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Can you hear the sobbing, hubsters? That's the sound Chicago Bears fans make when their hearts are broken. Just joking. No city more than Chicago is used to rising from the ashes of failed expectations. Better luck next year.
 
Britain has missed out on the boom in big private equity deals because of Brexit uncertainty, The Times is reporting. The value of PE deals in the U.K. was 34 percent lower compared with 2017, at 27.2 billion euros, the story said. Silver Lake's 2.2 billion pounds ($2.8 billion) buy of Zoopla is the only British buyout to make the EU top 10, The Times said.
 
The Washington Post has a column from Steven Pearlstein, who wonders if Stephen Schwarzman, co-founder of Blackstone Group, really deserves to make the astronomical amounts that he does. Schwarzman took home a $786.5 million payday from BX last year. It was a big check but not out of line with previous years, Pearlstein said. Hubsters, does Schwarzman really deserve such extraordinary sums? Should anyone make such a huge amount? Why or why not? Email me at lbeltran@buyoutsinsider.com
 
Deals: Good things really do come to those who wait. Just consider Parthenon Capital Partners, which has been expected to sell Millennium Trust Co every year since it bought the company back in 2015. Parthenon's partial sale of Millennium Trust, a 401(k) administrator, was expected to go big and it didn't disappoint. Abry announced Friday that it was investing in Millennium Trust.
 
One GP said the mammoth sale is the result of the M&A market's "crazy stupid valuations." "Eight months ago [Parthenon] could not get $700 million" for Millennium, the source said.
 
"Stunning," another GP said.
 
Find out how much Millennium Trust went for here.
 
Eddie Lampert’s bid to rescue Sears through an affiliate of his hedge fund, ESL Investments Inc, has fallen short so far, Reuters is reporting.
 
Joseph Weitemeyer has a list of 2018 distressed companies and retail lead the pack.
 
People: TA Associates has promoted 10 executives from its Boston, Menlo Park, Hong Kong and Mumbai offices. Find out more here
 
News from Buyouts/ VCJ: Chris has a column on why CalPERS needs more transparency. Read his article here.
 
San Diego County Employees Retirement Association is looking for ways to bargain down its private equity management fees, saying it hasn’t had as much success in that area as it has had with other asset classes, Dietrich Knauth reports.
 
That’s it for me. Send any tips, happy thoughts or complaints to lbeltran@buyoutsinsider.com

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

Service providers! Placement agents! Don’t miss your opportunity for a free listing in our widely distributed Guide to Emerging Manager Investors and Service Providers. Several dozen firms are listed for potential clients to see – make sure yours is too!

Take a few minutes to fill out our survey now:
Service Providers: https://www.surveymonkey.com/r/Z6THZ5L
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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.

 
Today's  Take  

PE HUB First Read

First Read begins the week with news that Marriott says that hackers swiped millions of passport numbers, Taylor Swift's app shuts down, and "Bohemian Rhapsody" wins best picture at the Golden Globes.
Read more...  

PE HUB Second Opinion

In Second Opinion, Lowe's looks to hire 65,000 new employees in tightest labor market in decades, the Dow surges 800 points and Federal Reserve Chairman Jerome Powell says the central bank will be "patient" on rake hikes and that he won't resign if President Trump asks.
Read more...  

PE HUB Wire Highlights, 1.4.19

CalPERS interviews PE pros for new structure, PE and no-fault divorces
Read more...  

Parthenon sells majority of Millennium Trust for $1.6 bln to $1.8 bln

Good things come to those who wait. Just ask Parthenon Capital Partners, which is selling part of its stake in Millennium Trust Co for a mammoth price. Abry Partners said Friday, Jan. 4 that it agreed to make a significant investment in Millennium. Terms weren’t announced. Parthenon is retaining a minority stake, the statement said. […]
Read more...  

Retail leads long list of 2018 distressed companies

After a rough year, 88 companies, a quarter of them from the retail sector, will look forward to a fresh start. These PE-sponsored companies received distressed ratings. They’re defined as holding credit ratings of B- or lower with a negative outlook from S&P or a corporate-family rating of Caa1 or lower with a negative outlook from […]
Read more...  

