A&O Shearman’s Post

We advised Providence Equity Partners and Globeducate on the porting of Globeducate’s debt facilities, and establishment of new facilities, in connection with the acquisition by Wendel of an approximately 50% stake in Globeducate. Providence, a premier private equity firm, originally acquired Globeducate in 2017 and has achieved double-digit average annual revenue growth under Providence’s ownership. Globeducate operates a leading network of K-12 education groups, with 65 premium bilingual and international schools and online programs across 10+ countries. Nick Hallam, sponsor-side leveraged finance partner led the team, alongside senior associates @Xinni Lim and Yasmin Joharchi, and associate Maaya Sachdev. This transaction follows a recent line of deals where our sponsor-side leveraged finance team has advised on portable financings and porting existing facilities on a certain funds basis. Read more here: https://ow.ly/c6ub50SuHHj

We advised Providence Equity Partners and Globeducate on the porting of Globeducate’s debt facilities, and establishment of new facilities, in connection with the acquisition by Wendel of an approximately 50% stake in Globeducate. Providence, a premier private equity firm, originally acquired Globeducate in 2017 and has achieved double-digit average annual revenue growth under Providence’s ownership. Globeducate operates a leading network of K-12 education groups, with 65 premium bilingual and international schools and online programs across 10+ countries. This transaction follows a recent line of deals where our sponsor-side leveraged finance team has advised on portable financings and porting existing facilities on a certain funds basis. Read more here: https://ow.ly/c6ub50SuHHj

🚀 Big strides in the world of private credit! Temasek-backed SeaTown Holdings International just announced the final close of its SeaTown Private Credit Fund II (PCF II), raising over $1.3 billion—surpassing the $1.2 billion raised for its predecessor. 🔑 Key Highlights: - Significant Investor Interest: Commitments came from a diverse group, including a leading Middle Eastern institutional investor, insurance companies, endowments, and family offices. - Strategic Focus: PCF II will target mature, profitable companies across various sectors, issuing debt ranging from $30-100 million with flexible loan periods of 1-6 years. - Impressive Targets: The fund aims for a mid-teens net return and a double-digit distribution yield, making it an ideal fit for multi-asset portfolios seeking income, capital preservation, and diversification. - Expanding Reach: With the close of PCF II, SeaTown’s private credit strategy now manages over $2.5 billion in assets across both funds, contributing to the firm's total $4 billion in assets under management across multiple strategies. Patrick Pang, SeaTown Holdings International CEO, emphasized their team’s proven ability to source, structure, and execute complex deals, providing tailored financing solutions across the Asia Pacific. This is a testament to SeaTown's disciplined approach and deep market expertise, setting a strong precedent for future growth in private credit. For more insights on this announcement, check out the full article: https://hubs.li/Q02P5gWd0 #PrivateCredit #InvestmentStrategies #SeaTownHoldings #CapitalPreservation #Temasek #infineo

At MCP we identified the bias of capital markets towards start-ups (of which 95%+ fail) and large corporates. It is our mission to offer small business access to capital in South East Queensland. The linked story is validation but we see another option than the traditional debt that saps cash flow. As a value-adding equity investor, we will back you in achieving your business goals. Reach out today for a chat. "Research by small-business lender OnDeck Australia confirms the presence of an uneven playing field facing Australia’s small businesses when it comes to raising capital." https://lnkd.in/g9VY5QZC #sme #smefinance #smesupport #smegrowth #smefunding #smebusiness #smallbusinessstrategy #smallbusiness #smallbusinessfunding #smallbusinessowner #smallbusinessfinance #smallbusinesshelp #smallbusinessaustralia #smallbusinessowners #privatecapital

To combat the market downturn and higher interest rate environment, PE firms practice their new fundraising tactic of increasingly raising more money to buy companies on a deal-by-deal basis. Hopefully, this strategy will attract more investors, allowing them to start deploying the current $4tn of dry powder. Financial Times: https://lnkd.in/e73fvHqU William Louch #PrivateEquity #Dealmaking #Investments 

“Oakley strives to be different, focusing on helping companies to grow, working with management and taking a conservative approach to debt. The group is known for working with founders, often family-run enterprises which are keen to move to the next level but need outside support.” "Oakley Capital shares have delivered returns for investors who bought in 2022, but there is more to come. An attractive stock for new and existing shareholders." joanne hart writes about Oakley Capital Investments the Mail on Sunday’s Midas tipster column. Get the full story 👇 #listedprivateequity #investing https://lnkd.in/eGYQhmFh

In the acquisition financing world, middle market private equity investors are held in high esteem. They are a sought-after relationship by lenders and service providers due to their continual investment activity and fee generation potential. #AcquisitionFinance #MergersAndAcquisitions #DealFunding #CorporateFinance #BusinessAcquisition #CapitalRaising #PrivateEquity #VentureCapital #LeveragedBuyout #DebtFinancing #AcquisitionStrategy

If you’re reading this and wondering whether Jensten would be a good home for your business, then drop me a line and you can find out.

Buyout transactions in private equity involve acquiring a controlling interest in a mature company, typically through a combination of equity and debt financing. Here’s a breakdown of how they work: Types of Buyouts 1. Management Buyouts (MBOs) The existing management team buys the company, often with the help of private equity funding. 2. Management Buy-ins (MBIs) An external management team acquires and takes over the company. 3. Leveraged Buyouts (LBOs) The acquisition is primarily financed through debt, using the target company's assets and cash flows as collateral[1][2][3]. Process 1. Funding: Private equity firms raise capital from institutional investors and use debt from financial institutions. 2. Newco Formation: A new company (Newco) is often created to facilitate the acquisition. 3. Acquisition: Newco purchases the target company, taking on debt and equity to finance the deal. 4. Value Creation: Post-acquisition, the focus is on improving operational efficiencies, enhancing management, and strategic realignment to increase the company's value[1][2][4]. Risks and Rewards - Leverage: Using debt amplifies potential returns but also increases financial risk. -Operational Improvement: Successful buyouts depend on the ability to improve the target company's performance and manage debt[1][4][5]. Sources [1] What is Buyout in Private Equity, How Does it Work? - CBCA https://lnkd.in/eckMFXgj [2] What is private equity & and how does a buyout work? - DFA Law https://lnkd.in/e2iVwnze [3] 3 Key Types of Private Equity Strategies - HBS Online https://lnkd.in/evWzNmHw [4] Buyout Funds: How Buyout Managers Add Value? - Moonfare https://lnkd.in/eUsJt2pr [5] Private Equity Buyouts: Changing Dynamics & Opportunities - NEPC https://lnkd.in/eYeJegUm