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Tuesday, December 7, 2021

Franklin Templeton to purchase Lexington; Blackstone closes 2 insurance coverage offers

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S&P International Market Intelligence presents our high picks of world personal fairness information tales and extra printed all through the week.

Franklin Assets Inc. is the newest agency to make a plunge into the rising secondaries market, saying this week that it’ll purchase Lexington Companions LP for mixture money funds of $1.75 billion.

Franklin Templeton expects its various property below administration to develop to $200 billion on the shut of the transaction. Its acquisition of Lexington Companions, which focuses on secondary personal fairness and coinvestment funds, follows the acquisition of actual property supervisor Clarion Companions LLC, introduced in 2020, and various credit score supervisor Profit Road Companions LLC in 2018.

“A number of years in the past, we introduced our intention to create a full suite of different methods, and we have now been very deliberate in constructing our capabilities,” Franklin Templeton CEO Jennifer Johnson mentioned on its third-quarter earnings name following the announcement. “We now have top-tier specialist funding managers in all the key various classes,” which additionally embody hedge funds.

Lexington Companions will proceed to function autonomously from Franklin Templeton with no modifications to the staff or its unbiased merchandise, Johnson mentioned.

By way of the general secondary market, personal fairness secondaries make up the biggest chunk, with AUM at $300 billion at 2020 year-end, up 23.4% on the $243 billion recorded in 2019, in keeping with Preqin’s first-half replace on the house.

Market individuals anticipate secondaries transaction volumes might attain $100 billion or extra in 2021, fueled by the recognition of normal partner-led options.

In an analogous transaction, Ares Administration Corp. purchased secondaries specialist Landmark Companions for $1.08 billion in a deal introduced in March.

FUNDRAISING AND DEALS

* Blackstone Inc. bought a 9.9% stake in American Worldwide Group Inc.’s life and retirement enterprise, whereas entities managed by the personal fairness large acquired Allstate Life Insurance coverage Co. and sure subsidiaries from The Allstate Corp. for a complete consideration of $4 billion. Funds managed by the agency additionally purchased sensible entry options supplier The Chamberlain Group LLC from The Duchossois Group Inc.

* EQT AB (publ)’s EQT Infrastructure fund will exit container terminal Fenix Marine Providers Ltd. to delivery line CMA CGM SA in a $2.3 billion transaction, in keeping with Dow Jones Newswires. The agency mentioned it hit its arduous cap for the EQT Infrastructure V fund at ultimate shut, with €15.7 billion in fee-generating property below administration.

* Carlyle Group submitted a proposal to accumulate troubled London-based lender Metro Financial institution PLC, in keeping with Dow Jones Newswires. The agency individually mentioned it bought a majority stake in CSS AG, and the German enterprise software program supplier’s CEO Michael Friemel will hold a big minority stake.

* Permira Advisers Ltd. agreed to promote Tricor Group to Baring Personal Fairness Asia-affiliated funds in a deal that values the Hong Kong-based enterprise service supplier at $2.76 billion.

ELSEWHERE IN THE INDUSTRY

* Leeds Fairness Companions LLC amassed greater than $1.4 billion for the Leeds Fairness Companions VII LP fund at ultimate shut.

* Guardian Capital Companions PLC divested pet product retailer Cosmic Pet LLC in a take care of Platinum Fairness LLC-backed Petmate.

* Center-market buyout agency Comvest Companions exited its majority funding in RugsUSA.com Inc. to Francisco Companions Administration LP whereas remaining a big investor within the e-commerce retailer of rugs and residential decor.

* Sentinel Capital Companions LLC-managed automobiles will promote Italian restaurant chain Fazoli’s to FAT Manufacturers Inc. in a $130 million transaction slated to shut by mid-December.

FOCUS ON: MACHINERY: INDUSTRIAL

* KKR & Co. Inc. reached a deal to purchase meals processing gear maker Bettcher Industries Inc. from MPE Companions.

* Crucial Course of Methods Group Inc. was bought by Wynnchurch Capital LP to facility designer Exyte GmbH.

* Berkshire Companions LLC made a majority funding in precision chopping instruments maker Harvey Efficiency Co., marking an exit for Summit Companions LP.



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