Click here to view this email online.
To ensure this email is delivered to your inbox, please add the email address
pehubwire@buyoutsinsider.com to your address book.
PeHubWire.jpg

Happy Friday! 

What do you think about tariffs? I've been doing a lot of reading up on protectionist policies over the years to see the context in which they were set and the impact they had on economies. Currently reading about the French economy under Napoleon and ways the country tried to get out from under the yoke of English sea power -- including the use of punitive tariffs. 

Oh my: This is my favorite sort of time, when news is as easy to pick as apples in an orchard, and the main challenge is figuring out which story to do first. This is mainly because the PE secondary market is as busy as I've ever seen it. My initial thought was that everyone is scrambling to finish processes before the end of the year. Several sources pushed back on that idea, saying that new processes have been introduced in the past few weeks, with more to come in December and into 2019. 

It's amazing what's going on in this side of the market. I spend a lot of time talking about secondaries because I remember covering such deals for the first time way back in the weird, paranoid era just after the global financial crisis, when the only sales were terrified LPs desperate for liquidity. 

Now, it's completely different. It's watching the rise of a formerly obscure market, which is expected to reach $60 billion or more in total activity when the final tallies come in for this year (we'll see). 

Done: Meanwhile, I have a story today that Eos Partners completed a broad restructuring of two older funds that puts 10 to 12 assets into a new vehicle. The deal also provided the firm with $75 million to continue investing before raising its next flagship fund. 

HarbourVest led the deal and Evercore was secondaries adviser. Eos Partners executives haven't responded to my questions about the transaction, but from what I hear it went smoothly. Around half the existing LPs chose to sell their stakes in the funds and the other half chose to stick with the GP into the new vehicle, which has at least five years to sell off the assets. Check out my story here

This sounds like one of the restructuring deals that just works. Takes months to get done, but in the end, LPs that wanted out cashed out, and those who believe there was more value to be had in the remaining portfolio get to stick around. 

Hit me up with your thoughts on this process and with ideas for deals out there that I should chase. I'm at cwitkowsky@buyoutsinsider.com

What happened: Eaglehill Advisors hit the market with a lot of hype, garnering write-ups in Dow Jones and Bloomberg (and of course everyone's favorite publication, Buyouts!). Two ex-Citi bankers, Mike Zicari and Jason Cunningham, launched the firm in 2014 and got a big boost in the form of $100 million from Koch Industries.

Earlier this year, Zicari resigned from the firm, the firm said in its Form ADV filed in September. By August, the firm hired Park Hill Group to explore strategic options, including a secondary process. I'm not clear on what exactly happened, but it sounds as if Zicari's departure may have triggered a key-man provision in the firm's debut fund, which it closed on $250 million last year. A spokesman for the firm declined to comment, of course. 

If you have any info, hit me up at cwitkowsky@buyoutsinsider.com. And ... if you've heard of other, similar situations, reach out and let's chat! Nothing like drama. 

I guess we'll leave it there for today. Here's another request: any recommendations of business-history books -- more narrative style and less textbook style? I'm always in the market for the history of business, either US or globally. A few years back I read a few amazing books by John Brooks, including "Once in Golconda." Hit me up with tips n' gossip, book recs, feedback, drama, whatever at cwitkowsky@buyoutsinsider.com

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 Mic has laid off most of its staff, New Hampshire Democrats invite Beto O’Rourke to the crucial presidential primary state and far-right activist rescued by NYPD after she cuffs herself to door of Twitter office in NYC.
Read more...  

PE HUB Second Opinion

In Second Opinion, burger chain Jack in the Box is exploring a sale, Payless fools influencers with a fake store and Bayer is planning on cutting 12,000 jobs and selling brands that include Dr. Scholl's foot-care products and Coppertone sunscreens.
Read more...  

PE HUB Healthcare Wire, 11.29.18

Digging into KKR's SeraCare Life Sciences deal
Read more...  

PE HUB Wire Highlights, 11.29.18

BC Partners to seek buyer for Acuris; CPPIB to invest $500 mln in Berlin Packaging; Co-founder exits Eaglehill Advisors
Read more...  

