Private equity moves from buying to selling; Investments in information technology fall in 2 quarters

S&P Global Market Intelligence offers our top picks of global private equity news and more published throughout the week.

Macroeconomic instability slowed global FDI outflows in the first half of the year, but this could create more attractive conditions for inflows in the coming months.

CEO of TPG Inc. John Winkelried made his prediction for an “increasingly favorable investment environment” when the firm reported second-quarter earnings on Aug. 9. Exits were well above TPG’s rate of entry in the previous year, but volatile markets took their toll, the CEO said. on valuations, the firm is likely to switch its focus from selling to buying.

“We expect to see more attractive investment opportunities in our core sectors and themes as sellers adjust to reset valuations and markets stabilize in the coming quarters,” Winkelried said.

With $39.4 billion in dry powder as of June 30, the largest amount of invested capital ever, TPG is ready to take advantage of these investment opportunities as they arise. In fact, dry powder remains close to an industry record.

Winkelried’s view of future investment opportunities echoed comments from co-president Apollo Global Management Inc. James Zelter, taken during his firm’s Aug. 4 earnings call.

“Our pipeline of investment opportunities is strong and we expect to raise significant capital from our main private equity funds in the coming months,” Zelter said.

Click here to read more about TPG’s second quarter earnings.

CHART OF THE WEEK: Despite 2Q dip, PE investment in IT remains historically high

⮞ Global FDI and venture capital investment in the information technology quarter declined for the second consecutive quarter in the second quarter.

⮞ Global investment totaled $78.71 billion in the second quarter, down 19.3% from $97.51 billion in the first quarter.

⮞ Despite the decline, private capital investment in information technology remained significantly higher than the level until 2021.

FUNDRAISING AND DEALING

* Apollo has closed its first fund designed to lend directly to large companies, the Apollo Origination Partnership Fund I, with total commitments of approximately $2.35 billion, Dow Jones Newswire reports. Additionally, Apollo agreed to sell its Qdoba Mexican restaurant chain to Butterfly Enterprises LLC.

* GLocal infrastructure platform Carlyle Group Inc. has agreed to invest up to $1 billion in cell tower platform Tillman Infrastructure LLC Tillman Global Holdings LLC. Greenberg Traurig LLP advised Carlyle. Sullivan & Cromwell and TAP Advisors served Tillman Global.

* Blackstone Inc. agreed to acquire from HealthTrust Inc. a controlling stake in the commercial provider CoreTrust, Bloomberg News reports citing sources.

* Nielsen Holdings PLC has reached a preliminary agreement with its largest shareholder, WindAcre Partnership LLC, to support a planned $10 billion buyout by a group of private equity firms, Dow Jones reported, citing The Wall Street Journal. WindAcre previously opposed the acquisition of the television ratings company by a consortium led by the private equity arm of Elliott Management Corp. and Brookfield Asset Management Inc.

IN ANOTHER PLACE OF INDUSTRY

* Sannova Analytical Inc., a provider of testing services to pharmaceutical and biotech firms, received a capital injection from SFW Capital Partners LP.

* Mubadala Capital will acquire short-haul transportation and logistics company Canada Cartage System Ltd.

* Inflexion Pvt. Equity Partners LLP sold its stake in Pharmaspectra LLC, a provider of scientific and medical information.

FOCUS ON: ENERGY

* OMERS Private Equity bought a minority stake in NovaSource Power Services for $100 million. The company provides solar installation operation and maintenance services to utility, commercial, industrial and residential customers.

* OEP Capital Advisors LP is selling the power generation division of BRUSH Group, a maker of electrical equipment, to Baker Hughes Co.

* Scout Clean Energy LLC, a portfolio company of Quinbrook Infrastructure Partners Ltd., and Elawan Energy have agreed to sell Evergy Inc. the 199 MW Persimmon Creek Wind Farm in Oklahoma for approximately $250 million.

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