Competition prolongs EP fundraising cycles; venture capital investment is slowing down

S&P Global Market Intelligence offers our top picks of global private equity news and more released throughout the week.

There’s only one word to describe the increasingly competitive arena of private equity fundraising: crowded.

Top executives from The Carlyle Group Inc., Blackstone Inc. and TPG Inc. cited the crowded fundraising environment during their earnings calls as explaining why some private equity funds actively seeking capital will inevitably take more time to achieve their goals. According to Preqin, the 6,282 private equity funds in the market in January represented a 49% increase from the total for the same month a year ago.

Blackstone, Carlyle and TPG kept their fundraising goals high. All three are raising private equity funds that rank among the top 15 currently in the market, according to Preqin. Blackstone Capital Partners IX, which is targeting $30 billion, tops the list.

Big business executives remained generally optimistic about their own fundraising prospects. As Michael Arougheti, CEO of Ares Management Corp., explained during his company’s first quarter earnings call, private equity investors are increasingly focused on bolstering their commitments with familiar managers rather than starting new relationships, “a global secular trend” that benefits bigger players. .

Learn more about the prospects for private equity fundraising.

CHART OF THE WEEK: A slowdown in venture capital investment

⮞ Global venture capital investment activity slowed in April, with the overall value of all funding rounds down 15.8% from March and 37% from April 2021.

⮞ Total funding rounds also fell 15.9% year-over-year to 1,530 in April from 1,820 in the same month a year ago.

⮞ The biggest deal of the month was a $2 billion mature funding round for Epic Games Inc., giving video game developer Fortnite a post-money equity valuation of $31.5 billion.

FUNDRAISING AND OFFERS

* Private equity firms Clayton Dubilier & Rice LLC and TPG Global LLC will take animal health company Covetrus Inc. private in a deal worth about $4 billion. Under the agreement, the private equity firms will pay $21 per Covetrus share in cash.

* KKR & Co. Inc. closed KKR Asia Credit Opportunities Fund SCSP with $1.1 billion in commitments. The fund will target private credit investments in the Asian market.

* Blackstone Credit acquired a 49% stake in an entity that owns an LNG export facility near Savannah, Georgia. The Blackstone Inc. unit bought the stake from EIG Global Energy Partners. Separately, a Blackstone fund has acquired the rights to Justin Timberlake’s song catalog in a deal reportedly valued at just over $100 million, according to Dow Jones Newswires.

* A subsidiary of Thoma Bravo LP will make a cash offer to acquire Mercell Holding ASA, a Nordic e-sourcing service provider, at NOK 6.30 per share.

ELSEWHERE IN THE INDUSTRY

* Energy Capital Partners LLC will purchase the development business of Borrego Solar Systems Inc., including its project portfolio of over 8.4 GW of solar power and 6.4 GW/25 GWh of energy storage.

* Quad-C Management Inc. closed its latest fund, Quad-C Partners X LP, with commitments totaling approximately $1.7 billion.

* Tyree & D’Angelo Partners Management LP pulled $350 million for Tyree & D’angelo Partners Fund III LP.

* Kinnevik AB has sold a 7.2% stake in Swedish telecommunications company Tele2 AB (publ) to institutional investors through a placement of 50 million class B shares.

FOCUS ON: FOOD

* Brentwood Associates Inc., along with Portfolio Advisors LLC and Pine Mountain Ventures LLC., have acquired a majority stake in turnkey sushi solutions franchisor Hissho Sushi Inc.

* The Fonds de solidarité FTQ and the Caisse de depot et placement du Québec are in talks with Bonduelle SCA to buy 65% ​​of the canned food business Bonduelle Americas Long Life.

* Center Partners Management LLC acquired the quick-service seafood restaurant brand Captain D’s LLC and its subsidiaries as part of an agreement with seller Sentinel Capital Partners LLC.