Eos Partners completes broad fund restructuring, raises bridge fund

Eos Partners completed a broad restructuring process that transferred assets from its third and fourth funds into a new vehicle that gives the firm at least five more years to sell the investments, sources told Buyouts. The deal also involved creating a $75 million bridge fund, providing the firm capital to invest prior to raising […]
Read more...  

TPG Growth buys patient data registry Q-Centrix

TPG Growth has purchased Q-Centrix, a provider of clinical registry technology and services that help hospitals manage patient care. The deal concludes a Houlihan Lokey-run sales process and marks an exit for Sterling Partners, which first invested in Q-Centrix in January 2014. Varagon Capital Partners provided debt financing on the transaction. Matthew Hobart, who as […]
Read more...  

Freeman settles lawsuit against fintech banker Seto

Freeman & Co’s lawsuit against Tony Seto, the fintech banker who was accused of stealing trade secrets from the investment bank, has been dismissed. Parties involved in the lawsuit have settled, said Jonathan Sack, of Sack & Sack, in an emailed response to questions. Sack, who represented Freeman, declined to disclose terms of the agreement. The […]
Read more...  

Linden makes ~4x its money on SeraCare sale

Linden Capital Partners generated an about 4x return through its sale of SeraCare Life Sciences, according to a source familiar with the matter. KKR said earlier this week it would buy SeraCare, a supplier of biological products to the diagnostics industry, through its portfolio company LGC North America. Financial terms of the transaction weren’t disclosed; a […]
Read more...  

What investors tell their companies

Entrepreneurs and their investors have largely adopted a wait-and-see approach to a possible economic downturn. Why slash burn rates and hold back growth if a softening of business conditions is several years off? Nobody wants to see rain clouds when the sun is shining. So proposals to forgo expansion don’t gain traction. “It’s a hard […]
Read more...  

How venture is preparing for a downturn

Social Capital’s Chamath Palihapitiya demonstrated dramatic flair in October when he labeled venture capital a “bizarre Ponzi balloon” and vowed to sit on the sidelines. Palihapitiya, in truth, may not be the one to offer the industry a didactic scolding, having witnessed the near disintegration of his firm. But he has a point. A deluge […]
Read more...  

Koch family’s investment arm invests in family-backed Getty Images

Koch Equity Development, the investment arm of privately owned Koch Industries, is investing $500 million in family-owned Getty Images for a non-controlling stake in the stock-photo company. It’s unclear how big Koch’s holding is in Getty, which is laboring under a heavy debt load. The Getty family is retaining control over the company, a statement […]
Read more...  

IMPERIAL CAPITAL, LLC
15TH ANNUAL SECURITY INVESTOR CONFERENCES
December 11-12, 2018
InterContinental Barclay New York
  • 65+ public and private companies presenting to an audience 400+ attendees
  • Opportunity to set one-on-one meetings with senior management teams
  • Featured keynote speakers providing the latest information in the security industry

SIC 2018 PRESENTERS

WWW.IMPERIALCAPITAL-SIC.COM

SIC is the premier industry gathering connecting the world’s leading security companies with an audience of key investors and business leaders.


 
pehw_66x25_VC.jpg pehw_66x25_PE.jpg pehw_49x25_IPOs.jpg pehw_49x25_M%26A.jpg pehw_94x25_firms.jpg pehw_110x25_HR.jpg pehw_83x25_odds.jpg

VC Deals 

 
 

Lentesplus.com inks $5 mln Series A

Lentesplus.com, an e-commerce platform for contact lenses in Latin America, has raised $5 million in Series A funding. The investors included Palm Drive Capital, IGNIA and InQlab.
Read more...  

MondoBrain procures $13.3 mln Series A

Virginia-based MondoBrain, a provider of an augmented intelligence platform, has secured $13.3 million in Series A funding. Japia led the round.
Read more...  

LearnLux locks in $2 mln seed

LearnLux, a digital financial wellness platform, has secured $2 million in seed funding. The investors included Sound Ventures, Salesforce CEO Marc Benioff and Underscore VC.
Read more...  

