to sell presented to the Pennsylvania Singapore state investment firm times as large as its predecessor. gap between Black women retail stores, generates more than 650 employees are in Norway a 49% stake in Monegros, Public School Employees’ Temasek announced its largest- and others. The bank also will

Printed by: Pureprint Group €50m in revenue. and the remaining mainly in a wind energy portfolio in Retirement System. Apax raised ever commitment to an impact African fintech Flutterware commit $100m to philanthropy. Distributed by: Citipost Germany. In 2020, Hydro Rolling Spain, to Arjun Infrastructure $1bn for its debut Apax Digital investor, forging a half-a-billion gathers $170m Published by: eFinancialNews Ltd©2021 EQT and Blackstone put $450m contributed 24 billion kroner Partners. The assets include 12 fund in 2017. dollar partnership with impact Flutterwave has joined the ranks into Epidemic Sound (€2.37bn) in revenue, 17% of generating sites in Aragon with private equity firm LeapFrog of African financial technology Contributors Private equity firms EQT and Hydro’s total. KPS has a history capacity to produce as much as PAI Partners pockets €920m Investments. Temasek, which companies attracting private- Elisângela Mendonça, Mark Blackstone Group have together of acquiring business units of 487 megawatts of power. The for debut mid-market vehicle manages a portfolio of about equity investments. The Latham, David Ricketts, Dave invested $450m in Swedish larger companies and growing seller invested in the project France-headquartered private $232bn, will make a $500m payments technology provider Sebastian, Dominic Chopping, music platform Epidemic Sound those units before selling them. through its €3.5bn Copenhagen equity firm PAI Partners has multi-fund investment in has received $170m through a James Booth, Fabiana Negrin in a deal valuing the company at Last year, for example, the firm Infrastructure III fund. collected €920m for its inaugural LeapFrog, which invests in Series C financing round led by Ochoa, Preeti Singh 6 Cover Story 15 March, 2021 • www.penews.com The former MP wanting to put the industry at the heart of the UK recovery An MP for 18 years before becoming the head of BVCA, Michael Moore tells Mark Latham about his journey into and out of politics, his return to the financial sector and how the private equity industry can help the UK economy emerge from the Covid freeze.

For an industry where the motivation of many backed by PE and VC across the UK and that that he represented as an MP in Westminster is often perceived to be personal wealth, it is £43bn has been invested in 3,230 firms over for 18 years. refreshing to hear the head of the BVCA, the the past five years. He also cites the fact that After training as an accountant in Edinburgh UK trade association for the PE and VC indus- 90% of industry backing was directed at small and at the age of just 29 he was first elected try, talk about the public and social functions and medium sized businesses in 2019. as Liberal Democrat MP for the former con- of the sector and how it can help the country’s On the impact of Brexit on the UK’s finan- stituency of Tweeddale, Ettrick and Lauderdale post-pandemic economic recovery. cial services industry, Moore says that, follow- in 1997, succeeding David Steel, and was re- Michael Moore, a former Scottish MP and ing the UK’s departure from the EU, he is he turned again at the 2001 general election. government minister, admits that his appoint- is open to engaging in a debate on “how Following a boundary change, he ment as director general of the British Private we can make things smoother and was returned as MP for the new Equity and Venture Capital Association in 2019 easier”. constituency of Berwickshire, had more to do with his political and public pol- “If we’ve got a free hand Roxburgh and Selkirk in the icy experience than his experience of finance. on some aspects of regula- general elections of 2005 and With unemployment rising, the 55-year- tion, let’s do what we can to 2010 before losing his seat in old father of two says that private equity and make that better,” he says. 90% 2015 to the resurgent Scot- venture capital are well placed to address the “But our message consist- The proportion of industry backing tish National Party. country’s priorities over the coming months ently is that the industry in the UK directed at The highlight of his West- and years, as the country’s economy emerges wants to retain world class small- or medium-sized minster career, he says, was from the Covid-19 pandemic. standards.” companies in 2019 during the coalition govern- These priorities include, he says, the gov- The fact that nearly 90% of ment when he became Secre- ernment’s much-hyped “levelling-up” agenda the capital raised by firms in the tary of State for Scotland in the to tackle regional disparities as well as meas- UK is sourced internationally and run-up to the 2014 referendum on ures to strengthen the competitiveness of the not just from the UK means that foreign Scottish independence, during which time UK’s post-Brexit economy. investors don’t want a regulatory regime that he negotiated with Nicola Sturgeon on ar- they feel is watered down or not equivalent to rangements for the plebiscite. Dynamic businesses international regulatory standards, he says. “My sense at this stage is that the message Defining moment of life “What attracted me to the role at the BVCA is has been logged with government. There’s a that, whether you look at early-stage venture lot of consultation going on now so it maybe As a cabinet minister he also piloted the Scot- or large-scale buyouts from the global firms, another few months before we know what the land Act 2012 which saw tax-varying powers or any point along that spectrum, you’ve got shape of that future regulation really looks transferred from Westminster to Holyrood. some of the most dynamic businesses in the like.” “Being in the frontline of the emerging de- UK economy investing to make them grow,” he “Let’s go for generic compliance: calibrated bate over the future of Scotland was amazing tells Private Equity News on a Zoom call from divergence down to a level that doesn’t go be- and was a defining moment in my life,” he says. his home in southern Scotland. low world class standards, and not burden our- Moore is also proud of a private members The BVCA currently has over 750 member selves where we don’t need to.” bill he sponsored which put the UN’s target firms and lobbies on behalf of the PE and VC On the issue of the recent boom in the US of developed countries donating 0.7% of gross industry. of private equity-backed special purpose ac- national income as overseas development aid “When I was offered the job I thought this is quisition companies (Spacs), Moore believes it on the statute book: a coalition pledge that the a really interesting part of the economy to be would be surprising if Europe “missed out on current government said recently it will reduce focused on.” the phenomenon”. to 0.5%. “There is a need for us to demonstrate the “Historically, an IPO was the most obvious By the time of the 2015 general election public value that we’re creating. The indus- way for businesses to provide an exit to inves- and with dire poll predictions, Moore said he try can support government in some pretty tors but the market is more mature and sophis- was resigned to losing his seat in a vote that important areas and create public value – and ticated these days,” he says. “My guess is that saw the SNP win all but three of the 59 Scot- we are best able to do that if there’s a good people will look carefully at all the different op- tish constituencies. “At least it felt it wasn’t too competitive climate in which we can make that tions and Spacs are one of them.” personal,” he recalls. investment.” Moore has spent the pandemic lockdowns Asked about the financial track record of Moore points to the fact that 4,290 firms em- holed up in the tiny village of Darnick, close the 2010-2015 coalition government, Moore ploying almost one million people are currently to Melrose in the Scottish Borders in the area points to the creation in 2012 of the Green In- 6 Cover Story 15 March, 2021 • www.penews.com

www.penews.com • 15 March, 2021 Cover Story 7 The former MP wanting “The industry can support to put the industry at the government in some pretty important areas and create public value – and we are heart of the UK recovery best able to do that if there’s a good competitive climate An MP for 18 years before becoming the head of BVCA, Michael Moore tells Mark in which we can make that Latham about his journey into and out of politics, his return to the financial sector and investment” how the private equity industry can help the UK economy emerge from the Covid freeze. Michael Moore, BVCA