Charts of the Week: Most North American buyout funds need 12-18 months from first to last close

Even in a strong fundraising market, all but the most sought-after GPs still generally take more than a year to raise their funds. Buyouts Insider 2018-2019 PE/VC Partnership Agreements Study found that most North American venture and buyout funds spend about 12 months to 18 months raising money. Download as an Excel file: Charts of the […]
Read more...  

On the Move, Jan. 7, 2019: Pantheon names Partner Robin Bailey COO

PRIVATE EQUITY FIRMS Arsenal Capital Partners named BG Porter an industry and operations partner and John DiGiovanni a principal. Porter most recently was CEO of Studer Group, consultant to hospitals in the U.S. and abroad. DiGiovanni was a principal at Baird Capital Partners. Pantheon: Partner Robin Bailey was appointed chief operating officer. Imogen Richards, global head of investment structuring and […]
Read more...  

Charts of the Week: LPs want up to 5 pct GP commitments

Investors may press GPs to put more money into their own funds to better align the interests of LPs and GPs. According to the 2018-2019 PE/VC Partnership Agreements Study, investors would like to see a 2 percent GP commitment become the new standard and 5 percent for established firms.
Read more...  

LP Scorecard: Overseas, Global funds lead UTIMCO 2015

University of Texas/Texas A&M Investment Management Co received more than $471.6 million in distributions from private equity funds from 2015. That year, the pension fund made its largest commitment to PE on record. Half that distribution ($237.3 million) came from Asian and South Asian funds. All told, UTIMCO in 2015 committed more than $2.8 billion to […]
Read more...  

Editor’s Letter: Please CalPERS, more transparency

CalPERS has been debating a plan to restructure its private equity program, establishing what it’s terming its four pillars: traditional GP relationships; focus on newer managers; and two direct investment vehicles that would target health and technology innovation and long-duration investments in larger businesses. (All fairly public so far). The CalPERS board heard more details […]
Read more...  

Market at a Glance: Fundraising rushes to the finish line

U.S.-based buyout and mezzanine fundraising continued its strong finish to 2018, adding more than $18 billion since the last issue of Buyouts. The YTD 2018 total now stands at more than $227 billion and surpassed its YTD 2017 total by $12 billion, or 5.6 percent. Large funds were to thank for the surge. Siris Capital […]
Read more...  

San Diego has tough time reducing PE fees in strong fundraising market

San Diego County Employees Retirement Association is looking for ways to bargain down its private equity management fees, saying it hasn’t had as much success in that area as it has had with other asset classes. Over the past three years the $12.5 billion retirement system has shifted away from fixed fees and toward incentives […]
Read more...  

Monomoy spinout MiddleGround reaches $140 mln first close

MiddleGround Capital, a Monomoy Capital spinout raising its debut fund, held a first close on more than $140 million, sources told Buyouts. MiddleGround joins another recently formed firm, Gallant Capital Partners, which held a first close for its debut on $115 million in November. Gallant was formed by two ex-Gores Group executives. MiddleGround is targeting $425 […]
Read more...  

Q4 League Tables: Goldman Sachs, Kirkland & Ellis finish 2018 on top

Investment bank Goldman Sachs and law firm Kirkland & Ellis led rival advisers on completed M&A deals through the fourth quarter of 2018, according to league tables from Thomson Reuters. Goldman Sachs dominated most advisers when ranked by deal volume. The investment bank also led or was near the top across most industries, geographic locations […]
Read more...  

Get your Q4 2018 private equity slide show

Here are the key statistics in private equity fundraising, deals and exits for the fourth quarter of 2018. Download the “Buyouts Insider Q4 2018 Highlights” slide show as a PowerPoint: Buyouts Insider Q4 2018 Highlights
Read more...  

Year in Review: ICO hoopla fades after 2018 fundraising spikes

The past year had its mood swings. At the beginning of 2018, ICOs and how venture firms were tweaking their LPAs (or not) dominated the coverage. Still reeling from the #metoo effect, in which several male VCs were investigated or dismissed over sexual-harassment claims, a number of firms in the first half of 2018 addressed […]
Read more...  

VC Arlan Hamilton had no VC experience but has now backed 100 companies

If you want to know how the venture biz has changed in recent years, look no further than Arlan Hamilton. Hamilton is founder and managing partner of Backstage Capital in Los Angeles. Her firm’s website says she built the venture fund from the ground up, while homeless and living off food stamps. Backstage Capital itself […]
Read more...  

