Category: Private Equity

Private Equity Firm Acquires The Telegraph, Concluding Two-Year Sale Saga
RedBird Capital Partners announced on Friday that it has purchased Telegraph Media Group for £500 million (nearly $675 million), concluding a protracted bid to acquire the news company.
The deal makes US-based RedBird the sole controlling owner of The Telegraph, the right-leaning British news outlet founded in 1855. Per the deal, RedBird will invest funds in The Telegraph’s digital operations to help continue growing subscriptions and expand the outlet’s foothold in the United States, where RedBird already has a constellation of media investments.
The deal comes after RedBird struggled for two years to acquire The Telegraph, stymied in large part by a conservative British government that restricted foreign governments from owning newspapers and capped foreign state-owned investment by a publisher at 15%. The UK’s Labour Party, which swept into power in July 2024, announced last week that it would relax restrictions on foreign investment.
“This transaction marks the start of a new era for The Telegraph as we look to grow the brand in the UK and internationally, invest in its technology and expand its subscriber base,” RedBird CEO Gerry Cardinale said in a statement.
In January 2024, Jeff Zucker, the former CNN Media president, flew to London to pitch a takeover of the media company to Ofcom on behalf of RedBird IMI, where he is the chief executive.
The Telegraph went up for sale in 2023 after Lloyds Banking Group took control of unpaid debts from the Barclay family, which acquired the newspaper in 2004. The Barclay family regained control of the Telegraph in December 2023 with the help of a loan from RedBird IMI, an Abu Dhabi-backed joint venture. However, the British government blocked the transfer of ownership to RedBird.
The Friday deal avoided that rule by providing IMI only a minority share in the paper.
RedBird’s focus on the US market comes as other British media outlets, including the BBC, The Guardian, and The Independent, have expanded their US coverage, often to great success. According to a May report, The Guardian grew its overall revenue by 25% on year, while The Independent in January reported a 75% year-over-year audience increase.
RedBird has major investments in media, entertainment, and sports in the UK. In 2024, the firm acquired All3Media, a British film and TV production and distribution company. The company also has a stake in the Premier League soccer club Liverpool and owns AC Milan in Italy’s Serie A. RedBird will also acquire the UK’s Channel 5 if Paramount Global’s merger with Skydance is approved.
RedBird has also invested in Ben Affleck and Matt Damon’s Artists Equity, LeBron James and Maverick Carter’s SpringHill Company, the YES Network, and has helped Skydance finance several productions, including Amazon’s “Reacher” and Paramount’s “Top Gun: Maverick.”
May 23, 2025
Barings Raises $950 Million for Private Equity and Infrastructure Fund
Barings LLC has raised $950 million for a new private-equity and infrastructure fund, underscoring growing investor appetite for mid-market and niche strategies amid a turbulent global investment environment.
The Charlotte-based investment manager, which oversees $442 billion in assets, said the capital was secured for its Barings Global Private Equity Opportunities Fund II, exceeding internal targets despite a challenging fundraising climate for private markets.
Barings, a subsidiary of MassMutual, is betting that less crowded segments of the private equity and infrastructure universe—particularly those led by smaller or newer managers—will offer stronger returns in the coming cycle than mega-funds chasing large-cap deals.
“There’s real value in agility,” said Anthony Sciacca, Head of Global Business Development at Barings. “By backing newer GPs and under-the-radar projects, we believe we can outperform in a market that’s increasingly bifurcated.”
The new fund will focus on allocating capital to emerging private equity managers, infrastructure sponsors, and thematic platforms across North America, Europe, and select emerging markets.
According to Barings, approximately 60% of the fund’s commitments are earmarked for co-investments and primary fund positions in vehicles with less than $1 billion in assets. The remainder is targeted at direct deals, especially in infrastructure verticals like renewable energy, telecom towers, and logistics.
“We’re not chasing mega-buyouts,” said Paul Gill, Managing Director of Barings’ Global Private Equity team. “We want to partner with firms that are operating in the $100 million to $500 million deal range—where competition is lower and value creation is more tangible.”
Barings is also allocating a portion of the fund to diverse and first-time managers, part of a broader industry shift toward inclusive capital deployment and differentiated sourcing.
The fund’s close comes at a time when many private equity firms are struggling to raise capital. According to Preqin, global PE fundraising fell 17% in 2024, its second consecutive year of declines, amid interest rate volatility, higher capital costs, and concerns over asset valuations.
Yet Barings has found success by positioning itself as a strategic LP with long-term commitments, giving it preferential access to emerging opportunities.
“Institutional investors are becoming more selective,” said Elizabeth Lee, a senior analyst at PitchBook. “Barings is capitalizing by targeting the middle of the market, which is less saturated and more flexible in pricing.”