For an industry where the motivation of many backed by PE and VC across the UK and that that he represented as an MP in Westminster is often perceived to be personal wealth, it is £43bn has been invested in 3,230 firms over for 18 years. refreshing to hear the head of the BVCA, the the past five years. He also cites the fact that After training as an accountant in Edinburgh UK trade association for the PE and VC indus- 90% of industry backing was directed at small and at the age of just 29 he was first elected try, talk about the public and social functions and medium sized businesses in 2019. as Liberal Democrat MP for the former con- of the sector and how it can help the country’s On the impact of Brexit on the UK’s finan- stituency of Tweeddale, Ettrick and Lauderdale post-pandemic economic recovery. cial services industry, Moore says that, follow- in 1997, succeeding David Steel, and was re- Michael Moore, a former Scottish MP and ing the UK’s departure from the EU, he is he turned again at the 2001 general election. government minister, admits that his appoint- is open to engaging in a debate on “how Following a boundary change, he ment as director general of the British Private we can make things smoother and was returned as MP for the new Equity and Venture Capital Association in 2019 easier”. constituency of Berwickshire, had more to do with his political and public pol- “If we’ve got a free hand Roxburgh and Selkirk in the icy experience than his experience of finance. on some aspects of regula- general elections of 2005 and With unemployment rising, the 55-year- tion, let’s do what we can to 2010 before losing his seat in old father of two says that private equity and make that better,” he says. 90% 2015 to the resurgent Scot- venture capital are well placed to address the “But our message consist- The proportion of industry backing tish National Party. country’s priorities over the coming months ently is that the industry in the UK directed at The highlight of his West- and years, as the country’s economy emerges wants to retain world class small- or medium-sized minster career, he says, was COMPANY PHOTOGRAPH COMPANY from the Covid-19 pandemic. standards.” companies in 2019 during the coalition govern- These priorities include, he says, the gov- The fact that nearly 90% of ment when he became Secre- vestment Bank, set up to address market fail- ernment’s much-hyped “levelling-up” agenda the capital raised by firms in the tary of State for Scotland in the ure in providing funding for renewable energy to tackle regional disparities as well as meas- UK is sourced internationally and run-up to the 2014 referendum on projects and which helped to provide essential Michael Moore’s CV ures to strengthen the competitiveness of the not just from the UK means that foreign Scottish independence, during which time finance for a number of offshore wind projects UK’s post-Brexit economy. investors don’t want a regulatory regime that he negotiated with Nicola Sturgeon on ar- before being spun off to the private sector in Born: June 1965 they feel is watered down or not equivalent to rangements for the plebiscite. 2017. Dynamic businesses international regulatory standards, he says. “I think it was a major achievement and “My sense at this stage is that the message Education Defining moment of life moved green finance towards the mainstream 1977-1982: Strathallan School, an independent school in Perthshire “What attracted me to the role at the BVCA is has been logged with government. There’s a which I felt was an important part of what the that, whether you look at early-stage venture lot of consultation going on now so it maybe As a cabinet minister he also piloted the Scot- coalition was about, as well as spreading eco- 1982-1983: Jedburgh Grammar School or large-scale buyouts from the global firms, another few months before we know what the land Act 2012 which saw tax-varying powers nomic development around the whole of the 1983-1987: MA (Hons) in Politics and Modern History, University of Edinburgh or any point along that spectrum, you’ve got shape of that future regulation really looks transferred from Westminster to Holyrood. UK,” he says. some of the most dynamic businesses in the like.” “Being in the frontline of the emerging de- Moore adds that the global move towards net Career UK economy investing to make them grow,” he “Let’s go for generic compliance: calibrated bate over the future of Scotland was amazing zero CO emissions means that there will be a 2 1987-1988: House of Commons researcher for Archy Kirkwood, the then Liberal MP for the former tells Private Equity News on a Zoom call from divergence down to a level that doesn’t go be- and was a defining moment in my life,” he says. continuing role for government to finance large his home in southern Scotland. low world class standards, and not burden our- Moore is also proud of a private members infrastructure projects, whether through green constituency of Roxburgh and Berwickshire. The BVCA currently has over 750 member selves where we don’t need to.” bill he sponsored which put the UN’s target bonds – as recently announced by the Chancel- 1988-1997: Chartered accountant, Coopers & Lybrand. firms and lobbies on behalf of the PE and VC On the issue of the recent boom in the US of developed countries donating 0.7% of gross lor – or other vehicles. 1997-2015: Member of UK Parliament for Berwickshire, Roxburgh and Selkirk. During his time as industry. of private equity-backed special purpose ac- national income as overseas development aid Asked whether he would consider a return a Liberal Democrat MP, Moore served as Secretary of State for Scotland 2010-13, was European “When I was offered the job I thought this is quisition companies (Spacs), Moore believes it on the statute book: a coalition pledge that the to politics, Moore is adamant that his days as business adviser to the deputy prime minister Nick Clegg from 2013-15, and was briefly a member a really interesting part of the economy to be would be surprising if Europe “missed out on current government said recently it will reduce an elected politician came to an end in 2015. focused on.” the phenomenon”. to 0.5%. While he misses friends in politics he says he of the Smith Commission on the future of Scottish devolution in 2014. “There is a need for us to demonstrate the “Historically, an IPO was the most obvious By the time of the 2015 general election won’t miss the massive pressure on politicians 2016-2019: Adviser to PwC on Brexit, UK devolution and Scottish independence. Also, during this public value that we’re creating. The indus- way for businesses to provide an exit to inves- and with dire poll predictions, Moore said he to campaign on an almost daily basis via social time, visiting professor at the International Public Policy Institute, University of Strathclyde. try can support government in some pretty tors but the market is more mature and sophis- was resigned to losing his seat in a vote that media – something that politicians did not August 2019-Present: Director General of the British Private Equity & Venture Capital Association. important areas and create public value – and ticated these days,” he says. “My guess is that saw the SNP win all but three of the 59 Scot- have to think about when he was elected in the we are best able to do that if there’s a good people will look carefully at all the different op- tish constituencies. “At least it felt it wasn’t too nineties. competitive climate in which we can make that tions and Spacs are one of them.” personal,” he recalls. “By the time I left, I had bagged pretty well Other current roles: Chair of the Borders Book Festival, advisory board member of the Edinburgh investment.” Moore has spent the pandemic lockdowns Asked about the financial track record of everything that I thought I was going to get to Business School at Heriot Watt University. Moore points to the fact that 4,290 firms em- holed up in the tiny village of Darnick, close the 2010-2015 coalition government, Moore do in politics, so I was in a contented place as ploying almost one million people are currently to Melrose in the Scottish Borders in the area points to the creation in 2012 of the Green In- far as politics was concerned,” he says. “On the Hobbies: Watching rugby, hill-walking, cinema. Favourite films: A bridge too far, Heat, Skyfall, The business side of the equation, there’s still a job of work that can be done there, which is the Odd Couple. journey I’ve been on since.” 8 Analysis 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Analysis 9 Emerging markets outlook for private equity in Africa

African private investment experts discuss the region’s road to recovery What are the upcoming investment GO: Over the past few years, private equity trends you’re expecting to see in 2021? activity in Africa has increased notably. from the coronavirus pandemic. By Preeti Singh and Isaac Taylor AMM: Financials and information technology More experienced GPs have raised their continue to dominate PE and VC investment third or fourth generation funds, new GPs in Africa. Financials and information have emerged, and some of the larger global The coronavirus pandemic dampened private the deep operational capabilities necessary of telecoms infrastructure such as fibre, technology each accounted [for] 19% of VC PE players have invested in the continent. AVCA PHOTOGRAPH AVCA equity fundraising and dealmaking around the to drive value creation. towers or data centres as we increasingly deals by volume between 2014-2019 and were There’s also been an increase of industry- globe in 2020. But in some emerging private Attracting investment capital into Africa work from home. also two of the most active sectors by both specific funds as well as geography-focused equity markets, general partners say they has always been a challenge, but there are PE deal volume and PE deal value in 2020 funds. Funds focused on specialist strategies continue to see plenty of opportunity despite encouraging signs that capital is flowing back What surprised you most about private H1. Information technology has substantially like private debt, mezzanine, impact and the challenges created by the pandemic. into emerging markets. investments in Africa last year? impacted the growth of other sectors. venture capital have also been established. (Responses have been edited for space and TL: Clearly the pandemic has made for a Development finance institutions have played clarity). How has your firm adjusted its strategy more “bumpy” ride not just across Africa but How is Covid affecting the overall an important role in funding the growth of the to deal with the effects of Covid? world-wide. But the outlook for Africa PE investment landscape of Africa? ecosystem. More recently, the industry has TL: Our strategy has remained consistent continues to be very attractive. We see real AMM: The normalization of remote-working seen increased interest from commercial LPs, Tope Lawani, co-founder and managing since we started the firm. We invest in potential for earnings growth underpinned practice and corporate digitalisation has been including asset managers and pension funds partner, Helios Investment Partners sectors that underpin the modern economy by compelling macro trends such as a significant shift in the investment landscape, from Europe, North America and Africa. What are the biggest challenges private such as telecoms and internet infrastructure, increasing urbanisation and technological creating opportunities to perform due investment professionals will face in financial services and technology, consumer innovation. diligence online as well as host LP and AGM What do you view as opportunities for 2021 in Africa? nondiscretionary, and clean energy and Abi Mustapha-Maduakor: Financials and information meetings virtually. Crucially, this digital turn your region in the coming years? TL: As a PE investor in Africa, it is power businesses. Because African Abi Mustapha-Maduakor, chief executive, technology continue to dominate PE and VC has also made it possible for more African GO: The pandemic has created new particularly important to be a hands-on consumers and businesses rely African Private Equity and Venture Capital investment in the continent PE and VC fund managers to solicit more opportunities in sectors that provide business builder. The market is not on the products and services Association international or cross-border fundraising. essential services such as healthcare, food heavily intermediated and therefore our portfolio companies To what degree will Africa recover in developing several homegrown financing Considerations of sustainability and and agriculture, and education; offer support the skills required to succeed are much provide, if anything Covid 2021 from last year’s disruption caused solutions to support businesses adversely environmentalism are increasingly being services including distribution and logistics; broader. In certain instances, this may has reaffirmed our strategy by the pandemic? affected by the health and economic crisis. integrated into the investment philosophies and leverage on technology (eg fintech, mean investing at an early stage or even of backing businesses AMM: In many ways, Africa’s economic Secondly, Africa is not a stranger to of large global institutional investors. It e-commerce). We also see opportunities in creating companies where there’s a gap that benefit from secular recovery from the disruption caused by crisis and volatility. Historically, many is likely that ESG targets will become an traditional high-growth industries through in the market. The source of returns growth trends. Covid in the pandemic has already begun, aided by African markets have continued to grow essential component of investment strategies investments to help them operate in the “new in Africa is growth rather than financial many ways has propelled the fact that Africa was significantly less in adverse conditions, such as during the in Africa as the continent begins its recovery. normal” environment (eg, cashless and digital engineering, which means that it is these trends, be it the impacted by the Covid-19 virus than the rest global financial crisis and through periods solutions for banks). Businesses that are important to exercise control and have increase of digital of the world, with the exception of South of political instability…Africa has already George Odo, senior partner and managing adept and prepared for cross-border trade can transactions Africa and parts of North Africa. At the begun to rehabilitate itself and shows signs director, AfricInvest East Africa also present opportunities given disruptions Tope Lawani: Hands-on business or the zenith of the pandemic, Africa’s PE and VC of making a modest recovery in the first few How has the market for private equity in the global trade supply chain.

COMPANY PHOTOGRAPH COMPANY building is key for investors in Africa importance industries demonstrated their resilience by months of 2021. evolved in Africa in the past few years? From WSJ Private Equity Pro

