PE Weekly: Private Equity Fundraising Picks Up

Though dealmaking activity has picked up in the weeks leading up to the presidential election, this week, M&A activity remained relatively muted. Recent transactions spanned biopharmaceuticals, packing, enterprise software and even arcade games. Plus, a slew of funding announcements signals more dealmaking ahead.

Platform Investments

ArchStar Invests in Packaging Strategies Incorporated. ArchStar Capital, a lower middle-market private equity firm, announced this week its investment in Packaging Strategies Incorporated, a hard plastic packaging containers provider. The company services a wide array of industries, including aircraft and drones, mobile virtual reality training systems, maritime equipment and more.

Edison Partners Leads Fingercheck Funding Round. Edison Partners, a growth equity investment firm, announced it led a $115 million growth investment in Fingercheck, a workforce management platform. According to an announcement provided to Middle Market Growth, StepStone Group and Columbus Capital also participated in the funding, which will be used to further develop Fingercheck’s product, expand its headcount and fuel its go-to-market strategy.

Good Springs Invests in Tectonic Engineering. Private investment firm Food Springs Capital announced its investment in Tectonic Engineering Consultants, Geologists & Land Surveyors. The engineering company focuses on the transportation, telecommunications, energy and water infrastructure markets providing engineering and design, environmental and regulatory permitting, and other services.

VSS Capital Invests in Lane Four. VSS Capital Partners, a private investment firm focused on the healthcare, education and business services sectors, announced its investment in Lane Four Consulting. The company provides go-to-market technology strategy support for businesses using Salesforce. The growth capital investment will support continued development of the Lane Four platform and pursue strategic acquisitions. Lane Four’s founder and CEO Andrew Sinclair maintains a majority interest in the company, a press release noted.

Add-ons

Surge Private Equity’s Amuze Acquires Ferris Music Service. Amuze, a provider of arcade and amusement solutions, has announced its acquisition of Ferris Music Service, including its ATM division Mainely ATMs. Ferris offers amusement games and ATMs in Maine, expanding Amuze’s presence in the Northeast. Amuze is backed by Surge Private Equity.

Godspeed Capital’s SAS Acquires Concordia Technologies. Special Aerospace Services (SAS), the space and defense engineering, hardware and communications platform backed by Godspeed Capital Management, announced its acquisition of Concordia Technologies this week. Concordia specializes in hypersonic weapons defense, sensor design, simulation technologies and more.

Strategics

Quris-AI Acquires Numa Biosciences, Renamed as Nortis. Quris-AI, a bio-AI company innovating in the pharmaceutical drug development space, announced its acquisition of Nortis, previously named Numa Biosciences. Quris-AI plans to integrate Nortis’s Kidney-on-Chip technology within its Bio-AI platform to enhance its ability to predict human reaction to drugs in the drug development process.

Exits

Pioneer Power Exits Business Unit to Mill Point Capital. Mill Point Capital, a middle-market private equity firm, is acquiring the Pioneer Custom Electrical Products business unit of Pioneer Power Solutions. The carve-out deal sees Mill Point investing in the business for $50 million in cash and equity. Pioneer Custom Electrical Products I the company’s electrical infrastructure unit.

Fundraising

Berkshire Partners Raises $7.8 Billion for Fund XI. Berkshire Partners, a middle-market private equity firm, has raised $7.8 billion for its Fund XI. The fundraise makes the fund the firm’s largest since its launch in 1986. Berkshire focuses on four key sectors: business services and industrials, consumer, healthcare, and technology and communications.

Nautic Partners Raises $4.5 Billion for Fund XI. Nautic Partners, a middle-market private equity firm focused on the healthcare, industrials and services spaces, has closed its eleventh fund with $4.5 billion in capital commitments. Fund XI was oversubscribed, surpassing its initial target of $3.75 billion, marking the firm’s largest fund to date, according to an announcement.

H.I.G. Closes $2 Billion Fund. H.I.G. Capital, an alternative asset management firm, has closed its Fund VII with $2 billion in capital commitments. The oversubscribed fund will be used to continue the firm’s investment strategy of acquiring control stakes in lower middle-market companies in the U.S., a press release said.

Insignia Capital Raises $358 Million for Inaugural PE Fund. Insignia Capital Partners has announced the close of its inaugural private equity fund, securing $358 million in capital commitments. The firm surpassed its initial fundraising target. Insignia will focus on the lower-middle market and invest in North American businesses in the consumer, healthcare and business services spaces.

Insights

Arctos Partners in Talks to Acquires Buffalo Bills Stake. Just weeks after the NFL voted to allow minority acquisitions in league teams, sources have told Bloomberg that investment firm Arctos Partners is in talks to invest in the Buffalo Bills. The firm would acquire the stake from the team’s controlling owner Terry Pegula. PE investors can acquire up to a 10% stake in NFL teams.

TSA to Allow Mobile IDs at Security After Real ID Rule Takes Effect. The Transportation Security Administration (TSA) has issued a final ruling allowing for mobile driver’s licenses to verify travelers’ identities at security checkpoints at airports when Real ID requirements take effect on May 7, 2025, according to recent reports. The TSA’s decision lets states apply for a waiver of certain Real ID requirements for mobile driver’s licenses, effective Nov. 25 of this year, in an effort to expand acceptance of mobile driver’s licenses amid innovation of the technology, the TSA noted.

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.