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Happy Friday! 

Starting to get the jitters about the end of the year and the impending holiday break. Lots of last minute things to finish up before the markets take a break and everyone disappears. 

Recruiting: Tech titans are looking for talent outside the meccas of Silicon Valley and Seattle, but they aren't really sharing the wealth. Instead, they're building satellite campuses in already-wealthy places like New York City, Austin, Texas and Boston, New York Times reported

Apple said this week it would build a $1 billion campus in Austin, expanding to 11,000 employees there. This is after Amazon selected Long Island City and Arlington, Virginia, for its headquarters 2.0. And Google is looking for more space in NYC to more than double its workforce in the city, NYT reported. 

“They’re expanding out,” Mark Zandi, chief economist at Moody’s Analytics, told the newspaper. “Tech talent is in very short supply. So if these tech companies want to grow and flourish, they need to find talent in other parts of the country.”

The companies do look for specific talent in second-tier type cities that have engineering schools like Pittsburgh, where Google and Uber opened offices. Pittsburgh attracts artificial intelligence talent because of Carnegie Mellon University's computer science program. 

Searching: The idea of recruiting outside of the tech-focused cities was one of the themes addressed in a recent interview I did with Paul Barber, co-managing general partner with JMI Equity. JMI, focused on software investments, just closed its ninth fund on $1.2 billion. 

JMI, based in Baltimore and San Diego, invested in companies in 26 states and three provinces in Canada over 25 years, Barber told me. "Software today is a global business; software talent is everywhere and it is not dependent on Silicon Valley or the Northeast," Barber said. 

"Companies in secondary cities are often more capital efficient, they have lower headcount and they often have lower turnover," he said. 

Should companies be looking outside the tech-central regions? If so, which ones have been ignored and shouldn't be? I'll be writing about this more later today. Hit me up with your thoughts at cwitkowsky@buyoutsinsider.com

Settlement: Yucaipa Cos, the private equity group run by billionaire Ron Burkle, settled with the SEC, agreeing to pay a $1 million civil penalty and disgorgement of fees. The SEC said Yucaipa failed to disclose to LPs that it was charging the funds for the cost of in-house employees who helped the firm prepare the funds' tax returns. 

Also, the agency said Yucaipa did not disclose arrangements with two third-party service providers that resulted in actual or potential conflicts of interest. 

A spokesman for Yucaipa declined to comment. The firm did not admit or deny wrongdoing. 

Back in 2016, I wrote that the SEC had subpoenaed CalPERS and CalSTRS, the nation's two largest pension systems, for information about Yucaipa. At  the time I said it was unclear if a probe was ongoing. Interesting to see how long these types of investigations take to actually play out. 

There's also a clause in the settlement that says Yucaipa won't ask to offset any compensatory awards in related investor lawsuits with the civil penalty. I've never seen this type of clause in a settlement, but a private equity attorney told me this has become routine in such settlement orders. 

Sale: Commerce Secretary Wilbur Ross has been having all kinds of issues divesting his holdings to avoid conflicts of interest in his role as the nation's commercial chief. He received a reprimand back in July over the speed at which he was selling out of his holdings, and for taking short positions on certain stock holdings. 

Now comes word that Secretary Ross has reached a private deal to sell LP stakes. The deal is valued at $25 million and likely includes LP interests in his own funds. I'm told Siguler Guff is the buyer, though the firm would not confirm anything. Check it out here

That's it! Have a great weekend. Reach me with tips n' gossip, feedback, corrections or just to chat at cwitkowsky@buyoutsinsider.com, on Twitter @chriswitkowsky or find me on LinkedIn. 
 

Who's the best:
Buyouts is now accepting nominations for its 19th annual Deal of the Year awards, honoring exceptional buyouts that were fully or mostly realized in 2018. The deadline for submissions is Friday Feb. 22, 2019, but there’s no time like the present to apply. We’re also adding a new category this year, secondaries of the year, to recognize the top transaction relating to the sale of LP stakes, GP-led liquidity process, secondary-led spinout or some combination of all three.
 
Don’t miss this opportunity to be recognized by the editors of Buyouts for your outstanding work in 2018. Send Chris your submissions at cwitkowsky@buyoutsinsider.com. Read more here
 
Winners will be selected in six categories:
 
·         Deal of the year
·         Large market deal of the year
·         Middle market deal of the year
·         Small market deal of the year
·         Turnaround of the year
·         Secondaries of the year
·         International deal of the year
 
EMAIL ALERTS: Did you know that you can sign up for email alerts from Buyouts, VCJ and Active LPs even if you’re not a subscriber? Check out all of our FREE email alerts here.