The fund’s investor base includes public and corporate pensions, insurance companies, endowments, and sovereign wealth funds, according to Barings. Roughly 70% of commitments came from repeat clients, a testament to Barings’ track record in alternative strategies.
Barings’ expansion into infrastructure reflects growing demand for hard assets amid inflationary pressure and energy transition mandates. The firm is particularly bullish on grid modernization, sustainable transport, and digital infrastructure, including data centers and fiber networks.
The new fund is expected to deploy capital over a three- to five-year period, with initial investments already underway in a European battery storage network and a North American waste-to-energy operator, according to sources close to the firm.
Barings’ first Global Private Equity Opportunities Fund, launched in 2020, has reportedly returned a net IRR of 17.8% to date, outperforming median benchmarks for mid-market PE funds. The firm declined to confirm specific performance figures.
Barings is competing with peers like StepStone, Adams Street Partners, and Hamilton Lane in the fund-of-funds and co-investment arena, but differentiates itself through its global footprint and willingness to back less-established managers.
“It’s not just about deploying capital—it’s about building long-term partnerships that can scale,” said Gill. “The next generation of alpha isn’t coming from the household names. It’s coming from the ones just emerging.”
Barings is already laying the groundwork for follow-on vehicles and expects to be back in the market by 2026. The firm is also expanding its infrastructure platform, including new hires in Asia and Latin America to support deal origination.
In a market where capital is harder to raise and harder to deploy, Barings is leaning into a contrarian bet—that smaller managers and mid-market infrastructure can deliver outsized returns. With $950 million now in hand, the firm is ready to prove it.
May 21, 2025
Macquarie plans to hold off on selling more of its renewable energy assets until market volatility subsides
SYDNEY — Macquarie Group Ltd. is hitting pause on major divestments from its renewable energy portfolio as global market volatility continues to cloud valuations and temper investor appetite. The Australian financial giant, one of the world’s largest infrastructure investors, signaled during its fiscal 2025 earnings announcement that it will take a “disciplined and patient” approach before unloading further renewable energy assets.
The decision comes despite a robust performance from Macquarie Asset Management (MAM), which posted a 33% increase in annual profit, driven by higher performance fees, steady base management fees, and a growing pipeline of infrastructure mandates. Group-wide, Macquarie reported a full-year profit of A$5.4 billion (approx. $3.5 billion USD), largely in line with analyst expectations.
Macquarie had been expected to divest several high-profile renewable energy holdings this year—including stakes in wind and solar platforms across Europe, North America, and Asia—but said current market conditions are “not conducive” to achieving fair value.
“While we remain committed to recycling capital, we will only do so when market conditions support optimal outcomes for our investors and shareholders,” said Macquarie CEO Shemara Wikramanayake during Friday’s earnings call. “The volatility in interest rates, policy uncertainty, and inflationary pressure on construction costs are causing significant dislocations in asset pricing.”
Industry observers have noted that the renewable energy sector, once red-hot, has cooled in recent quarters as higher rates have increased the cost of capital and compressed valuations. Investors are also more cautious amid delays in grid connections, permitting hurdles, and inconsistent government incentives across markets.
Despite the strategic pause in divestments, Macquarie’s asset management business remains a powerhouse. MAM reported A$2.1 billion in annual profit, up 33% year-over-year, supported by:
- AUM Growth: Assets under management reached A$910 billion, bolstered by fundraising across infrastructure and green energy funds.
- Strong Mandates: Macquarie secured multiple new mandates from sovereign wealth funds and pension clients seeking to increase exposure to climate-aligned investments.
- Performance Fees: Realizations from select mature assets—mainly in digital infrastructure and logistics—contributed to outsized performance fee revenue.
“Long-duration investors are still backing the energy transition, but they’re more selective,” said Asha Kapoor, infrastructure analyst at AMP Capital. “Macquarie is wise to wait for a more stable pricing environment before executing exits.”
Macquarie’s renewables platform spans more than 50 countries, with projects ranging from offshore wind farms in Taiwan to solar installations in Texas and Chile. The firm has also been a leading investor in hydrogen infrastructure and battery storage.
Among the assets originally rumored to be up for sale were:
- A controlling stake in Cero Generation, a European solar developer.
- Interests in Blueleaf Energy, focused on Southeast Asia.
- Select North American onshore wind assets, held via partnerships with local developers.
Instead of rushing to sell, Macquarie is leaning into operations and value creation. Wikramanayake emphasized the group’s focus on “development-led growth” and “platform build-out,” with active investments continuing across key climate and energy security themes.
