On March 4th, private equity firm KKR & Co. (NYSE: KRR) announced an agreement with NextEra Energy Partners, LP (NYSE: NEP) to buy an equity stake in a newly formed partnership between the companies that owns ten United States wind and solar power farms. KKR will provide $900 million for NEP to buy the portfolio of plants for about $1.02 billion.
GOTHAM THROWS MEDMEN A LINE (OF CREDIT)
Despite many cannabis stocks trading in the red Friday, MedMen was able to eke out a 6% gain due to cannabis-focused private equity firm Gotham Green Partners extending the marijuana retailer a line of credit valued at $250 million. The investment is composed of convertible senior secured notes divided into three tranches, with the 1st worth $100 million and 2nd and 3rd worth $75 million. Once the deal is closed, the $100 million will become available to MedMen, while the remaining two installments will be paid out every 6 months.
BAIN AND CARLYLE EYEING POTENTIAL JOINT BUYOUT OF OSRAM
ROKU’S GROWTH: CREATING HUGE BUYOUT OPPORTUNITIES FOR TMT
The rapid rise of TV streaming platform company Roku has been difficult to ignore in the last year. Since going public, Roku has demonstrated market expansion and execution excellence, while lowering competitive risk and capital intensity through its strategic positioning as an “over-the-top” (OTT) takeover target and disruptive business model. With its continued growth, it is likely that larger companies such as Amazon or Google may be circling for a potential buyout.
EXPERTISE IS KEY WHEN IT COMES TO ENTERPRISE SOFTWARE
Software investments are currently surging in private markets. Technology pervades many PE deals because PE firms are in pursuit of deals that will drive sustainable value. Developments increasingly appealing to PE investors include artificial intelligence, data management, healthcare IT, industrial automation, and Software-as-a-Service.
THE FALL – IN PRICE – OF RENEWABLE ENERGY
Initially private equity investors avoided renewable energy projects because they believed the industry was overvalued. Recently, that has changed. Private equity firms are now beginning to better understand the renewables sector and are attracted to renewables’ seemingly large immunity to economic cycles.
KKR ACQUIRES GEOSTABILIZATION INTERNATIONAL
On November 19th, private equity mega fund KKR & Co. (NYSE:KKR) announced an agreement to acquire GeoStabilization International (GSI) from Canadian private equity firm CAI Capital Partners. GSI is an infrastructure services company that specializes in geohazard mitigation. Their services include landslide repair, bluff stabilization, and rockfall mitigation.
INVESTING IN MARIJUANA STARTUPS WITHOUT TOUCHING THE CANNABIS
In 2017, sales of medical and recreational cannabis in the United States were nearly nine times higher than Oreo cookies and almost on par with Americans’ collective spending on Netflix subscriptions. Annual cannabis retail sales continue to grow year-over-year as new markets emerge and more states legalize medical and recreational marijuana.
The Rise of Private Equity Advisory Firms
While the growth of the private equity industry is phenomenal, the introduction of differentiated private equity advisory firms has slowly been developing. One such example of this type of firm is Franklin Park, located in West Philadelphia. Franklin Park has been around for over 15 years, currently has over $13.3 billion under management, and has global representation in both Dublin and Hong Kong.
THE FALL OF PRIVATE EQUITY GIANT ABRAAJ
The Abraaj Group was once the leading private equity firm in the Middle East with AUM of $13.6 billion dollars. At the start of 2018, the firm misappropriated funds and lost investors’ trust, leading to its provisional liquidation that May. As a result, Abraaj’s fall has instigated fears in investing in the Middle East.