Value Add

Several PE firms are reportedly interested in helping Peloton undergo a full-blown transformation as a private company. Read: https://lnkd.in/eKMteKcN

How BJ's Wholesale doubled EBITDA under the guidance of Leonard Green & Partners and CVC Capital. Read: https://lnkd.in/ev4qrA3h

Both KKR and Apollo have extensive experience operating companies in the media and entertainment industries. Read: https://lnkd.in/eHHnfeSk

Cybersecurity firm Darktrace is poised for a breakout year after Thoma Bravo acquisition. Read more: https://lnkd.in/eMWVYujh

Our 2024 report on private equity in the energy sector is now available for subscribers. The sections covered in this 2,500+ word deep dive include: - Market Landscape - Investment Trends - Technology Innovation - Regulatory Concerns - Challenges & Risks - Opportunities & Future Outlook Read: https://lnkd.in/e6X75uwH

This week's private equity industry briefing: - Blackstone is in talks to acquire Jersey Mike's - Bain exits payroll software company Zellis - Blackstone hires AI exec for operating group Read and sign-up for free: https://lnkd.in/ewZG-6AZ BUYOUT NEWS Blackstone is in talks to acquire Jersey Mike's Subs, a popular sandwich chain, for $8 billion. It would be the second major US buyout of a large quick-service restaurant in the past year, following Roark Capital’s $9.6 billion acquisition of Subway. Bain Capital has agreed to sell payroll software provider Zellis for $1.6 billion to Apax. Bain acquired the company in 2017, and installed a new management team including John Petter as CEO and Abigail Vaughan – both hired in 2019 . Zellis reported a CAGR of 20% over the past three years, driven by companies’ migrating HR and payroll products to cloud-based platforms. KKR continues to be very bullish on investment opportunities in Japan. “We generated more [returns] in this market than in many other places for a lot of reasons that aren’t obvious,” said Joseph Bae. “It’s low valuations, big conglomerate structures with a lot of non core businesses, massive room for operational improvement.” Evolution Equity Partners raised $1.1 billion for a new fund targeting cybersecurity buyouts. PORTCO NEWS Prakhar Mehrotra, a former technology executive at Walmart, has been hired by Blackstone to apply AI best practices across its 230+ portfolio companies. Blackstone has built one of the larger operating groups in private equity, helping portfolio companies with everything from digital transformation and business intelligence to branding and creative. Value Add’s recent report, “AI in Private Equity,” outlines some potential use cases for AI in portfolio companies including augmenting customer service teams, marketing content creation, and advanced analytics to make better business decisions. Apollo Global Management, Inc.-owned Michaels Stores, the retailer known for crafting and DIY products, received an upgraded credit rating from S&P Global Ratings thanks to improved operating margin and cash flow. Declining transportation costs have provided an unexpected EBITDA benefit for many retailers, which could make the industry more attractive to private equity. Scott Nuttall and Joseph Bae, co-CEOs of KKR, say exit opportunities are opening up for portfolio companies. “We’re starting to get more approaches from strategic buyers,” they told the FT. “IPO markets are [also] starting to open up.”

33% of PE-backed technology buyouts in 2023 have already replaced their CEOs. https://lnkd.in/ey5qCBsk

Silver Lake's $25 billion take-private of Endeavor is also the largest PE-backed media & entertainment deal of all-time. Read: https://lnkd.in/eB-_ngKg

SRS Distribution just became one of the most successful PE-backed industrial deals of all-time. Read: https://lnkd.in/effaepA2

Popular sparkling water brand Spindrift is said to be exploring a sale. Will private equity bite? This and more buyout news: https://lnkd.in/eGhucpHs