PE Weekly: NFL Clears Way for Private Equity Investment
PE funds allowed to acquire up to a 10% stake in NFL teams
The NFL has cleared a path for private equity investment in team franchises, a decision made at a time when PE interest in professional sports continues to rise. In other dealmaking news, M&A imnvestors this week identified investment targets that offer industry-specific services and solutions. Explore the latest deals and insights below.
Platform Investments
Phoenix Merchant, Caydan Capital Back HCT Renewable Energy. HCT Renewable Energy, a staffing firm servicing the solar energy industry, announced it secured $13 million in growth financing. The investment was provided by middle-market investment firm Phoenix Merchant Partners and lower middle-market private equity firm Caydan Capital Partners. HCT will use the funding to accelerate its growth in the solar energy staffing market, a press release said.
THL Acquires Majority Stake in YA Group. THL Partners, a middle-market private equity firm, has acquired a majority stake in professional services firm YA Group, according to a recent press release. YA provides forensic consulting, engineering and risk mitigation solutions for the insurance sector as well as public sector customers. The investment will help YA grow through strategic acquisitions and organic growth initiatives.
Citation Capital Acquires Majority Stake in Pest Control Business. Private equity firm Citation Capital announced it has acquired a majority stake in residential pest control company Aptive Environmental. The company’s CEO and leadership team will retain an interest in the business. In a statement, Aptive’s CFO Mark Lawrence said the backing from Citation will advance its M&A strategy.
Falfurrias Management Invests in Cybersecurity Business MOXFIVE. Falfurrias Management Partners, a private equity firm focused on the middle market, has announced a growth investment in MOXFIVE, a cybersecurity company. Backing from Falfurrias will fuel the company’s growth trajectory as it continues to service business customers with cyber risk mitigation solutions.
RF Investment Acquires Rent-A-John. RF Investment Partners, which focuses on the lower-middle market, announced its investment in Rent-A-John, a portable sanitation rental solutions business. The investment marks RF’s first acquisition under its new portable sanitation platform. RF noted that it will continue to seek tuck-in acquisitions as it further expands the platform across the Southeast region.
One Equity Partners to Acquire EthosEnergy. EthosEnergy, a service provider focused on rotating equipment in the energy, industry and aerospace markets, will be acquired by middle-market private equity firm One Equity Partners, according to a recent announcement. EthosEnergy formed in 2014 as a joint venture between John Wood Group and Siemens Energy AG. The ompany provides aftermarket MRO services and other maintenance solutions.
Add-ons
Madison Capital’s Go Store It, Frontrange’s Snapbox Merge Self-Storage Operations. Go Store It Self Storage and Snapbox Self Storage announced their merger this week, creating one of the largest private self-storage companies in the U.S., according to a press release provided to Middle Market Growth. The combined entity will manage more than 10 million square feet of storage space across 23 states. In a statement, Go Store It CEO Ryan Hanks said the merger “represents a transformative step for both companies, providing the combined company with a more robust platform for growth and operational efficiency.” Go Store It is a portfolio company of Madison Capital Group Holdings, and Snapbox is a portfolio of FrontRange Capital.
CORE Industrial’s PrecisionX Acquires MSK Precision. PrecisionX Group, a precision metal manufacturing platform backed by CORE Industrial Partners, has announced its acquisition of MSK Precision Products. MAK provides precision machining and assembly services. PrecisionX launched in 2023 and has already made four previous acquisitions.
Longshore Capital’s Blue Wheel Acquires Day One Digital. Blue Wheel, a digital commerce and marketplace agency backed by private equity firm Longshore Capital Partners, has acquired Day One Digital, an Amazon Vendor Central agency. Day One provides sales support, supply chain accounting and category management. The investment broadens Blue Wheel’s customer base and service capabilities across the Amazon 1P landscape, a press release said.
Fundraising
CenterOak Partners Raises $1.1 Billion for Fund III. Private equity firm CenterOak Partners, based in Dallas, announced this week it raised $1.1 billion for its oversubscribed Fund III. In a statement, CenterOak co-managing partner Jason Sutherland said the firm’s “theme-driven investment approach and differentiated sourcing allows us to find attractive entry points into large and fragmented categories.” The firm is focused on the business services, industrial services and consumer services sectors.
Insights
NFL Clears Way for PE Investment. Owners of the National Football League voted this week to allow private equity investment, with several PE firms already lined up to acquire stakes in NFL teams. In an announcement made by the NFL, the league noted that PE firms will be allowed to acquire up to a 10% stake in an NFL team. Funds managed by Arctos Partners, Ares Management, Sixth Street and a consortium of several investors have been pre-vetted to make their first investments in NFL teams. The NFL noted that PE investment will not lead to any changes in how team franchises are run.
Plocamium Holdings Eyes Value Creation in Southeast Asia. A new report from investment and financial services firm Plocamium Holdings has identified Southeast Asia as a key market for value creation opportunity. A press release said the firm identified Vietnam, Thailand and the Philippines as high-growth markets in the region for strategic investors. “Private equity activity in Southeast Asia is not only flourishing but also evolving rapidly,” Plocamium’s research director Lily Raaka said in a statement.
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.