TCV leads $100 mln round for Venafi

Salt Lake City, Utah-based Venafi, a provider of machine identity protection, has raised $100 million in financing. TCV led the round with participation from return backers QuestMark Partners and NextEquity Partners. In addition to the funding, TCV General Partner Jake Reynolds will join Venafi’s board of directors.
Read more...  

Fashion startup RAGS fetches $1.5 mln

Utah-based RAGS, a fashion brand, has secured $1.5 million in funding. Kickstart Seed Fund led the round. In addition to the financing, Curt Roberts, a partner at Kickstart, will join RAGS' board of directors.
Read more...  

Flipside Crypto adds Coinbase Ventures and Digital Currency Group as investors

Boston-based Flipside Crypto, which uses blockchain transaction data to analyze cryptocurrencies, announced it has added Coinbase Ventures and Digital Currency Group as investors. In addition, fintech entrepreneur Jeff Parker also joined the funding round along with current investors True Ventures, Castle Island and Boston Seed Capital. Flipside Crypto has raised $4.5 million to date. The company was founded in mid-2017 by CEO Dave Balter, Jim Myers and Eric Stone.
Read more...  

LoanStreet snags $6.5 mln Series A

New York-based LoanStreet Inc, an online platform that streamlines the process of sharing, managing, and originating loans, has secured $6.5 million in Series A funding. Valar Ventures led the round with participation from other investors that included Third Prime Capital, Rosecliff Ventures, Ride Ventures and The Gramercy Fund.
Read more...  

Insurance company Bright Health takes in $200 mln Series C

Minneapolis-based Bright Health, an insurance company, has raised $200 million in Series C funding. The investors include Declaration Partners, Meritech Capital, Bessemer Venture Partners, Cross Creek Advisors, Flare Capital, Greenspring Associates, Greycroft Partners, New Enterprise Associates, Redpoint Ventures and Town Hall Ventures.
Read more...  

PebblePost amasses $31 mln Series C

New York City and San Francisco-based PebblePost, a direct mail firm, has closed its Series C funding round at $31 million. Advance Venture Partners led the round with participation from other investors that included Capital One Growth Ventures, Kickstart Seed Fund, RRE, Greycroft and Tribeca Venture Partners.
Read more...  

Roam Robotics procures $12 mln Series A

San Francisco-based Roam Robotics, a builder of robotic exoskeletons, has raised $12 million in Series A funding. Yamaha Motor Co led the round with participation from Boost VC, Heuristics Capital Partners, Menlo Ventures, R7 Partners, Spero Ventures, Valor Equity Partners and Venture Investment Associates.
Read more...  

Aras gathers $70 mln Series D in Goldman Sachs-led round

Andover, Massachusetts-based Aras, a provider of open product lifecycle management software for the enterprise, has raised $70 million in Series D funding. Goldman Sachs Private Capital led the round with participation from other investors that included Silver Lake Kraftwerk. In conjunction with the transaction, Hillel Moerman and Holger Staude of Goldman Sachs will join Aras’ board of directors as a board member and as an observer, respectively.
Read more...  

Asana nabs $50 mln Series E

San Francisco-based Asana, a work management platform for teams, has secured $50 million in Series E funding. Generation Investment Management led the round with participation from 8VC, Benchmark Capital, Founders Fund, Lead Edge Capital and World Innovation Lab.
Read more...  

ParaGen Technologies rakes in $3 mln

Columbus, Ohio-based ParaGen Technologies, the parent company of four medical device companies, has secured $3 million in funding. Ikove Venture Partners managed and organized 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  
 
Back to Top

Strattam invests in Rock Solid

Strattam Capital has made an investment in Puerto Rico and Texas-based Rock Solid Technologies, a software and IT services company. No financial terms were disclosed.
Read more...  

NCK Capital buys City Wide

NCK Capital has acquired Dallas-based City Wide Building, a commercial building maintenance company. No financial terms were disclosed. XLS Partners served as M&A adviser to City Wide on the transaction. City Wide was backed by Double R Partners.
Read more...  

