They said it
“Alaska, you are beautiful. Thank you for the privilege of being a steward of your permanent capital. Farewell”
The rise in GP-led secondaries transactions has been dramatic, and there are at least two good reasons that will continue: abundant secondaries dry powder and investment horizons being stretched out by the current crisis. Kinderhook Industries just inked such a deal (backed by AlpInvest), while several other firms have processes ongoing.
However, we have learned of at least two proposed GP-led processes that have recently failed to gain approval from LPACs. We are still chasing up on the specifics, but in general there has been disquiet around the GP-friendly terms being proposed in some cases. Know anything more? Feel free to leave an anonymous tip or email firstname.lastname@example.org.
TPG to LPs: Turn the screw on diversity
In a discussion on C-suite and board diversity, TPG co-CEO and partner Jon Winkelried told virtual attendees at the Bloomberg Equality Summit on Wednesday that he’s had more calls with portfolio company CEOs regarding how to make progress on issues of diversity, equity and inclusion than he’s had with the firm’s LPs. “In the Q&A-type responses that we get from LPs when they’re looking at fund product… there’s been a steady increase in the number of inquiries on this topic, but that’s not enough,” he said, adding that he has seen improvement on LP engagement in the last year. TPG has committed to bringing at least one woman on to the boards of all portfolio companies it controls or has “great influence on”.
Munich-based EOS Capital (website), set up by former EQT executives Peter Winkler and Philipp Wegener, has held a final close on its debut fund, exceeding its €125 million target. The firm’s oversubscribed fund gathered €175 million from LPs including corporate pensions and family offices in Europe and North America, per a statement seen by Side Letter. MVision advised. EOS started investing in 2015 on a deal-by-deal basis and has thus far made five platform acquisitions.
Sunrise Capital, a unit of CLSA Capital Partners that invests in the Japanese mid-market, has just raised $450 million for its fourth fund, according to a release. Monument Group advised. More news on that to follow…
They did the math
This won’t be pretty
So far in this crisis deal volumes have slowed, and those that have happened have been healthy, resilient businesses. This may not last: distress and turnaround are the predominant drivers for PE firms looking at European deals, according to a report from law firm CMS. Nearly three-quarters of PE respondents said this is the most important motivation, followed by cheaper valuations and the acquisition of new technology platforms.
Yett to lead Ham Lane ESG
Hamilton Lane has named Paul Yett, a 20-year firm veteran, to the newly created role of director of ESG and sustainability. Per a statement, Yett will focus on expanding and formally spearheading the firm’s ESG integration strategy across its business lines. Hamilton Lane says it’s been formally collecting and evaluating ESG data at the fund and portfolio company level for more than a decade. In July the firm closed its debut impact fund, which is aligned with the UN Sustainable Development Goals, on over $95 million.
Goodwin takes five
Law firm Goodwin has poached five private equity partners from rival Sidley Austin to join its London team (press release).
Institution: Massachusetts Pension Reserves Investment Trust
Headquarters: Boston, US
AUM: $77.3 billion
Allocation to Alternatives: 23.7%
Highlights from Mass PRIM’s September 2020 board meeting:
- Hamilton Lane will also provide legal services for Mass PRIM and was the only firm to submit a bid for those services, according to meeting notes.
- Hamilton Lane’s fees, $1.5 million a year, were in line with its current arrangement with Mass PRIM, meeting documents show.
- Mass PRIM committed $200 million to Technology Crossover Ventures XI, targeting $3.25 billion, according to the meeting agenda. The fund focuses on investing in high-growth and technology companies in North America and Europe.
- Private equity makes up 11.1 percent of Mass PRIM’s $77.3 billion portfolio, according to meeting notes.
- Mass PRIM plans to focus on private equity in 2021, hosting an investor conference, launching direct investment initiatives and strengthening private equity LP agreements.
For more information on Massachusetts Pension Reserves Investment Trust, as well as more than 5,900 other institutions, check out the PEI database.