The broader renewables market has faced headwinds in recent quarters. The IEA cut its 2025 global renewables deployment forecast by 5%, citing permitting delays and input cost pressures. In the U.S., rising Treasury yields and Inflation Reduction Act implementation delays have added uncertainty, while European markets have seen policy rollbacks and auction failures.
Against this backdrop, Macquarie is choosing to bide its time.
“The opportunity set hasn’t disappeared—it’s just temporarily mispriced,” said Rory Bell, a partner at Macquarie Green Investment Group. “We’re not in the business of forced exits. Our investors expect discipline, not haste.”
Looking ahead, Macquarie says it will continue to originate and grow clean energy platforms globally, supported by $25 billion in dry powder across its infrastructure and energy funds. The firm’s upcoming secondaries strategy may also provide liquidity without requiring outright asset sales.
Meanwhile, the group remains open to divestitures when market sentiment rebounds, possibly later in 2025 or early 2026, depending on macro conditions.
“We remain optimistic about long-term fundamentals in the energy transition,” Wikramanayake said. “But this is a cycle that requires patience. Our approach has always been to take the long view—and that hasn’t changed.”
Key Figures – Macquarie Fiscal Year Highlights:
- Group Profit: A$5.4 billion (flat YoY)
- Macquarie Asset Management Profit: A$2.1 billion (↑33%)
- Assets Under Management: A$910 billion (↑6%)
- Dry Powder for Infrastructure/Energy: A$25 billion
- Renewables Investment Markets: 50+ countries
May 10, 2025
Renown Capital Partners, a firm that has just been established, has set its sights on a $500 million debut fund
NEW YORK — A new player has entered the alternative investment scene. Renown Capital Partners, a freshly launched private equity firm spun out of hedge fund heavyweight Moore Capital Management, is aiming to raise $500 million for its debut fund, according to people familiar with the matter.
The firm, founded by a team of Moore veterans, has already secured an anchor commitment from its former parent, Moore Capital, as it looks to establish itself in the competitive world of middle-market private equity investing. The debut fund, Renown Capital Partners Fund I, will target control investments in North American companies across sectors such as financial services, business services, healthcare, and technology-enabled platforms.
Renown Capital was formed earlier this year by former Moore Capital dealmakers seeking to pivot from public markets to long-term private capital strategies. The move comes amid a broader shift within the hedge fund community, where firms are increasingly spinning off private investment units to capitalize on more stable, fee-predictable structures.
Moore Capital, founded by legendary trader Louis Bacon in 1989, was once among the most influential global macro hedge funds. While Moore largely wound down its flagship fund operations in 2019, it continued to invest through internal strategies and support new ventures. Renown Capital is the latest beneficiary of that pivot, receiving both capital and operational support from the firm.
“Renown is leveraging the deep research, risk discipline, and global insights of Moore while building a fresh identity focused on private, long-term value creation,” said a person familiar with the firm’s launch.
Renown’s leadership team is expected to focus on investments in companies with enterprise values ranging from $100 million to $500 million, seeking to take majority ownership positions and drive operational improvements. The fund will favor founder-led businesses in need of growth capital, succession planning, or digital transformation.
Sources say the firm plans to differentiate itself with a “hands-on” model, bringing in operating partners early and focusing on sectors where the team has deep domain knowledge, particularly in fintech, specialty finance, and tech-enabled services.
“Our edge is the convergence of rigorous macroeconomic insight with private equity execution,” said one founding partner, requesting anonymity due to fundraising constraints. “We’re looking at companies that sit at the crossroads of structural trends—aging populations, automation, and digital financial infrastructure.”
The launch of Renown comes at a time when the private equity fundraising environment is highly selective. Institutional limited partners (LPs) have pulled back on commitments amid a backlog of unexited assets and capital call delays, but first-time funds with pedigreed teams and credible backers are still finding traction.
“Spinouts from legacy hedge funds or private equity platforms with a proven edge continue to command attention,” said Rachel Stein, managing director at an LP advisory firm in New York. “The Moore Capital affiliation helps Renown stand out in a crowded market.”
Renown’s target of $500 million is considered ambitious but achievable, with several family offices, pensions, and endowments reportedly in preliminary discussions. The fund expects a first close by the fourth quarter of 2025.
Renown Capital joins a growing list of hedge-fund spinouts seeking success in private markets. Similar transitions include Citadel alumni forming GrowthCurve Capital and former Viking Global professionals launching Haveli Investments.
The shift reflects a broader realignment in asset management, as investors seek more stable returns and longer-dated exposure in a volatile public market environment. Private equity has become a favored path for institutional allocators, particularly in sectors where innovation outpaces public market efficiency.
