PE HUB Wire Highlights, 11.14.18

Goldman is lead buyer of CDPQ’s billion-plus PE portfolio; FleetCor vies for Western Union’s business-payments arm; PE’s latest frontier? U.S. building products

I realized yesterday that Thanksgiving is a little more than a week away. Hubsters, what will you be making? Personally, I will not be having a traditional turkey day with all the usual trimmings. (Can you say taquitos?)

More money, but from whom: According to Preqin, banks and funds of funds will play less important roles over the next five years. Investors based in emerging markets, like Asia, are expected to contribute more capital to the industry. In fact, 60 percent of fund managers expect to source more capital from Asia-Pacific based investors. Nearly two-thirds, or 65 percent, of managers anticipate family offices will play a more important role as a source of capital in 2023.

LPs, by 2023, are less likely to focus on pooled funds, Preqin said. Instead, they’re more likely to want to access the industry through co-investments, separate accounts and joint ventures.

Deals: Brookfield Business Partners LP has won the bidding war for Johnson Controls International Plc. Brookfield is paying $13.2 billion, Reuters is reporting. Apollo Global Management reportedly made an 11th hour bid for the company but lost.

Vee Pak LLC, a portfolio company of Wind Point Partners, has acquired Cosmetic Essence Innovations LLC. Financial terms weren’t announced. See our brief here.

General Atlantic has joined the race to buy a stake in Premiership Rugby, which has already rejected a 275 million pound majority offer from CVC, the Financial Times said. It’s unclear whether GA’s offer was higher than CVC’s or for a majority or minority stake. Check out our brief here.

Nick Gaidai, an MBA candidate at Wharton, presents his case as to why private equity should invest in U.S. building products.

Secondaries: Chris is reporting that Goldman Sachs was lead buyer of a large portfolio of secondary stakes valued at about $1.3 billion sold by Caisse de Depot et placement du Quebec. See his story here.

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