The emerging markets-focused firm also Technology sector shines across continent’s deal landscape Cell towers and announced a $250m Pan-African data- data centres have centre platform in March 2020. Actis has Isaac Taylor digital infrastructure, private equity and on Africa. Some fintech companies benefited been a big theme completed at least one investment out of the venture capital firms continued to find from the pandemic, which forced many GETTY IMAGES for investors across vehicle, taking a controlling interest in Rack Africa’s technology sector has remained attractive investment opportunities. businesses to shift their operations online. Africa as access to Centre, a Nigerian data-centre operator. a bright spot across the continent’s Fintech accounted for 31% of all African But the sector’s strong performance world- the internet widens Meanwhile, the International Development private investment landscape even as the funding in 2020, according to a recent wide also prompted many global venture- Finance, the US government’s development coronavirus pandemic dampened overall report from Briter Bridges, a London- capital investors to look for opportunities finance institution, allocated $300m to investment volume along with many based research firm. The total amount of in emerging markets, Nkontchou added. support Africa Data Centres’ acquisition of the region’s economies. capital deployed across investment and expansion of existing data centre Overall, venture deal activity and acquisition activity that Fintech’s popularity assets in South Africa and Kenya. in Africa fell to $544m in Briter tracked in the region 2020 from $925m in 2019, hit $2.4bn last year, down Africa Capital Alliance, an Africa-focused Continue to thrive according to data provider from a little more than private equity firm, in late November, agreed PitchBook. Africa’s 31% $2.5bn in 2019, according to invest $20m in the parent company Investors expect technology deals to economies have been hit hard to the report. Briter’s data of electronic payments provider Global continue to thrive into 2021 despite Proportion of all African by the coronavirus pandemic includes equity, debt, grants, Accelerex. The company said it plans to what some predict will be a slow funding in 2020 that and the global economic went to fintech mezzanine financing and use the capital to further expand beyond recovery for overall deal activity. contraction associated with it, certain convertible securities Nigeria into other African countries. Professionals believe a recovery for the investment professionals say. Financial technology companies Meanwhile, Chipper Cash, an African region in 2021 will depend on the speed Economic growth across much had been attracting increased cross-border fintech startup, raised $30m at which other nations around the world of the continent has contracted. Sub- attention and dollars from private investors in a Series B round in late 2020. The round can bring the pandemic under control and Saharan Africa experienced a 2.6% decline in Africa even before Covid, driven partly by was led by Ribbit Capital but also garnered Triantis, who heads telecoms, media during a panel as part of the African bolster their own economic recoveries. in gross domestic product in 2020, a lower steady economic growth and an expanding the attention – and capital – of Bezos and technology at Standard Bank Group, Private Equity and Venture Capital Early signs suggest that “this will not drop than that of the US and many European middle class across many African nations. Expeditions, the personal venture capital said multiples for fintech companies Association’s 2020 Focus podcast series. happen significantly before Q3 2021,” Enko countries, according to January data published As the pandemic hit some sectors hard, the fund of former Amazon CEO Jeff Bezos. held up well despite the pandemic. Additionally, digital infrastructure assets Capital’s Nkontchou said. “On that basis, by the International Monetary Fund. fintech sector remained buoyant, according Fintech’s popularity may also stem from “Now, we’re seeing some pretty thrived during the pandemic. Toward the the recovery in 2021 is likely to be slow, In the technology sector, however, to Cyrille Nkontchou, co-founder of Enko the healthy investment multiples fintech hefty valuations being considered for end of 2020, Actis acquired Octotel, a fibre and more of an L shape than a V shape.” particularly financial technology and Capital, an asset management firm focused companies have been able to attract. Nina some of these assets,” Triantis said network operator in South Africa, for $140m. From WSJ Private Equity Pro 8 Analysis 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Analysis 9 Emerging markets outlook for private equity in Africa

African private investment experts discuss the region’s road to recovery What are the upcoming investment GO: Over the past few years, private equity trends you’re expecting to see in 2021? activity in Africa has increased notably. from the coronavirus pandemic. By Preeti Singh and Isaac Taylor AMM: Financials and information technology More experienced GPs have raised their continue to dominate PE and VC investment third or fourth generation funds, new GPs in Africa. Financials and information have emerged, and some of the larger global The coronavirus pandemic dampened private the deep operational capabilities necessary of telecoms infrastructure such as fibre, technology each accounted [for] 19% of VC PE players have invested in the continent. AVCA PHOTOGRAPH AVCA equity fundraising and dealmaking around the to drive value creation. towers or data centres as we increasingly deals by volume between 2014-2019 and were There’s also been an increase of industry- globe in 2020. But in some emerging private Attracting investment capital into Africa work from home. also two of the most active sectors by both specific funds as well as geography-focused equity markets, general partners say they has always been a challenge, but there are PE deal volume and PE deal value in 2020 funds. Funds focused on specialist strategies continue to see plenty of opportunity despite encouraging signs that capital is flowing back What surprised you most about private H1. Information technology has substantially like private debt, mezzanine, impact and the challenges created by the pandemic. into emerging markets. investments in Africa last year? impacted the growth of other sectors. venture capital have also been established. (Responses have been edited for space and TL: Clearly the pandemic has made for a Development finance institutions have played clarity). How has your firm adjusted its strategy more “bumpy” ride not just across Africa but How is Covid affecting the overall an important role in funding the growth of the to deal with the effects of Covid? world-wide. But the outlook for Africa PE investment landscape of Africa? ecosystem. More recently, the industry has TL: Our strategy has remained consistent continues to be very attractive. We see real AMM: The normalization of remote-working seen increased interest from commercial LPs, Tope Lawani, co-founder and managing since we started the firm. We invest in potential for earnings growth underpinned practice and corporate digitalisation has been including asset managers and pension funds partner, Helios Investment Partners sectors that underpin the modern economy by compelling macro trends such as a significant shift in the investment landscape, from Europe, North America and Africa. What are the biggest challenges private such as telecoms and internet infrastructure, increasing urbanisation and technological creating opportunities to perform due investment professionals will face in financial services and technology, consumer innovation. diligence online as well as host LP and AGM What do you view as opportunities for 2021 in Africa? nondiscretionary, and clean energy and Abi Mustapha-Maduakor: Financials and information meetings virtually. Crucially, this digital turn your region in the coming years? TL: As a PE investor in Africa, it is power businesses. Because African Abi Mustapha-Maduakor, chief executive, technology continue to dominate PE and VC has also made it possible for more African GO: The pandemic has created new particularly important to be a hands-on consumers and businesses rely African Private Equity and Venture Capital investment in the continent PE and VC fund managers to solicit more opportunities in sectors that provide business builder. The market is not on the products and services Association international or cross-border fundraising. essential services such as healthcare, food heavily intermediated and therefore our portfolio companies To what degree will Africa recover in developing several homegrown financing Considerations of sustainability and and agriculture, and education; offer support the skills required to succeed are much provide, if anything Covid 2021 from last year’s disruption caused solutions to support businesses adversely environmentalism are increasingly being services including distribution and logistics; broader. In certain instances, this may has reaffirmed our strategy by the pandemic? affected by the health and economic crisis. integrated into the investment philosophies and leverage on technology (eg fintech, mean investing at an early stage or even of backing businesses AMM: In many ways, Africa’s economic Secondly, Africa is not a stranger to of large global institutional investors. It e-commerce). We also see opportunities in creating companies where there’s a gap that benefit from secular recovery from the disruption caused by crisis and volatility. Historically, many is likely that ESG targets will become an traditional high-growth industries through in the market. The source of returns growth trends. Covid in the pandemic has already begun, aided by African markets have continued to grow essential component of investment strategies investments to help them operate in the “new in Africa is growth rather than financial many ways has propelled the fact that Africa was significantly less in adverse conditions, such as during the in Africa as the continent begins its recovery. normal” environment (eg, cashless and digital engineering, which means that it is these trends, be it the impacted by the Covid-19 virus than the rest global financial crisis and through periods solutions for banks). Businesses that are important to exercise control and have increase of digital of the world, with the exception of South of political instability…Africa has already George Odo, senior partner and managing adept and prepared for cross-border trade can transactions Africa and parts of North Africa. At the begun to rehabilitate itself and shows signs director, AfricInvest East Africa also present opportunities given disruptions Tope Lawani: Hands-on business or the zenith of the pandemic, Africa’s PE and VC of making a modest recovery in the first few How has the market for private equity in the global trade supply chain.

COMPANY PHOTOGRAPH COMPANY building is key for investors in Africa importance industries demonstrated their resilience by months of 2021. evolved in Africa in the past few years? From WSJ Private Equity Pro

The emerging markets-focused firm also Technology sector shines across continent’s deal landscape Cell towers and announced a $250m Pan-African data- data centres have centre platform in March 2020. Actis has Isaac Taylor digital infrastructure, private equity and on Africa. Some fintech companies benefited been a big theme completed at least one investment out of the venture capital firms continued to find from the pandemic, which forced many GETTY IMAGES for investors across vehicle, taking a controlling interest in Rack Africa’s technology sector has remained attractive investment opportunities. businesses to shift their operations online. Africa as access to Centre, a Nigerian data-centre operator. a bright spot across the continent’s Fintech accounted for 31% of all African But the sector’s strong performance world- the internet widens Meanwhile, the International Development private investment landscape even as the funding in 2020, according to a recent wide also prompted many global venture- Finance, the US government’s development coronavirus pandemic dampened overall report from Briter Bridges, a London- capital investors to look for opportunities finance institution, allocated $300m to investment volume along with many based research firm. The total amount of in emerging markets, Nkontchou added. support Africa Data Centres’ acquisition of the region’s economies. capital deployed across investment and expansion of existing data centre Overall, venture deal activity and acquisition activity that Fintech’s popularity assets in South Africa and Kenya. in Africa fell to $544m in Briter tracked in the region 2020 from $925m in 2019, hit $2.4bn last year, down Africa Capital Alliance, an Africa-focused Continue to thrive according to data provider from a little more than private equity firm, in late November, agreed PitchBook. Africa’s 31% $2.5bn in 2019, according to invest $20m in the parent company Investors expect technology deals to economies have been hit hard to the report. Briter’s data of electronic payments provider Global continue to thrive into 2021 despite Proportion of all African by the coronavirus pandemic includes equity, debt, grants, Accelerex. The company said it plans to what some predict will be a slow funding in 2020 that and the global economic went to fintech mezzanine financing and use the capital to further expand beyond recovery for overall deal activity. contraction associated with it, certain convertible securities Nigeria into other African countries. Professionals believe a recovery for the investment professionals say. Financial technology companies Meanwhile, Chipper Cash, an African region in 2021 will depend on the speed Economic growth across much had been attracting increased cross-border fintech startup, raised $30m at which other nations around the world of the continent has contracted. Sub- attention and dollars from private investors in a Series B round in late 2020. The round can bring the pandemic under control and Saharan Africa experienced a 2.6% decline in Africa even before Covid, driven partly by was led by Ribbit Capital but also garnered Triantis, who heads telecoms, media during a panel as part of the African bolster their own economic recoveries. in gross domestic product in 2020, a lower steady economic growth and an expanding the attention – and capital – of Bezos and technology at Standard Bank Group, Private Equity and Venture Capital Early signs suggest that “this will not drop than that of the US and many European middle class across many African nations. Expeditions, the personal venture capital said multiples for fintech companies Association’s 2020 Focus podcast series. happen significantly before Q3 2021,” Enko countries, according to January data published As the pandemic hit some sectors hard, the fund of former Amazon CEO Jeff Bezos. held up well despite the pandemic. Additionally, digital infrastructure assets Capital’s Nkontchou said. “On that basis, by the International Monetary Fund. fintech sector remained buoyant, according Fintech’s popularity may also stem from “Now, we’re seeing some pretty thrived during the pandemic. Toward the the recovery in 2021 is likely to be slow, In the technology sector, however, to Cyrille Nkontchou, co-founder of Enko the healthy investment multiples fintech hefty valuations being considered for end of 2020, Actis acquired Octotel, a fibre and more of an L shape than a V shape.” particularly financial technology and Capital, an asset management firm focused companies have been able to attract. Nina some of these assets,” Triantis said network operator in South Africa, for $140m. From WSJ Private Equity Pro 10 Analysis 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 People 11

