Gridiron Capital LLC’s Post

What’s ahead for investors in infrastructure? Read our attorneys’ insights after attending the Infralogic Investors Forum last week in New York. They bring the latest on the state of the market, dealmaking and investment trends. #Infrastructure #infra #datacenters #privateequity #realestate

An era of consolidation for the upstream sector !

Last week, my wonderful team (Chloe Enard, Huda Momin, Elias C., Steven Joseph) and myself presented our stock pitch for Hawaiian Electric (NYSE: $HE) to the Bayou Capital Group Undergraduate Investment Fund. Hawaiian Electric is the main utility provider for Hawaii–supplying 95% of the state's electricity–and also owns American Savings Bank, one of the largest regional banks in the state. Our investment thesis was predicated on the severe discount of the firm after the Maui wildfires in 2023, sparking due to a downed power line owned by HE. We believe that management's experience in restructuring, a potential sale of the banking arm, suspension of cash dividends, and a recent equity offering provides a clear path to financial for the firm recovery post-liability settlement. The market is not fully reflecting this recovery in its valuation of the firm, and this is evidenced by HE's steep share price depreciation, decreased trading volumes, and downgraded analyst ratings. Note: This content, including stock picks, forecasts, opinions, valuations, or ideas, are for informational purposes only. I am not a financial advisor nor am I a qualified licensed investment advisor. Please consult with an advisor and perform due diligence before investing. #equityresearch | #stocks | #finance | #energy | #investing

Just in time for the soon to be released SecondaryLink's Women of Secondaries Podcast with Wandy Hoh of Macquarie Asset Management on the state, growth and future of the Infrastructure Secondary market! Stay tuned! Thought these takeaways from Preqin are definitely worth sharing: "Preqin’s Research Insights team forecasts that infrastructure AUM will rise from $1.27tn in 2023 to $2.35tn in 2029, with North America and Europe each accounting for more than $1tn.     Another sign of the times: acquisitions by asset managers of others have included some sizable deals – most recently, the move by Apollo for Argo Infrastructure Partners ($6.4bn AUM).     Here are eight reasons why the tide’s turning in their favor:   1. Some governments either can’t or don’t want to raise sufficient capital to build and redevelop transport (such as EV charging), communications, or water/waste management. Instead they turn to commercial investors. 2. There’s increasing demand for electricity generation. The International Energy Agency estimates annual global investment in grid infrastructure needs to reach $600bn by 2030 to meet national climate targets. 3. Last year, 41 funds with exposure to renewables raised more than $50bn combined, according to Preqin data, and there were plenty of new deals.  4. The strategic push into renewables by Europe has been boosted by EU policy and by new funds, such as the €2.1bn raised by Paris-based Omnes, which lifted the hard cap to accommodate investor demand.  5. There’s a pressing need for clean and alternative fuels, and therefore transportation and storage.  6. Data centers are proliferating to support cloud computing and AI (as recently reported in Preqin First Close).  7. Investor appetite for infrastructure debt is ‘expanding at an unprecedented rate’, according to Nuveen.  8. Promotion of the asset class to wealthy individuals is on the rise, exemplified by Blackstone’s new $1bn-plus fund (as reported by Bloomberg). " by Shaun Beaney of Preqin First Close. #secondaries #infrastructuresecondaries #secondarymarket #womenofsecondaries

The energy transition impacts businesses by requiring them to adopt renewable energy sources, enhance energy efficiency, and innovate to stay competitive. It also involves addressing challenges like grid reliability, managing costs, and ensuring a just transition for employees and communities.

