RLH gears up to sell ClearView, Diversis’ ServicePower on the sale block, Ares chief says SPACs impact PE dealflow

Diversis Capital is preparing to sell ServicePower and more than $28 billion has been raised across 100 SPAC IPOs this year alone.

Happy Tuesday!

Hope you had a great long weekend. We have intel on two sale processes, beginning with RLH Equity Partners-backed ClearView Healthcare Partners.

It is unclear if the process, expected to launch in Q1, has formally kicked off yet but Houlihan Lokey has been selected to advice the life sciences-focused consulting business.

The process is likely to produce a “solid mid-teens EBITDA multiple,” one of the people said. Consistent with that, another source expects that ClearView could attain as high as 14x in a sale – which would mark a high multiple for a consulting business, attributing that to the asset’s tremendous organic growth and a broader outsourced pharma services industry that remains highly sought after by investors.

Sources placed EBITDA around the $30 million to $35 million range.

Read Sarah Pringle’s story on PE Hub for more details.

Tech news: Diversis Capital is preparing to sell ServicePower, a field service management software provider, sources familiar with the situation told PE Hub.

The Los-Angeles investment firm has selected Jefferies to advise ServicePower on its sale process, which is expected to launch in the next few weeks, the source said.

Sources said that the company generates above $30 million in revenue and a sale could produce a deal valued at more than $200 million.

With respect to buyers, ServicePower is set to attract the interest of sponsors, VC firms, and, potentially, a few strategics, like Silver Lake-backed ServiceMax and VC-backed consumer support software provider Freshdesk.
Check out the full story on PE Hub.

SPAC doom: Ares Management’s co-founder and chief executive, Michael Arougheti said that special purpose acquisition companies could take more deal opportunities away from the private equity market.

“I do think that this will chip away a little bit at the aggregate market opportunity for PE when you just look at the amount of capital searching for transactions and candidly, it will also chip away a little bit on the venture side and the growth equity side as well,” Arougheti said, speaking on the firm’s fourth quarter 2020 earnings call.

Some 248 SPACs raised $83 billion at IPO last year, six times the sum raised across 59 vehicles the prior year, according to SPAC Data. More than $28 billion has been raised across 100 SPAC IPOs this year alone.

Read more on PE Hub.

That’s it for today! Have a great week ahead, and as always, write to me with tips, feedback or send your comments at karishma.v@peimedia.com