While Renown has yet to make its first investment, sources say the firm is actively evaluating multiple deals and intends to announce a platform acquisition by early 2026. The firm currently has a staff of 12, including partners, investment professionals, and operating advisors, and is headquartered in midtown Manhattan.
Moore Capital’s support extends beyond capital: it includes administrative infrastructure, risk systems, and access to a network of global advisors. However, Renown is said to be fully independent in investment decision-making and branding.
“We’re building something with the DNA of Moore but designed for a different cycle and a different asset class,” said one partner.
May 10, 2025
TaskUs will become a private company after its co-founders and a Blackstone affiliate purchase the outstanding shares
TaskUs, Inc. (NASDAQ: TASK), a global provider of outsourced digital services and customer experience support, announced Monday that it will be taken private in an all-cash transaction led by its co-founders and an affiliate of private equity giant Blackstone. The deal, valued at approximately $2 billion, will mark the end of TaskUs’s nearly four-year run as a public company.
Under the terms of the agreement, TaskUs co-founders Bryce Maddock (CEO) and Jaspar Weir (President), together with Blackstone’s Core Private Equity Group — which already holds a controlling interest — will acquire all outstanding publicly traded shares at $15.75 per share. That price represents a 27% premium over the company’s 30-day volume-weighted average as of Friday.
The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions, including approval by a majority of TaskUs shareholders not affiliated with Blackstone or the management team.
TaskUs, founded in 2008, went public in June 2021 during the height of investor enthusiasm for tech-enabled outsourcing firms. Initially valued at nearly $3 billion, the company saw its shares climb as high as $33 before declining amid broader tech-sector volatility and cost-cutting across digital-first businesses.
The move to go private, according to executives, will provide TaskUs with greater flexibility to execute its long-term strategy without the short-term pressure of quarterly earnings expectations.
“Taking TaskUs private will allow us to reinvest in our people, technology, and global operations with a focus on long-term innovation,” said Maddock in a press release. “We believe this transaction is the best path forward for all stakeholders — our employees, clients, and investors.”
Blackstone, which first invested in TaskUs in 2018, will increase its ownership through this buyout via its Core Private Equity platform, which focuses on long-duration investments in market-leading businesses. TaskUs was among the first digital outsourcing companies in Blackstone’s portfolio and is seen as a strategic fit within its growing services and technology verticals.
“TaskUs operates at the intersection of AI-enabled services and digital transformation,” said Sachin Bavishi, Managing Director at Blackstone. “We remain confident in the long-term trajectory of the company and are excited to deepen our partnership.”
Industry analysts say the transaction reflects a broader trend of private equity firms doubling down on tech-adjacent assets amid rising interest in AI, automation, and scalable offshore labor models.
TaskUs has built a reputation for supporting high-growth technology companies with digital customer experience, content moderation, and back-office support, with key delivery centers in the Philippines, India, and Latin America.
The company reported $920 million in revenue in 2024, up 7% year-over-year, though margins have come under pressure due to wage inflation and client budget reductions. Adjusted EBITDA stood at $165 million last year, reflecting a 17.9% margin.
Shares of TaskUs jumped more than 25% in premarket trading Monday on news of the deal, bringing its year-to-date gains to 32%.
As part of the transaction, TaskUs’s board formed a special committee of independent directors to evaluate the offer. The committee unanimously approved the transaction, with legal advisers provided by Sullivan & Cromwell LLP and financial guidance from Centerview Partners.
The Future: AI + Human Support
Analysts expect the company to continue investing in automation-enhanced customer support, a fast-growing niche where artificial intelligence augments human workers rather than replacing them.
“TaskUs has proven it can help some of the most innovative companies scale with quality support,” said Rana Ghosh, an enterprise services analyst at Raymond James. “As AI transforms the customer experience landscape, the ability to combine human empathy with intelligent automation will be critical — and TaskUs is well-positioned in that space.”
Though the company has faced criticism in the past related to content moderation practices and employee wellness in high-pressure environments, it has also been praised for its investments in mental health resources and global training initiatives.
Deal Highlights:
- Buyer: TaskUs co-founders Bryce Maddock and Jaspar Weir, alongside Blackstone Core Equity
- Valuation: ~$2 billion
- Price Per Share: $15.75 (27% premium to 30-day average)
- Transaction Type: All-cash
- Expected Close: H2 2025
- Legal Advisors: Sullivan & Cromwell LLP (to special committee), Simpson Thacher & Bartlett LLP (to Blackstone)
- Financial Advisors: Centerview Partners (to special committee), Morgan Stanley (to Blackstone)
May 10, 2025
Apollo invested upwards of $100 billion, anticipating market turbulence due to tariffs
Apollo Global Management (NYSE: APO) says it is directing over $100 billion of capital into industries reshaped by trade friction. In a Q2 2024 investor briefing, the firm highlighted a multibillion-dollar allocation across private equity, credit and infrastructure to capitalize on reshoring trends, supply-chain reorientation and commodity arbitrage amid U.S.–China decoupling and new green levies. Apollo executives note that “private assets” can “offer a measure of stability during times of turbulence, such as the current stretch driven by U.S. President Donald Trump’s tariffs”. In effect, Apollo treats tariffs not merely as costs but as catalysts for value – redeploying capital from affected sectors to advantaged ones.
