S&P Global Market Intelligence has our top picks of global private equity news and other articles published throughout the week.
Many managers have been forced to master the art of private equity operations in a virtual world throughout 2020, but Vietnam-based private equity firm Mekong Capital has seen a return to normal after a six-week national lockdown. After six weeks, the government switched to a targeted restriction approach, while maintaining mask and social distancing requirements.
As a result, Vietnam has one of the lowest infection rates in the world. Chris Freund, founding partner of Mekong, told S&P Global Market Intelligence that he is calling times of pandemic business as usual, working on-site with portfolio companies and meeting people in person, an enviable position for many in the world. the asset class.
Although Vietnam is currently experiencing its largest outbreak of COVID-19, Freund said the Mekong team is still working from its office in Ho Chi Minh City. He added that “Hanoi is a different story, under a sort of virtual lockdown. Everything is location specific.”
Freund is optimistic about the domestic business environment, adding that the company has enough dry powder, which some sponsors are eager to see deployed. The Mekong River has made some investments this year, and the intention is to close more deals in 2021, he said.
“If you invest in a business that is not increasing its income, then you have really messed up your pre-investment. [due diligence], because there are so many businesses growing here, they’re not hard to find. “
Learn more about how Mekong Capital performed during the pandemic in the first in a series of articles on how private equity firms in emerging markets fared during the COVID-19 outbreak.
GRAPH OF THE WEEK: Push PE M&A expected in pharma
➤ In terms of disclosed deals, private equity and venture capital firms deployed around $ 4.9 billion globally in the pharmaceutical sector in the year through May 31, according to data from S&P Global Market Intelligence.
➤ The value of private equity and venture capital transactions in the pharmaceutical industry grew at a CAGR of 11.7% from 2010 to 2020, said Cameron Joyce, vice president of Preqin’s Research Insights.
➤ Private equity and venture capital investments in pharmaceuticals are expected to accelerate as the industry “embarks on fundamental change” with increasingly substantial digital and analytical tools as chains of supplies are disrupted, Joyce said.
FUNDRAISING AND OFFERS
* Funds managed by The Blackstone Group Inc., The Carlyle Group Inc. and Hellman & Friedman LLC will invest primarily in medical supplies company Medline Industries Inc., along with Singapore sovereign fund GIC Pte. Ltd.
* CVC Capital Partners Ltd. is in talks to buy a 15% stake in a new entity that would oversee the media and data rights of the Association of Tennis Professionals and the Women’s Tennis Association for $ 600 million, according to London Financial Time, citing people familiar with the proposal.
The buyout company is also set to close a deal to buy UK holiday park operator Away Resorts Ltd. to Freshstream Investment Partners LLP for £ 250million, Sky News reported.
* Funds managed by affiliates of Apollo Global Management Inc. acquired a controlling interest in Total Operations and Production Services LLC, which provides contract gas compression services for the Permian Basin, from Black Bay Energy Capital LLC.
ELSEWHERE IN THE INDUSTRY
* Primavera Capital Group purchases the infant formula and infant nutrition business of Reckitt Benckiser Group PLC in China for an implied enterprise value of $ 2.2 billion.
* A group of investors comprising funds managed by Mercury Capital Pty. Ltd. will sell Australian mobile messaging solutions provider Message4u Pty. Ltd., doing business as MessageMedia, with Swedish cloud communications company Sinch AB (publ) for an enterprise value of US $ 1.3 billion. .
* Onex Corp., in conjunction with the management of Monroe Operations LLC, or Newport Healthcare, has agreed to purchase the operator of mental health facilities.
* Shamrock Capital Advisors LLC exceeded the $ 1 billion cap for its Shamrock Capital Growth Fund V LP at final close.
FOCUS ON: AEROSPACE AND DEFENSE
* KKR & Co. Inc. purchases Atlantic Aviation Corp. at Macquarie Infrastructure Corp. for nearly $ 4.48 billion in cash and assumed debt and reorganization obligations in a transaction expected to close in the fourth quarter.
* Private jet operator Vista Global Holding Ltd., which is backed by Rhone Capital LLC, is exploring a possible merger with a special purpose acquisition company at a valuation of more than $ 10 billion including debt, has Bloomberg News reported, citing people familiar with the matter.
* Angeles Equity Partners LLC added Primus Metals Inc., or Primus Aerospace, making complex precision components for the aeronautics, defense and space markets, to his wallet.