Good morning, dealmakers! MK Flynn here with the Wire.
Valuations on the brain. I’ve been thinking about valuations lately. And I know you have too. In this heady dealmaking environment, many buyers are paying whatever it takes for desirable targets. I’d love to hear what your experience has been. What kinds of multiples are you paying these days? And how are you competing with skyrocketing prices? Are you benefitting from great returns in your exits? Email me your thoughts at firstname.lastname@example.org
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Here’s what’s on our sites today:
Covid revealed the urgency of healthcare staffing shortages. The same trend drove FTV Capital’s $60 million strategic growth equity investment in Gale Healthcare Solutions. The deal marked the firm’s seventh healthcare-related investment. PE Hub’s Aaron Weitzman spoke with FTV partner Richard Liu about the opportunities in the sector.
“Healthcare is a massive part of GDP, so the total available market is very large,” Liu said. “Healthcare staffing is also a very large, $20-billion-plus market and we like to look at big markets undergoing disruption and based on that, we view healthcare as an attractive area to invest capital in.” Demand for Gale’s offerings has grown during the pandemic, when the shortage of nurses became increasingly urgent.
Diverse managers. A new offering sponsored by Xponance and Investcorp to make minority investments in diverse and women-owned managers is looking to bring in $300 million, writes Buyouts’ Kirk Falconer. The fund’s investment committee consists of six professionals, including Tina Byles Williams, CEO and CIO of Xponance. Previously the CIO of the City of Philadelphia’s Board of Pensions and Retirement, Williams founded Xponance, known formerly as FIS Group, in 1996. It’s now a $15 billion business, featuring strategies geared to emerging and diverse managers.
Hot tubs. With covid increasing demand for hot tubs and pools in the residential market, Monomoy Capital Partners announced this morning that it has acquired both Artesian Spas and Marquis Hot Tubs and combined them to form a pool and spa wellness platform. “Artesian and Marquis have both experienced exceptional demand and growth over the past two years,” said Monomoy managing director Lee Mlotek. The PE firm is seeking more acquisitions in the pool and spa market.
Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at email@example.com. Go here for all the rules and regs!
And in case you missed it, check out our Q&A with Randy Schwimmer, co-head of senior lending at Churchill Asset Management and founder and publisher of The Lead Left.