PE Weekly: Dealmakers Eye Industrials; Raymond James Launches Private Credit Business
M&A targets commercial HVAC, engineering and more, while private credit continues its growth
The infrastructure and industrials market takes center stage this week with recent investments spanning industrials services, engineering, commercial HVAC, semiconductors and more. Plus, Raymond James steps into private credit with a new partnership. Read more about the lastest in middle-market dealmaking below.
Platform Investments and Acquisitions
FalconPoint Makes First Investment. FalconPoint Partners, a new private equity firm focused on middle-market business services and industrials businesses, has announced its first acquisition. The firm invested in infrastructure solutions provider JENNMAR, according to a press release. JENNMAR provides specialized services to the civil infrastructure, solar, mining and construction sectors. FalconPoint has invested $250 million of equity in the company to support its growth, the announcement noted.
Avathon Capital Acquires Summit Professional Education. Avaton Capital, a lower middle-market private equity firm targeting the education and workforce sectors, has acquired Summit Professional Education, according to a press release. Summit provides consulting and professional education courses. For physical therapists, occupational therapists and speech language pathologists.
Add-Ons
Comvest’s GAI Acquires Creighton Manning Engineering. GAI Consultants, an engineering, planning and environmental consulting business, has acquired Creighton Manning Engineering, according to a recent press release. Creighton Manning will become a division of GAI. GAI is a portfolio company of Comvest Partners, a middle-market private equity firm.
Trinity Hunt’s NexCore Acquires HVAC Services Business. NexCore, the commercial HVAC platform of private equity firm Trinity Hunt Partners, has acquired Sylvester & Cockrum, a provider of commercial HVAC system services across the Southeast U.S. The investment follows NexCore’s previous acquisition of Alliance Group to expand its footprint in the commercial HVAC services market.
Bain’s Dessert Holdings Acquires Kenny’s Great Pies. Dessert Holdings, a dessert platform backed by private alternative investment firm Bain Capital, has announced its acquisition of pie manufacturer Kenny’s Great Pies. Bain first acquired Dessert Holdings in June of 2021. Its portfolio includes the Steven Charles, The Original Cakerie, Lawler’s, Atlanta Cheesecake Company and Dianne’s Fine Desserts brands.
Strategics
JLL Acquires SKAE Power Solutions. Commercial real estate and investment management company JLL announced this week its acquisition of data center management services provider SKAE Power Solutions. The investment will enhance JLL’s existing data center capabilities in response to growing demand within the real estate sector, according to a press release. JLL is publicly listed on the New York Stock Exchange.
Fundraising
Qatar Investment Authority Commits to Ardian Semiconductor Investment. Qatar’s sovereign wealth fund Qatar Investment Authority (QIA) has reportedly committed to an anchor investment in Ardian Semiconductor, the semiconductor-focused thematic fund of private investment firm Ardian. A press release said the investment will support Ardian Semiconductor’s focus on semiconductor investments in France and Europe. Financial details of the investment commitment were not disclosed.
RCP Raises $285 Million for Fund XVIII. RCP Advisors, a private equity investment firm, has closed RCP Fund XVIII with $285 million in capital commitments. RCP said the fund will continue the firm’s existing investment thesis, targeting investments with buyout fund managers focused on less than $1 billion in committed capital. Those managers will target control investments in small-to-mid-sized businesses.
Insights
PitchBook Recaps the ‘Cautious Optimism’ of DealMAX Attendees. PitchBook published its DealMAX event recap this week, highlighting the “cautious optimism” of the dealmakers in attendance. The report highlighted key themes from eventgoers and panelists alike, including the need for investors to solve the current “exit dilemma” as they face pressure from LPs to return capital, as well as the rise of artificial intelligence within internal operations, sourcing, dealmaking and portfolio management.
Raymond James Launches Private Credit Business. Raymond James is launching a new private credit business within its Investment Banking division in partnership with Eldridge Industries, according to a recent announcement. The business will provide private credit solutions to sponsor-backed portfolio companies across the consumer, diversified industrials, healthcare and technology & services sectors. The new joint venture will be called Raymond James Private Credit.
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.