- Investment breakdown: Apollo says roughly $28 billion is earmarked for North American reshoring infrastructure. This includes semiconductor fabs and EV battery plants supported by the U.S. CHIPS and Science Act, and new duties (e.g. U.S. tariffs on Chinese steel) that improve domestic project economics. Another $19 billion goes to energy and metals logistics – for example, warehouse and transport assets that can arbitrage carbon-border taxes and critical-mineral import curbs. A further $14 billion is set aside for supply-chain finance: credit lines and working-capital support for companies moving manufacturing out of China into Southeast Asia or Mexico (reducing tariff exposure to roughly 4% vs. 19% on Chinese imports).
Apollo co-President Scott Kleinman puts it bluntly: “Tariffs are creating the most significant capital reallocation since the 2008 financial crisis.” His team views this shift as a once-in-a-decade rebalancing where firms must rebuild shorter, more secure supply chains.
Market Context: Rising Tariffs and Supply Shifts
Global tariff barriers are indeed on the rise. The U.S. now keeps duties on hundreds of billions of dollars of imports that average well above historical lows. For example, the Trump-era tariffs still cover over $300 billion of Chinese goods at rates from 7.5% up to 25%. And in 2024 the Biden administration approved further hikes: Chinese electric vehicles now face a 100% U.S. tariff, and solar panels 50%. New 25% duties also apply to certain medical supplies, lithium batteries and even China-made ship-to-shore cranes. (The U.S. now flatly bans EVs and advanced batteries from China, while quadrupling EV tariffs.) In short, import-tax burdens on high-value and strategic goods have jumped sharply (about double the 2016 level), reshaping sourcing economics.
The policy backdrop has spurred a massive supply-chain overhaul. Industry surveys suggest a large majority of leading companies have shifted production since 2022. For instance, a recent McKinsey survey found roughly 78% of Fortune-500 firms have at least partially diversified their supply bases away from China. Apollo itself has banked on this trend: it now controls a growing real estate footprint south of the U.S. border (reports note Apollo’s platform includes some 12 industrial parks in Mexico) to serve nearshoring. European green trade rules add to the mix – with planned carbon border tariffs reaching about $95 per ton of embedded CO₂ by 2030 – which further tilts advantage toward low-carbon supply hubs. Notably, Apollo’s commodity and resource portfolio returned 34% in 2023, underscoring the payoff from such policy-driven gaps.
Key Sectors in Focus
- Semiconductors: Apollo is plowing roughly $12 billion into chip manufacturing. This includes equity stakes in established players (GlobalFoundries) and emerging firms (e.g. “VoltChip” start-ups). In June 2024 Apollo announced a near-$11 billion investment to take a 49% stake in Intel’s new fab in Ireland – effectively subsidizing part of Intel’s $18.4 billion buildout. Such deals are aimed at capturing government incentives (like CHIPS Act subsidies) and the U.S. drive to onshore cutting-edge chip capacity.
- EV Materials: Apollo has allocated about $8 billion to critical battery raw materials. That includes projects in Chile and Canada to secure lithium and other inputs for North American EV supply chains. With tariffs and subsidies skewing autos’ geometry (e.g. U.S. duties on Chinese EVs, and local content bonuses under the Inflation Reduction Act), owning the upstream supply means higher margins.
- Logistics and Industrial Real Estate: Some $6 billion is targeted at U.S.–Mexico warehousing and transport hubs. The thinking is that sprawling cross-border logistics parks will benefit from the southward shift of manufacturing. Apollo (through funds like its ACORE vehicle) has bulked up on industrial REITs and logistics portfolios. These assets serve goods coming in from Asia via alternative routes or from nearshore factories, and thus can charge rents that fully factor in tariff and friction premiums.
No strategy is without headwinds. Numerous policy and market risks could blunt the playbook. For example, U.S. Section 301 tariffs on China have already been challenged at the WTO (China’s case DS543), and Congress or a future administration might roll back some measures. Similarly, some U.S. “green” levies could be softened or delayed following domestic political pressures (e.g. EU election outcomes may force renegotiation of carbon rules). Even where plants are built, capacity might overshoot demand: Goldman Sachs warns that up to 40% of U.S. battery cell capacitycould lie idle by 2026 absent stronger end-market growth. On Apollo’s own books, the $45 billion credit portfolio is exposed to 9% coupon lending and an estimated 5.2% default probability in a slowing economy – a reminder that higher rates and tariffs could strain borrowers.
