Research

Market at a Glance – Roark Capital buys $2.8 bln worth of chicken wings

February 19 2018

The cold of early February slowed the flow of U.S.-based buyout and mezzanine fundraising. Over the past two weeks, $2.4 billion in commitments was added to this year’s total, which now leads this time in 2017 by $5.8 billion, or 35.1 percent.

Blue Point Capital Partners finalized its fourth flagship, exceeding its $600 million target and closing on $700 million. The Cleveland firm concentrates on the manufacturing, business services, consumer and distribution sectors in the lower-middle market.

Also beating its target, Platform Partners closed its maiden fund. The Houston firm surpassed its $100 million goal and reached $129 million in commitments. Platform focuses on equity and debt investments with minority ownership in lower-middle-market companies, specifically in Texas and surrounding areas.

Carlyle Group is near to closing its seventh U.S.-focused vehicle. Thus far, the megafund has collected $14.4 billion toward its $15 billion goal.

Since Buyouts last went to press, dealmaking this year increased by $4.7 billion. This year’s private equity-backed aggregate now sits at $16.4 billion, trailing last year by $10.6 billion, or 39.4 percent.

The largest deal with disclosed value was for Buffalo Wild Wings. The global restaurant chain, which specializes in chicken wings, was acquired by Roark Capital Management — through its Arby’s Restaurant Group subsidiary — for just over $2.8 billion.

Following that was the transaction for Saddle Butte Rockies Midstream LLC. EnCap Investments bought out the entire share capital of the Durango, Colorado, provider of pipeline transportation services of refined petroleum for $625 million.