Now is the time, ad placement deadline approaching! The Buyouts Year in Review issue is data-packed with over 80 pages of league tables and kept as a reference by our subscribers for years. Showcase your 2018 success in the biggest issue of the year. Contact Bob Raidt at rraidt@buyoutsinsider.com or by phone at 646-356-4501 to learn more. 

 
Today's  Take  

PE HUB First Read

First Read ends the week with news that German online classified ads company Scout24 is mulling a sale, Starbucks stock falls as the company cuts long-term earnings forecast and leveraged loan market wobbles, putting buyouts at risk.
Read more...  

PE HUB Second Opinion

In Second Opinion, cryptocurrency startup Basis is shutting down and returning investor money, Amazon's invasion in New York and Virginia will be slow and Japan Post is investing about $2.6 billion in Aflac.
Read more...  

PE HUB Healthcare Wire Highlights, 12.13.18

New on sponsors’ holiday lists: DME, Houston healthcare
Read more...  

PE HUB Wire Highlights, 12.13.18

Silver Lake buys majority of ServiceMax from GE Digital; CPPIB revamps C$80 bln PE program to extend global deal reach; GSO co-founder Smith said to launch competing credit firm
Read more...  

PE HUB First Read

First Read begins the day with news that UK Prime Minister survives a confidence vote from her party, the Marriott data breach has been reportedly linked to Chinese hackers, and Apple is spending $1 billion on a new campus in Austin.
Read more...  

Texas Teachers’ sets out another $1 bln to back young managers

Teacher Retirement System of Texas hopes a $1 billion mandate will help promising GPs graduate from its emerging-manager program and transition into the regular portfolio. The pension fund has not yet committed to any managers out of the new program, called Emerging Managers Select, CIO Jerry Albright said during a keynote address at Buyouts Insider’s PartnerConnect […]
Read more...  

Commerce Secretary Ross to sell LP stakes in secondary deal

U.S. Commerce Secretary Wilbur Ross is selling a bundle of PE-fund stakes in a private deal valued at about $25 million, sources told Buyouts. The buyer is Siguler Guff, sources said. That couldn’t be officially confirmed as spokeswomen for Siguler Guff and WL Ross declined comment. Ross, confirmed as commerce secretary last year, said in […]
Read more...  

November IPO Profile: Biotech company Vapotherm

IPO activity fell in November with just one U.S.-based VC-backed company debuting on a U.S. exchange in the month, compared with 12 venture-backed IPOs the month before. The medtech company Vapotherm was the lone IPO in November, raising about $60 million in proceeds. The Exeter, New Hampshire-based company develops high velocity nasal insufflations products used […]
Read more...  

PA PSERS backs billionaire Thomas Tull’s holding company with $100 mln

Pennsylvania Public School Employees’ Retirement System is backing a billionaire who formed a holding company to invest in growing businesses. The system committed $100 million to Thomas Tull’s Tulco, which is targeting $150 million in its second funding round to make four to six investments. The holding company raised $36.5 million for its second funding round, which launched in July. This […]
Read more...  

Texas Teachers’ sets out another $1 bln to back young managers

Teacher Retirement System of Texas hopes a $1 billion mandate will help promising GPs graduate from its emerging-manager program and transition into the regular portfolio. The pension fund has not yet committed to any managers out of the new program, called Emerging Managers Select, CIO Jerry Albright said during a keynote address at Buyouts Insider’s PartnerConnect […]
Read more...  

PartnerConnect East 2019
Celebrating 31 Years of Excellence
March 25-27, 2019
Hyatt Regency, Boston

The Premier Networking Event for LPs & GPs in the Private Equity, Venture
Capital and Private Real Estate Sector


Register Now

 
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VC Deals 

 
 

Process mining software vendor Minit seals funding

Bratislava-based Minit, a process mining software vendor, has secured 3.3 million euros in funding. The investors were Earlybird Venture Capital and OTB Ventures.
Read more...  

Synthace raises $25.6 mln Series B

London-based Synthace Ltd, a developer of a cloud software platform for automating and improving the success rate of biological research and development, has secured $25.6 million in Series B funding. Horizons Ventures led the round with participation from other investors that included Luminous Ventures and SOSV.
Read more...  

Mission Bio rallies $30 mln Series B

South San Francisco-based Mission Bio Inc, a provider of single-cell DNA analysis and precision genomics solutions, has secured $30 million in Series B funding. The investors were Agilent Technologies, Cota Capital, LAM Capital and Mayfield.
Read more...  