Private equity closes KKR eyes Europe’s fertile GETTY IMAGES more but smaller hunting ground for tech deals deals so far this year The firm’s partner and veteran investor Jean-Pierre Saad sat down with

Mark Latham sectors fuelled by investors seeing Elisângela Mendonça via Zoom to share what his team is bringing to the table ever greater convergence of technol- Global mergers and acquisition deals in Janu- ogy and healthcare and their importance when spotting and negotiating deals in the region’s booming TMT sector ary and February of this year have exceeded on the world stage, coupled with the shadow German sandal maker Birkenstock was sold to a those of the first two months of last year, with from the Spacs hunting for M&A opportuni- consortium including Financiere Agache, Catterton As Europe’s tech industry blooms with the choosing to stay in Europe, as they are able expertise is key for any investor to be able to 331 buyout deals announced compared with ties, which is undoubtedly playing its part on Management and L Catterton for $4.2bn last month pandemic-induced shift to digital, heavyweight to hire great talent, get smart funding and differentiate the long-term sustainability of 317 in 2020 – before the coronavirus pandemic valuations,” he said. names in private equity are ready to gain more eventually list in Europe, if they wish to. growth from the short-term “Covid bump”. took hold in most developed countries. Meanwhile, Sunaina Sinha Haldea, man- ly” to make predictions about the rest of year ground in the continent. KKR is one of them, In most cases, those European champions Nevertheless, the combined value of global aging partner of the advisory company Ce- based on two months of data, the UK has had a the firm’s partner, Jean-Pierre Saad or just are looking for a global partner to help them EM: What do you think will drive the buyout deals fell in the first two months of bile Capital, says that, while deal flow within positive year so far. “J.P.”, as he introduces himself, told Private expand beyond their local markets and this is future of the tech space in the post- this year to $82.5bn compared with $108.5bn the private equity industry has been “very “The UK is set for a robust first six months Equity News in an exclusive interview. where we can bring something differentiated pandemic world? in January and February of 2020, according to healthy” over the past six months, “the best is at least while Europe will probably be patchy The head of the technology, media and as a truly global tech franchise. JPS: The increased focus on ESG, both data from Dealogic. yet to come for these big deals in the coming – dictated to a large extent by the rollout of telecom team for the Emea region says that in Europe and globally, as well as on data The 10 largest global buyout deals in the months and years if the recovery takes hold vaccines and how quickly countries can open 2020 was KKR’s busiest-ever year for tech EM: How do you search for and select the governance and regulation will play an first two months of this year totalled just short and there is a return to economic normalcy”. up properly,” he told PEN. deals in Europe. In total, the firm closed six companies you want to invest in? What increasingly important role in 2021 and of $51.5bn, including debt, of which six of the The record $2.9tn of dry powder (commit- “The focus on technology investments in tech investments, of which the €3bn buyout is more important: growth potential or beyond for the tech sector. targeted companies were European, three ted but unallocated investment capital) parked particular across the value chain will continue of Spain’s telecom MasMovil in June was the an attractive price? Beyond the mere regulation, we are seeing were US-based and one was Australian. Of the in the private equity industry now “needs to to be a core investment theme in 2021. The largest. JPS: In an ideal world both! But realistically an increased focus from companies and 10, half the deals were in healthcare or tech- be put to work”, she says. ESG agenda is also becoming an increasingly While KKR tends to be more of a general- as the tech market is becoming more consumers on data sovereignty, transparency nology, as was also the case with the top ten “That’s an enormous amount of money and important investor priority.” ist, Saad, a 40-year-old computer engineer by competitive with valuations increasing and more generally being in control of deals in the first two months of 2020. it has to go somewhere,” she says. “It cannot Private equity firms are now, said McCrea- training, believes you can’t be a “one-trick steadily for many years – especially for the one’s data. We expect this to impact all tech The largest deal, announced on 23 February, get just sit around making no return.” nor, cashing in on the investment opportunity pony” if you want to invest in a sector such as strong growth businesses where we focus. companies in Europe in terms of the way they saw the Ardagh Group spin off its metal pack- presented by a decade’s worth of tech inno- technology. We are increasingly picking our battles and conduct their business. aging business through a merger with Gores K-shaped recovery vation “that took place last year as the world This is why Saad, who has been at KKR for focusing on companies and sectors that we Group in a deal valued by Dealogic at $9.3bn adapted to remote working.” more than 12 years, helped set up a 15-strong know well and where we believe KKR’s EM: What are your expectations for 2021? Luxembourg-based global packaging group Sinha Haldea describes the current boom in team to spot the best deals in the tech sector, resources and experience can have a real JPS: Technology is increasingly and Ardagh operates 56 metal and glass production private equity as a “great example” of a K- the London-based investor says. positive impact on growth. This allows us to undoubtedly the growth driver in our facilities in 12 countries, employing more than shaped recovery – whereby some parts of an Global financial sponsor Saad expects the tech momentum to accel- price the upsides that we can help deliver and economies – Covid-19 has proven that. 16,000 people. economy pull out of a recession while others buyout M&A deals (all stakes) erate still further in 2021, as the pandemic in- hence be competitive. Almost all industries have seen a dramatic stagnate. creases “convictions” about software or digital acceleration in their digital transformation, Investment trends “Folk that are cash rich, private equity and businesses. EM: The pandemic accelerated several with many businesses and consumers GPs, continue to be in the driver’s seat, but Month Deal value ($bn) Deal total His division can write equity cheques from trends in the industry and tech deals accelerating their use of digital tools. We Stephen Rosen, who heads the corporate prac- there are also many companies that are strug- 2020 Jan 31.5 179 €50m to “several billion” from KKR’s fifth became even more attractive last year. Is expect this trend to accelerate even more. tice in London of the US law firm Cooley, said gling, don’t have an easy path out of this, are €5.8bn European fund, the firm’s $2.2bn next this sustainable or will the bubble burst? I expect more investments in 2021 where 2020 Feb 77.0 138 that the trend of investing in technology and facing very difficult challenges and need state generation growth or its $10.6bn long-term JPS: The pandemic just accelerated trends we combine our sector expertise with the healthcare will likely continue for the rest of support,” she said. 2021 Jan 30.8 171 core private equity strategy. that were already happening, such as the underlying industry experience. the year and is set to “move into majority ter- Phillip McCreanor, head of the UK and Nor- 2021 Feb 51.7 160 (This interview has been edited for space and digital transformation of traditional industries, ritory by the end of the second quarter.” dics for the investment bank Lincoln Interna- clarity). an explosion of digital services and transition EM: What do you wish you knew before “Pricing is on the increase again in these tional, said that, while it is “probably too ear- Source: Dealogic. Data as of 9 March 2021. to the cloud. We do not think this will change you started working in private equity? EM: The investment landscape in any time soon. JPS: I trained as a computer engineer but Europe is crowded and several PE The pandemic has also proven to soon after my graduation the tech Top 10 global private equity deals, January-February 2021 firms – KKR included – are expanding many sceptics that most software bubble burst and I thought it was in other regions, such as Asia. Why is it businesses, with their highly smart to shift to finance and Target Acquirer Value ($bn) Target nationality still a good idea to invest in Europe? recurring revenue and in many banking. This seemed more Ardagh Metal Packaging (100%) Gores Holdings 9.3 Luxembourg JPS: We’re seeing an evolution compared cases mission critical nature, attractive at the time, but many to a few years back when there was less are quite resilient to disruptions of my classmates stuck to CoreLogic (100%, Bid No 3) Stone Point Capital, Insight Venture Management 7.5 US capital available to back growth companies. and hence should deserve a tech and went to work for Naturgy Energy Group (22.69%) IFM Investors Pty, IFM Global Infrastructure Fund 6.1 Spain With more capital and bigger tech hubs and premium. Not all software or Amazon, Microsoft and later Birkenstock (Maj%) Financiere Agache, Catterton Management, L Catterton 4.8 Germany ecosystems as in Paris, Berlin, London, digital companies are created Facebook and Airbnb! No Stockholm or Barcelona, more founders are equally and that is where tech further comments needed… Lonza Group (100%) Bain Capital, Cinven 4.7 Switzerland Nestle Waters North America (100%) One Rock Capital Partners, Metropoulos 4.3 US Independent Vetcare (28.46%) Nestle, Silver Lake Group 4.2 UK Aggreko (100%) TDR Capital, I Squared Capital Advisors 3.4 UK “Technology is increasingly and Vocus Group (100%) Macquarie Infrastructure & Real Assets, Aware Super 3.6 Australia undoubtedly the growth driver in our Cubic Corp (100%) Veritas Capital Fund Management, Evergreen Coast Capital 3.0 US economies – Covid-19 has proven that” Jean-Pierre Saad, KKR Source: Dealogic. Data as of 9 March 2021. COMPANY PHOTOGRAPH COMPANY 10 Analysis 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 People 11

Private equity closes KKR eyes Europe’s fertile GETTY IMAGES more but smaller hunting ground for tech deals deals so far this year The firm’s partner and veteran investor Jean-Pierre Saad sat down with

