Kevin Dowd June 29, 2016
From massive fundraising to a series of multibillion-dollar buyouts, from an IPO drought to a spree in insurance add-ons, the world of private equity hasn’t been wanting for storylines during the first six months of 2016. With 1H set to conclude Thursday, here’s a recap of the headline-making deals, largest funds and most active investors to date:
A group led by German investor JAB Holding acquired the single-serving coffee company in a massive take-private buyout; the deal was announced last December and closed on March 3. Shortly thereafter, in May, JAB agreed to buy another breakfast-related business, reaching a deal to acquire Krispy Kreme Doughnuts (NYSE: KKD) for about $1.35 billion.
One of the hottest potatoes on the PE marketplace is set to change hands yet again, with Hellman & Friedman leading an agreement to purchase the provider of healthcare cost-management services in early May. Previous owners in the past 10 years include Partners Group, BC Partners, Silver Lake, The Carlyle Group and Welsh, Carson, Anderson & Stowe.
CVC Capital Partners and Canada Pension Plan Investment Board purchased the retailer of pet food and supplies from a group of investors led by TPG and Leonard Green & Partners. Like the Keurig Green Mountain acquisition, this was a deal announced in 4Q 2015 but closed during the first months of 2016.
PE-backed IPOs were painfully sparse throughout 1H, but the foodservice business (NYSE: USFD) provided some late-May fireworks by topping the $1 billion dollar mark with its offering. On its first day of trading, the former portfolio company of KKR and Clayton, Dubilier & Rice saw its stock climb 8%, though the price has since declined slightly.
Advent International takes the top spot in this category by a significant margin, as no other fund closed during 1H came closer than TPG's $10.5 billion Fund VII, according to the PitchBook Platform. Advent's predecessor fund had closed on $10.8 billion in 2012.
The U.K.-based investor snuck its latest investment vehicle just under the 1H wire, unveiling news of a €7 billion raise on Wednesday. Cinven reached its hard cap on the fund after just four months.
There’s plenty of competition at the top, with KKR, Audax Group and The Carlyle Group all within shouting distance of the No. 1 spot. But ABRY takes the cake, with its most notable deal of the year the purchase of Dermatology Associates, reportedly for more than $300 million. ABRY also leads all investors in 1H add-ons with 34, again narrowly edging Audax.
Carlyle’s headline deal of 2016 was the sale of Landmark Aviation to BBA Aviation for $2.1 billion in February. LDC, Apollo Global Management and Advent International have all completed 10 PE-backed exits this year, according to the PitchBook Platform.
The Apax Partners-backed insurance brokerage averaged nearly two deals per month during 1H, tacking on a wide array of businesses to expand its reach. The company was at its busiest from February 1 to March 15, when it consummated a total of seven add-ons—more than one per week.