Bregal Unternehmerkapital closes oversubscribed Fund IV at €2.65bn

Munich-based private equity firm Bregal Unternehmerkapital has held the closing of its fourth fund, Bregal Unternehmerkapital IV with total capital commitments of €2.65bn.

Fund IV, which was significantly oversubscribed and successfully closed at its hard cap, secured strong investor support from existing clients as well as over 30 new investors, according to a press statement.

Fund IV will make equity investments between €75m and €300m to support regional and global mid-sized companies across software, industrial technology, business services and healthcare.

Since 2015, BU’s 50-person investment team has worked closely with the firm’s portfolio companies to achieve an EBITDA lift of over 20% pa and create more than 7,700 new jobs for a total of over 27,000 employees across the portfolio today. Over the period, funds advised by BU have invested more than €3.0bn in over 100 companies in the middle market.

Goodwin Procter and Campbell Lutyens advised BU on the fund.

Ogier adds to funds team in Dubai

Ogier’s team in Dubai has relocated Dominic Athwal from the Cayman Islands, as well as promoting Athal from Senior Associate to Counsel.

Athwal advises hedge funds, private equity funds, asset managers, sponsors and family offices on the establishment, regulation, corporate governance and ongoing operation of Cayman Islands domiciled investment funds, as well as the establishment of venture capital and other funding structures based in Cayman.

Ogier offers legal, corporate services and regulatory consulting from its new location in the Dubai International Finance Centre.

Bridgepoint makes majority investment in SaaS intranet provider LumApps

Bridgepoint via its mid-market investment fund Bridgepoint Europe VII will become the majority investor in SaaS intranet specialist LumApps in a deal valued at $650m.

As part of the transaction, existing LumApps backers Goldman Sachs Alternatives, Eurazeo Growth, Bpifrance – through its Large Venture fund – and IRIS will sell their shareholdings in the business to Bridgepoint.

Further financial terms of the deal, which is expected to close in July 2024, have not been disclosed.

Headquartered near Lyon, France, LumApps’s AI-powered platform integrates with enterprise software such as Google Workspace and Microsoft 365, and business apps and HR resources such as Workday, ServiceNow, Zoom, Salesforce, Box and SAP SuccessFactors. LumApps has more than five million users and around 700 clients, according to a press statement.

Bridgepoint said that it would support LumApps’s international expansion with a focus on the US, with further investments in product development to enhance the employee experience, cross-sell new products and continue M&A activities.

Bridgepoint’s investment in LumApps, the seventh acquisition by BE VII, follows previous software investments including Kyriba, Fenergo, Calypso, eFront and Brevo.

Bridgepoint was advised by Deutsche Bank, Latham & Watkins, Bain, Crosslake, EY, D’Ornano + Co, ERM and Marsh.

LumApps was advised by William Blair, DLA Piper and Squire Patton Boggs.

Visualized: The Growth of Clean Energy Stocks

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May 28, 2024 Article & Editing Graphics & Design The Growth of Clean Energy Stocks

Over the last few years, energy investment trends have shifted from fossil fuels to renewable and sustainable energy sources. Long-term energy investors now see significant returns from clean energy stocks, especially compared to those invested in fossil fuels alone.

For this graphic, Visual Capitalist has collaborated with EnergyX to examine the rise of clean energy stocks and gain a deeper understanding of the factors driving this growth.

Sustainable Energy Stock Performance

In 2023, the IEA reported that 62% of all energy investment went toward sustainable sources. As the world embraces sustainable energy and technologies like EVs, it’s no surprise that clean energy companies provide solid returns for their investors over long periods. 

Taking the top-five clean energy stocks by market cap (as of April 2024) and charting their five-year cumulative returns, it is clear that investments in clean energy are growing:

CompanyPrice: 01/04/2019Price: 12/29/20245-Year-Return % First Solar, Inc.$46.32$172.28272% Enphase Energy, Inc.$5.08$132.142,501% Consolidated Edison, Inc.$76.55$90.9719% NextEra Energy, Inc.$43.13$60.7441% Brookfield Renewable Partners$14.78$26.2878%

But how does this compare to the performance of fossil fuel stocks? 

When comparing the performance of the S&P Global Oil Index and the S&P Clean Energy Index between 2019 and 2023, we see that the former returned 15%, whereas the latter returned an impressive 41%. This trend demonstrates the potential for clean energy stocks to yield significant returns on an industry level, sparking optimism and excitement for potential investors. 

A Shift In Returns

With global investment trends moving away from traditional, non-sustainable sources, the companies that could shape the energy transition provide investors with alternative opportunities and avenues for growth. 

One such company is EnergyX. The lithium technology company has patented a groundbreaking technology that can improve lithium extraction rates by an incredible 300%, and its stock price has grown tenfold since its first offering in 2021.

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A broad set of US economic indicators continue to show that the odds are low that an NBER-defined recession has started or is imminent. This profile upends the dark narrative favored in some quarters. There are possible warning signs brewing on the horizon, but the case for expecting trouble is still weak, according to the numbers.

The basis for this view rests on a set of proprietary indicators featured in the weekly updates of The US Business Cycle Risk Report, a sister publication of CapitalSpectator.com. As reported in the May 25 issue, the macro trend peaked earlier in the year and is slowing, but the current reading for April remains moderately net positive.

Looking ahead, the possibility is rising that one or both of the indicators in the chart above will fall below their respective tipping points that mark recession. To gauge this possibility, an econometric technique is used to generate forward estimates of both indicators through June. On that basis, the outlook is mixed. One indicator (ETI) continues to decline, although it’s expected to remain above its 50% tipping point. By contrast, EMI has ticked up recent and is on track to remain steady at a moderately positive reading through next month.

For a deeper review of where trouble may be lurking in the months ahead, consider the underlying components of ETI and EMI, as shown in the table below. The labor market is on the short list for possible net-negative contributors to the economic trend. Notably, the Labor Market Index (an aggregate measure of four measures) continues its on-again-off-again dance with red ink in April by going slightly negative. A second month with a sub-zero reading would be a warning sign that macro momentum will continue to deteriorate rather than stabilize.

Note, too, that real retail sales and industrial production ticked into negative territory in April vis the 1-year trend. A continuation of the red ink in the upcoming May profile would add to the potential that the economy will soon slip over the edge.

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Will the UK Election Bring Fireworks?

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