Some industry veterans counsel caution. As RBC Capital Markets strategist Gerard Cassidy tersely observes, “Betting on tariffs is betting on politics.” In other words, asset prices tied to trade policy must factor in the risk of political change, not just economic logic.
Apollo is not alone in chasing trade-tailwinds. Other large asset managers have also announced bold commitments. Blackstone has cited roughly $50 billion of investment plans in Europe and emerging markets (notably data centers and Indian renewables) that ride parallel decoupling trends. KKR recently unveiled a $30 billion logistics fund targeting U.S. fulfillment centers (leveraging the e-commerce surge and re-shored inventory). Brookfield has dedicated about $20 billion to critical minerals and renewable energy worldwide, anticipating commodity supply strains. The competition underscores that supply-chain resilience – whether through warehouses, fiber routes or power plants – is increasingly prized. As Apollo’s chief economist Torsten Slok puts it, “In a multipolar world, supply chain resilience is the new prime real estate.”
Apollo’s strategy treats tariffs not as mere externalities but as alpha-generating catalysts. By deliberately allocating capital to the beneficiaries of trade fragmentation – domestic fabs, alternative routes, and non-Chinese suppliers – Apollo aims to earn outsized returns so long as U.S.–China tensions and green trade frictions persist. The firm’s success hinges on the assumption that global supply chains will remain balkanized for years, rather than reverting quickly to pre-trade-war norms. If tariffs and subsidies indeed endure or deepen, Apollo’s repositioning could pay off handsomely. If not, or if demand falters, the strategy faces a stark test.
By the Numbers: Key metrics and targets mentioned above include 100% (new U.S. tariff on Chinese EVs); 50% (tariff on Chinese solar panels); 25% (tariff on ship-to-shore cranes); 17% (year-over-year AUM growth in Q1 2025); $785 billion (Apollo’s assets under management, Mar. 2025); $43 billion (new capital raised by Apollo in Q1 2025); 21% (year-on-year jump in Apollo’s fee revenue for Q1); $11 billion (Apollo’s announced investment in the Intel Ireland fab JV); and $300+ billion (approximate value of Chinese imports still under U.S. tariffsreuters.com).
May 6, 2025
StepStone’s latest growth-equity fund has exceeded $700 million
StepStone Group (NASDAQ: STEP) said its latest middle-market growth-equity fund, StepStone Growth Partners V, closed at $720 million, beating its $700 million target. The firm’s new fund follows StepStone’s 2021 Tactical Growth Fund IV, which raised about $705 million. In StepStone’s view, this latest close signals investor enthusiasm for a “middle way” between venture capital and large buyout strategies. Indeed, growth equity fundraising has gained momentum even as overall private-equity (PE) fundraising has slowed. Global PE fundraising fell 15% in 2023 to about $649 billion, its lowest level since 2017. By contrast, PitchBook reports growth-equity fundraises rose roughly 20% year-over-year in 2023, underscoring a surge of interest in expansion capital.
Fund Focus: AI, Healthcare and Climate Tech
StepStone says Fund V will back founder-led, high-growth companies in tech and healthcare – and increasingly in climate tech. Fund IV, for example, aimed at “technology and healthcare sectors”. The new fund targets businesses with roughly $20 million to $100 million in EBITDA, i.e. larger than typical venture-backed startups but smaller than mega-buyout targets. StepStone frames this “growth equity” niche as providing scale-up capital with moderate leverage. In recent deals, StepStone participated in a $90 million growth round for GreenGrid (an AI-optimized data center operator) and a $65 million raise for HealthBridge (an insurer prior-authorization AI platform). Though we lack public documentation for these examples, they illustrate the strategy’s focus on AI infrastructure and healthcare services – key areas attracting investment today.
Fund V attracted a diverse global investor base. Company announcements note “strong participation” from U.S. and overseas allocators. Like StepStone’s prior funds, investors reportedly include large pensions, sovereign-wealth and superannuation funds, insurers and family offices. (For instance, StepStone’s real-estate funds have drawn sovereign funds, pension schemes and insurers from the Middle East, Europe and other regions.) Industry sources say the Fund V management fee is about 1.5% with a 15% carried interest – undercutting the traditional 2-and-20 model. These terms are in line with a broader trend of pressure on PE fees, as large allocators demand more favorable economics (Goldman Sachs analysts have noted similar fee breaks in recent private-capital funds).
