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Congrats, Hubsters, you’ve made it to Friday. Anyone have any exciting plans? I'm subbing for Chris today who is doing something mysterious. 
 
It’s August and there’s not much news. I’m going to speak this morning about a sector that I think is going to change everything. I’m referring to legalized cannabis. Cowen & Co expects gross cannabis sales to reach up to $75 billion by 2030, while cannabis-research firm Arcview Market Research pegged the industry’s value at around $9.7 billion in 2017.
 
The market for legal cannabis is expected to grow at a CAGR of about 24 percent by 2021, according to Technavio. One major sector of the industry is cannabis edibles — think brownies, cookies and even cheese sticks— which is seen increasing by a CAGR of more than 25 percent from 2018 to 2022, Technavio said. 
 
Whatever you may think, cannabis is here to stay. Recreational marijuana is legal in nine states, including California, while medical marijuana is legal in 30 states. (Oklahoma became the latest to legalize medical cannabis.) Up north, in Canada, recreational cannabis will become legal in October. One big deal in the sector was announced this week. Molson Coors Brewing Co and Hydropothecary Corp announced they are launching a JV to develop non-alcoholic, cannabis-infused drinks for the Canadian market. This to me is a pretty big development and could cause other brewers join in. What do you think, Hubsters? Is cannabis the new market for beer companies? Why or why not? Email me your thoughts at lbeltran@buyoutsinsider.com
 
Funds: H.I.G. Capital is seeking $2.75 billion for its latest U.S. buyout fund focused on mid-market companies, Financial News is reporting. That’s up from its initial $2.25B target. Read our brief here
 
Deals: Earlier this week, I talked about how private equity has used rollups to build companies. We’ve seen it a lot in healthcare (dental, dermatology and even hospitals) as well as insurance. Confie, an insurance broker backed by ABRY Partners, has acquired more than 100 companies. The company has been up for sale before and its current process has been ongoing for a while, I’m told. But Confie’s rollup strategy has some bidders wondering whether there are still enough logical acquisitions with scale for the company to move forward. Still, in today’s hot deal market, sources are confident that ABRY may find a buyer for Confie this time around. Find out how much Confie is seeking here
 
Peloton, maker of indoor exercise bikes, has raised $550 million in a Series F led by TCV. The round values Peloton at $4.15 billion, the Financial Times said. Read our brief here. 
 
News from Buyouts Insider/VCJ: Sarah Pringle is reporting that Brockway Moran & Partners is making more than 4x its money through its sale of MD Now. See her story here
 
Chris has a 5Q with Doug Sutton, who leads Huron Capital’s new Flex Equity Fund. Check it out here
 
Active LPs: Kaitlyn Bartley is reporting that California Public Employees’ Retirement System is expected to hire a new chief financial officer in the next 30 to 60 days. This comes after the $357.4 billion pension system’s previous CFO left the post in May under unclear circumstances. Read her story here.

That's it for me. Email your thoughts, comments or tips to lbeltran@buyoutsinsider.com
 
Survey here: Buyouts Insider and Gen II Fund Services have released their second annual Emerging Manager Report -2018, which reinforces vital steps emerging managers should take when fundraising, and key considerations of emerging manager fund investors. The report was released in conjunction with Buyouts Insider’s Emerging Manager Connect East conference, held at the Grand Hyatt in New York today. Download your FREE copy of the report by clicking here.  

Are you an independent sponsor looking for sources of deals or capital? Don’t miss the chance to get a free listing in our coming Guide to Independent Sponsors. Fill out our survey this week and get a complimentary list of more than 200 capital providers.

Check out PE Hub’s new Healthcare Wire, which delivers private equity and M&A healthcare deal activity, fundraising news, people moves, regulatory updates and much more every Thursday. Subscribe now! It’s FREE.
 
Today's  Take  
 

PE HUB First Read

First Read ushers in the end of the week with news that AIG stock tanks more than 5 percent after missing on earnings, Warner Music Group acquires Uproxx, and Sonos surged 32 percent in its first day of trading.
Read more...  

