PE HUB Wire Highlights, 8.8.18

Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Vista swoops in to buy Alegeus; Scout Energy Fund IV hits $500M hard cap; ORIX snags 30 pct of Avolon for $2.2B

It’s Wednesday, Hubsters. I’ll admit that I’m curious as to how Elon Musk will pay for the Tesla take private. Have you heard of anyone funding him? Let me know at [email protected]

I’m also continuing our discussion of tariffs. Henry McVey, head of global macro and asset allocation at KKR, said in an insight piece that the escalation of trade barriers between the U.S. and China is an “undeniable attack on the traditional global supply chain.” McVey doesn’t think this can be easily repaired through rushed and/or reconciliatory negotiations. He also expects President Donald Trump to implement his $200 billion of retaliatory trade initiatives by early September.

“Overall, we believe that the current trade wars will only accelerate China’s shift away from an export economy dependent on global trade towards a more self-reliant consumer services economy that is gaining prominence, particularly within Asia,” McVey said in the report, “China: A Visit to the Epicenter.”

On a positive note, McVey thinks the situation represents a “significant long-term opportunity” for global investors to fund the transition in China that he said could produce outsized returns. See McVey’s report here.

Fintech: We had some big payments deals yesterday. Warburg Pincusconfirmed that it bought Procare Software from TA Associates. I reported the sale to Warburg last month and even had a price tag. See my newest story on Procare here.

This is a surprise. We have a winner in Alegeus auction, which I thought was going strategic. Vista Equity Partners has swooped in to buy Alegeus, a consumer-directed healthcare payment and processing firm, from Lightyear Capital. Pricing was aggressive, I’m told. Did Lightyear get what it was seeking for Alegeus? Sarah Pringle should have a report on this later today.


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