Mark Latham sectors fuelled by investors seeing Elisângela Mendonça via Zoom to share what his team is bringing to the table ever greater convergence of technol- Global mergers and acquisition deals in Janu- ogy and healthcare and their importance when spotting and negotiating deals in the region’s booming TMT sector ary and February of this year have exceeded on the world stage, coupled with the shadow German sandal maker Birkenstock was sold to a those of the first two months of last year, with from the Spacs hunting for M&A opportuni- consortium including Financiere Agache, Catterton As Europe’s tech industry blooms with the choosing to stay in Europe, as they are able expertise is key for any investor to be able to 331 buyout deals announced compared with ties, which is undoubtedly playing its part on Management and L Catterton for $4.2bn last month pandemic-induced shift to digital, heavyweight to hire great talent, get smart funding and differentiate the long-term sustainability of 317 in 2020 – before the coronavirus pandemic valuations,” he said. names in private equity are ready to gain more eventually list in Europe, if they wish to. growth from the short-term “Covid bump”. took hold in most developed countries. Meanwhile, Sunaina Sinha Haldea, man- ly” to make predictions about the rest of year ground in the continent. KKR is one of them, In most cases, those European champions Nevertheless, the combined value of global aging partner of the advisory company Ce- based on two months of data, the UK has had a the firm’s partner, Jean-Pierre Saad or just are looking for a global partner to help them EM: What do you think will drive the buyout deals fell in the first two months of bile Capital, says that, while deal flow within positive year so far. “J.P.”, as he introduces himself, told Private expand beyond their local markets and this is future of the tech space in the post- this year to $82.5bn compared with $108.5bn the private equity industry has been “very “The UK is set for a robust first six months Equity News in an exclusive interview. where we can bring something differentiated pandemic world? in January and February of 2020, according to healthy” over the past six months, “the best is at least while Europe will probably be patchy The head of the technology, media and as a truly global tech franchise. JPS: The increased focus on ESG, both data from Dealogic. yet to come for these big deals in the coming – dictated to a large extent by the rollout of telecom team for the Emea region says that in Europe and globally, as well as on data The 10 largest global buyout deals in the months and years if the recovery takes hold vaccines and how quickly countries can open 2020 was KKR’s busiest-ever year for tech EM: How do you search for and select the governance and regulation will play an first two months of this year totalled just short and there is a return to economic normalcy”. up properly,” he told PEN. deals in Europe. In total, the firm closed six companies you want to invest in? What increasingly important role in 2021 and of $51.5bn, including debt, of which six of the The record $2.9tn of dry powder (commit- “The focus on technology investments in tech investments, of which the €3bn buyout is more important: growth potential or beyond for the tech sector. targeted companies were European, three ted but unallocated investment capital) parked particular across the value chain will continue of Spain’s telecom MasMovil in June was the an attractive price? Beyond the mere regulation, we are seeing were US-based and one was Australian. Of the in the private equity industry now “needs to to be a core investment theme in 2021. The largest. JPS: In an ideal world both! But realistically an increased focus from companies and 10, half the deals were in healthcare or tech- be put to work”, she says. ESG agenda is also becoming an increasingly While KKR tends to be more of a general- as the tech market is becoming more consumers on data sovereignty, transparency nology, as was also the case with the top ten “That’s an enormous amount of money and important investor priority.” ist, Saad, a 40-year-old computer engineer by competitive with valuations increasing and more generally being in control of deals in the first two months of 2020. it has to go somewhere,” she says. “It cannot Private equity firms are now, said McCrea- training, believes you can’t be a “one-trick steadily for many years – especially for the one’s data. We expect this to impact all tech The largest deal, announced on 23 February, get just sit around making no return.” nor, cashing in on the investment opportunity pony” if you want to invest in a sector such as strong growth businesses where we focus. companies in Europe in terms of the way they saw the Ardagh Group spin off its metal pack- presented by a decade’s worth of tech inno- technology. We are increasingly picking our battles and conduct their business. aging business through a merger with Gores K-shaped recovery vation “that took place last year as the world This is why Saad, who has been at KKR for focusing on companies and sectors that we Group in a deal valued by Dealogic at $9.3bn adapted to remote working.” more than 12 years, helped set up a 15-strong know well and where we believe KKR’s EM: What are your expectations for 2021? Luxembourg-based global packaging group Sinha Haldea describes the current boom in team to spot the best deals in the tech sector, resources and experience can have a real JPS: Technology is increasingly and Ardagh operates 56 metal and glass production private equity as a “great example” of a K- the London-based investor says. positive impact on growth. This allows us to undoubtedly the growth driver in our facilities in 12 countries, employing more than shaped recovery – whereby some parts of an Global financial sponsor Saad expects the tech momentum to accel- price the upsides that we can help deliver and economies – Covid-19 has proven that. 16,000 people. economy pull out of a recession while others buyout M&A deals (all stakes) erate still further in 2021, as the pandemic in- hence be competitive. Almost all industries have seen a dramatic stagnate. creases “convictions” about software or digital acceleration in their digital transformation, Investment trends “Folk that are cash rich, private equity and businesses. EM: The pandemic accelerated several with many businesses and consumers GPs, continue to be in the driver’s seat, but Month Deal value ($bn) Deal total His division can write equity cheques from trends in the industry and tech deals accelerating their use of digital tools. We Stephen Rosen, who heads the corporate prac- there are also many companies that are strug- 2020 Jan 31.5 179 €50m to “several billion” from KKR’s fifth became even more attractive last year. Is expect this trend to accelerate even more. tice in London of the US law firm Cooley, said gling, don’t have an easy path out of this, are €5.8bn European fund, the firm’s $2.2bn next this sustainable or will the bubble burst? I expect more investments in 2021 where 2020 Feb 77.0 138 that the trend of investing in technology and facing very difficult challenges and need state generation growth or its $10.6bn long-term JPS: The pandemic just accelerated trends we combine our sector expertise with the healthcare will likely continue for the rest of support,” she said. 2021 Jan 30.8 171 core private equity strategy. that were already happening, such as the underlying industry experience. the year and is set to “move into majority ter- Phillip McCreanor, head of the UK and Nor- 2021 Feb 51.7 160 (This interview has been edited for space and digital transformation of traditional industries, ritory by the end of the second quarter.” dics for the investment bank Lincoln Interna- clarity). an explosion of digital services and transition EM: What do you wish you knew before “Pricing is on the increase again in these tional, said that, while it is “probably too ear- Source: Dealogic. Data as of 9 March 2021. to the cloud. We do not think this will change you started working in private equity? EM: The investment landscape in any time soon. JPS: I trained as a computer engineer but Europe is crowded and several PE The pandemic has also proven to soon after my graduation the tech Top 10 global private equity deals, January-February 2021 firms – KKR included – are expanding many sceptics that most software bubble burst and I thought it was in other regions, such as Asia. Why is it businesses, with their highly smart to shift to finance and Target Acquirer Value ($bn) Target nationality still a good idea to invest in Europe? recurring revenue and in many banking. This seemed more Ardagh Metal Packaging (100%) Gores Holdings 9.3 Luxembourg JPS: We’re seeing an evolution compared cases mission critical nature, attractive at the time, but many to a few years back when there was less are quite resilient to disruptions of my classmates stuck to CoreLogic (100%, Bid No 3) Stone Point Capital, Insight Venture Management 7.5 US capital available to back growth companies. and hence should deserve a tech and went to work for Naturgy Energy Group (22.69%) IFM Investors Pty, IFM Global Infrastructure Fund 6.1 Spain With more capital and bigger tech hubs and premium. Not all software or Amazon, Microsoft and later Birkenstock (Maj%) Financiere Agache, Catterton Management, L Catterton 4.8 Germany ecosystems as in Paris, Berlin, London, digital companies are created Facebook and Airbnb! No Stockholm or Barcelona, more founders are equally and that is where tech further comments needed… Lonza Group (100%) Bain Capital, Cinven 4.7 Switzerland Nestle Waters North America (100%) One Rock Capital Partners, Metropoulos 4.3 US Independent Vetcare (28.46%) Nestle, Silver Lake Group 4.2 UK Aggreko (100%) TDR Capital, I Squared Capital Advisors 3.4 UK “Technology is increasingly and Vocus Group (100%) Macquarie Infrastructure & Real Assets, Aware Super 3.6 Australia undoubtedly the growth driver in our Cubic Corp (100%) Veritas Capital Fund Management, Evergreen Coast Capital 3.0 US economies – Covid-19 has proven that” Jean-Pierre Saad, KKR Source: Dealogic. Data as of 9 March 2021. COMPANY PHOTOGRAPH COMPANY 12 Comment 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Comment 13

How do buyout firms protect returns in an over-hyped technology market?

Having the right people with the necessary “For some tech skills and expertise can help find the best companies it is almost a badge of honour how opportunities, writes Mark Corbidge much cash they’ve burned; private Tech investing is now part of the private equi- ples for “hope” companies or going after uni- equity investors ty mainstream; it is no longer the preserve of corns within the tech space. For some tech view that very venture capital or tech specialists. Almost a companies it is almost a badge of honour how third of the top 10 European buyouts by value much cash they’ve burned; private equity differently” were technology companies in 2020 ($17.4bn investors view that very differently. Private Mark Corbidge, out of a total of $59bn). Across the pond in equity tends to be interested in the compa- the US, private equity firms invested some nies that are more resilient in a downturn – Sun European $161.13bn in technology companies across for example, tech companies that can assist Partners

560 deals last year compared with $138.66bn SMEs in terms of digitalisation or enterprise PHOTOGRAPH COMPANY across 692 deals in 2019, according to data software companies. These types of compa- provider Dealogic. nies usually have strong revenue growth and Even with increased valuations, investors solid fundamentals because their customers have tech sector expertise, they may not flocked to tech companies of all kinds last are rapidly digitising to stay competitive. have all the required skills that are needed to year, with a surge in tech stocks also help- At Sun European Partners, for example, Firms need the skills to generate attractive returns. ing to keep the public market’s surprisingly we look at companies demonstrating 10-25% cut through the hype So, what is the secret to protect returns buoyant and resilient amid the Covid-19 pan- growth, and these growth rates are typical of in an over-hyped technology market? It’s all demic, and this trend shows no signs of slow- the types of deals that private equity look for about having the right people to navigate the ing down in 2021. in the tech space. that is over-valued. Deep sector knowledge for tech deals, but it is about finding the best tech companies may also increase due to an over-hyped market and find attractive deals As appetite for the sector increases, valua- However, these deals can only be found within private equity firms enables the team businesses with good relative valuations in increased understanding of the sector. A vi- in a sweet-spot that still enables private eq- tions are soaring. To protect returns, private if you have the people with the right skill to build a strong investment thesis to take to the space. This is almost impossible to do cious cycle some may say! The rise in sector uity to deploy its operational excellence to equity companies must differentiate them- sets and sector expertise to seek them out. investment committees. without key individuals with specific skills specialism, and an increased focus on similar increase the company’s value, help fuel its selves to still be able to generate desired re- As private equity is a people business, it is These specialists have a clear understand- GETTY IMAGES and knowledge that will still be able to gen- sectors, will undoubtedly push prices up. In growth and ultimately generate attractive turns in an “over-hyped” tech sector. vital to have the best people around to spot ing of the key drivers, opportunities and chal- erate desired returns within the tech bubble. 2021, analysts at PitchBook expect 20% of returns. Private equity tends to avoid the most opportunities in the market. Sector expertise lenges within the industry and have the abil- With increased sector expertise and spe- buyouts to be priced above 20x Ebitda. The Mark Corbidge is managing director Sun talked about tech segments – as most are not is crucial to find the companies that have a ity to focus and go after the best businesses. cialists within private equity firms, the rise in valuations will probably deter general- European Partners, the European arm of in the business of paying stratospheric multi- competitive relative valuation in a market Unsurprising, there will be premiums to pay valuations and the valuation expectations of ist investors as, unlike those PE firms that US private equity firm Sun Capital Partners. Digital transformation is giving private equity managers a competitive edge

