FFL, Two Sigma Impact acquire stake in Community Medical Services; Platinum closes continuation fund deal for porta-potty biz

Calling for recommendations for rock star women in private equity for March 2022 issue.

Morning!

A reminder: we’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry.

Reach me with questions and recs here at cwitkowsky@buyoutsinsider.com.

Deal: FFL Partners and Two Sigma Impact acquired a majority stake in Community Medical Services, which provides treatment for opioid addiction, writes Mary Kathleen Flynn today on the Hub.

CMS operates 45 clinics across nine states, and provides about half its services through telemedicine, Flynn writes. Read more here on PE Hub.

So many: This year is wrapping up with a bunch of large single-asset deals closing out. CD&R closed what may be the largest-ever single-asset deal, with its process for Belron. By the way, I have some questions about the Belron process, which comprised two parts: one was a traditional M&A stake sale, and one was the secondary, which allows LPs in CD&R’s tenth fund to cash out of their interests in the asset.

Generally in single asset deals, existing LPs can either cash out of their stakes in the asset or re-invest their interests in the asset through a continuation fund set up to continue holding the company. “Re-investing” is different from “rolling” their interests and usually does not include allowing existing LPs to keep their status quo economics that they held in the original fund. I’m not clear if the Belron process allowed for a status quo option or a “re-investment” option. I haven’t heard back from spokespeople yet but will update if I hear.

The loss of a status quo option in some of the larger GP-led secondaries deals (mostly single-asset offerings) has caused some consternation among LPs. The counter is that existing LPs in these deals have the opportunity to cash out at what has been a strong price (in today’s environment) or re-invest in what GPs will say is a strong and growing company. A status quo option in such cases is not necessary, they argue.

What do you think? Hit me up at cwitkowsky@buyoutsinsider.com.

Also, Buyouts and PE Hub readers will know that Platinum Equity has been working on a single-asset process on its Fund IV portfolio company United Site Services, which rents porta-potties. Platinum said today it closed the deal that will give it more time and capital to manage the asset. No word on who led the deal nor the price tag. Read more here on PE Hub.

I wrote in the fall that the deal could be valued at about $1.6 billion and could include an investment from Platinum’s most recent flagship fund. I’m not sure if that happened but will update as and when. Hit me up if you know anything at cwitkowsky@buyoutsinsider.com.

That’s it for me! Reach me with tips n’ gossip, feedback or your thoughts at cwitkowsky@buyoutsinsider.com or over on LinkedIn.