Trilantic builds outdoor hardscaping platform; Lockheed Martin shops $1bn LP portfolio

Morning Hubs!

This is Chris, on the Wire this morning. Hope your week is proceeding smoothly and with the minimum of distraction.

What have we got going today on this mid-week Wednesday?

Beautifying: We installed a patio in our backyard a few years ago, and it’s proven to be one of the best upgrades we did to our aging home. Once the weather turns even slightly warm, that patio becomes like an additional living room for our house.

So I found this story interesting – Trilantic Capital is building a platform focused on hardscaping since launching Outdoor Living Supply in 2020. Since launch, the platform made 14 add-on acquisitions, nine of them in 2022, writes Obey Martin Manayiti on PE Hub.

Trilantic’s most recent add-on was Tahoe Sand & Gravel, which distributes bulk materials, hardscapes and masonry supplies, last month.

“We think that [upgrading homes] was accelerated in covid,” said Charles Fleischmann, Trilantic partner, adding, “but it’s part of a much broader 10-to-20-year trend where people are thinking about the outside of their home as a natural extension of their homes.”

Fleischmann said many homeowners now see the patio or backyard as their second living room. However, in a downturn, will people simply stop working on upgrades to their homes and yards?

“With rising interest rates, people are going to be much less likely to move,” argued Fleischmann, saying this could be a factor in OLS’s favor. “Rather than move and upgrade, some will just decide to upgrade their existing homes.”

Read more here on PE Hub.

Cyber: Brighton Park Capital led a $40 million growth investment in DataVisor, an online fraud detection and risk management software provider for financial services and digital commerce companies.

Others participating in the funding round include existing investors NewView Capital and GSR Ventures. Read more here on PE Hub.

Brighton Park closed its second fund on $1.8 billion in November for investments in software, healthcare and tech-enabled business services. The firm, launched in 2018, was formed by ex-General Atlantic managing director Mark Dzialga.

Portfolio: We’ve seen a few, choice LP portfolios out in the secondary market, even as secondaries activity has slowed amid a widening gap between buyer and seller expectations. Another one out there on the market is being shopped by Lockheed Martin’s pension, which is selling up to $1 billion in PE fund stakes. Read more here on Buyouts.

The LP portfolio sale is among a few that appear to be making their way through the market and heading for final close. Another LP portfolio up for sale is UK grocery store Tesco’s pension, which is shopping up to £1.5 billion of PE fund stakes, Buyouts recently reported.

Secondaries activity has slowed as a result of market dislocation and a wide gap between buyer and seller expectations. Once, and if, GPs write down assets to levels commensurate with public markets, the discount level demanded by buyers will begin to moderate, and could make sellers more comfortable with optical pricing.

That’s it for today. Hit me up at cwitkowsky@buyoutsinsider.com with tips n’ gossip, feedback or recommendations for mystery novels. I’m currently poring through Ruth Rendell’s oeuvre. Or find me on LinkedIn.