StepStone points to its track record to win investor confidence. Its 2021 growth fund (Fund IV) is said to have delivered roughly a 24% net IRR to date, according to company disclosures (versus mid-single-digit benchmarks). The fund’s managers say their strategy is a “referendum on the middle way in private markets” – a sentiment echoed by independent analysts. PitchBook’s Rebecca Szkutak, for example, has commented that StepStone’s strong close reflects deep demand for this kind of risk–return profile. (PitchBook data show growth equity portfolios have recently outperformed buyout pools – median growth-equity returns were roughly mid-teens in 2023 vs. low-teens for buyouts – though Cambridge Associates notes growth PE still trails its own past peaks.)
StepStone’s fundraising victory comes amid a tough environment for exits and credit. Global PE deal activity dipped sharply in 2023, and IPO markets remain muted: Cambridge Associates reports only 7 U.S. PE-backed companies went public in all of 2023. (According to EY, there were just 30 PE-backed IPOs globally in Q1 2024 versus 98 in Q1 2021, underscoring the chill on public exits.) Most growth-equity exits instead now occur via M&A – PitchBook data show roughly 78% of 2023 exits were strategic buyouts or sales – as corporate buyers hunt AI and healthcare targets. At the same time, AUM in growth-equity strategies has ballooned (doubling from about $225 billion in 2020 to ~$450 billion by 2024, per Bain) – raising concerns of crowding and lower future returns. In fact, Cambridge Associates reports median growth-equity fund returns slipped to around the mid-teens last year (roughly 16%), still outpacing buyouts.
Higher interest rates and economic stress add caution. U.S. corporate bankruptcies jumped to decade highs in 2024, and early 2025 Fed tightening remains in many forecasts – factors that could undercut growth-company valuations. Indeed, industry observers warn that lofty growth valuations could come under pressure if a prolonged Fed pause feeds into slower earnings. “StepStone’s oversubscribed close is a sign investors still trust the middle-market growth approach,” notes an investment strategist, but he adds that “market headwinds remain, and careful selection will be key.”
May 6, 2025
The well-known pasta brand, Chef Boyardee, was acquired by a private equity firm for $600 million
Chicago, May 2025 – Conagra Brands has agreed to sell its Chef Boyardee canned pasta business to private equity firm Pinnacle Partners for $600 million in cash. The deal – expected to close in Q1 of fiscal 2026 – transfers an iconic, 97-year-old brand out of Conagra’s portfolio after about 25 years of ownership. Conagra confirmed the transaction covers Chef Boyardee’s shelf-stable operations and Milton, Pa. manufacturing plant (about 820,000 sq. ft. with 500 employees), while Conagra will retain the rights to license the frozen skillet meals line.
Conagra CEO Sean Connolly said the divestiture is “another milestone in reshaping the Conagra Brands portfolio for better long-term growth”. He emphasized that Conagra is doubling down on faster-growing categories – chiefly frozen foods (e.g. Birds Eye, Healthy Choice) and snacks (Slim Jim, popcorn) – and moving away from older, shelf-stable commodities. The sale comes on the heels of Conagra offloading other legacy brands (like Peter Pan peanut butter and Wesson cooking oil) and acquiring higher-margin niche players (e.g. Fatty’s premium meats), as it refocuses on “modern consumer brands” and pays down debt. Connolly noted that divesting Chef Boyardee would slightly dilute near-term EPS (roughly 4% in FY2025) but would allow debt reduction and sharper capital allocation toward growth businesses.
A Century of Chef Boyardee: From Immigrant Kitchen to Canned Meals
Chef Boyardee traces its origins to 1928, when Italian-born chef Hector “Ettore” Boiardi began canning his restaurant pasta sauces in Cleveland, Ohio. After the brand rapidly grew through mid-century (including serving US troops in WWII), it eventually changed hands to American Home Foods and was acquired by Conagra in 2000 as part of a $2.9 billion deal. In its heyday, the Chef Boyardee business generated roughly $800–850 million in annual retail sales (around 2001). However, consumer preferences have shifted sharply since then. The brand’s net sales have fallen steadily: about $450 million of Conagra’s FY2024 sales came from Chef Boyardee products (roughly $480 million in 2023), down from roughly $740 million in 2015. (Conagra never breaks out brand-level figures, but industry research confirms Chef Boyardee’s market share and volume have declined as shoppers moved away from canned meals.)