Reading app Glose procures funding

Glose, a digital reading app, has raised 3 million euros in funding. The investors included OneRagTime, Expon Capital, Kima Ventures and BPI France.
Read more...  

Fintech startup YayPay grabs $8.4 mln

New York-based fintech startup YayPay has secured $8.4 million in funding. Venture Partners was the lead investor.
Read more...  

Hi Fidelity Genetics reels in $8.5 mln Series A

Durham, North Carolina-based Hi Fidelity Genetics, a computational crop breeding company, has raised $8.5 million in Series A financing. Fall Line Capital and Finistere Ventures led the round with participation from Gro Alliance, KdT Ventures, Prairie Crest Capital, S2G and Tom Farms.
Read more...  

Guru snaps up $25 mln Series B

Philadelphia and San Francisco-based Guru, a revenue empowerment network, has raised $25 million in Series B funding. Thrive Capital led the round with participation from return backers Emergence Capital, FirstMark Capital, Slack Fund and Michael Dell’s MSD Capital.
Read more...  

Mobile construction platform FinalCAD nets $40 mln Series C

FinalCAD, a mobile platform for the construction industry, has secured $40 million in Series C funding. Draper Esprit led the round.
Read more...  

Wholesale marketplace Faire collects $100 mln

Faire, a wholesale marketplace, has raised $100 million in funding, according to a blog post. The investors were Lightspeed Venture Partners, Y Combinator, DST, Founders Fund, Sequoia, Forerunner and Khosla.
Read more...  

Celect inks $15 mln Series C

Boston-based Celect, a provider of predictive analytics and inventory optimization for retailers, has raised $15 million in Series C financing. NGP Capital and Fung Capital led the round with participation from Activant Capital and August Capital.
Read more...  

Inscribe gathers $3 mln seed

San Francisco and Dublin-based Inscribe, a company that automates the process of identifying fraudulent documents using image forensics and machine learning, has secured $3 million in seed financing. Crosslink Capital and Uncork Capital led the round.
Read more...  

AI-powered smart storage platform Amber bags $13 mln

Amber, an AI-powered smart storage platform, has secured $13 million in funding. The investors included Tyche Partners.
Read more...  

Zymergen locks in $400 mln Series C

Emeryville, California-based Zymergen, a molecular manufacturing technology company, has raised over $400 million in Series C funding. SoftBank Vision Fund led the round with participation from Goldman Sachs, Hanwha Asset Management, DCVC, True Ventures, Two Sigma Ventures, DFJ and Innovation Endeavors.
Read more...  

JUMO takes in $12.5 mln

JUMO, a fintech company, has secured $12.5 million in funding. The investor was Odey Asset Management. In conjunction with the funding, James Hanbury, a partner at Odey Asset Management, joined the JUMO board.
Read more...  

Design company Minted racks up $208 mln Series E

Minted, a design company, has raised $208 million in Series E financing. The investors were Permira and funds and accounts advised by T. Rowe Price Associates Inc. The capital infusion wil be used for expansion and customer acquisition.
Read more...  

Violin app Trala scores $1.29 mln seed

Chicago-based Trala, an app that teaches violin, has raised $1.29 million in seed funding. The investors included Jeff Weiner, CEO of LinkedIn, Origin Ventures and Techstars Ventures.
Read more...  

Vyng fetches $4 mln Series A

Los Angeles-based Vyng, a mobile conversation startup, has raised $4 million in Series A funding. Omidyar Network India and March Capital Partners led the round with participation from Alpha Edison and the Entrepreneur Fund.
Read more...  

AccelFoods leads $5.6 mln for beverage brand ROAR Organic

Huntington, New York-based ROAR Organic, a vegan, low-calorie, low-sugar, electrolyte-infused beverage brand, has raised $5.6 million in funding. AccelFoods led the round.
Read more...  
Mark Your Calendars!
PartnerConnect Event's 2019 Calendar is here!


PartnerConnect LP-GP Outlook- January 22nd, NYC
PartnerConnect East- March 25-27th, Boston
PartnerConnect Family Office & Independent Sponsor Spring- May 21-22nd, NYC
PartnerConnect Midwest- June 22-26th, Chicago
Emerging Manager Connect East- July 23rd, NYC
PartnerConnect West- September 23-25th, San Francisco
 PartnerConnect Family Office & Independent Sponsor Fall- October 29-30th, NYC
PartnerConnect Texas- December 9-11th, Dallas
PE Deals sponsored by  
 
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Everstone and GLP to invest about $500 mln in India logistics ecosystem

Everstone, an investment firm focused on India and South East Asia and GLP, a provider of modern logistics facilities and technology-led solutions, have teamed up to invest in the logistics ecosystem in India. Together the two firms will invest about $500 million in the space.
Read more...  

