Newsletter Edition 55
30.01.2025
5 min read
Why are transparency and verification of ELTIFs essential to receive the illiquidity premium?
We are delighted that our CEO, Philipp Hemmersbach, was able to provide exciting insights into one of the key topics in our industry in the latest episode of Betting Billions: Transparency in the private markets for retail investors.
The discussion focused not only on the opportunities, but also on the challenges that access to private markets entails for private investors. Especially in the context of ELTIFs, it became clear how important a responsible approach and realistic promises are in order to shape the market sustainably.
Another key concern was the need to carefully examine products in terms of fees, liquidity management and underlying assets. This is the only way to give investors a realistic chance of investing in products that can actually generate an illiquidity premium.
Many thanks to the Betting Billions team for the invitation and the opportunity to talk about these important topics!
Listen to the Betting Billions podcast here: https://www.linkedin.com/posts/boersenzeitung_privatemarkets-bettingbillions-eltif-activity-7287026315549892608-Wzxd?utm_source=share&utm_medium=member_desktop
For information on audited ELTIFs, please contact us here: https://lnkd.in/erXKZ6ki
Ares and Carlyle Invest €800 Million in Online Solutions Provider Your.World
Your.World, a leading European provider of web hosting, online productivity, and managed IT services, has secured a strategic €800 million investment from Ares Management Credit Funds and Carlyle. The long-term partnership capital, structured as preferred equity, will support the company’s expansion and acquisition-driven growth strategy.
Founded in 2016 by Strikwerda Investments, Your.World has grown rapidly through a serial acquirer model focused on sustainable value creation and scalable mergers and acquisitions. The company now operates 45 distinct brands, employs over 2,000 people, and serves more than one million customers through its Your.Online and Your.Cloud divisions.
“We are excited to be investing in Your.World as it enters its next chapter of growth,” said James Kim, Partner and Head of European Opportunistic Credit at Ares. “The company’s sector leadership, strong management, and robust M&A pipeline underscore our conviction in its long-term value creation.”
Taj Sidhu, Head of European and Asian Private Credit at Carlyle, echoed this sentiment, stating: “Your.World is a leader in a resilient and fragmented market with significant room for continued expansion.”
JP Morgan acted as the exclusive financial adviser and sole placement agent for Strikwerda Investments and Your.World, while A&O Shearman provided legal advisory services.
This investment highlights the growing interest in digital infrastructure and online services, reinforcing Your.World’s position as a key player in the European market.
KKR Among Bidders for $6 Billion Renewable Energy Firm Cubico
Private equity giant KKR has emerged as a key contender in the acquisition of Cubico Sustainable Investments, a UK-based renewable energy firm valued at approximately $6 billion, including debt, according to Reuters. The sale process, initiated by Cubico’s owners—the Public Sector Pension Investment Board (PSP) and the Ontario Teachers’ Pension Plan (OTPP)—has also attracted interest from Italian energy conglomerate Enel and other infrastructure investors.
Non-binding offers were submitted last week, with Bank of America and the Canadian Imperial Bank of Commerce managing the sale. While KKR, Cubico, and its owners have declined to comment, Enel dismissed speculation as “market rumours.”
Cubico was founded in 2015 as a joint venture between PSP, OTPP, and Banco Santander SA. In 2016, the Canadian pension funds acquired Santander’s stake, becoming equal owners. Today, Cubico operates wind and solar farms across Europe, the Americas, and Australia, with a total capacity of 2.8 gigawatts (GW). The company also specializes in concentrated solar power and transmission line technology, making it a valuable asset in the global energy transition.
For KKR, acquiring Cubico would represent another major step in its growing renewable energy investments. The firm has been aggressively expanding in the sector, leveraging its infrastructure expertise and capacity for large-scale capital deployment.
As the global shift toward clean energy accelerates, Cubico’s sale is expected to attract further interest from investors seeking exposure to renewable infrastructure assets.
Bain Capital Makes $3.2 Billion Take-Private Bid for Surgery Partners
Bain Capital Private Equity has submitted a $3.2 billion proposal to acquire the remaining 61% of Surgery Partners that it does not already own, offering $25.75 per share to take the surgical facility operator private, according to a regulatory filing on Tuesday. The bid represents a 21.2% premium over Surgery Partners’ last closing price, sending the company’s shares up over 20% following the announcement.
Surgery Partners has formed a special committee of independent directors to evaluate the offer with guidance from financial and legal advisors. However, analysts believe Bain’s bid may attract competing offers. Bill Sutherland, an analyst at Benchmark, noted that several strategic and financial buyers have previously expressed interest in the company.
Bloomberg recently reported that TPG and UnitedHealth were among those considering an acquisition, alongside other private equity firms and healthcare operators.
Bain Capital has been a majority investor in Surgery Partners since 2017 and emphasized in a letter to the company that its offer reflects investor sentiment and is in the best interests of shareholders. The firm also clarified that it has no intention of selling its existing stake and is solely focused on acquiring the remaining shares.
The bid follows Surgery Partners’ recent exploration of strategic alternatives, which ultimately did not lead to a transaction. With interest from multiple parties, the deal could spark a competitive bidding process in the healthcare sector.