Good morning dealmakers, it’s Obey Martin Manayiti here with the US edition of the Wire from the New York newsroom. We’ll start by focusing on Ardian, a Paris headquartered firm which recently promoted Mark Benedetti to co-CEO, alongside founder Dominique Senequier. Benedetti, based in New York, is the former co-head of Ardian USA. In this wide-ranging Q&A, Benedetti assesses the difference between European and North American assets; areas where the firm wins deals and where it walks away; where Ardian is seeing pressure in its portfolio and how the firm is managing assets underwritten in a different rate environment, among other themes. Stay tuned for excerpts.

Next, let’s turn to deal news announced this morning. First, Apollo Sports Capital has agreed to provide $2.6 billion to Yankee Global Enterprises, the holding company of the New York Yankees, signaling that PE firms are stepping up their sports investments. To finish, New Heritage Capital has invested in Power Rail, an Exeter, Pennsylvania-based manufacturer and distributor of aftermarket locomotive parts. We will find out which other PE firms are investing in railway-focused deals.

Valuation gap Ardian’s promotion of Mark Benedetti to co-CEO in May couldn't have come at a better time for the New York-based former head of Ardian US. As he outlines in a wide-ranging interview with PE Hub, Ardian has its sights on European companies that are both undervalued relative to US peers and looking for opportunities to expand internationally amid a complicated macroeconomic backdrop.“That is where our deep roots in Europe and our presence in North America can be especially valuable,” he told PE Hub. Below are some excerpts from the interview. In North America, where do you win deals, and where do you walk away? We tend to win when scale, complexity, relationships or international capabilities matter more than simply offering the highest price. On the indirect side, our Secondaries & Primaries platform remains one of our largest areas of growth, particularly in the US. As the world’s largest buyer of secondaries, we can bring a depth of data and a capacity to execute large, complex transactions that allow us to offer sellers reliable and tailored liquidity.

Where is Ardian seeing pressure in its portfolio? How is the firm managing assets underwritten in a different rate environment? We are seeing pressure take different forms across the portfolio, including higher financing costs, input-cost inflation and supply-chain disruption. We underwrite every investment against a range of downside scenarios and seek to build sufficient cushion into both the business plan and capital structure. Even so, there are shocks that cannot be fully anticipated. When those situations arise, our role is to engage early and work closely with management teams and lenders to protect the business and keep the long-term value-creation plan on track. Cérélia, our transatlantic bakery platform, is a good example. We acquired the company in 2019, before the pandemic and the Russia-Ukraine war. The resulting supply-chain disruption and sharp increase in input costs put significant pressure on performance, taking EBITDA materially below the original underwriting plan in 2022. Our confidence remained high because we believed in the durability of the business and in a strong management team that we knew could respond effectively to unforeseen challenges.

Where are most mispricing opportunities today? Two areas stand out to me. First, secondaries remains a buyer-friendly market because demand for liquidity continues to exceed available buyer capital. Infrastructure secondaries are particularly interesting. More capital is entering the strategy, but much of it is being deployed by relatively new entrants, and few groups have invested successfully at scale across multiple cycles. Second, Europe is attracting greater attention from global investors, but we continue to see a meaningful valuation gap relative to comparable US assets. That creates opportunities to invest in high-quality European businesses that may not face the same level of competition as similar companies in the US.For more insights from Benedetti, check out the full interview.

Game time Apollo Sports Capital has agreed to provide $2.6 billion to Yankee Global Enterprises, the holding company of the New York Yankees. Apollo Sports Capital is a permanent capital platform of Apollo. The capital infusion will be used to support the continued growth of the Yankees franchise as well as refinancing of existing debt. The transaction is expected to close imminently. Apollo Sports Capital CEO Al Tylis will join YGE's board, which will expand by one seat. The Steinbrenner family will maintain full control of the New York Yankees and Hal Steinbrenner will remain as the managing general partner of the New York Yankees and continue to represent the team as the MLB control person.“This is precisely the kind of bespoke capital solution Apollo Sports Capital was built to deliver, and we look forward to being a long-term partner to this storied franchise,” said Robert Givone, a partner at Apollo, in a statement. Apollo Sports Capital was launched in 2025.PE Hub has been keeping a close eye on private equity's interest in sports. For more insights, take a look at Rafael Canton's feature on the segment, as well as his recent discussion with former New York Giants quarterback Eli Manning. On the rails New Heritage Capital has invested in Power Rail, an Exeter, Pennsylvania-based manufacturer and distributor of aftermarket locomotive parts. Power Rail, founded in 2003, serves the global rail industry. Paul Foster, the company's founder and former CEO, will continue as the chairman of Power Rail's board of directors.“Power Rail's breadth of products, technical capabilities, and reputation for service have made it a trusted leader in the locomotive aftermarket,” said Bret Kuchenbecker, a principal at Heritage. “Through capital and strategic support, we will help management continue to expand Power Rail's ability to serve its customers.”New Heritage is not alone in scooping up opportunities in the rail-focused sector. In May, Paceline Equity Partners sold RELAM, a Glenwillow, Ohio-based lessor of maintenance-of-way and hi-rail equipment, to Basalt Infrastructure Partners. Even outside the US, fail-focused deals have been flowing. Few examples include ICG backing Comcreta Group, a provider of infrastructure maintenance works and vegetation control management to the Italian railway sector earlier this year; KKR acquiring a majority stake in Green Mobility Partners, creating a partnership aimed at making a European rail leasing platform to meet the demand for sustainable rail infrastructure across Europe, among others. That's it from me this morning. Craig Mc Glashan will bring you the Europe edition of the Wire on Wednesday, while Rafael Canton will write Wednesday's US Wire. Cheers, Obey