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Back to blog December 14, 2018 No Comments Author: Andy Jones

Private Equity Exit Trends

Each month, we review and comment on private equity investment trends. I wondered if we might find industry themes from private equity portfolio exits over the past few months. I queried our M&A Research Database to find out.

Private Equity Exits

These six sectors saw the most exits over the past few months.

Industry (# exits)

  1. Software (14)
  2. Manufacturing (13)
  3. Chemicals (8)
  4. Business Services (5)
  5. Data Management (5)
  6. Information Technology (4) – I have previously written about a surge in IT services companies on the market (on the sell-side). So, this is consistent with that trend.

These industry sectors represent a large swath of the overall mix of portfolio companies owned by private equity firms. That is, these exits are a small percentage of the total number of PE portfolio companies in these sectors and therefore do not suggest a trend or anything unusual in my opinion.

Below, I’ve added a further details and commentary for the transactions in the Data Management and Chemicals sectors.

Private Equity Exits from Data Management Companies… Mostly to Other PE Firms

Interestingly, 4 out of the 5 Data Management exits were private equity-to-private equity transactions (where one PE firm sells to another PE firm).

  1. Data management for hospitals
  2. Market data & inventory management (for financial services)
  3. Benchmarking data for the pharmaceuticals industry
  4. Sports data and intelligence
  5. Arterial traffic management

Data Management – Individual Transaction Details

November 2018 – (Portsmouth, NH)

TPG Growth acquired Q-Centrix from Sterling Partners.

Q-Centrix is a provider of outsourced quality data management solutions for hospital and healthcare providers.

 

November 2018 – (New York, NY)

Pamlico Capital invested in The Roberts Group (TRG). As part of the transaction, outgoing investor Polaris Partners divested their stake in the business.

The Roberts Group provides market data cost and inventory management solutions to the global Financial Services industry.

 

November 2018 – (East Norriton, PA)

TGaS was acquired by Trinity Partners, a Parthenon Capital Partners portfolio company.

TGaS Advisors is a provider of comparative benchmarking and advisory services to the pharmaceutical industry.

 

October 2018 – (St. Gallen, Switzerland)

EQT VI sold its 35% stake in Sportradar to a consortium of CPPIB (Canada Pension Plan Investment Board) and Technology Crossover Ventures (TCV) in a transaction valuing Sportradar at EUR 2.1bn. EQT VI will reinvest a portion of the sale proceeds into Sportradar alongside Carsten Koerl, CPPIB, TCV and other minority shareholders. Additional existing shareholders include Revolution Growth, Ted Leonsis, Michael Jordan, and Mark Cuban.

Sportradar is a global provider of sports data intelligence.

 

October 2018 – (Sugar Land, TX)

KRG Capital Partners sold Trafficware to Cubic Corporation.

Trafficware is a provider of innovative hardware and software solutions for arterial traffic management.

 

Private Equity Exits of Chemicals Portfolio Companies

  • Copper powder
  • Metal powder
  • Vanadium production
  • Specialty chemicals (3 companies)
  • Coatings
  • Dosing dispensers

The biggest question here is… “What is vanadium?”

It’s a chemical element (atomic number 23, making it a metal). It’s primarily used as an additive in metal alloys to increase the strength of steel. Here’s a picture of it. Visually, kind of looks like tin:

Vanadium

 

 

 

 

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