U.S. pipeline company WhiteWater Midstream eyes $2 billion sale, say sources: Reuters

WhiteWater Midstream LLC is exploring a sale that its private equity owners hope will value the U.S. oil and gas pipeline operator at more than $2 billion, including debt, sources told Reuters.
Read more...  

NordLB receives bids for stake in bank from Cerberus, Apollo, say sources: Reuters

German public sector bank NordLB has received four binding bids from private equity groups for a stake in the bank, a source close to the matter said.
Read more...  

Evoca owner Lone Star in talks to sell coffee machine group: Reuters

Private equity fund Lone Star has hired Deutsche Bank to explore a potential sale of its Italian vending and coffee machine maker Evoca, which includes iconic brand Gaggia, Evoca CEO Andrea Zocchi told Reuters on Wednesday.
Read more...  

Vista to invest in Wrike

Vista Equity Partners has agreed to make a majority investment in San Jose, California-based Wrike, a collaborative work management platform for high-performance teams. No financial terms were disclosed. As a result of this transaction, Filev, Bain Capital Ventures and Scale Venture Partners will retain a significant stake in Wrike. William Blair served as financial adviser to Wrike on the deal while Harris Williams did likewise for Vista.
Read more...  

Webster Capital-backed Discovery Behavioral Health acquires Ambrosia Treatment Center NJ

Webster Capital-backed Discovery Behavioral Health, a behavioral health provider, acquired Ambrosia Treatment Center NJ. Ambrosia provides addiction treatment to patients from the greater Philadelphia and southern New Jersey areas. Ambrosia will operate under the name Pinelands Recovery Center of Medford.
Read more...  

Oak Hill Capital, CPPIB to recap Berlin Packaging

Oak Hill Capital Partners and Canada Pension Plan Investment Board have agreed to recapitalize Berlin Packaging LLC. CPPIB is making a $500 million investment in Berlin while company management is also investing. Berlin Packaging, of Chicago, provides packaging products and services to companies in multiple industries, providing customers of all sizes with a one-stop shop for glass, plastic, and metal containers and closures.
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
 
Back to Top

Goldman Sachs, Morgan Stanley top picks to lead Swedish buyout firm EQT’s IPO, say sources: Reuters

Goldman Sachs (GS.N) and Morgan Stanley (MS.N) are expected to lead preparations for the planned IPO of Swedish buyout firm EQT, two sources told Reuters, after the company earlier this month invited banks to bid for the mandate.
Read more...  
M&A Deals  
 
Back to Top

H.I.G. to sell energy management company CPower

LS Power has agreed to acquire CPower, an energy management solutions provider, from H.I.G. Capital. No financial terms were disclosed. The deal is expected to close in December 2018.
Read more...  

Alliance sells long-term care unit to PE-backed HealthPRO

Alliance Physical Therapy Management, which is backed by GPB Capital, has sold its long-term care unit to HealthPRO Heritage. No financial terms were disclosed. Livingstone was the investment banker to Alliance on the deal. HealthPRO is a portfolio company of Beecken Petty O’Keefe.
Read more...  
Real Estate
 
Back to Top
Firms & Funds
 
Back to Top

Midwest Growth Partners collects over $102 mln for sophomore fund

Midwest Growth Partners has raised over $102 million for its second fund, according to an SEC filing. The target is $110 million. Based in Des Moines, Iowa, the private equity firm invests in in growth-oriented companies located in upper Midwest communities.
Read more...  

Cannabis-focused investment firm Rose Capital raises $55 mln for maiden fund

Rose Capital, a cannabis-focused investment firm, has closed its debut fund at $55 million. Rose Capital Fund I will focus on backing cannabis operators in the following sectors: consumer packaged goods; data and analytics; distribution and logistics; and ancillary products.
Read more...  
Human Resources
 
Back to Top

Muller & Monroe Asset Management hires senior associate

Muller & Monroe Asset Management LLC has named Alexander Moritz as a senior associate to its investment section. Previously, Moritz worked at UBS where he was a product specialist, multi asset and alternative investments.
Read more...  