George Ralph flow has evolved, some PE managers have technology to transform business operating instantaneous. Also, with the current focus on ESG, phase two of their delivery now, and we are grasped the opportunity and as their models, such as replacing manual processes In the beginning of any digitisation journey, investors are keen to see that ESG data seeing firms data scraping into their data The private equity industry has been growing competitors start to see the tangible benefits, with automation across businesses. At its a firm should look at all the manual processes management plans have been put in place for warehouse to review the KPI’s in order to rapidly over the past decade, driven by they will also follow in search of an edge in a best, digitisation helps PE managers oversee within their business, the teams and investments, built around key performance see how that impacts their funds’ attractive returns and low interest rates. Total hyper-competitive market. their investments and key decision making. departments involved, and their roles. The indicators and related targets. A robust data performance. assets under management hit a record Collaboration tools such as Teams and Slack next step is to complete a Proof of Concept, strategy can help a manager automate this. $4.11tn in 2019, as investors committed more Correct strategy are able to automate manual processes which allows a firm to check the outputs of Also, using data and analytics, a manager can Business burdens than half a trillion dollars, further boosting the around investor relations. For example, it is the newly digitised process over a period of benchmark and monitor the ESG issues that pile of available dry powder. Moreover, For those PE managers, it is crucial that any possible for a firm to automate checklists time, making sure the automation is correct. are material to ESG performance. This strategy also continues around inflows into the asset class are increasingly digital transformation is approached correctly, that have traditionally been tasks carried out An emerging manager and established collaboration. If a firm has multiple systems, coming from institutional investors. as a poorly executed strategy can lead to in spreadsheets by using a tool such as Data strategy manager might use different tools for their the answer isn’t to integrate those systems, As this new type of investor has been significant business disruption and even Microsoft Flow. Investor reporting, which data and digital transformation journey, but it is to pour all the data from every system attracted to the industry – and with it inhibit the ability to generate alpha. can take a person several days within any Successful digitisation is built on an effective the principle is the same. The great thing into a data warehouse. From here, a firm can increasing scrutiny from regulators – private Digital transformation is the use of given month can now be fully automated and data strategy. An end-to-end managed data about public cloud and data warehousing is assess where the burdens to their business equity managers have been under increasing solution is usually the most effective approach that it is scalable. At RFA we don’t have lie and what can be automated. pressure to “institutionalise” their technology for a PE firm. A data warehouse will separate clients using the same technology two years The longer picture suggests a firm will and operating models to meet the greater “Private equity managers have the layers of data via any public cloud after launch as they did on day one, but the need less people to deliver the same demands put on them by both traditional and provider such as AWS, Azure or Google Cloud journey is seamless as we scale firms up to performance, if not better. So certain roles institutional investors. been under increasing pressure to and then companies can scale their data and manage increased assets under management. within a fund will shift and the end result is Digitally transforming business operations ‘institutionalise’ their technology separate processing and storage to harness In today’s environment, the key trend that automation can buy people more time to can create efficiencies, increase the visibility that data for dealmaking and key investment continues about how we manage data. As focus on tasks they really need to focus on, of data and reduce costs and so increase the and operating models to meet the decisions. more and more people get involved in their such as investor relations and the alpha ability to generate alpha, but the actual greater demands put on them by both Data governance, ingestion and analytics data journey, they will discover more generation that has caused this seismic shift process of transformation can be disruptive to traditional and institutional investors” solutions are built to meet the standards of anomalies in the behaviour, operation and in the prominence of the PE industry. business and deal flow. Consequently, the PE institutional investors and global financial functions of their business. George Ralph is global managing director at sector has been reluctant to embrace George Ralph, RFA regulators, automating the processes that Meanwhile, firms that have already RFA, a cybersecurity provider to the alternative investment industry. digitisation. However, as business and deal PHOTOGRAPH COMPANY have been lengthy in the past. embarked on their digitisation journey are in 12 Comment 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Comment 13

How do buyout firms protect returns in an over-hyped technology market?

Having the right people with the necessary “For some tech skills and expertise can help find the best companies it is almost a badge of honour how opportunities, writes Mark Corbidge much cash they’ve burned; private Tech investing is now part of the private equi- ples for “hope” companies or going after uni- equity investors ty mainstream; it is no longer the preserve of corns within the tech space. For some tech view that very venture capital or tech specialists. Almost a companies it is almost a badge of honour how third of the top 10 European buyouts by value much cash they’ve burned; private equity differently” were technology companies in 2020 ($17.4bn investors view that very differently. Private Mark Corbidge, out of a total of $59bn). Across the pond in equity tends to be interested in the compa- the US, private equity firms invested some nies that are more resilient in a downturn – Sun European $161.13bn in technology companies across for example, tech companies that can assist Partners

560 deals last year compared with $138.66bn SMEs in terms of digitalisation or enterprise PHOTOGRAPH COMPANY across 692 deals in 2019, according to data software companies. These types of compa- provider Dealogic. nies usually have strong revenue growth and Even with increased valuations, investors solid fundamentals because their customers have tech sector expertise, they may not flocked to tech companies of all kinds last are rapidly digitising to stay competitive. have all the required skills that are needed to year, with a surge in tech stocks also help- At Sun European Partners, for example, Firms need the skills to generate attractive returns. ing to keep the public market’s surprisingly we look at companies demonstrating 10-25% cut through the hype So, what is the secret to protect returns buoyant and resilient amid the Covid-19 pan- growth, and these growth rates are typical of in an over-hyped technology market? It’s all demic, and this trend shows no signs of slow- the types of deals that private equity look for about having the right people to navigate the ing down in 2021. in the tech space. that is over-valued. Deep sector knowledge for tech deals, but it is about finding the best tech companies may also increase due to an over-hyped market and find attractive deals As appetite for the sector increases, valua- However, these deals can only be found within private equity firms enables the team businesses with good relative valuations in increased understanding of the sector. A vi- in a sweet-spot that still enables private eq- tions are soaring. To protect returns, private if you have the people with the right skill to build a strong investment thesis to take to the space. This is almost impossible to do cious cycle some may say! The rise in sector uity to deploy its operational excellence to equity companies must differentiate them- sets and sector expertise to seek them out. investment committees. without key individuals with specific skills specialism, and an increased focus on similar increase the company’s value, help fuel its selves to still be able to generate desired re- As private equity is a people business, it is These specialists have a clear understand- GETTY IMAGES and knowledge that will still be able to gen- sectors, will undoubtedly push prices up. In growth and ultimately generate attractive turns in an “over-hyped” tech sector. vital to have the best people around to spot ing of the key drivers, opportunities and chal- erate desired returns within the tech bubble. 2021, analysts at PitchBook expect 20% of returns. Private equity tends to avoid the most opportunities in the market. Sector expertise lenges within the industry and have the abil- With increased sector expertise and spe- buyouts to be priced above 20x Ebitda. The Mark Corbidge is managing director Sun talked about tech segments – as most are not is crucial to find the companies that have a ity to focus and go after the best businesses. cialists within private equity firms, the rise in valuations will probably deter general- European Partners, the European arm of in the business of paying stratospheric multi- competitive relative valuation in a market Unsurprising, there will be premiums to pay valuations and the valuation expectations of ist investors as, unlike those PE firms that US private equity firm Sun Capital Partners. Digital transformation is giving private equity managers a competitive edge

George Ralph flow has evolved, some PE managers have technology to transform business operating instantaneous. Also, with the current focus on ESG, phase two of their delivery now, and we are grasped the opportunity and as their models, such as replacing manual processes In the beginning of any digitisation journey, investors are keen to see that ESG data seeing firms data scraping into their data The private equity industry has been growing competitors start to see the tangible benefits, with automation across businesses. At its a firm should look at all the manual processes management plans have been put in place for warehouse to review the KPI’s in order to rapidly over the past decade, driven by they will also follow in search of an edge in a best, digitisation helps PE managers oversee within their business, the teams and investments, built around key performance see how that impacts their funds’ attractive returns and low interest rates. Total hyper-competitive market. their investments and key decision making. departments involved, and their roles. The indicators and related targets. A robust data performance. assets under management hit a record Collaboration tools such as Teams and Slack next step is to complete a Proof of Concept, strategy can help a manager automate this. $4.11tn in 2019, as investors committed more Correct strategy are able to automate manual processes which allows a firm to check the outputs of Also, using data and analytics, a manager can Business burdens than half a trillion dollars, further boosting the around investor relations. For example, it is the newly digitised process over a period of benchmark and monitor the ESG issues that pile of available dry powder. Moreover, For those PE managers, it is crucial that any possible for a firm to automate checklists time, making sure the automation is correct. are material to ESG performance. This strategy also continues around inflows into the asset class are increasingly digital transformation is approached correctly, that have traditionally been tasks carried out An emerging manager and established collaboration. If a firm has multiple systems, coming from institutional investors. as a poorly executed strategy can lead to in spreadsheets by using a tool such as Data strategy manager might use different tools for their the answer isn’t to integrate those systems, As this new type of investor has been significant business disruption and even Microsoft Flow. Investor reporting, which data and digital transformation journey, but it is to pour all the data from every system attracted to the industry – and with it inhibit the ability to generate alpha. can take a person several days within any Successful digitisation is built on an effective the principle is the same. The great thing into a data warehouse. From here, a firm can increasing scrutiny from regulators – private Digital transformation is the use of given month can now be fully automated and data strategy. An end-to-end managed data about public cloud and data warehousing is assess where the burdens to their business equity managers have been under increasing solution is usually the most effective approach that it is scalable. At RFA we don’t have lie and what can be automated. pressure to “institutionalise” their technology for a PE firm. A data warehouse will separate clients using the same technology two years The longer picture suggests a firm will and operating models to meet the greater “Private equity managers have the layers of data via any public cloud after launch as they did on day one, but the need less people to deliver the same demands put on them by both traditional and provider such as AWS, Azure or Google Cloud journey is seamless as we scale firms up to performance, if not better. So certain roles institutional investors. been under increasing pressure to and then companies can scale their data and manage increased assets under management. within a fund will shift and the end result is Digitally transforming business operations ‘institutionalise’ their technology separate processing and storage to harness In today’s environment, the key trend that automation can buy people more time to can create efficiencies, increase the visibility that data for dealmaking and key investment continues about how we manage data. As focus on tasks they really need to focus on, of data and reduce costs and so increase the and operating models to meet the decisions. more and more people get involved in their such as investor relations and the alpha ability to generate alpha, but the actual greater demands put on them by both Data governance, ingestion and analytics data journey, they will discover more generation that has caused this seismic shift process of transformation can be disruptive to traditional and institutional investors” solutions are built to meet the standards of anomalies in the behaviour, operation and in the prominence of the PE industry. business and deal flow. Consequently, the PE institutional investors and global financial functions of their business. George Ralph is global managing director at sector has been reluctant to embrace George Ralph, RFA regulators, automating the processes that Meanwhile, firms that have already RFA, a cybersecurity provider to the alternative investment industry. digitisation. However, as business and deal PHOTOGRAPH COMPANY have been lengthy in the past. embarked on their digitisation journey are in 14 Venture Capital 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Deal Pipeline 15

