Stars align for hard-nosed private equity M&A
17/10/2023 12:13
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Pamela Barbaglia
LONDON, Oct 17 (Reuters Breakingviews) - French investor
Wendel is buying London-based rival IK Partners for $404 mln.
Consolidation between buyout barons is rare but will become more
common as firms sweat to raise funds. The cheap price on this
deal shows it’s a good time to be a buyer.
Full view will be published shortly.
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CONTEXT NEWS
French investment group Wendel said on Oct. 17 it had agreed
to buy a majority stake in private equity firm IK Partners.
Wendel will pay 383 million euros for a 51% stake in the
London-based firm, which specialises in mid-market buyouts. That
is equivalent to 12.5 times IK Partners’ pre-tax fee related
earnings in 2024, the Paris-listed group said in a statement.
Wendel, which is worth 3.2 billion euros, will receive all IK
Partners profit from managing buyout funds, but only 20% of its
performance-related fees on future funds.
IK Partners manages 11.8 billion euros of assets.
(Editing by Neil Unmack and Streisand Neto)
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