Newsletter Edition 53
Jan 16, 2025
4 min read
Ardian Breaks Record with $30 Billion Secondaries Fundraise
Private investment firm Ardian has raised $30 billion for its ninth-generation secondaries platform, marking the largest secondaries fundraise in history. This achievement significantly surpasses the $19 billion raised for Ardian’s eighth-generation fund in 2020, underscoring the increasing demand for secondaries investments amid volatile markets.
The fundraise brings Ardian’s Secondaries & Primaries assets under management to $97 billion. It attracted over 465 investors from 44 countries, including pension funds, insurance companies, sovereign wealth funds, financial institutions, and high-net-worth individuals. Notably, private wealth clients accounted for 22% of the equity raised, double the share from the previous fund.
The platform closed at its hard cap, reflecting strong LP interest as liquidity needs and market volatility drove record deal volumes in 2024. Ardian’s strategy focuses on acquiring stakes in high-quality private equity assets and providing liquidity solutions to sophisticated institutional investors and general partners.
Ardian’s Secondaries & Primaries team comprises over 100 investment professionals across 14 offices, with a leadership team that has collaborated for nearly two decades. The platform has covered 1,600 funds from more than 650 general partners, leveraging access to 5.4 million real-time data points on over 10,000 underlying companies.
This landmark fundraise solidifies Ardian’s position as a global leader in the secondaries market, capitalizing on strong investor appetite and its reputation for delivering liquidity and high-quality investment opportunities.
Ares Closes Record €17.1 Billion European Direct Lending Fund
Ares Management Corporation has announced the closing of its sixth European direct lending fund, Ares Capital Europe VI (ACE VI), at €17.1 billion, surpassing its €15 billion target and reaching its hard cap. The fund represents the largest institutional private credit fund raised to date in terms of limited partner (LP) equity commitments, according to BusinessWire.
ACE VI marks a 53% increase in LP commitments compared to its predecessor, Ares Capital Europe V, which closed at €11.1 billion in 2021. Including related vehicles and anticipated leverage, Ares’ European Direct Lending strategy now has approximately €30 billion in available capital.
Combined with the $33.6 billion raised for Senior Direct Lending Fund III (SDL III), Ares has secured $64.5 billion across its SDL III and ACE VI strategies, further cementing its position as a global leader in private credit.
ACE VI targets flexible financing solutions for European companies in defensive industries, prioritizing senior-secured positions, capital preservation, and low volatility. The fund focuses on businesses with EBITDA exceeding €10 million and has already committed approximately €6.4 billion across more than 50 investments.
As of September 30, 2024, Ares’ European Direct Lending strategy manages over $74 billion in assets and operates with a team of 90 investment professionals across London, Paris, Frankfurt, Stockholm, Amsterdam, and Madrid. Since its inception, the platform has completed nearly 380 investments totaling over €70 billion.
The success of ACE VI underscores Ares’ ability to capitalize on growing investor demand for private credit solutions in Europe. With its focus on providing stable, flexible financing to leading companies, Ares continues to shape the landscape of direct lending on a global scale.
EG Group Targets $13 Billion New York IPO
EG Group, a global petrol station and convenience store operator backed by TDR Capital, is preparing for a New York IPO that could value the company at $13 billion. The move provides TDR an opportunity to partially divest its investment, which began in partnership with Blackburn’s Issa brothers in 2014.
Founded in 2001 by Zuber and Mohsin Issa, EG Group has grown from a single petrol station in Lancashire to over 5,500 locations across nine countries, driven by acquisitions and TDR’s support. The company plans to list under the name Cumberland Farms, a US convenience store operator it acquired in 2019, reflecting its significant US presence, which now accounts for over half its earnings.
Zuber Issa noted the US listing allows benchmarking against peers like Alimentation Couche-Tard and Casey’s General Stores. “If we had still had [the majority of] our assets in the UK, we would have had a much closer look at a UK IPO,” he told The Sunday Times.
In 2023, EG reported $1.1 billion in profit on $28.3 billion in revenue and cut its net debt from $10 billion to $5.3 billion. The company no longer operates UK petrol stations, having sold them to Asda, which is also owned by TDR and Mohsin Issa.
While Zuber stepped down from management in 2022, he remains a shareholder and non-executive director. Mohsin serves as sole CEO, overseeing the IPO as part of TDR’s strategy to drive long-term growth rather than seek an immediate exit.
The decision to list in New York, driven by EG’s US focus, marks another blow to the London Stock Exchange’s efforts to attract major IPOs. As EG prepares for this milestone, the company aims to cement its position as a leader in convenience retail and petrol station sectors globally.
https://www.privateequitywire.co.uk/eg-group-eyes-13bn-new-york-ipo/