Good morning, {{first_name}}! Today we're covering private credit hitting the sports industry, how the elections affect PE, and Cinven’s bet on women’s health.

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MICROSURVEY

PRIVATE CREDIT CORNER

Forget buying the team. The bigger opportunity might be lending to it. While private equity firms chase increasingly expensive sports franchises, private credit is finding something arguably more attractive: billion dollar assets with surprisingly little debt.

According to Apollo, sports franchises operate at just 10% loan to value, compared with 70% for infrastructure, 65% for real estate, and 50% for healthcare. That gap is striking, especially for assets backed by media rights, sponsorships, ticket sales, and scarce franchise ownership.

And lenders have options. Stadium financing offers yields of 6% to 12%, while broadcast rights financing generates 5% to 10%, backed by contracted future revenues. Transfer fee financing adds another avenue, particularly in European football.

The real advantage? Scalability. Buying teams requires enormous checks, limited opportunities, and league approvals. Lending allows managers to deploy capital across multiple franchises without the complications of ownership. (More)

PRESENTED BY DATASITE

The next competitive edge in M&A won't come from AI — it'll come from the people who know how to wield it.

AI isn't just reshaping dealmaking; it's rewriting the job description. It's already accelerating sourcing, sharpening diligence, and flagging risk earlier. But as technology takes on more of the analytical workload, the teams that pull ahead may be those that combine it with something harder to automate: judgment, strategy, and relationships.

In a new report with FT Longitude, Datasite surveyed 1,000 dealmakers worldwide on how they're navigating that shift — where AI is creating an edge, how firms are building it into their workflows, and what separates experimentation from effective adoption. From governance to workflow design, it's a closer look at how the deal team itself is changing.

See what 1,000 dealmakers had to say about where M&A is heading

HEADLINE OF THE WEEK

Democrats have secured control of both the U.S. Senate and House of Representatives, reshaping Washington's political landscape and raising the prospect of greater regulatory scrutiny across private equity, artificial intelligence, and financial markets.

The implications for private equity are particularly significant. Senate Democrats have already identified the industry as a potential target for investigations, focusing on how PE ownership and financial structures affect healthcare costs, housing affordability, and essential services. Meanwhile, increased scrutiny of AI infrastructure and data-center investments could introduce additional uncertainty for one of the market's fastest-growing investment themes.

Although divided government could constrain sweeping legislative changes, heightened congressional oversight may create new compliance pressures and complicate investment strategies in politically sensitive sectors.

So What? PE sponsors may need to incorporate greater regulatory exposure, political risk, and potential policy-driven valuation adjustments into deal underwriting, particularly across healthcare, housing, and AI infrastructure. (More)

DEAL OF THE WEEK

Cinven is making a major move into women’s healthcare, agreeing to acquire Theramex from Carlyle and PAI Partners in a deal reportedly valued at €2.6 billion. Financial terms remain officially undisclosed, but the transaction puts a substantial price tag on a pharmaceutical platform operating in more than 80 countries.

For Carlyle and PAI, the sale represents an exit opportunity from a specialized healthcare asset. For Cinven, it offers immediate international scale in a segment where therapeutic specialization and established distribution networks can create meaningful competitive advantages.

The bigger story is what Cinven is buying: not just a pharmaceutical portfolio, but an established global platform with potential for geographic expansion and further consolidation. Replicating that footprint organically would take considerable time and capital.

Why it matters: Healthcare private equity is not just about backing promising treatments. It is also about owning the infrastructure that brings them to market. Cinven’s bet suggests that specialized pharmaceutical platforms with international reach can command significant sponsor interest, even when buyers remain selective. (More)

IMPORTANT DEALS THIS WEEK

The Andersons → Harvestone Low Carbon Partners | $915M
The Andersons agreed to acquire ECP-backed Harvestone, delivering a sponsor exit and adding three ethanol plants with carbon-capture capabilities. Read more

One Rock Capital → Kraft Heinz’s North America coffee business | $650M EV
One Rock agreed to acquire the business behind Maxwell House and Gevalia, with Kraft Heinz retaining a 30% non-controlling stake. Read more

Advent → Vermeg | Undisclosed
Advent agreed to acquire the capital-markets and insurance software provider from Charterhouse and its founder, with ADIA joining as a minority co-investor. Read more

PAI Partners → ELEMIS | Undisclosed
PAI agreed to acquire the British prestige skincare brand from L’Occitane, backing further US expansion and growth across digital and premium retail channels. Read more

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