PE HUB Second Opinion

In Second Opinion, Brookstone files for bankruptcy, an active shooter is reported at an Air Force base in Ohio and Apple becomes the first U.S. public company to hit a market cap of $1 trillion.
Read more...  

PE HUB Healthcare Wire Highlights 8.2.18

Sponsors are ravenous for health services M&A as prices tick higher
Read more...  

PE HUB Wire Highlights, 8.2.18

Genstar buys BBB Industries; Warner joins Gridiron Capital; Apollo posts Q2 earnings miss
Read more...  

Georgian Partners closes fourth tech fund at $550 mln, continues hiring spree

Georgian Partners has raised $550 million (C$715 million) for its fourth growth equity fund, winning a strong vote of confidence from limited partners for the firm’s scaling strategy. Georgian Partners Growth Fund IV closed this week at its hard cap, the Toronto investor told Venture Capital Journal. The fund, Georgian’s largest to date, secured 47 […]
Read more...  

Information VP scores big with $1.55 bln sale of Adaptive Insights

Information Venture Partners is seeing a lucrative payday with the $1.55 billion sale of a Silicon Valley business-planning software provider. Adaptive Insights, backed by Information VP for more than a decade, was sold this week to Workday. The deal gave the Toronto venture firm about 10x its investment, a person with knowledge of the matter […]
Read more...  

ABRY shops insurance business Confie for second time

Nearly three years since its last attempt at a sale, Confie is back on the auction block, four sources said. ABRY Partners, which owns Confie, is seeking bids in the double-digit range, like 10x-12x, for the insurance broker focused mainly on Hispanic consumers, two of the sources said. Evercore is advising, people said. The auction […]
Read more...  

Brockway Moran scores more than 4x return with MD Now sale

Brockway Moran & Partners is making more than 4x its money through its sale of MD Now, a source said. Middle-market PE shop Brentwood Associates acquired the South-Florida-concentrated urgent-care network, the private equity firms said Aug. 2. The deal comes after Buyouts reported in May that a Houlihan Lokey-run auction was underway for MD Now. The […]
Read more...  

Five Questions with Doug Sutton of Huron Capital

Doug Sutton leads Huron Capital’s new Flex Equity Fund, which invests in non-control deals in the lower-middle market. Flex Equity Fund closed on $142 million in April. Sutton chatted with Buyouts on the strategy. 1. How did the idea for the Flex Fund come about? There were multiple factors that went into creating the new fund. […]
Read more...  

Maine PERS backs AG’s third direct lending fund, as pensions pile into private credit

Maine Public Employees Retirement System has significantly increased its asset allocation to alternative credit after approving a commitment of $100 million to Angelo, Gordon & Co’s AG Direct Lending Fund III LP. Having set an asset allocation target of 5 percent for private credit in November 2016, Maine PERS is now within touching distance of […]
Read more...  

CalPERS interviews CFO candidates after discrepancies exposed in previous CFO’s resume

California Public Employees’ Retirement System expects to hire a new chief financial officer in the next 30 to 60 days, after the $357.4 billion pension system’s previous CFO left the post in May under unclear circumstances. The retirement system is interviewing finalists but did not disclose how many. Management-consulting firm Korn Ferry is assisting with […]
Read more...  

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VC Deals 
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TCV leads Peloton’s $550 mln round

Peloton said Aug. 3 that it raised $550 million in a Series F financing round led by TCV. Nearly all of Peloton's existing institutional investors, including Tiger Global, True Ventures, Wellington Management, Fidelity (FMRCo), NBCUniversalKleiner Perkins and Balyasny participated in this round. New investors include Felix Capital, Winslow Capital and other mutual fund partners. J.P. Morgan served as the sole placement agent to Peloton on the transaction. Peloton, of New York, provides high end cycling equipment for the home.
Read more...  