The deal insight below is provided by data provider Mergermarket for the week to 8 March, 2021. It features the pipeline of How to build diversity in venture capital European private equity deals and the most recent deals to have emerged in the asset class. Elisângela Mendonça consultancy Equality Group launched representatives of Kinnevik and Bethnal Deal pipeline its first inclusion index last week (See Green Ventures, ranked first and second, Deal value, Target company Target sector Target Financial Status Possible bidder Comments Venture capital, like the rest of the Private Equity News, pages 6-7, 8 respectively, among VC firms, about €m country adviser alternative investments industry, has March), which ranks the top 20 PE and their strategies and why the industry has made efforts toward improving diversity VC firms according to their diversity taken so long to take action. 8,000 Autostrade per l'Italia Construction Italy Citi, UniCredit Asset sale CdP, Blackstone Group A consortium led by Italian state-owned and inclusion (D&I) in recent years, but and inclusion performance. PEN, which (Interviews have been edited for length (Corporate International Partners and financial holding Cassa Depositi e Prestiti progress is still too slow. London-based had exclusive access to the list, spoke to and clarity.) disposal) Macquarie Infrastructure (CdP) could split over any potential valuation and Real Assets compromise involving infrastructure holding Rebecka Elming, legal and sustainability head at Kinnevik Melanie Hayes, managing partner at Bethnal Green Ventures Atlantia’s 88% stake in Autostrade per l’Italia, Il Sole 24 Ore reported. CdP is willing to move PEN: Why is D&I important? PEN: Why does the industry need diversity and inclusion? toward Atlantia’s valuation of €10bn-€12bn RE: In our business, it’s very much about the people behind MH: Representation matters. We’re past the point where we have to as opposed to the consortium’s offer of about the idea or behind the business. If we limit ourselves to make the case for diversity and inclusion. There are enough studies €8bn. However, CdP’s partners Blackstone certain founders, because of unconscious bias, or networks, that highlight how diverse teams perform better, deliver better returns, Group International Partners and Macquarie Infrastructure and Real Assets are less open to we’ll find ourselves missing out on opportunities. And we’ll and much more. What we ultimately want to drive with our efforts is giving ground. also find ourselves not being able to build the companies that increased access to capital to founders from all walks of life and diversity we want. The industry is just limiting its possibilities by not in the outcome. As tech for good investors, we’re acutely aware if your 7,000 Stockholm Exergi Utilities (other) Sweden Citi, Danske Bank Company for Antin, CKI, CPPIB, Fortum’s sale of its 50% stake in Swedish sale First State, IFM, MIRA, district heating network Stockholm Exergi is focusing on these topics. product is not inclusive by design, it will be unequal in the outcome. OTPP, Swiss Life Asset seeing bidders lining up ahead of its launch At BGV, we publish our own team’s diversity and inclusion data Management, AMF next month, Mergermarket reported. Teasers PEN: Kinnevik was crowned the most inclusive VC firm annually in our impact report. With our portfolio companies, we take a Pensionforsakring, have already been sent to potential buyers. by the Equality Group’s Inclusive Top 20 PE & VC permission-based approach to collect and report on their D&I data. This Vattenfall, APG Asset Stockholm City, which owns the other 50% Index. What’s the firm diversity roadmap? in turn helped us establish a benchmark for our firm to consistently see Management, EQT, Swiss stake in the business, is currently working on RE: One of the things we consider very important is the what’s working and where we need to step up our efforts and resources. Life Asset Management, buyer qualification. Macquarie Infrastructure thorough review of our behaviour. We aim to raise self- What other VC firms can do is collaborate and share insights to help PensionDanmark, and Real Assets is among infrastructure awareness as we go along and continue the conversation as others figure out their D&I methodology. Macquarie Infrastructure investors readying to bid for the asset. we try to be prepared for uncomfortable situations. We have and Real Assets, Infranode, PensionDanmark and Swiss Life are looking to those conversations because this is not a “one-off” project PEN: Why has the industry taken so long to take action when Polhem Infra bid together. There are two other consortiums forming to bid for the stake, include one that you do. This needs to be part of the firm’s ongoing compared to other asset classes? comprising of Vattenfall and AMF, and another cultural journey. That requires a lot from everyone at the MH: The VC industry is notoriously opaque and private comprising of Axa IM, APG and Alecta. firm. by nature. VC deal flow largely operates on warm 2,400 Urbaser Energy Spain Société Générale, Takeover Apollo, Brookfield, Binding bids for Urbaser, the Spanish It takes time and effort to keep the introductions. This already restricts access to capital to a Crédit Agricole, situation Cinven, EQT, Stonepeak, environmental services company up for sale, conversation going at all stages and at narrow and largely homogeneous pool of investments, if Deutsche Bank Macquarie, are due after Easter as the auction struggles all levels of the company, but this is key. the VC firms themselves are not diverse by design. to get back on track after a cyberattack, To do that we’ve ensured that we have Only recently has that changed, with many more Mergermarket reported. Press reports continuous training and inspirational talks firms committed to operating “no warm intros naming a shortlist of suitors including Elliott on the topic [D&I] and that we have an needed” policies. And while there’s been an increase Management, Platinum Equity and Stonepeak internal D&I task force as well, which is in diversity at the associate level of funds, the Infrastructure Partners are correct. The vendors, an influencing group that represents all decision-making power often still rests with China Tianying, have high price expectations. functions across all levels. largely homogenous groups of people. Increasing Bidders submitted offers of more than €2.4bn. diversity and representation up to the investment 2,000 Crown Holdings Manufacturing Spain Evercore Company for Sonoco, KPS Capital Crown Holdings is moving ahead with the committee level is critical for the VC industry to (Food Can business) (other) sale Partners, Lone Star Funds, process to divest its European food cans really move the needle on D&I. Onex, Platinum Equity, Ball division, with revised offers due on 8 March, Metalpack Mergermarket reported. Sonoco has joined a Rebecka Elming: raising Melanie Hayes: D&I will help increase access to pool of bidders comprised predominantly of self-awareness at the firm is key capital to founders from all walks of life financial sponsors. KPS Capital Partners, Lone

COMPANY PHOTOGRAPHS COMPANY Star Funds, Onex and Platinum Equity, which is bidding via portfolio company Ball Metalpack, are the other contestants in the process. 1,700 Italian Football Leisure Italy Lazard, Gianni, Auction/ CVC, Advent and FSI A consortium made up of CVC, Advent and FSI VC-backed Deliveroo plans London IPO listing League Origoni, Grippo, privatisation is set to table an updated bid for a 10% stake to Cappelli & the Italian Football League (Serie A) in a media Ben Dummett Deliveroo’s listing will be a test case for tired of preparing home-cooked meals, order Partners rights newco deal, Reuters reported. Serie A coming changes to London’s stock market list- in. Last year, Deliveroo’s net revenue surged will examine the modified offer when it meets Deliveroo has taken the first step to list on the ing rules, that are meant to help the London 54% to £1.2bn, equivalent to around $1.7bn. this week. A previous €1.7bn offer was blocked London Stock Exchange, seeking to replicate Stock Exchange better compete against New Meanwhile, the company’s loss narrowed to when seven of the 20 clubs making up Serie A voiced opposition to the deal. the stock-market success of US rival Door- York and Hong Kong for tech IPOs. As big tech £223.7m from £317.3m. Dash as the pandemic fuels demand for online has driven US stock markets to record highs, The company is betting on that revenue 1,500 ECS Capital’s Leisure Portugal – Auction/ Bain Capital, Brookfield, Bain Capital and Apollo Global Management food deliveries. London has slipped behind, with a stock mar- growth generating market interest in the of- Portugal hotels privatisation Blackstone, Cerberus, are among the candidates that presented non- Fortress, Davidson binding offers for ECS Capital’s hotel assets, The anticipated initial public offering, de- ket heavily weighted toward slower-growth fering following strong investor demand for Kempner Capital Mergermarket reported. Other parties that were tailed in a filing on 8 March, would be one of banks and resources companies. DoorDash’s IPO late last year. Ahead of that Management, HIG. Capital previously reported to be interested include the highest-profile listings this year in the UK. Deliveroo plans to issue dual-class shares issue, the San Francisco-based company re- and Kildare, Bain Capital, Brookfield, Blackstone, Cerberus Private Equity, It is expected to value Deliveroo at around that would keep founder and chief executive ported its revenue more than tripled in the Apollo Global Management Fortress Investment Group, Davidson Kempner $10bn, according to people familiar with the Will Shu in control for three years. That paves summer and fall from the year-earlier periods. Capital Management, HIG Capital, Kildare matter. The filing didn’t disclose how much the way for Deliveroo’s shares to qualify for in- DoorDash went public in December on the Partners and Arrow Global. The businesses the company intends to raise. clusion in the London Stock Exchange’s blue- New York Stock Exchange and on the first day on the block include hotel chain Nau Hotels, Deliveroo, whose delivery bikes are almost chip FTSE indexes following the expected ap- of trading its shares surged 86% from the IPO resorts in the Algarve such as Conrad Algarve as common a sight on the streets of London as proval later this year of new rules. price to $189.51. The stock has since fallen and Quinta do Lago, and other resorts and hotel assets throughout the country. the city’s black cabs and double-decker buses, Deliveroo and other food-delivery compa- back to $151 as part of an overall decline in counts Uber Technologies’s Uber Eats and nies in Europe and the US are experiencing a tech issues. Based on dominant geography of target being European. Due to the pre-announcement nature of these deals, it is impossible to confirm the accuracy of the adviser details to the same level as on an officially Just Eat Takeaway among its competitors. surge in business as homebound consumers, From The Wall Street Journal announced deal. Some adviser details are based on unconfirmed speculative press reports. Source: Mergermarket 14 Venture Capital 15 March, 2021 • www.penews.com www.penews.com • 15 March, 2021 Deal Pipeline 15