Vector Capital to buy Host Analytics

Vector Capital has agreed to acquire Redwood City, California-based Host Analytics, a provider of cloud-based enterprise performance management solutions. No financial terms were disclosed. Centerview Partners advised Host Analytics on the transaction. As part of the deal, StarVest Partners will remain a "significant" investor in Host Analytics.
Read more...  

BHP calls off $320 million deal to sell Chile’s Cerro Colorado: Reuters

BHP (BHP.AX) BLT.L said on Wednesday a deal to sell its Cerro Colorado copper mine in Chile to private equity fund EMR Capital had been called off because of problems with financing.
Read more...  

Energy company Bayou rakes in $75 mln

Houston-based Bayou Midstream LLC, an independent energy company, has secured $75 million in funding. The investor was EIV Capital.
Read more...  

Proviso and Stonehenge back Algiere Construction

Proviso Capital and Stonehenge Capital has made a majority investment in Plano, Texas-based Algiere Construction Services Inc, a general contractor that specializes in renovation and conversion services for the hospitality industry. No financial terms were disclosed. Generational Capital Markets Inc advised Algiere Construction on the transaction.
Read more...  

Natixis Investment Managers launches Flexstone Partners

Natixis Investment Managers has launched Flexstone Partners, a private equity firm that merges three of Natixis Investment Managers' private equity affiliates: Euro-PE, Caspian Private Equity and Eagle Asia. Flexstone Partners has named Eric Deram, the previous founder and managing partner of Euro-PE, as CEO. The new firm will focus on private equity, private debt, real estate and infrastructure fund managers across America, Europe and Asia.
Read more...  

Incline to invest in Charter Industries Extrusions

Incline Equity Partners has made an investment in Grand Rapids, Michigan-based Charter Industries Extrusions LLC, a provider of PVC and wood edgebanding, T-molding and veneer sheets to specialty carpenters and furniture installers. No financial terms were disclosed.
Read more...  

Sentinel Capital buys Pet Supplies Plus

Sentinel Capital Partners has acquired Pet Supplies Plus. Financial terms weren’t announced. Pet Supplies Plus, of Livonia, Michigan, is a franchisor and operator of pet-specialty stores.
Read more...  
PROMOTE YOUR BRAND! GENERATE AWARENESS!  SELL YOUR PRODUCTS & SERVICES! 
 
Don't miss the opportunity to get in front of key Private Equity decision makers by showcasing your company, products and services in upcoming issues of Buyouts and VCJ
 
For more information about advertising, print & digital content contribution opportunities please click here       
 
IPOs
 
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M&A Deals  
 
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AnaCap to exit French insurance broker AOG

AnaCap Financial Partners has agreed to sell French insurance broker AssurOne Group to Societe Centrale Prevoir SA. No financial terms were disclosed.
Read more...  

Ancor sells Simply Fresh Foods to Lakeview Farms

Ancor Capital Partners has sold Buena Park, California-based Simply Fresh Foods, a producer of fresh, all-natural foods, to Lakeview Farms LLC. No financial terms were disclosed.
Read more...  

One Madison Corp to acquire Ranpak from Rhône Capital

One Madison Corporation, a blank check company, has agreed to acquire Ranpak Corporation from Rhône Capital for about $950 million in cash. Once the deal closes, which is expected to be in the spring of 2019, OMAD will be renamed and continue to list on the New York Stock Exchange but under a different ticker symbol. Citi acted as financial adviser to OMAD while Goldman Sachs did likewise for Rhône Capital and Ranpak. Based in Concord Township, Ohio, Ranpak is a provider of fiber-based, environmentally sustainable protective packaging solutions. OMAD's backers include JS Capital, Soros Capital and Blackstone Alternative Solutions L.L.C.
Read more...  
Real Estate
 
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Covenant Capital raises $395 mln for ninth apartment fund

Covenant Capital Group has closed its ninth apartment fund at $395 million, beating its $300 million target. Covenant Apartment Fund IX plans to invest more than $1.2 billion in about 25 to 30 multifamily properties over the next three years.
Read more...  

