PE Weekly: PE Fundraising Shows Signs of Life

In a tough M&A environment, fundraising efforts can take a hit. This week, however, the emergence of two new funds offers an optimistic outlook for private equity firms ready to accelerate their dealmaking activity. And when it comes to M&A transactions, business services across marketing, digital transformation and digital commerce land in the spotlight. Read more on the latest in middle-market M&A activity below.

Platform Investments and Acquisitions

Court Square Backs Velosio. Velosio, a service provider supporting business clients’ digital transformation and Microsoft Dynamics cloud subscription needs, announced in a press release that it has received a strategic investment from middle-market private equity firm Court Square Capital Partners. The cloud services company, which also services midmarket clients, said Velosio’s support will expand its footprint in the industry.

Operator Equity Backs Incendium Strategies in New Partnership. Operator Equity, a private equity firm founded by entrepreneurs, has invested in B2B consultancy Incendium Strategies, a recent press release revealed. Their agreement also provides Incendium with new leadership expertise, enabling the consulting firm to expand its marketing offering with a focus on live events, which are key to strengthening B2B relationships in addition to developing AI and AR networking solutions, the company noted.

KKR Acquires Digital Commerce Business mdf in Take-Private Deal. Private equity firm KKR is taking mdf, a digital commerce company, private in an all-cash transaction, according to a recent announcement. The business provides e-procurement solutions to government agencies and suppliers across Canada and the U.S. The transaction, which was made via KKR’s middle-market Ascendant Strategy and is part of its Americas Private Equity platform—is valued at about $189 million.

Ampersand Capital Acquires Manufacturer Specac. Ampersand Capital Partners, a private equity firm focused on growth equity investments in life sciences and healthcare, announced its acquisition of Specac in a recent press release. Specac manufactures spectroscopy accessories and sample prep solutions for the life sciences market.

Add-Ons

Eagle Merchant Partners’ Eskola Roofing Announces Add-On. Eskola Roofing & Waterproofing, a commercial roofing contractor backed by Eagle Merchant Partners, announced its acquisition of J.R. Jones Roofing. A press release said the investment of the roofing and waterproofing contractor expands Eskola’s service reach, broadens its service offering and provides access to updated technology for the business.

Growth Catalyst’s Shift Paradigm Acquires Design Consultancy Principle Studios. Principle Studios, a design and technology consultancy firm, has been acquired by Growth Catalyst Partners portfolio company Shift Paradigm, a press release announced. Shift Paradigm is a digital transformation messaging firm; the investment will further its focus on helping clients future-proof their companies.

Exits

Transom Capital Exits Aspen Publishing. Middle-market private equity firm Transom Capital Group announced the successful sale of Aspen Publishing, which provides educational content and digital learning solutions to law schools. The company was acquired by UWorld, an online test preparation platform, and an “ideal parent company for Aspen,” according to Aspen CEO Nicole Pinard. Transom first acquired Aspen from Wolters Kluwer in late 2021.

Excelsior Energy Exits 38 Solar Projects to BlackRock. Excelsior Energy Capital, a renewable energy infrastructure investor, announced the sale of a portfolio of 38 solar energy and solar plus storage projects from its Fund I portfolio. BlackRock’s Evergreen Infrastructure Partners Fund acquired the assets. The transaction marks Excelsior’s first exit from its first fund, which launched seven years ago, an announcement noted.

GTCR Exits RevSpring. Private equity firm GTCR announced this week the sale of RevSpring, a patient and consumer engagement and payment solution provider for the healthcare sector. Healthcare-focused investment firm Frazier Healthcare Partners acquired the company, a press release said. While within GTCR’s portfolio, RevSpring fueled product innovation and expanded its patient engagement services, entering into two additional healthcare end-markets.

Fundraising

Gauge Capital Raises $1.4 Billion for Fourth Fund. Gauge Capital, a middle-market private equity firm, announced the close of its fourth fund with $1.4 billion in capital commitments. The Gauge Capital team is the largest investor in the fund, representing more than one-quarter of total committed capital, according to a press release.

Riverarch Equity Raises $1 Billion Amid Rebrand. Riverarch Equity partners, a middle-market private investment firm, announced $1 billion in capital commitments raised for its fourth fund, Riverarch Equity Partners IV. The fund will continue the firm’s investment strategy of investing in companies across the value-added distribution, business services and specialized manufacturing sectors in North America and Europe.

Wind Point Raises $2.3 Billion for Fund X. Wind Point partners announced the close of its latest fund, Wind Point Partners X, with $2.3 billion in capital commitments. The fundraising exceeded the private equity firm’s initial target of $1.7 billion, a press release noted. The fund will continue Wind Point’s investment strategy of partnering with middle-market businesses “with a clear path to value creation,” the announcement said.

Insights

Central Michigan University Students Win West Michigan’s ACG Cup Competition. Team CLC Capital, from Central Michigan University’s College of Business Administration, took home the top prize after winning the annual ACG Cup Competition in Michigan earlier this month. ACG Western Michigan’s ACG Cup finance competition offers business and finance students a chance to network and experience real-life business situations. According to an announcement, 29 teams, 124 students and 42 judges participated in the event; Team EBITDA Adjusters from Grand Valley State University’s Seidman College of Business took second place.

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.