Carlyle’s latest U.S. buyout fund raises $18.5B; Oncap exec Hershberg jumps to Leonard Green; L Catterton to exit Zarbee’s Naturals
The bolting together of smaller companies to create a bigger empire is attracting more private equity investment, according to the Financial Times. Globally, such a strategy has gone from representing 28 percent of total deals in 2004 to nearly half of all transactions during the first half of 2018, the FT said, citing data from Bain & Co.
The story cited deals from dental to veterinary clinics where buyout shops have put together companies in fragmented sectors. I know this strategy best in insurance, where PE has successfully merged smaller companies to form something much bigger. Hub International anyone?
What other sectors has buy and build worked well in? What issues does it create? Email me your thoughts at email@example.com
Big fundraising news this morning from Carlyle, which has raised $18.5 billion for its latest U.S. buyout fund. In fact, the $18.5 billion from Carlyle Partners VII is the largest in the firm’s history. Carlyle’s last U.S. buyout fund raised $13 billion in 2013. See our brief here.
Carlyle has also collected $773.4 million for its third global financial services fund. The firm’s last pool raised $1 billion. Check out our brief here.
Deals: L Catterton is selling its majority stake in Zarbee’s Naturals, known for its cough syrup, to Johnson & Johnson Consumer Inc. Read our brief here.
Warburg Pincus, which is on a buying spree, is acquiring Israeli credit card operator Leumi Card for 2.5 billion shekels ($684 million). Bank Leumi and Azrieli Group are the sellers. See our brief here.
News from Buyouts/VCJ: Chris has a story on Evan Hershberg, a managing director at Onex Corp’s middle-market platform, Oncap, who is leaving the team and joining Leonard Green & Partners.
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