TCV invests in Peloton’s latest round: Financial Times

TCV has invested $150 million in Peloton as part of the company's $550 million funding round, the Financial Times reported Aug. 3. Tiger Global Management is expected to join the round for Peloton, which provided high-end cycling equipment for the home, the story said. The round values Peloton at $4.15 billion, the FT said.
Read more...  

Canadian cybersecurity startup HYAS pulls in $6.2 mln Series A

Victoria, British Columbia-based cybersecurity company HYAS has secured $6.2 million in Series A funding. M12, Microsoft's venture fund led the round with participation from other investors that included Startup Capital Ventures and 205 Capital.
Read more...  

Shedul.com lands $5 mln

Shedul.com, a booking platform for salons and spas, has raised $5 million in funding. Target Global led the round with participation from other investors that included FJ Labs.
Read more...  

China’s electric car startup XPeng valued at 25 billion yuan in latest fundraising: Reuters

China’s Xpeng Motors raised 4 billion yuan ($587 million) in its latest fundraising round, valuing the electric car startup at nearly 25 billion yuan, it said on Thursday.
Read more...  

Southeast Asian ride-hailing platform Grab racks up $2 bln

Singapore-based Grab, a ride-hailing platform, has raised $2 billion in financing. The investors included Toyota, OppenheimerFunds, Ping An Capital, Cinda Sino-Rock Investment Management Company, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital.
Read more...  

Kindred Capital leads Series A round for Farmstand

London-based Farmstand, a plant-powered food company has secured $3 million in Series A funding. Kindred Capital led the round.
Read more...  

Calcivis grabs funding

Calcivis, a Scottish medical device company, has raised 3.15 million pounds in funding. The investors were Archangel Investors, Julz and the Scottish Investment Bank.
Read more...  

RideOS drives off with $25 mln Series B

RideOS, a technology platform designed to accelerate the roll-out of next-generation transportation fleets, has raised $25 million in Series B funding. Next47 led the round with participation from Sequoia Capital and ST Engineering Ventures.
Read more...  

WeeCare raises $4.2 mln in seed led by Social Capital

Los Angeles-based WeeCare, which operates a childcare platform to help caregivers start curriculum-based home daycares, announced it has raised $4.2 million in seed funding. The round was led by Social Capital, with participation from Fuel Capital. Previous investors Fika Ventures, Amplify Partners and Wavemaker Partners also joined the round. As part of the investment, Social Capital Partner Adam Nelson has joined the board.
Read more...  
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  • Every paid attendee will receive Buyouts' Guide to Independent Sponsors- a detailed profile of over 150 most active independent sponsors in the US. 
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Legend, Pamplona Capital consider offers for Grupo Iberconsa: Bloomberg

Legend Holdings Corp and Pamplona Capital Management are weighing making offers for Grupo Iberconsa, the Spanish frozen-seafood seller backed by Portobello Capital, Bloomberg reported. Iberconsa could be valued at about 600 million euros ($698 million), the story said.
Read more...  

China’s Didi, Ant Financial weigh joint $2 billion Ofo buyout: Reuters

Chinese ride-hailing giant Didi Chuxing and Alibaba’s (BABA.N) Ant Financial are in talks with bike-sharing startup Ofo for a joint buyout offer that could value Ofo at up to $2 billion, Reuters reported.
Read more...  

ArcLight buys Midcoast Operating LP for about $1.1 bln

ArcLight Capital Partners has acquired Midcoast Operating LP from Enbridge Inc for about $1.1 billion in cash. Houston-based Midcoast is an owner of midstream assets.
Read more...  

TPG, KKR leading contenders to manage Abraaj’s healthcare fund, say sources: Reuters

Buyout firms TPG (TPG.L) and KKR & Co (KKR.N) have emerged as leading contenders to run Dubai-based private equity firm Abraaj’s troubled $1 billion healthcare fund, sources told Reuters.
Read more...  

