Newsletter Edition 71
29.05.2025
Vista Nears $2B Acquisition of EQT-Backed ERP Firm Acumatica
Vista Equity Partners is nearing a deal to acquire Acumatica, a cloud-based enterprise software provider, from Swedish private equity firm EQT in a transaction valued at approximately $2 billion including debt, according to a report by Bloomberg citing sources familiar with the matter.
The deal, which could be announced as early as Thursday, would add another mid-market software company to Vista’s portfolio, reinforcing its strategy of targeting high-growth businesses with recurring revenue and scalable cloud platforms. While discussions remain ongoing, the deal is said to be at an advanced stage, and terms could still change.
Based in Bellevue, Washington, Acumatica provides enterprise resource planning (ERP) software tailored to small and medium-sized enterprises (SMEs). Its cloud-native platform enables customers to manage financials, inventory, operations, and customer relationships more efficiently—offering a modern alternative to legacy ERP systems. The company has benefited from the growing digitalisation of SMEs, particularly in sectors seeking agile and customizable software solutions.
EQT acquired Acumatica in 2019 through its EQT VII fund as part of a broader transaction involving IFS, another ERP provider. While financial details of the original deal were not disclosed, a $2 billion sale would likely represent a strong return for EQT, in line with the private equity industry’s ongoing focus on high-retention vertical SaaS companies with defensible intellectual property.
Neither EQT nor Vista have commented on the transaction.
If completed, the deal would mark another significant step for Vista as it continues to expand in the cloud software sector, having recently completed or explored transactions involving similar companies with strong growth fundamentals and subscription-based business models.
https://ground.news/article/vista-closing-in-on-2bn-deal-for-eqts-acumatica
TowerBrook, Warburg Pincus, and Stonepeak Plan £4.5bn Exit Strategy for AA
The private equity owners of British roadside assistance provider AA are preparing a strategic review that could lead to an exit valuing the business at over £4.5 billion, according to a report by Sky News. TowerBrook Capital Partners, Warburg Pincus, and infrastructure investor Stonepeak are expected to appoint JP Morgan and Rothschild as advisers to evaluate options including a trade sale, IPO, or partial divestment by 2026 or later.
The move follows a successful turnaround of the AA, marked by four consecutive years of revenue and earnings growth. Stonepeak’s £450 million investment in 2023—comprising common and preferred equity—valued the company at £4 billion and set the stage for a longer-term ownership strategy. Sources familiar with the process suggest that a potential exit could command a valuation floor of at least £4.5 billion, driven by the company’s improved financial performance and investor interest in infrastructure-like, recurring revenue assets.
While a formal transaction isn’t expected within the next 12 months, the appointment of financial advisers signals early preparations for what could be one of the UK’s largest private equity exits in the infrastructure and services sector.
Since being taken private in 2021 by TowerBrook and Warburg Pincus—following a period of public market underperformance and heavy debt burdens—the AA has undergone a significant transformation. Under Chairman Rick Haythornthwaite (also Chair of NatWest Group) and CEO Jakob Pfaudler, the company has broadened its offerings, including a growing insurance division and the UK’s largest driving school network. The AA now serves over 16 million customers and handled 3.5 million breakdowns in 2024.
Despite its progress, the company still carries around £1.9 billion in net debt. However, investors remain optimistic about its cash generation and infrastructure-like stability, characteristics increasingly prized in a higher interest rate environment.
Private equity firms have a long history with the AA, which was previously owned by CVC Capital Partners and Permira before its 2014 IPO and subsequent privatization at a lower valuation. The potential exit would mark another chapter in the firm’s storied ownership history and could mirror similar deals in the sector—such as Silver Lake’s 2021 investment in rival RAC alongside CVC and Singapore’s GIC.
Blackstone Acquires $5B Private Equity Portfolio from NYC Pension System
Blackstone has acquired a $5 billion private equity portfolio from the New York City Retirement Systems (NYCRS), marking one of the largest secondary transactions in recent years and underscoring growing momentum in the private equity secondaries market.
According to a statement from the NYC Comptroller’s Office, the deal includes 450 limited partnership interests across 125 funds managed by 75 general partners. The transaction was not driven by liquidity needs but is part of a broader strategic realignment of the pension system’s private equity portfolio.
The sale process, launched in December 2024, attracted interest from more than 80 secondary buyers, reflecting intense demand for large, diversified portfolios in a market where deal volumes continue to rise. Evercore advised NYCRS on the transaction, while legal counsel was provided by Morgan Lewis.
Though financial terms were not disclosed, secondary deals of this size are often executed at a discount to net asset value (NAV), reflecting the complexities involved in pricing mature fund interests and the illiquidity of private assets.
The move comes amid a broader surge in secondary market activity, as institutional investors grapple with sluggish distributions from their private equity portfolios. A slowdown in global M&A and IPO markets, coupled with higher interest rates, has left many limited partners over-allocated to private markets. In response, LPs are increasingly turning to secondaries to rebalance portfolios and manage denominator effects.
The New York City Retirement Systems—which collectively manage more than $270 billion in assets—serve teachers, civil servants, firefighters, police officers, and education workers. Recent returns from its private equity portfolio have trailed national peers, with fiscal year 2024 gains in the 4–5% range, compared to 10.9% at CalPERS and 8.6% at CalSTRS. The sale to Blackstone may reflect a recalibration of NYCRS’s long-term private market exposure.
Strategic Partners, Blackstone’s secondaries investment platform, is among the largest in the world, having raised more than $67 billion across asset classes. The firm’s scale and experience in complex transactions positioned it as a strong partner for NYCRS in executing this landmark portfolio sale.