Firms explore opportunities in HVAC in wake of covid; H&F explores liquidity options for older coinvestments

Morning Hubsters!

What’s the big word today? Seems like a ton of deals crossing the wires this morning, including what appear to be a couple distressed investments (haven’t seen a lot of those in the past few years).

Fees
The SEC announced late yesterday it settled its case against Insight Venture Management in which it accused the firm of overcharging LPs for fees related to portfolio companies. The firm, which didn’t admit or deny the charges, paid around $4.6 million in disgorgement, self-remediation and interest and agreed to a $1.5 million penalty.

The case is an example of one of the SEC’s focuses in recent years, scrutinizing firms’ policies and LPAs around charging fees on impaired investments. Read more here.

Health
Companies continue to focus on the air quality in their facilities in the wake of the covid-19 pandemic, which is creating opportunities for investment, writes Obey Martin Manayiti on PE Hub today. Part of this push is being driven by new guidelines coming from the CDC and the American Society of Heating, Refrigerating and Air-Conditioning Engineers for indoor air quality.

“The concerns about covid and other types of airborne diseases are actually driving increased spending on HVAC equipment,” Kevin Kruse, managing director at Ardian, said in an interview.

Following this trend, Ardian recently invested in the Tom Barrow Co, which offers HVAC products like custom air handling units, packaged equipment and precision cooling equipment. The company works in sectors like healthcare, life sciences, education, government, industrial and other end markets.

“We are very bullish on demand,” added Kruse, because of opportunities especially in large facilities such as EV battery plants, manufacturing facilities, data centers and other commercial buildings that draw hundreds of employees.

The commercial HVAC market is likely going to benefit from the overall onshoring trends too, as manufacturers shift operations closer to home, Kruse said.

Recap
Arbour Lane Capital, Garnett Station Partners and Guggenheim Investments recapitalized Checkers Drive-In Restaurants, which owns and operates Checkers and Rallys restaurants. The deal reduces Checkers’ debt to $75 million from about $300 million, according to a statement.

Checkers secured $25 million in new financing to fund the company’s store remodeling program and other growth efforts, the statement said.

Secondary
Hellman & Friedman is exploring a deal that would allow LPs to cash out of their interests in a basket of assets held across older coinvestment funds.

The deal is an example of the highly customizable processes GPs are thinking about as ways to deliver proceeds back to LPs, who are focused more than ever on distributions. Hellman is working with Evercore on exploring options.

The deal is not connected to Hellman & Friedman’s flagship fundraising, which has been in market since last year. Read more here on Buyouts.

That’s it for me! Have a great rest of the day. Hit me up with tips n’ gossip, feedback or beer recommendations (I’m currently stuck on Allagash White) at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.