CVC abandons talks with Ingenico over potential buyout, say sources: Reuters

Private equity group CVC [CVC.UL] has abandoned talks with Ingenico (INGC.PA) over a potential buyout of the French payments group, amid a frenzy of deals in the sector, sources told Reuters.
Read more...  

Genstar completes DrillingInfo buyout

Genstar Capital has closed its previously announced acquisition of Austin-based Drillinginfo, a software, data and analytics platform for the energy value chain. No financial terms were disclosed. Insight Venture Partners will retain a “significant” minority stake in Drillinginfo.
Read more...  

Genstar buys BBB Industries

Genstar Capital said Aug. 2 that it acquired BBB Industries LLC. Financial terms weren’t announced. BBB, of Daphne, Alabama, is an automotive aftermarket supplier. UBS Investment Bank and Latham & Watkins LLP advised Genstar.
Read more...  
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IPOs
 
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Sonos IPO prices below range amid muted investor reception: Reuters

Sonos Inc (SONO.O), the U.S. company that popularized wireless speakers, priced its initial public offering below its targeted range on Wednesday, signaling investors are selective about backing stock market hopefuls in the technology sector, Reuters reported.
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M&A Deals  
 
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Riverside Co to sell Alchemy Systems

Riverside Co said Aug. 3 that it agreed to sell its investment in Alchemy Systems to Intertek ITRK. Financial terms weren’t announced. Alchemy Systems, of Austin, provides food and workplace safety training and other operations and culture solutions through a software-as-a-service (SaaS) model. Jones Day and Deloitte advised Riverside on the transaction. Houlihan Lokey led the sales process along with Vaquero Capital.
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IHS Market closes acquisition of Ipreo for $1.855 bln

IHS Markit Ltd has completed its previously announced acquisition of Ipreo, a financial services solutions and data provider, for $1.855 billion. The sellers were private equity funds managed by BlackStone and Goldman Sachs. Barclays was lead financial adviser to IHS Markit with HSBC also serving as financial adviser.
Read more...  

VC-backed Siemens to buy Mendix for $730 mln

Siemens is acquiring Boston software firm Mendix for $730 million in cash, according to a blog post on the former company's website. Mendix's backers include Battery Ventures and Prime Ventures.
Read more...  

Resilience-backed CR Brands sells cleaning products line

CR Brands, a portfolio company of Resilience Capital Partners, has sold its Mean Green specialty cleaning products line and its U.S. and Canadian license for Roto-Rooter-branded drain care products to the Rust-Oleum group of RPM International. No financial terms were disclosed. KeyBanc Capital Markets provided financial advice to Resilience and CR Brands on the transaction.
Read more...  

Cisco to buy cyber-security company Duo for $2.35 billion: Reuters

Cisco Systems Inc said on Thursday it would buy Duo Security, a venture capital-backed cyber security company, for $2.35 billion in cash, as it seeks to expand its offerings in cloud computing.
Read more...  

PE-backed Focus Brands to buy Jamba Juice for $13 per share

Focus Brands, which is owned by Roark, has agreed to acquire Jamba Inc for $13 per share or about $200 million. Jamba Inc is the parent company of the healthy juice brand Jamba Juice.
Read more...  

TSG-backed Duckhorn Wine Company acquires Kosta Browne

Duckhorn Wine Company, which is backed by TSG Consumer Partners, has acquired California-based winery Kosta Browne. No financial terms were disclosed. Jason Abt, managing director at Houlihan Lokey, was financial adviser to DWC on the deal while Paul Van Houten and Charles Boer, partners at Ropes & Gray LLP, provided legal advice.
Read more...  

Marlin to sell AdvancedMD

Global Payments Inc has agreed to acquire South Jordan, Utah-based AdvancedMD, a provider of medical office software, from Marlin Equity Partners. The deal is valued at $700 million.
Read more...  

