Private equity firms banding together to snap up more major companies in so-called ‘club deals’
Private equity firms are banding together to snap up more major companies.
So-called club deals, where investors team up to target larger firms and spread the risk, are up 28 per cent over the year to June 2021, to £10.3billion.
Morrisons is at the centre of a £6.7billion club deal – private equity firm Fortress has brought in the Canada Pension Plan Investment Board and Koch Real Estate Investments to help out.
Dark days: So-called club deals, where investors team up to target larger firms and spread the risk, are up 28 per cent over the year to June 2021, to £10.3billion
James West, of law firm Mayer Brown which compiled the data, said: ‘Club deals allow investors access to a bigger universe of potential deals that would ordinarily be beyond their capacity or risk appetite. That can allow them to get un-invested cash deployed more quickly.’
Asda was also bought out in a club deal by the Issa brothers and TDR Capital, while Cinven and Singaporean sovereign wealth fund GIC bagged Miller Insurance Services.