PE Weekly: Amid Slew of Fundraising, Dealmakers Focus on Services Sectors

Middle-market investors are kicking off the year’s fourth quarter strong with a slew of transactions, largely focused on the consumer and business services spaces. Plus, additional news in middle-market dealmaking signals a bright future: IPOs could make a comeback, if one recent SEC filing is any indication, while a slew of fundraising announcements also hit the wires this week. Read the latest below.

Platform Investments

Turnspire Capital Acquires GHP Group. Turnspire Capital Partners has acquired GHP Group, a designer and supplier of consumer outdoor and indoor heating products, according to a press release. GHP offers patio heaters, fireplaces and other heating products under a variety of brands. Its customers include home centers, hardware stores and online retailers.

Bessemer Investors Invests in W Services Group. Bessemer Investors, an investment firm based in New York, has made a “significant investment” in W Services Group, a provider of vendor-managed facility maintenance services, a press release said. W Services customers include retail, automotive, grocery and other multi-site clients. Bessemer will continue to grow the business through organic initiatives and add-on acquisitions.

Waud Capital Partners Acquires Science Exchange. Waud Capital Partners, a middle-market private equity firm focused on the technology and healthcare sectors, has acquired Science Exchange, according to a press release. Science Exchange provides life sciences procurement and supplier management software solutions.

LLCP Acquires the Expert Institute. Levine Leichtman Capital Partners, a private equity firm based in Los Angeles, has acquired the Expert Institute from Spectrum Equity. The Expert Institute provides outsourced legal services to attorneys with technology-enabled solutions. The investment marks the seventh platform investment from LLCP’s Lower Middle Market Fund III.

Add-ons

Bregal Partners’ Juniper Landscaping Acquires Maintenance Professionals. Juniper Landscaping, a portfolio company of Bregal Partners, has announced its acquisition of Landscape Maintenance Professionals. The investment expands Juniper’s operations to 34 brand locations across five states, a press release said.

Renovus Capital’s EducationDynamics Announces Two Acquisitions. EducationDynamics, a marketing and enrollment management service provider for higher education institutions, has acquired RW Jones Agency and Rankin Climate, accounting to an announcement. RW Jones Agency provides strategic communications, institutional brand marketing and research solutions, while Rankin Climate provides campus climate research services. EducationDynamics is a portfolio company of Renovus Capital Partners.

QHP Capital’s Spectra Medical Devices Acquires XL-PT. Spectra Medical Devices, a portfolio company of QHP Capital that manufactures made-to-spec procedural needles, has acquired XL Precision Technologies, a manufacturer of precision micro-components and other components for the medical device industry. XL-PT is now a wholly-owned subsidiary of Spectra.

LongWater Forms Cypress Rail Solutions, Acquires Northern Plains. Alternative asset management firm LongWater, which focuses on the middle market, has announced the formation of Cypress Rail Solutions, a railcar services company. The announcement also noted Cypress made its first acquisition, Northern Plains Rail Services. The investment supports Cypress’ broader focus on building a railcar services platform through additional acquisitions.

Atar Capital’s Solero Acquires Kendrion’s Automotive Business. Solero Technologies, a supplier of controls to support automotive systems, has acquired the automotive business of Kendrion, a designer and manufacturer of actuators to support electrification. Solero acquired the automotive assets of Kendrion in the U.S. and Europe, valuing the assets at $67.1 million. Solero is a portfolio company of Atar Capital.

Unity Partners’ Prosperity Partners Acquires W&G. Private equity firm Unity Partners announced that its portfolio company Prosperity Partners, an accounting company, acquired Wiener and Garg (W&G), a tax preparation, planning, advisory and accounting firm. Following the acquisition, all W&G employees will become a part of Prosperity’s Employee Purpose Plan, an employee ownership program.

Exits

Renovus Capital Exits LeapPoint to Omnicom. Investment firm Renovus Capital Partners announced this week the sale of portfolio company LeapPoint, a digital advisory firm. Publicly listed global marketing company Omnicom has acquired the business. Renovus first invested in LeapPoint in 2021.

Partners Group’ KinderCare Files for IPO. KinderCare Learning Cos., a private provider of community-based early childhood education centers, has filed to go public and raise $648 million, according to Bloomberg reports. The IPO could value the business at $3.1 billion. KinderCare is currently a portfolio company of Partners Group, a global private equity firm.

Fundraising

OceanSound Raises $1.49 Billion for Fund II. Private equity firm OceanSound Partners announced the close of its Fund II with $1.49 billion in capital commitments. The fundraise surpassed its initial $1 billion target, as well as its original hard cap of $1.3 billion. OceanSound is focused on middle-market technology and tech-enabled services companies serving government and highly-regulated enterprise end markets.

Morgan Stanley Investment Manage Closes 1GT PE Fund at $750 Million. Morgan Stanley Investment Management has announced the close of tis 1GT fund with $750 million in capital commitments. The private equity fund will make growth investments in North America and Europe with a focus on avoiding or removing CO2 emissions from the atmosphere through 2050. According to reports, half of the fund’s team’s incentive compensation is tied to that goal.

Fidelity Closes First PE Fund at $250 Million. Fidelity Investments announced this week it has closed its first private equity vehicle, Fidelity Venture Capital Fund I, with $250 million in capital commitments. The fund marks the first time Fidelity will provide access for its clients to direct, minority investments in middle-to-late-stage private businesses, according to P&I reports.

Prospect Partners Raises $225 Million for Fund V. Lower middle-market private equity firm Prospect Partners announced the close of its Fund V with $225 million in capital commitments. The oversubscribed fund hit its hard cap after nine months. Prospect Partners will continue its investment strategy with the fund by investing in North American businesses at “inflection points” within the specialty services, niche manufacturing and value-add distribution sectors.

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