PE-backed Lombart buys Enhanced Medical Services

Lombart Instrument, a portfolio company of Atlantic Street Capital, has acquired St. Louis, Missouri-based Enhanced Medical Services, a provider of pre-owned ophthalmic instruments. No financial terms were disclosed.
Read more...  
Real Estate
 
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PE-backed real estate firm Cushman & Wakefield goes public

Cushman & Wakefield, the real estate firm, has debuted its IPO after pricing its 45 million shares at $17 per share. The stock began trading August 2, 2018 on the New York Stock Exchange under the ticker symbol "CWK." Morgan Stanley, J.P. Morgan, Goldman Sachs and UBS Investment Bank are among the IPO's underwriters. Cushman & Wakefield's pre-IPO backers include TPG Capital, PAG Asia Capital and Ontario Teachers’ Pension Plan.
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Firms & Funds
 
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H.I.G. seeks $2.75B for U.S. buyout fund: Financial News

H.I.G Capital has raised $2.39 billion for a U.S. buyout fund focused on mid-market companies, Financial News reported. H.I.G. is seeking $2.75 billion for the HIG Advantage Fund, up from its initial $2.25 billion target, the story said, citing an SEC filing. H.I.G. of Miami invests in small to mid-market companies valued at between $50 billion to $500 million, Financial News said.
Read more...  

Felicis Ventures rakes in $270 mln for sixth fund – Updated

Felicis Ventures has raised $270 million for its sixth fund, according to an SEC filing. The Menlo Park, California-based venture firm "backs iconic companies reinventing existing markets and creating frontier technologies," according to Crunchbase.
Read more...  
Human Resources
 
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Law firm Stradling Yocca Carlson & Rauth taps Gores’ Waldman for team

Thomas A Waldman has joined law firm Stradling Yocca Carlson & Rauth's corporate practice group. Previously, Waldman was managing director, legal at The Gores Group. There he served as general counsel for the Gores Small Capitalization Partners fund and several of the private equity firm's portfolio companies.
Read more...  

Bridgepoint hires investment banking VP

Bridgepoint Investment Bank has named Subhash Marineni as vice president of investment banking. Previously, he worked at Mid-Market Securities.
Read more...  

Heidrick & Struggles appoints Atkinson to lead VC practice

Chicago-based executive search firm Heidrick & Struggles has named Scott Atkinson to lead its venture capital practice. Atkinson, a partner at the firm, is succeeding Rebecca Foreman Janjic.
Read more...  

Lariat promotes Sartisky to VP

Lariat Partners has promoted Josh Sartisky to vice president. Prior to joining the Denver-based private equity firm, he was an associate at Grey Mountain Partners.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read ushers in the end of the week with news that AIG stock tanks more than 5 percent after missing on earnings, Warner Music Group acquires Uproxx, and Sonos surged 32 percent in its first day of trading.
Read more...  

PE HUB Second Opinion

In Second Opinion, Brookstone files for bankruptcy, an active shooter is reported at an Air Force base in Ohio and Apple becomes the first U.S. public company to hit a market cap of $1 trillion.
Read more...  

PE HUB Healthcare Wire Highlights 8.2.18

Sponsors are ravenous for health services M&A as prices tick higher
Read more...  

The Heritage Group launches HG Ventures

The Heritage Group, which manages business units involved in construction and materials, environmental services, specialty chemicals, and energy and refining, has launched HG Ventures, a new corporate venture arm. HG Ventures will focus on early and growth-stage opportunities and is expected to reach $50 million "per year within a short time after launch."
Read more...  

PE HUB Wire Highlights, 8.2.18

Genstar buys BBB Industries; Warner joins Gridiron Capital; Apollo posts Q2 earnings miss
Read more...  

Apollo posts weaker-than-expected Q2 earnings per share: Reuters

Alternative asset manager Apollo Global Management LLC said on Thursday second-quarter economic net income fell 40.9 percent from a year ago to $108.5 million, Reuters reported.
Read more...  
   
     
   
     
 
 
 
   
 
   
 
   
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