Newsletter Edition 60
Mar 6, 2025
Blackstone Gets Approval for $13B UK Data Centre
Blackstone has secured approval from Northumberland County Council for a $13 billion (£10bn) hyperscale data centre in North East England, aiming to meet surging demand for cloud computing and AI infrastructure, Reuters reports.
The 540,000-square-metre facility will generate 1,200 construction jobs, hundreds of permanent roles, and 2,700 indirect jobs. Blackstone has also pledged £110 million for local economic growth along the Northumberland Line railway.
The project comes as data centre demand soars, driven by AI, cloud computing, and enterprise tech expansion. A CBRE Group report forecasts record-breaking European data centre growth by 2025.
The site was originally set for Britishvolt, a failed UK battery startup. Blackstone’s investment marks a shift toward tech-focused infrastructure, reinforcing its leadership in digital assets.
Carlyle Targets $5B in 2025 Exits Amid IPO Surge
Carlyle Group plans to accelerate IPOs and asset sales in 2025, aiming for up to $5 billion in exits from its private equity portfolio, matching last year’s divestments, Reuters reports.
Despite a challenging financing environment, the firm remains open to large leveraged buyouts (LBOs), signaling confidence in a rebound in U.S. dealmaking. Carlyle’s Americas Corporate Private Equity co-heads, Brian Bernasek and Stephen Wise, expect an upswing in transactions later this year, despite global M&A volumes declining to $441.7 billion year-to-date from $523.4 billion in 2024, according to Dealogic data.
Carlyle is particularly bullish on IPOs, with over 80% of its portfolio focused on service-based industries with limited exposure to tariff risks. The firm is preparing a public listing for Medline, the medical supplies giant it acquired in 2021 alongside Blackstone and Hellman & Friedman for $34 billion, now expected to be valued at over $50 billion. This follows the October IPO of Carlyle-backed aircraft maintenance provider StandardAero.
Despite higher interest rates, Carlyle is still willing to pursue large LBOs, focusing on industry leaders. The Medline deal showcases its continued appetite for "club deals," where multiple private equity firms collaborate on major buyouts.
While Carlyle’s private equity division saw a drop in Q4 2024 distributable earnings—from $276.1 million to $209.6 million—the firm remains confident in fund performance, with its latest U.S. buyout funds growing 15% and 21% in 2024.
https://www.privateequitycentral.com/edition/daily-investment-horizon-deal-origination-2025-03-04/
Ex-Ares Executive Secures $2B Millennium Backing for New Firm
Scott Graves, a former senior executive at Ares Management, has secured a $2 billion commitment from hedge fund giant Millennium Management to launch Lane42 Investment Partners, a new alternative asset management firm.
Based in Los Angeles with plans to expand to New York, Lane42 will provide both debt and equity financing to businesses across the public and private sectors. Unlike traditional private equity firms, Lane42 will not require control stakes, instead focusing on flexible capital solutions for companies in various financial conditions, including healthy, stressed, and distressed businesses.
Graves sees a strong market opportunity for Lane42 as liquidity needs evolve. “I think it’s a really good time for a new entrant,” he told Bloomberg, adding that the firm will be positioned to meet capital needs during a period of economic uncertainty.
Millennium has taken a minority equity stake in Lane42 as part of its increasing focus on private credit and opportunistic investing. Institutional demand for flexible financing options continues to grow, and Millennium's backing signals confidence in Graves’ expertise.
Graves, 54, brings extensive experience to the new venture. Before founding Lane42, he served as Co-Head of Private Equity and Head of Special Opportunities at Ares Management. He also spent 15 years at Oaktree Capital Management, specializing in complex capital solutions.
With Millennium’s support, Lane42 aims to establish itself as a key player in private credit and alternative investments, bridging the gap between private equity and public market financing.
https://www.privateequitywire.co.uk/ex-ares-exec-secures-2bn-millennium-backing-for-new-firm/