What to watch for in Biden’s first 100 days, Sun Capital exits ClearChoice in $1.1bn-plus deal

PE Hub staff examines four key issues that will be top of mind for investors following the November election’s delivery of President-elect Biden, while PE-backed Aspen Dental buys ClearChoice in a $1.1 billion-plus deal.

Good morning, hubsters! 

While the final pieces of a Joe Biden presidency are still being put in place, key agenda issues of interest to private equity are starting to emerge.

In interviews with market players, PE Hub and Buyouts identified four areas that could be a focus of the new Administration’s first 100 days. PE investors are eager for action on covid-19 and economic stimulus and are fairly confident they will see this in the near term. On the tax front, there is little worry about tax hikes on capital gains and carried interest with a narrowly split Congress. Most also expect a push in clean energy and healthcare, but the more ambitious goals of the Biden-Harris campaign likely wouldn’t get tackled if we end up with a divided government.

The Biden-Harris campaign pledged swift action to battle the covid-19 pandemic, such as increased testing, mask mandates and protective equipment for frontline workers. The president-elect also called for a follow-up relief package – everything from extended unemployment insurance to support for small businesses and fiscally challenged state and local governments.

“There’s a lot of stalled demand for a covid-19 package, so it will have a big bold neon sign above it,” said Brian Fortune, founder of Farragut Square Group. He expects to see a small- to medium-size package in the near-term, followed by something larger early next year.

Read our full report. 

Dental dealmaking:

Three years into its investment, Sun Capital Partners is selling ClearChoice Management Services to private equity-backed dental support giant Aspen Dental Management Inc. at a more than $1.1 billion value, sources familiar with the matter told PE Hub.

The buyer, ADMI, is owned by an investor group that includes Ares Management, Leonard Green & Partners and American SecuritiesFor Sun Capital, ClearChoice looks like a clear home run – with the Greenwood, Colorado company’s valuation more than doubling over a three-year-period. Check out my full report.

That’s it for me today. As always, write to me at springle@buyoutsinsider.com with any tips, feedback or just to say hello.