Riata Capital sees opportunity in residential services, Blackstone’s Bumble rallies in public debut, final day for Deal Award submissions

Riata Capital invests in Greenix Pest Control and Blackstone-backed dating app Bumble pops in IPO debut.

Happy Friday!

Reminder — today is the deadline to send us your best exit from 2020 for our Deal of the Year awards. Submissions have already started trickling in this week (thanks to all those send them in early!)
Make sure to send your awards submissions directly to Chris at cwitkowsky@buyoutsinsider.com if you haven’t already. And go here for the rules and regulations.

Diversifying: Riata Capital Group is diversifying into the home services sector and plans to invest up to $200 million in the next three to five years, starting with its latest investment in a subscription-based pest control service, Greenix Pest Control.

According to Jeff Fronterhouse, a managing partner at Riata, Greenix is recession resistant. “It’s not a discretionary service,” he said. Read more on PE Hub.

The Dallas private equity group has plans to go deeper into the residential services segment, having largely been focused on business services, consumer and healthcare. That includes the buying spree Riata has helped fuel at eyecare platform company AEG Vision.
Public market craze: Is it just me, or is just about everything going public these days?

In recent highlights, Blackstone-backed dating app Bumble saw its shares rally 64 percent in their public debut Thursday, raising a more-than-anticipated $215 million. The stock valued Bumble at about $14 billion at the end of its first day of trading, Bloomberg reported.
Bumble’s CEO at 31 is the youngest woman to take a large company public in the U.S., the report said. Read more here.

The Austin, Texas-based company is also the only dating app where women initiate conversations with their matches. It was only in November 2019 that Blackstone took a majority investment in MagicLab, the parent company of Bumble and Badoo, in a transaction that valued it at approximately $3 billion.

Kudos to Blackstone. The firm’s Jon Korngold, who heads Blackstone’s growth equity team, told PE Hub last June that even in a highly competitive environment, the firm hasn’t had any real competition for some of its recent deals including MagicLab. Other examples are Ultimate Software, Refinitiv and Magic Lab, he said.

That’s it for today! Have a great holiday weekend, and as always, write to me with tips, feedback or whatever at springle@buyoutsinsider.com.

Note to Readers: It’s that time of year … for the 21st time, the editors of PE Hub and Buyouts honor exceptional buyouts with our Deal of the Year Awards.

Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Go here for more information and to read about rules and methodology. Also check out past winners. Last year, New Mountain took the crown with its exit of Equian.

If you have additional questions, email Private Equity Editor Chris Witkowsky at cwitkowsky@buyoutsinsider.com.