Two private equity-backed blank-check companies filed for an IPO this week, the latest in a streak raised by the asset class.
Technology-focused Vector Capital’s Vector Acquisition Corp. filed for an IPO of as much as $300 million, with upstream, midstream and oilfield services-focused Carnelian Energy Capital’s Peridot Acquisition Corp. also filing for an IPO of up to $300 million.
CVC Capital Partners Ltd., Leonard Green & Partners LP and Bain Capital Pvt. Equity LP will invest an additional $200 million into Advantage Solutions Inc. and will roll over their existing interest in the sales and marketing services provider as part of the company’s merger with blank-check company Conyers Park II Acquisition Corp.
A number of private equity-backed special purpose acquisition companies, or SPACs, have filed in 2020. TPG Capital LP filed two in September, while two Neuberger Berman Group LLC and CC Capital-backed vehicles also filed in March and July.
Private equity firms’ interest in these vehicles has ramped up in recent years. They allow firms to complete larger deals that their funds may be unable to complete and offer a longer investment horizon.
Thomas H. Lee Partners LP co-President Scott Sperling told S&P Global Market Intelligence in 2019 that its SPAC Federal Street Acquisition Corp. — now trading as Agiliti Inc. after its merger with medical equipment management company Universal Hospital Services Inc. — gave the private equity firm “another tool, if you will, for finding the right home for the right company.”
Top news
* The Blackstone Group Inc.’s infrastructure unit and Global Infrastructure Partners Inc. failed to secure a deal to acquire railroad operator Kansas City Southern for roughly $20 billion, The Wall Street Journal reported, citing people familiar with the matter. The $208-per-share takeover bid was deemed to undervalue the operator.
* Apollo Global Management Inc. and Lone Star Americas Acquisitions Inc. are getting ready to submit a £6.5 billion bid to buy British supermarket Asda Stores Ltd., The Telegraph reported, citing sources.
* Warburg Pincus LLC and other Avaloq group AG owners have invited Apax Partners SAS and Nordic Capital, among other suitors, to join the second bidding round for a stake in the Swiss banking software provider in a deal that could value it at as much as CHF2 billion, Bloomberg reported, citing people with knowledge of the matter.
COVID-19 slow down
73% of private equity and venture capital managers expect investment activity to drop in the coming months following the coronavirus outbreak, but more than half of the 142 respondents to a global S&P Global Market Intelligence survey will focus on making new, selective investments this year. Further findings can be found here.
Deals
* Affiliates of private equity firm 3i Group PLC and financial groups Macquarie Group Ltd. and AustralianSuper Pty Ltd are in advanced talks to purchase GTT Communications Inc.’s European fiber assets in a deal valued at over $2 billion, sources close to the matter told Bloomberg News.
* Three private equity-led groups have submitted their final offers for a stake in a new holding vehicle that will control the Italian soccer league Serie A’s broadcasting rights business for the next 10 seasons, sources familiar with the matter told Reuters.
* China Resources Capital Management Ltd. is exploring the acquisition of a controlling interest in blood plasma-driven treatments producer Boya Bio-pharmaceutical Group Co. Ltd., Bloomberg reported, citing people familiar with the matter.
Fundraising
* GI Partners LLC raised $1.8 billion for the GI Data Infrastructure Fund LP.
* Stellex Capital Management LP pulled in about $1.78 billion for its second middle-market buyout fund.
* Gaw Capital Partners collected US$1.3 billion for its Chinese internet data center platform.
