Vestar bets on sleep tech, LPs question GPs on pace of fundraising

Vestar invests in sleep tech firm Nox Health.

Morning Hubs!

How is the last month of this crazy year looking for you? Anything to report? Let’s see what we got this morning …

Sleep: I’m not a very good sleeper. That’s something, as I get older, that I seem to get worse at. Nights of full sleep are a thing to be cherished …

So this investment caught my eye. Vestar made a growth investment in Nox Health, targeting the growing segment of sleep technology. Lack of sleep is a “silent killer,” according to Roger Holstein, managing director at Vestar. “Sleep disorders are comorbid with seven of the 15 leading causes of death.”

Vestar’s investment will be used to help Nox accelerate development of its sleep diagnostic technology and services and adoption of its value-based sleep management services for employers and health plans. Read more here on PE Hub.

Vestar closed its most recent flagship pool, Fund VII, on $1.1 billion in 2020, which included a GP commitment of $100 million.

Aviation: Here’s a complex deal – CD&R and Greenbriar Equity are joining forces to combine two aviation components companies into a single maker of complex, high-tolerance components for commercial and military aviation engines.

CD&R agreed to acquire Paradigm Precision, which provides machining, fabrications and assemblies for engine manufacturers, from Carlyle Group. Also, CD&R and Greenbriar Equity agreed to acquire Whitcraft Group, which makes precision formed, machined and fabricated flight-critical aerospace components. Whitcraft is an existing Greenbriar portfolio company, with its first investment coming in 2017.

The plan is to combine the two companies. Ray Conner, operating adviser to CD&R and former president and CEO of Boeing Commercial Aviation, will become chairman of the combined company. Read more here on PE Hub.

More time: I’m hearing from LPs that one of the big conversations they’re having with fundraising GPs right now is to get as much precision as possible around plans to launch future funds.

After a few years of GPs coming back with new funds quicker than ever before, in some cases only a year after closing the last fund, LPs are now demanding more information about fundraising pacing plans. “It is conversation one, two and three right now,” an LP told me recently. It’s basically, “we need a better sense of when you’re coming back, if you’re coming back in two years’ time. Pacing has been very poor by the industry,” the LP said.
GPs message is that the past few years have been unique, and with the market slowdown, with financing more expensive, “we just don’t see our pipeline being as rich, no way we’ll be two years again, and if it is two years, we’ll tap the brakes.”

That’s it for me. Have a great rest of your day! Hit me up with tips n’ gossip, feedback or The Drama at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.