VC-backed ThoughtSpot adds two VPs to team

Palo Alto, California-based ThoughtSpot, a provider of search and AI-driven analytics for businesses, has named Monica McEwen as vice president of public sector and Toni Adams as vice president of global channels and alliances. ThoughtSpot is backed by Lightspeed Venture Partners, Khosla Ventures, General Catalyst Partners, Sapphire Ventures, Geodesic Capital and Capital One Growth Ventures.
Read more...  

Geneva Glen Capital hires one and promotes another

Geneva Glen Capital has named Jack Kelly as an associate and promoted Greg Irons to a senior associate. Previously, Kelly worked at Lincoln International where he was an associate while Irons joined GGC in 2016.
Read more...  

PE-backed IBH taps Sockel as chief commercial officer

Costa Mesa, California-based Integrated Behavioral Health Inc, a provider of managed behavioral health and integrated employee assistance programs and services, has named David Sockel as chief commercial officer. Previously, he worked at Connecture Inc where he recently was executive vice president of corporate and product strategy and chief revenue officer. IBH is backed by Periscope Equity.
Read more...  

PE-backed StarCompliance recruits Hebert as chief revenue officer

StarCompliance, a provider of compliance monitoring solutions, has named Paul Hebert as chief revenue officer. Previously, Hebert worked at Ipreo where he recently was executive vice president of corporate investor relations. StarCompliance is a portfolio company of Luminate Capital Partners.
Read more...  

VC-Inflazome appoints chief medical officer

Dublin, Ireland-based Inflazome, a developer of small molecule drugs that block harmful inflammation, has named Dr. Thomas Jung as chief medical officer. Jung is the former head of the translational medicine group for Novartis Europe. Inflazome is backed by Forbion Capital Partners, Longitude Capital, Fountain Healthcare Partners and Novartis Venture Fund.
Read more...  
Credit
 
Back to Top

VC-backed Karius secures $25 mln loan from Oxford Finance

Oxford Finance LLC has provided a $25 million senior secured facility to Karius Inc, a life science company focused on infectious disease diagnostics with genomics. The financing will be used to expand the company technology to more hospitals and patients, invest in additional clinical studies and fund additional technology and product innovations. Karius Inc's backers include Data Collective, Lightspeed Venture Partners, Tencent, Khosla Ventures, Innovation Endeavors and Spectrum 28.
Read more...  

Crescent Capital racks up about $1.6 bln for second direct lending fund

Los Angeles-based Crescent Capital Group LP, an alternative credit investment firm, has closed its second direct lending fund at about $1.6 billion, beating its approximate $600 million target. CDL Fund II's backers include pension funds, insurance companies, financial institutions, foundations and endowments.
Read more...  
Odds & Ends + Hot Links 
 
Back to Top

PE HUB First Read

First Read ends the week with news that Mic has laid off most of its staff, New Hampshire Democrats invite Beto O’Rourke to the crucial presidential primary state and far-right activist rescued by NYPD after she cuffs herself to door of Twitter office in NYC.
Read more...  

PE HUB Second Opinion

In Second Opinion, burger chain Jack in the Box is exploring a sale, Payless fools influencers with a fake store and Bayer is planning on cutting 12,000 jobs and selling brands that include Dr. Scholl's foot-care products and Coppertone sunscreens.
Read more...  

PE HUB Healthcare Wire, 11.29.18

Digging into KKR's SeraCare Life Sciences deal
Read more...  

PE HUB Wire Highlights, 11.29.18

BC Partners to seek buyer for Acuris; CPPIB to invest $500 mln in Berlin Packaging; Co-founder exits Eaglehill Advisors
Read more...  
 
 
 
 
 
 
 
 
 
BO_readership_survey
 
 
 
 
 
View Online Version| Free Registration| Advertising Info | Email Us

This email was sent by: PE HUB Wire (US), 9 East 38th Street, 11th Floor, New York, NY 10016, USA.

Click here to unsubscribe or to update your subscription preferences.
We respect your right to privacy. View our privacy policy .