Greetings Pro readers! As we head into the first full week of March the snow here in Boston has largely melted and the early signs of mud season are beginning to appear. In the private-equity world, it feels like the exit freeze of last year may be showing a few signs of thaw as well, if the pace of press releases announcing exits is any indication. Whether it continues remains to be seen, however. 

In this morning’s newsletter, our own Luis Garcia has a story about a new deal from Leste Group, a firm that looks to bridge investment opportunities and capital between Latin America and the U.S. The firm is investing in a Brazilian cosmetics distributor with an eye toward helping it expand here in the States. Meanwhile, our Wall Street Journal colleague Elena Vardon reports that music rights investor Hipgnosis Songs Fund, whose investment adviser is backed by Blackstone, saw its shares decline following an independent report that estimated the value of the company’s assets is more than a quarter lower than previous calculations.

Read on for more details…

Leste Group, a private-equity firm that operates in Brazil and the U.S., invested in Brazilian cosmetics distributor Prestige Cosméticos, the firm’s first deal out of a new strategy designed to help Latin American businesses expand in the U.S, Luis Garcia reports for WSJ Pro. Rio de Janeiro-based Prestige supplies cosmetics sellers with perfumes and fragrances as well as skin and hair products from more than 30 brands. In Brazil, the company distributes luxury brands that include Clinique, Dolce & Gabbana, Salvatore Ferragamo, Bulgari, Tom Ford, Acqua di Parma and Bond No. 9, according to Leste. Prestige generated about $70 million in revenue last year, said Emmanuel Hermann, Leste’s chief executive. He declined to disclose how much Leste invested in the business.

Music-rights investor Hipgnosis Songs Fund, whose investment adviser is backed by Blackstone and whose catalog includes Neil Young, Blondie and Shakira, said an independent review of its assets showed they are worth as much as 32% less than their assumed fair value as of Sept. 30, Elena Vardon reports for the Journal. The analysis by Shot Tower Capital produced a valuation of $1.74 billion to $2.0 billion compared with the $2.55 billion September value. Hipgnosis Songs had planned a $440 million sale of 29 catalogs of works to Blackstone-managed Hipgnosis Songs Capital, which led some Hipgnosis Songs investors to question the price and the process, and shareholders ultimately rejected the deal in October. The fund had pitched the sale as a way to reduce debt and buy back shares. Hipgnosis shares fell 8.2% in London Monday.

“Select private equity investors” have held discussions with medical products maker Baxter International regarding a potential sale of its renal-care business, Dean Seal reports for Dow Jones Newswires. Deerfield, Ill.-based Baxter said over a year ago it would spin off its kidney- and acute-therapies business into an independent company. The operations generated revenue of about $5 billion in 2021. An asset sale would come in lieu of a spinoff, though Baxter said Monday no final decision has been made and it is still making progress on the spinoff plan. The company didn’t name the potential buyers.

Exor, the publicly traded Dutch investment arm of Italy’s Agnelli family has acquired almost 67.3 million shares, or a roughly 10% stake in U.K. information-services company Clarivate, which has agreed to put Suzanne Heywood, Exor’s chief operating officer, on its board of directors. The Agnelli family’s Giovanni Agnelli founded Italian automaker Fiat, now part of Stellantis. Exor’s agreement with Clarivate lets it acquire as much as 17.5% of the company’s shares, according to a news release. Exor’s current stake was worth about $480.5 million at Friday’s closing price.

Investment firm MNC Capital Partners had its $2.9 billion buyout offer rejected for Vista Outdoor, which said the proposal undervalues the maker of ammunition and outdoors equipment, Will Feuer reports for the Journal. Vista’s directors said they continue to recommend to shareholders a deal to sell its ammunition business to Czech defense company Czechoslovak Group for $1.91 billion, and a plan to separate the outdoor-products business into a standalone company.

Consumer-focused buyout firm L Catterton in Greenwich, Conn. said it has agreed to acquire a significant interest in river cruise operator AmaWaterways from an investor group led by Certares Management. The Calabasas, Calif.-based company offers tours in Europe, Africa and Asia. Certares backed the business in 2017. L Catteron said it is investing alongside the company’s founders.

Ares Management said it has acquired the alternative lending and specialty finance operations of BciCapital, the equipment finance business of City National Bank of Florida, to form Ansley Park Capital in White Plains, N.Y. as a new nonbank lender. Ares said it has committed about $400 million to support originations by the new shop through its $33.9 billion alternative credit strategy. Ares said it expects Ansley to originate more than $3 billion in loans.

European buyout firm EQT AB is backing medical device company Phagenesis, leading a $42 million growth investment in the U.K. business. The deal by EQT Life Sciences was co-led by Sectoral and also included participation by British Patient Capital, Northern Gritstone and Aphelion, according to a news release. The company supplies a neurostimulation system to help patients safely swallow food and drink, according to the release.