🚀 Financial advisors help E&Ps ride wave of consolidation The upstream sector is experiencing an era of consolidation, with deal value soaring to over $101 billion this year alone, continuing the momentum from last year's record-breaking deal-making worth $259 billion. When diving further into details, financial advisors are seen guiding E&Ps through this transformative period. Since 2023, around 80% to 85% of upstream deals have had the expert touch of financial advisors, up from just 38% in 2022! 🔍 Dive into Data: Rystad Energy's analysis unveils top players Leveraging Rystad Energy's Upstream M&A solution, we have uncovered the leading financial advisors in the game since 2023. Evercore emerges as the dominant buy-side advisor, orchestrating deals worth a staggering $60 billion. Meanwhile, Goldman Sachs takes the lead on the sell-side, commanding deals totaling around $68 billion. Overall, Morgan Stanley emerges as the leading financial advisor on both buy and sell side – with the investment bank advising on acquisitions worth around $42 billion and divestitures worth around $52 billion. 💼 Untapped opportunities await for advisors Rystad Energy's data reveals nearly $65 billion worth of upstream #opportunities have been placed up for grabs since 2023, of which nearly 71 separate opportunities worth nearly $20 billion combined do not have a publicly disclosed #financial #advisor assisting in the sale process, representing a significant untapped market for these advisors. The US, UK, Canada, and Norway dominate this untapped market.   This analysis is powered by Rystad Energy’s #Upstream M&A solution, wherein E&Ps can now #screen for active financial advisors based on their areas of interest and evaluate advisors based on deal value, deal type, valuation secured as well as #emission intensity. This addition also allows #investment #banks and advisors to compare their performance with peers. For more details on Rystad Energy’s upstream M&A solution, and financial advisors’ analysis reach out at atul.raina@rystadenergy.com. #InvestmentBanking #Finance #MergersAndAcquisitions #CapitalMarkets #FinancialServices #FinancialAnalysis

This week in member news... 🔸Recite Me eyes growth after £4.6 million support 🔸Three new hires as JUMP continues expansion 🔸Inflo reports rapid US growth as audit firms embrace technology 🔸Tees Valley Combined Authority signs deal with major energy firm Read the full stories on our website: https://lnkd.in/d8RMxj8 Ross Linnett | Rob Brown | Mark Edmondson | Siobhan McArdle

NEWS OF THE DAY! Powerful Acquisition Sends Allete Soaring: A $6.2 Billion Energy Deal! 1.Allete (NYSE: ALE) stock rose by 1.1% before the market opened on Monday. 2.A partnership involving Canada Pension Plan Investment Board and Global Infrastructure Partners has agreed to buy Allete for $67 per share in cash, totaling $6.2 billion including debt. 3.This price is 4% higher than Allete's closing share price on Friday and 19.1% higher than the closing price on December 4, 2023, before reports of a potential sale emerged. 4.Allete will continue to be locally managed from Minnesota, with Bethany Owen staying on as CEO, and the agreement includes commitments to retain the company's workforce. 5.Allete's Minnesota Power utility serves 150,000 customers and is active in clean energy development. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/gZPtS3nJ

Fascinating perspectives on energy capital trends during the "Private Equity and Family Offices: Energy Capital Trends and Perspectives" session at the DUG Appalachia Conference in Pittsburgh! Jay S., Managing Director - KeyBanc Capital Markets highlighted the resilience of oil and gas investments: "Largely for commercial banks, you don't tend to lose a lot of money if you loan to oil and gas. People are seeing the need to support the industry at some level. It's definitely more accelerated now." Mark Burroughs, Managing Director, from EnCap Investments L.P. noted the growing interest from family offices: "The interest from the family office world has been huge in our recent fundraises." Evan Smith, SVP, of Investment Banking, Stephens, offered a balanced view on the role of family offices: "I don't think they (family offices) can fully fill the void. They'll be a piece of it. There's a massive amount of capital that's left." These insights underscore the evolving landscape of energy financing and the increasing role of alternative capital sources. What are your thoughts on the future of energy investment? #DUGAppalachia #EnergyInvestment #PrivateEquity #FamilyOffices #OilAndGas

My first article for Value Add! I really enjoyed speaking with Casey on how lower #midmarket #PE firms can still prioritize #operations, and how doing so helps them land #deals. One of my favorite quotes from the article: “Especially in more technical and specialized areas, put yourself in the shoes of the operator and the CEO. Do I want someone who's going to give me better terms on capital? Or do I want somebody who's got industry expertise and is going to put in place an independent seat [on the board of directors] and help me manage my board to a strategic level?” Check it out!