Hey, hey, hey, how are ya?
We have a steady stream of deal activity flowing across the Wires over the past few days. Not the deluge we had grown used to earlier in the year, but much better than the eerie silence of a few weeks ago.
KKR, which has been busy lately, bought a 55 percent stake in Colonial First State, a wealth management subsidiary of Commonwealth Bank of Australia in a deal valued at about A$1.7 billion ($1.1 billion). The deal implies a total valuation of Colonial of about $3.3 billion, with KKR paying a 15.5x multiple of pro forma net profit after tax. KKR expects to make the investment from its Asian private equity fund.
The deal is part of Commonwealth Bank of Australia’s move to shed non-core assets amid a public report of misconduct across the bank’s wealth management business, according to the Financial Times. GPs have told PE Hub they expect large public companies to offload non-core assets to deleverage balance sheets. With huge amounts of uncalled capital, PE will be well positioned to snap up such assets.
What are you seeing out there? Have you seen deal activity start to ramp up? What kinds of deals are you seeing? Hit me up at firstname.lastname@example.org.
Private: UBS is creating a centralized group managing origination and distribution of private markets activity called Private Markets OneBank Partnership, writes Sarah Pringle on PE Hub this morning. Sarah saw an internal memo about the formation of the group.
The intention is to build off the momentum of the Private Financing Markets group UBS formed in July 2019 and led by Paul Crisci. That group was formed for the bank’s wealth management clients to access private capital markets, which wealthy folks generally want more of, Sarah writes. Read it here on PE Hub.
Pulled! This is unusual: Los Angeles City Employees’ Retirement System’s investment committee recommended pulling a $100 million commitment to BNY Mellon’s credit investing group Alcentra over senior executive departures.
The $100 million pledge is part of the pension’s plan to build a private debt platform. Alcentra was tapped to run a non-US credit focus, while the system plans to commit $100 million to Benefit Street Partners for a US-focused mandate.
The committee recommended pulling the commitment from Alcentra and redeploying it to Crescent Capital.
Access management business CyberArk acquired Idaptive Holdings from Thoma Bravo for $70 million to build an identity platform. Thoma formed Idaptive after buying Centrify in 2018 and spinning out its identity-as-a-service business. Read our news brief here.
That’s it! Have a great rest of your day. Hit me up as always with tips n’ gossip, feedback or just to chat at email@example.com, on Twitter or find me on LinkedIn.
Compensation survey: Calling all CFOs, directors of human resources and managing partners! We would like to invite you to take part in our 10th annual Holt MM&K Buyouts PE/VC compensation survey. All participants receive an executive summary of the final survey and a steep discount on the full report. All responses are kept confidential. Click here for the survey or request an e-mail copy from Matt Cutler at firstname.lastname@example.org
Emerging managers and covid-19 – survey
If you’re an investor or a next generation fund manager, please take 15 minutes to fill out our fourth-annual emerging manager survey – you’ll get a complimentary copy for participating. If you’re an LP, click here to get to the survey. If you’re an emerging manager, click here.
Investors, has your faith in fledgling managers changed with the onset of a market downturn? Managers, have peer-group firms adjusted terms to keep LPs interested? Understanding the sentiment of your peer-group is essential for decision-making moving forward, so we’re asking:
LPs, how actively are you backing spin-out groups and other emerging managers? How do you make commitment decisions? What terms do you negotiate?
GPs, how have you adjusted for the market downturn? What terms do you offer to anchor investors? When do you plan to raise your next fund?
We know that accurate benchmarking data is valuable; last year’s Emerging Manager Report was downloaded by over 1,450 industry pros who benefited from this guide.
We value your privacy. We will not name your organization in the study or in any associated promotional material. The deadline to complete the survey is Friday, May 29, 2020. If you have any questions, send them to Research Editor Matt Cutler at email@example.com.