PE Weekly: Healthcare and Construction Back in Business

More good news on the fundraising front emerged this week with an alternative asset manager securing more than $400 million for its middle-market private equity strategy. Plus, M&A activity continues strong for the healthcare and construction markets. Read more of the latest deals below.

Platform Investments and Acquisitions

Waud Capital Acquires Senior Helpers. Middle-market private equity firm Waud Capital Partners has acquired Senior Helpers, a senior home care and wellness provider. The firm is acquired the company from nonprofit health system Advocate Health, a press release noted. The transaction marks the seventh home care and post-acute investment for Waud Capital.

Allied Industrial Invests in Celebrity Coaches. Allied Industrial Partners, a private equity firm focused on the industrials market, announced a strategic investment in live events and entertainment transportation service provider Celebrity Coaches. With Allied Industrial, the company plans to expand its service offerings.

River Sea Network, Pearl Street Team for Roofing Platform. Two lower middle-market private equity firms are teaming up to launch Aligned Exteriors Group, a platform offering residential roofing and exterior services. River Sea Network and Pearl Street Capital Partners are collaborating on the initiative and will work together to drive growth for the platform through add-on acquisitions. River Sea specializes in residential and commercial services.

One Equity Backs Agricultural Tractor Manufacturer. One Equity Partners, a middle-market private equity firm, has made a minority investment in agricultural tractor attachment equipment maker CBM. The private equity firm will support CBM’s growth by expanding its product portfolio and broadening its geographic footprint.

One Equity Completes Take-Private Energy Measurement Tech Deal. One Equity Partners shows up again on this week’s roundup with its announcement that the private equity firm has completed its take-private carve-out of TechnipFCM. The fiscal measurement technology service provider, which targets the energy value chain, will be rebranded as Guidant. The company was acquired from its parent company Technip Energies.

Add-Ons

Orangewood’s SERVPRO Acquires Property Restoration Business. SERVPRO Global DRT, a property cleaning, restoration and reconstruction service provider, has acquired Live Oak Restoration. Live Oak services the emergency services market in south and west Charleston, expanding SERVPRO’s footprint in the Charleston market, a press release said. SERVPRO is a portfolio company of private equity firm Orangewood Partners.

Fundraising

Altera Secures $400 Million for Flagship PE Strategy. Altera, an alternative asset manager focused on the lower-middle market, announced this week that capital commitments for its flagship private equity strategy and thematic private investments have exceeded $400 million. The firm noted that it plans to commit more than $100 million to middle-market funds and direct investments this year.

Ara Partners Raising $500 Million for Infrastructure Fund. Ara Partners, a private equity firm focused on industrial decarbonization, is said to be in the midst of raising $500 million for its first infrastructure fund, according to Axios reports. An unnamed source told the publication that the firm plans to close the fund in the third quarter of this year and will invest in eight-to-10 companies.

Insights

2023 Midmarket M&A Valuations Fell to 9.6x EBITDA: Capstone. A new report from Capstone Partners, a middle-market investment bank, found that average middle-market M&A transaction valuations dropped to 9.6x EBITDA in 2023, compared to 9.9x in 2022. Capstone’s 2023 Middle Market M&A Valuations Index pointed to higher transaction costs, cash flow uncertainty and a “reserved” pool of PE buyers as key factors that added downward pressure on valuations.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.