Lee Equity Partners is making a majority investment in retirement plan recordkeeping software provider PCS Retirement in a deal that allows previous private-equity backer LLR Partners to exit its investment in the company. PCS Retirement employees will retain a meaningful stake in the company, according to a news release.

Advent International in Boston and Indian firm Multiples Private Equity have agreed to invest $230 million in nonbank lender Svatantra Microfin in India, according to a news release. The company specializes in micro loans to female entrepreneurs in rural areas of the country, according to its website. The founding group led by Ananya Birla will continue to own a majority interest in Svatantra, one of India’s largest nonbank lenders.

Windrose Health Investors in New York said it has acquired cardiologist support company CardioOne, investing alongside management. WindRose committed to providing as much as $100 million to the New York-based startup for expansion, according to a news release.

Growth investor General Atlantic in New York said it is backing travel industry financial services company Plusgrade, joining existing investor Caisse de dépôt et placement du Québec and providing Novacap with an exit. The Montreal-based company works with airlines, hotels and resorts, cruise lines and passenger rail operators to provide consumers with loyalty rewards and upgrade options, according to a news release.

Manufacturing-focused AE Industrial Partners said it has acquired Calca Solutions, a maker of hydrazine, which is used in national security applications, including in-space propellant, military aircraft, pharmaceuticals and water treatment.

Investment firm Kinnevik said it increased its backing of hotel payments software maker Mews, leading a $110 million growth round that valued the business at about $1.2 billion following the deal. Stockholm-listed Kinnevik, which first invested in the company in December 2022, said it added $41 million to its commitments in the latest round, which also included investments from Revaia, Goldman Sachs Alternatives, Notion and new backer LGVP.

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Buyout firm Permira in London said it has recapitalized fund administrator Alter Domus in a deal that saw it and relevant investors in Permira funds sell half their interests in the business to Cinven, a new investor in Luxembourg-based Alter Domus. The transaction valued the company at about €4.9 billion, equivalent to $5.31 billion. Permira first backed Alter Domus in 2017 and said that since then, the administrator’s revenue and earnings have risen more than fivefold. Separately, Coller Capital said it has committed to a new Permira continuation fund, accounting for half the invested capital in the five-year vehicle. Permira put five assets into the new fund, Coller said.

Platinum Equity in Beverly Hills, Calif. has agreed to sell its Yak group of companies to strategic buyer United Rentals for about $1.1 billion in cash, Colin Kellaher reports for Dow Jones Newswires. Platinum acquired the Hattiesburg, Miss.-based group, which provides matting used for ground protection and temporary roadways, in 2018. The deal marks Platinum’s second exit deal involving United, following the firm’s $2.1 billion sale of Blueline Rentals to the company in 2018.

A private-equity fund managed by Helsinki-listed United Bankers has sold about 81,545 acres of forested land to the asset management arm of reinsurer Munich Re Group for roughly €166 million in cash, equivalent to about $180 million, according to a news release. United Bankers said the sale includes wind-power leases and that the selling vehicle, UB Nordic Forest Fund II, has generated an internal rate of return of about 13% annually. The sale will reduce the fund’s forestaland holdings to about 133,000 hectares, or 328,650 acres, according to the release.

OpenGate Capital said it has entered discussions to sell SMAC, a  French supplier of waterproofing and building envelope systems to Compagnie Financière Jousset and the SMAC management team. OpenGate initially acquired the company in 2019 through a corporate carveout deal.

A group led by family investment vehicle Tinicum has agreed to sell optics company PLX and PLX UK to Luxium Solutions, a company backed by private-equity firms SK Capital Partners and Edgewater Capital Partners. PLX of Deer Park, N.Y., designs and manufactures high-precision optical assemblies and products used in the defense and aerospace sectors as well as other industries.

German buyout firm Mutares in Munich said it has sold cold-storage and temperature-controlled logistics company Frigoscandia to strategic buyer Dachser. Frigoscandia had about 1,300 employees and generated revenue of more than €300 million, or $325.2 million, last year, according to a news release. Mutares acquired the Swedish company in 2021.

Neon Equity-backed electric-car company Elaris plans to go public by listing 12.1 million shares on the Munich Stock Exchange later this month, according to a statement from the German company. Elaris said it works with auto manufacturers in China to produce its range of vehicles, with modifications to suit European markets such as Germany, Austria and Switzerland. The company also provides EV charging infrastructure including stations and wall boxes. Founder Lars Stevenson and his wife own more than 90% of the company’s shares, while Neon owns 5%, according to the statement.

Capitol Meridian Partners, a lower midmarket firm focused on investments in aerospace, defense and government technology and services businesses, said it has raised $900 million for its debut fund. The firm was founded in 2021 by Adam Palmer and Brooke Coburn, both of whom had previously worked together at Carlyle Group. Washington-based Capitol Meridian has already backed five platform deals, including aviation services business PrimeFlight, federal agency advisory firm LMI Consulting, data and cyber analytics services provider Clarity Innovations and government-focused technology services company Altumint.