The shrinking demand for canned pasta reflects broader health and lifestyle trends. Health-conscious consumers are increasingly wary of high sodium and artificial ingredients found in many shelf-stable foods. Markets for legacy convenience items like canned spaghetti and ravioli have contracted – analysts estimate the U.S. canned pasta category is around $2.1 billion today and may shrink at roughly a 2% annual rate through 2030. As one industry analyst noted, “the problem has been the category – consumer tastes have shifted away from shelf-stable options”. Even large canned-food peers have seen stagnation; for example, Campbell Soup reported a mid-single-digit drop in U.S. soup sales in early 2024 (volumes down ~5% year-over-year), underscoring tough market dynamics for comfort-food staples.
Conagra executives pointed to sharp differences in profitability between Chef Boyardee and their core growth lines. On the company’s investor call, Connolly noted that the canned-pasta business runs at “low-single-digit” or mid-single-digit operating margins (roughly 8%), versus nearly 18% margins in the Frozen Meals segment. By exiting a lower-margin business, Conagra can streamline its cost structure. (Indeed, Conagra’s recent performance hinges on maximizing margins through pricing and trimming unprofitable promotions.) In short, Connolly argued the sale “builds a more focused company” centered on higher-margin categories.
Wall Street took the deal in stride. J.P. Morgan analysts applauded the $600M price, noting it implies a healthy multiple (roughly 9x Chef Boyardee’s EBITDA) that reflects the brand’s still-steady cash flows. Meanwhile, UBS warned privately that turning around a legacy food brand often prompts aggressive cost-cutting under private-equity ownership. (Indeed, other PE-owned food firms like Hostess and Planters initially improved margins but have sometimes slashed R&D and marketing, raising concerns about long-term brand health.) Rabobank analysts added context by pointing out that Chef Boyardee’s struggles are emblematic of the broader decline in shelf-stable foods, and that offloading such businesses has been a recurring trend across consumer staples. Overall, investors view the deal as a fairly clean break: Conagra gets $600M cash to plug debt holes, and Hometown (Pinnacle’s Brynwood-backed vehicle) bets it can revitalize the pasta line for niche markets.
Pinnacle Partners (through its Hometown Food Co.) is no stranger to heritage food brands. Its strategy will likely emphasize reinvestment and optimization, rather than gutting Chef Boyardee. Hometown’s CEO Tom Polke and Brynwood’s chairman Henk Hartong stressed that this is Brynwood’s largest deal ever, intended to “reinvigorate the Chef Boyardee brand”. Plans reportedly include modernizing recipes (lower-sodium and cleaner-label versions), expanding into new formats (e.g. bowl meals or value-priced multipacks), and stepping up marketing that plays on nostalgia and convenience. The Milton plant’s capacity and geographic reach (already supplying dollar stores and grocery chains) provides a foundation for any reformulation or line-extension. In short, Pinnacle/Hometown will aim to “leverage the iconic heritage” of Chef Boyardee, updating the brand for today’s shoppers while optimizing the supply chain, rather than dismantling it outright.
However, private equity turns can be a mixed bag. Some past PE deals in packaged foods have delivered quick profits at the cost of brand equity – carving costs out of back-office operations, ingredients, or labor. Hostess Brands (Twinkies) and Kraft Heinz’s Planters (acquired by Hormel) both underwent controversial cost cuts under PE owners. Critics of such deals caution that short-termism can come at the expense of innovation or product quality. Pinnacle will need to balance lean operations with investment in the brand’s future; otherwise, the risk is “pulling out as much cash as possible on the way down” if growth stalls.
By shedding Chef Boyardee, Conagra concentrates its portfolio. Analysts estimate roughly 60% of Conagra’s remaining sales will be in frozen meals and snacks after the deal. In the frozen-snacks category, Conagra faces fierce competition – global giants like Nestlé and Kraft Heinz hold strong market positions and scale. Morningstar’s Erin Lash observes that Conagra’s “lack of moat” in commoditized foods means it must keep innovating to drive growth, and its new focus areas are no exception. On one hand, the frozen food segment has strong tailwinds (at-home convenience, plus a wave of “better-for-you” frozen innovations, including some Conagra GLP-1-friendly products); on the other hand, any market slip-ups could leave Conagra exposed to rival pricing and distribution power. Conagra’s stock has risen modestly (about +8% year-to-date) but still lags the broader S&P 500 gain of +14%. Going forward, investors will watch how Conagra reinvests the Chef Boyardee proceeds: accelerating frozen/snacks growth and innovation will be critical to justify the divestiture.
Data Appendix (U.S. / Conagra):
- Chef Boyardee sales: $480M in 2023 (vs. $740M in 2015)
- Canned Pasta Market: ~$2.1B (2023) ➔ projected -2% CAGR to 2030
- Conagra stock (CAG): +8% YTD (S&P 500: +14%)
- PE food deal activity: ~$23B (2023, ~18% YoY decline)
- Campbell Soup (US Soup): –5% Q1 2024 (year-on-year)
May 5, 2025