TH Real Estate closes fund at over $330 mln

TH Real Estate, a Nuveen affiliate, has raised over $330 million for its U.S. strategic industrial fund. TH Real Estate U.S. Strategic Industrial Fund I LP will focus on acquiring and developing bulk and light industrial assets in major U.S. industrial markets.
Read more...  
Firms & Funds
 
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Morgan Stanley Investment Management amasses over $1.4 bln for fund

Morgan Stanley Investment Management has raised over $1.4 billion for its North Haven tactical value fund. The fund will invest in "private, long-term and often illiquid opportunities that are identified primarily by leveraging the global Morgan Stanley network and come from a wide range of asset classes, sectors and geographies."
Read more...  

Roc Management (Cayman) Limited targets $100 mln for fourth Asia Pacific PE fund

Roc Management (Cayman) Limited is seeking to raise $100 million for its fourth Asia Pacific private equity fund, according to an SEC filing. Roc (Management) is a private equity firm based in George Town, Cayman Islands.
Read more...  

Ikove Venture Partners launches $10 mln fund

Ikove Venture Partners, a Midwest venture development company, has launched a $10 million startup nursery fund. The fund will be used to launch 10 to 15 early-stage tech companies.
Read more...  

VC-backed Venafi rolls out $12.5 mln fund

Salt Lake City, Utah-based Venafi, a provider of machine identity protection, has launched a $12.5 million machine identity protection development fund. The fund will back machine identity developers. Venafi's backers include TCV, Foundation Capital, Intel Capital, QuestMark Partners, Mercato Partners and NextEquity.
Read more...  

Luminous Ventures unveils $30 mln fund

London-based Luminous Ventures, a White Cloud Capital spin-out, has launched a $30 million fund. The fund will invest in early-stage European tech companies.
Read more...  
Human Resources
 
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MissionOG taps Saunders as senior adviser

Philadelphia-based MissionOG, a B2B high-growth venture firm, has named Ted Saunders as a senior adviser. Currently, Saunders is chairman and CEO of Community Choice Financial.
Read more...  

Brightstar announces promotions and hires

Brightstar Capital Partners has promoted Renee Noto to president, Matthew Allard to partner and Ronak Amin, Ross Kilroy and Lindsey Tannenbaum to principals. The firm also hired Reidar Brekke as a senior partner and Jarrett Arkin as a vice president.
Read more...  

VC-backed AEye appoints LaCorte as president

Pleasanton, California-based AEye Inc, a developer of advanced vision hardware, software and algorithms for self-driving vehicles, has named Blair LaCorte as president. He is the former global president of Production Resource Group. AEye's backers include Taiwania Capital, Kleiner Perkins, Intel Capital, Airbus Ventures and Tychee Partners.
Read more...  
Credit
 
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Amundi wraps up third senior debt fund

French asset manager Amundi has closed its third senior debt fund at 880 million euros. The fund will focus on European mid-cap companies. So far, it has secured capital from around 20 institutional investors.
Read more...  

NXT supports Audax Private Equity’s buyout of Phoenix Rehabilitation

NXT Capital has provided a credit facility to back Audax Private Equity's acquisition of Blairsville, Pennsylvania-based Phoenix Rehabilitation and Health Services, a network of outpatient physical and occupational therapy clinics. No financial terms were disclosed. NXT was the sole lead arranger, administrative agent and sole bookrunner on the financing.
Read more...  

Virtus Real Estate Capital secures financing from CIT

CIT Group has provided $21.4 million in financing for Austin-based Virtus Real Estate Capital, a private equity real estate firm that focuses on "cycle-resilient alternative property types." CIT Group's healthcare business was the sole lead arranger on the credit facilities.
Read more...  
Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read ends the week with news that German online classified ads company Scout24 is mulling a sale, Starbucks stock falls as the company cuts long-term earnings forecast and leveraged loan market wobbles, putting buyouts at risk.
Read more...  

PE HUB Second Opinion

In Second Opinion, cryptocurrency startup Basis is shutting down and returning investor money, Amazon's invasion in New York and Virginia will be slow and Japan Post is investing about $2.6 billion in Aflac.
Read more...  

PE HUB Healthcare Wire Highlights, 12.13.18

New on sponsors’ holiday lists: DME, Houston healthcare
Read more...  

PE HUB Wire Highlights, 12.13.18

Silver Lake buys majority of ServiceMax from GE Digital; CPPIB revamps C$80 bln PE program to extend global deal reach; GSO co-founder Smith said to launch competing credit firm
Read more...  
 
 
 
 
 
 
 
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