Berkshire Partners, a Boston-based buyout firm, aims to collect $6.5 billion for its 11th midmarket fund and had collected about $4.7 billion as of January, a public document prepared for the Oklahoma Municipal Retirement Fund shows. The firm plans to wrap up fundraising for the vehicle, Berkshire Fund XI, before the end of June, according to the document prepared for a meeting of the public pension system’s trustees last week. Berkshire sought a similar amount for its predecessor fund, WSJ Pro Private Equity reported in August 2020. Research provider PitchBook Data said the firm closed on $5.8 billion in commitments for the 10th fund. In an October regulatory filing, Berkshire indicated it had yet to receive a commitment to its 11th flagship fund.

Asset manager and adviser Hamilton Lane said it has collected about $700 million for its latest flagship credit vehicle, Hamilton Lane Strategic Opportunities Fund VIII. The Conshohocken, Pa.-based firm raises credit funds in the series annually and has so far brought in about $4.9 billion for the strategy, according to a news release. Apex Group serves as transfer agent and fund administrator.

Cibus Capital in London said it has closed two new funds focused on investments in companies that support and drive sustainable food and agriculture. The firm said it wrapped up midmarket private-equity vehicle Cibus Fund II with more than $510 million and late-stage venture pool Cibus Enterprise Fund II with more than $135 million. Investors in the two funds include public pension systems such as the Los Angeles County Employees Retirement Association in California and Australia’s Retail Employees Superannuation Trust, according to an emailed statement.

Credit-focused Z Capital Group in New York said its Z Capital Credit Partners platform has closed a $331.3 million collateralized loan obligation, or CLO, backed by broadly syndicated senior secured loans. It is the fifth CLO originated from the platform, according to a news release.

Clayton Dubilier & Rice said it has added Jenny Machida as a managing director of portfolio talent, a new role at the New York firm. Machida was most recently a partner with consulting company PricewaterhouseCoopers, advising private-equity clients on personnel issues.

Buyout firm JLL Partners in New York said it has promoted Vikas Mouli and James Shillito to managing director at the firm. Mouli has been with JLL since 2017, when he joined as a vice president focused on healthcare deals. Shillito joined in 2022 as a principal, also focused on healthcare.

Carlyle Group’s specialty finance company Carlyle Secured Lending has named Justin Plouffe as president and chief executive, replacing Aren LeeKong, who resigned from the business development company to pursue other opportunities. Plouffe is Washington-based Carlyle Group’s deputy chief investment officer for global credit and a managing director with the private-equity firm.

European private- and merchant bank Rothschild & Co. has hired Wouter Moerel as an Amsterdam-based senior adviser in its private-capital business. The co-founder and former head of secondaries at AlpInvest Partners, a Carlyle Group subsidiary, will mainly work with Rothschild’s GP Solutions team, which originates and executes manager-led secondary deals, with a particular emphasis on continuation funds. Rothschild’s GP Solutions team advised on approximately $2 billion of manager-led deals last year.

The Ontario Teachers’ Pension Plan Board said it has elevated three professionals within its investment management ranks after the promotions of Gillian Brown, Stephen McLennan and Jonathan Hausman. The organization named Bernard Grzinic as executive managing director, capital markets; Steve Saldanha as executive managing director, total fund management; and Robert Sturgeon as senior managing director, global investment strategy.

Alternative asset manager New Holland Capital in New York said it has added Michael Fox as a partner and head of strategy. He was most recently with BlackRock as a managing director of product strategy, according to a news release.

Investec in London has hired a trio of private-equity professionals to expand its services for private-equity firms regarding exit options, including sponsor-led secondary transactions, or what the firm calls its GP Advisory team, Sebastian McCarthy reports for sister publication Private Equity News in London. The hires include Oliver Altendorf from advisory and private markets placement firm Asante Capital Group, Christoph Schwarz from HarbourVest Partners and Emilia Korobowicz from Credit Suisse’s Private Fund Group.

Law firm Freshfields has added two private equity attorneys from Latham & Watkins, sister publication Financial News in London reports. Neal Reenan and Ian Bushner have joined Freshfields as partners in the firm’s New York office, part of the U.K.-based firm’s expansion in the U.S.

Investment bank Morgan Stanley‘s wealth management unit has set up a private markets transaction desk to help investors and private company shareholders buy and sell stakes on the secondary market. The New York-baed bank has tapped Jeff Urban, who has previously led a number of private and public markets distribution and syndication businesses, to lead the new desk.

Multi-strategy asset manager and adviser Hamilton Lane is making its $3.8 billion Global Private Assets Fund available to investors through the Polygon blockchain, a distributed digital ledger system managed by Sygnum Bank in Switzerland. Investors can obtain fractional shares of the fund through the blockchain-based system at “significantly lower fund entry points,” according to a news release. The offering is designed for wealthy individual investors as well as institutions.

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Maria Armental; Ted Bunker; Chris Cumming; Luis Garcia; Rod James; Laura Kreutzer; Chitra Vemuri.

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