PE deals set to hit first trillion-dollar year, Onex buys Newport Healthcare at $1.3bn value, Sun Capital acquires ESG asset

Happy Tuesday, folks!

Lately, summer has felt like a blur with the number of deal announcements each day! Backing this, a recent EY report stated that private equity deals surpassed $580 billion in combined value in H1 2021 – a new six-month-period record.

Availability of financing and dry powder is fueling robust levels of activity along with the industry’s ability to leverage more resources than ever before, according to Pete Witte, EY global private equity lead analyst.

The verdict is that PE is likely to mark its first-ever trillion-dollar year – beating the highs of 2006 and 2007 when the industry accounted for over $750 billion in value each year.

“There’s a more developed, sophisticated ecosystem of operational resources,” Witte said.

Read my story to get more insights into the deal market.

Healthcare boom: Talking about large scale activity, behavioral health has been witnessing sky-high valuations. PE Hub recently learned that Onex Partners’ recent investment in Newport Healthcare values the network of mental health treatment centers tailored to teens and young adults at $1.3 billion.

The firm completed the majority acquisition yesterday, after announcing the deal over a month ago. With the transaction, Onex Partners V is approximately 60 percent invested, the announcement said.

The deal concluded a Jefferies-run auction that kicked off around late April, sources said. With Onex’s new investment, Carlyle Group has exited its investment in full, sources told PE Hub’s Sarah Pringle.

Another deal speaking to the industry’s momentum is TPG’s LifeStance Health bought at $1.2 billion last year. It went public in June debuting at a market value of $6.7 billion but sits north of $9 billion today.

Read PE Hub’s story for more details on the transaction.

ESG rush: Last week, I noted a slew of ESG deals in the newsletter, including Apollo Impact’s debut investment in an Italian cardboard manufacturer, Reno De Medici. Continuing the pace, Sun Capital Partners announced its acquisition of Environmental Infrastructure Solutions (EIS) today.

The process for EIS run by William Blair kicked off in April and closed this Friday, Jared Wien, managing director at Sun Capital told me over a call.
Founded in 2018, EIS makes spaces safe from environmental and structural hazards for private and public institutions across the nation. Previously owned by O2 Investment partners, EIS, a combination of five environmental services firms, will continue to grow through add-ons among other strategies.

The deal marks the third acquisition for Sun Capital in the environment services business. It follows an investment in UK’s environmental risk reduction business Adler & Adlan and Houston, Texas-based Cotton Holdings, a infrastructure support services business that takes care of environmental mishaps. Read the brief here.

That’s it for me! Have a great week ahead, and as always, hit me up with feedback, tips n’ gossip, or whatever at karishma.v@peimedia.com

Correction: A previous version of the post misspelled Jared Wien’s last name.

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