The deal insight below is provided by data provider Mergermarket for the week to 8 March, 2021. It features the pipeline of How to build diversity in venture capital European private equity deals and the most recent deals to have emerged in the asset class. Elisângela Mendonça consultancy Equality Group launched representatives of Kinnevik and Bethnal Deal pipeline its first inclusion index last week (See Green Ventures, ranked first and second, Deal value, Target company Target sector Target Financial Status Possible bidder Comments Venture capital, like the rest of the Private Equity News, pages 6-7, 8 respectively, among VC firms, about €m country adviser alternative investments industry, has March), which ranks the top 20 PE and their strategies and why the industry has made efforts toward improving diversity VC firms according to their diversity taken so long to take action. 8,000 Autostrade per l'Italia Construction Italy Citi, UniCredit Asset sale CdP, Blackstone Group A consortium led by Italian state-owned and inclusion (D&I) in recent years, but and inclusion performance. PEN, which (Interviews have been edited for length (Corporate International Partners and financial holding Cassa Depositi e Prestiti progress is still too slow. London-based had exclusive access to the list, spoke to and clarity.) disposal) Macquarie Infrastructure (CdP) could split over any potential valuation and Real Assets compromise involving infrastructure holding Rebecka Elming, legal and sustainability head at Kinnevik Melanie Hayes, managing partner at Bethnal Green Ventures Atlantia’s 88% stake in Autostrade per l’Italia, Il Sole 24 Ore reported. CdP is willing to move PEN: Why is D&I important? PEN: Why does the industry need diversity and inclusion? toward Atlantia’s valuation of €10bn-€12bn RE: In our business, it’s very much about the people behind MH: Representation matters. We’re past the point where we have to as opposed to the consortium’s offer of about the idea or behind the business. If we limit ourselves to make the case for diversity and inclusion. There are enough studies €8bn. However, CdP’s partners Blackstone certain founders, because of unconscious bias, or networks, that highlight how diverse teams perform better, deliver better returns, Group International Partners and Macquarie Infrastructure and Real Assets are less open to we’ll find ourselves missing out on opportunities. And we’ll and much more. What we ultimately want to drive with our efforts is giving ground. also find ourselves not being able to build the companies that increased access to capital to founders from all walks of life and diversity we want. The industry is just limiting its possibilities by not in the outcome. As tech for good investors, we’re acutely aware if your 7,000 Stockholm Exergi Utilities (other) Sweden Citi, Danske Bank Company for Antin, CKI, CPPIB, Fortum’s sale of its 50% stake in Swedish sale First State, IFM, MIRA, district heating network Stockholm Exergi is focusing on these topics. product is not inclusive by design, it will be unequal in the outcome. OTPP, Swiss Life Asset seeing bidders lining up ahead of its launch At BGV, we publish our own team’s diversity and inclusion data Management, AMF next month, Mergermarket reported. Teasers PEN: Kinnevik was crowned the most inclusive VC firm annually in our impact report. With our portfolio companies, we take a Pensionforsakring, have already been sent to potential buyers. by the Equality Group’s Inclusive Top 20 PE & VC permission-based approach to collect and report on their D&I data. This Vattenfall, APG Asset Stockholm City, which owns the other 50% Index. What’s the firm diversity roadmap? in turn helped us establish a benchmark for our firm to consistently see Management, EQT, Swiss stake in the business, is currently working on RE: One of the things we consider very important is the what’s working and where we need to step up our efforts and resources. Life Asset Management, buyer qualification. Macquarie Infrastructure thorough review of our behaviour. We aim to raise self- What other VC firms can do is collaborate and share insights to help PensionDanmark, and Real Assets is among infrastructure awareness as we go along and continue the conversation as others figure out their D&I methodology. Macquarie Infrastructure investors readying to bid for the asset. we try to be prepared for uncomfortable situations. We have and Real Assets, Infranode, PensionDanmark and Swiss Life are looking to those conversations because this is not a “one-off” project PEN: Why has the industry taken so long to take action when Polhem Infra bid together. There are two other consortiums forming to bid for the stake, include one that you do. This needs to be part of the firm’s ongoing compared to other asset classes? comprising of Vattenfall and AMF, and another cultural journey. That requires a lot from everyone at the MH: The VC industry is notoriously opaque and private comprising of Axa IM, APG and Alecta. firm. by nature. VC deal flow largely operates on warm 2,400 Urbaser Energy Spain Société Générale, Takeover Apollo, Brookfield, Binding bids for Urbaser, the Spanish It takes time and effort to keep the introductions. This already restricts access to capital to a Crédit Agricole, situation Cinven, EQT, Stonepeak, environmental services company up for sale, conversation going at all stages and at narrow and largely homogeneous pool of investments, if Deutsche Bank Macquarie, are due after Easter as the auction struggles all levels of the company, but this is key. the VC firms themselves are not diverse by design. to get back on track after a cyberattack, To do that we’ve ensured that we have Only recently has that changed, with many more Mergermarket reported. Press reports continuous training and inspirational talks firms committed to operating “no warm intros naming a shortlist of suitors including Elliott on the topic [D&I] and that we have an needed” policies. And while there’s been an increase Management, Platinum Equity and Stonepeak internal D&I task force as well, which is in diversity at the associate level of funds, the Infrastructure Partners are correct. The vendors, an influencing group that represents all decision-making power often still rests with China Tianying, have high price expectations. functions across all levels. largely homogenous groups of people. Increasing Bidders submitted offers of more than €2.4bn. diversity and representation up to the investment 2,000 Crown Holdings Manufacturing Spain Evercore Company for Sonoco, KPS Capital Crown Holdings is moving ahead with the committee level is critical for the VC industry to (Food Can business) (other) sale Partners, Lone Star Funds, process to divest its European food cans really move the needle on D&I. Onex, Platinum Equity, Ball division, with revised offers due on 8 March, Metalpack Mergermarket reported. Sonoco has joined a Rebecka Elming: raising Melanie Hayes: D&I will help increase access to pool of bidders comprised predominantly of self-awareness at the firm is key capital to founders from all walks of life financial sponsors. KPS Capital Partners, Lone

COMPANY PHOTOGRAPHS COMPANY Star Funds, Onex and Platinum Equity, which is bidding via portfolio company Ball Metalpack, are the other contestants in the process. 1,700 Italian Football Leisure Italy Lazard, Gianni, Auction/ CVC, Advent and FSI A consortium made up of CVC, Advent and FSI VC-backed Deliveroo plans London IPO listing League Origoni, Grippo, privatisation is set to table an updated bid for a 10% stake to Cappelli & the Italian Football League (Serie A) in a media Ben Dummett Deliveroo’s listing will be a test case for tired of preparing home-cooked meals, order Partners rights newco deal, Reuters reported. Serie A coming changes to London’s stock market list- in. Last year, Deliveroo’s net revenue surged will examine the modified offer when it meets Deliveroo has taken the first step to list on the ing rules, that are meant to help the London 54% to £1.2bn, equivalent to around $1.7bn. this week. A previous €1.7bn offer was blocked London Stock Exchange, seeking to replicate Stock Exchange better compete against New Meanwhile, the company’s loss narrowed to when seven of the 20 clubs making up Serie A voiced opposition to the deal. the stock-market success of US rival Door- York and Hong Kong for tech IPOs. As big tech £223.7m from £317.3m. Dash as the pandemic fuels demand for online has driven US stock markets to record highs, The company is betting on that revenue 1,500 ECS Capital’s Leisure Portugal – Auction/ Bain Capital, Brookfield, Bain Capital and Apollo Global Management food deliveries. London has slipped behind, with a stock mar- growth generating market interest in the of- Portugal hotels privatisation Blackstone, Cerberus, are among the candidates that presented non- Fortress, Davidson binding offers for ECS Capital’s hotel assets, The anticipated initial public offering, de- ket heavily weighted toward slower-growth fering following strong investor demand for Kempner Capital Mergermarket reported. Other parties that were tailed in a filing on 8 March, would be one of banks and resources companies. DoorDash’s IPO late last year. Ahead of that Management, HIG. Capital previously reported to be interested include the highest-profile listings this year in the UK. Deliveroo plans to issue dual-class shares issue, the San Francisco-based company re- and Kildare, Bain Capital, Brookfield, Blackstone, Cerberus Private Equity, It is expected to value Deliveroo at around that would keep founder and chief executive ported its revenue more than tripled in the Apollo Global Management Fortress Investment Group, Davidson Kempner $10bn, according to people familiar with the Will Shu in control for three years. That paves summer and fall from the year-earlier periods. Capital Management, HIG Capital, Kildare matter. The filing didn’t disclose how much the way for Deliveroo’s shares to qualify for in- DoorDash went public in December on the Partners and Arrow Global. The businesses the company intends to raise. clusion in the London Stock Exchange’s blue- New York Stock Exchange and on the first day on the block include hotel chain Nau Hotels, Deliveroo, whose delivery bikes are almost chip FTSE indexes following the expected ap- of trading its shares surged 86% from the IPO resorts in the Algarve such as Conrad Algarve as common a sight on the streets of London as proval later this year of new rules. price to $189.51. The stock has since fallen and Quinta do Lago, and other resorts and hotel assets throughout the country. the city’s black cabs and double-decker buses, Deliveroo and other food-delivery compa- back to $151 as part of an overall decline in counts Uber Technologies’s Uber Eats and nies in Europe and the US are experiencing a tech issues. Based on dominant geography of target being European. Due to the pre-announcement nature of these deals, it is impossible to confirm the accuracy of the adviser details to the same level as on an officially Just Eat Takeaway among its competitors. surge in business as homebound consumers, From The Wall Street Journal announced deal. Some adviser details are based on unconfirmed speculative press reports. Source: Mergermarket Make your life make a difference.

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