San Diego has tough time reducing PE fees in strong fundraising market

San Diego County Employees Retirement Association is looking for ways to bargain down its private equity management fees, saying it hasn’t had as much success in that area as it has had with other asset classes. Over the past three years the $12.5 billion retirement system has shifted away from fixed fees and toward incentives […]
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 

 
 

Aerospace startup Boom Supersonic gathers $100 mln Series B

Denver-based Boom Supersonic, an aerospace startup, has raised $100 million in Series B funding. The investors included Sunstone Management and Y Combinator Continuity.
Read more...  

Qualcomm Ventures backs Baicells

Plano, Texas-based Baicells, a small cell technology company, has secured an undisclosed amount of funding. The investor was Qualcomm Ventures LLC.
Read more...  

Medication guidance company WithMe Health rakes in $20 mln

Boston-based WithMe Health, a medication guidance company, has raised $20 million in financing. The investor was Oak HC/FT.
Read more...  

Alphabet’s life science tech unit Verily raises $1 billion from investors: Reuters

Verily, Alphabet Inc’s (GOOGL.O) life sciences division, on Thursday announced a $1 billion investment round led by private equity firm Silver Lake,Reuters reported.
Read more...  

Pear Therapeutics locks in $64 mln Series C

Boston and San Francisco-based Pear Therapeutics, a provider of prescription digital therapeutics, has secured $64 million in Series C financing. Temasek led the round with participation from other investors that included Novartis, 5AM Ventures, Arboretum Ventures, Jazz Venture Partners, The Bridge Builders Collaborative, EDBI, Blue Water Life Science Fund LP and Trustbridge Partners.
Read more...  

Ribon Therapeutics lands $65 mln Series B

Lexington, Massachusetts-based Ribon Therapeutics, a biotechnology company, has raised $65 million in Series B financing. Novartis Venture Fund led the round with participation from JJDC, Celgene Corporation, The Column Group, Deerfield Management, U.S. Venture Partners, Osage University Partners, Takeda Ventures and Euclidean Capital.
Read more...  

Swiss health tech company Sophia Genetics picks up $77 mln

Sophia Genetics, a Swiss health tech company, has raised $77 million in funding. Generation Investment Management led the round with participation from other investors that included Idinvest Partners, Balderton Capital and Alychlo.
Read more...  

Oculis nets about $15.6 mln

Oculis, a Swiss developer of ophthalmic drugs, has raised CHF 15.5 million (about $15.6 million) in funding. Tekla Capital Management LLC led the round with participation from other investors that included Nan Fung Life Sciences.
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 24-26th, 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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Advent to buy Aimbridge Hospitality

Advent International said Jan. 7 that it agreed to buy a majority of Aimbridge Hospitality. Financial terms weren’t announced. Lee Equity Partners and General Atlantic were the sellers. Aimbridge, of Dallas, is a hotel management with a portfolio that includes approximately 800 upscale, independent and branded hotels with more than 100,000 rooms across the United States, Canada and the Caribbean.
Read more...  

Apollo weighs offer for GE jet leasing business: Bloomberg

Apollo Global Management is considering a bid for all or part of General Electric’s jet-leasing business, Bloomberg reported Jan. 4. Apollo has met with lenders to secure about $30 billion in financing to buy GE Capital Aviation Services, the story said. A sale of GE’s jet leasing unit could be valued as much as $40 billion, the story said.
Read more...  

Rubik’s Brand sells stake to Bancroft Investment

Rubik’s Brand Ltd said Jan. 7 that it sold a minority stake to Bancroft Investment. Financial terms weren’t announced. Rubik’s Brand owns the rights to Rubik’s Cube. Christoph Bettin, who founded Marbel Ltd, has joined as CEO of Rubik’s Brand.
Read more...  

Temasek exploring stake sale in beauty retailer A.S. Watson: Reuters

Singapore state investor Temasek Holdings [TEM.UL] is in talks to sell a small portion of its 24.9 percent stake in beauty and health retailer A.S. Watson, part of conglomerate CK Hutchison Holdings Ltd (0001.HK), Reuters reported.
Read more...  

Atlas Holdings buys Saxco

Atlas Holdings LLC has acquired Concord, California-based Saxco International, a provider of rigid packaging to the wine, spirits, craft beer and food markets. No financial terms were disclosed.
Read more...  

Abry to invest in Millennium Trust

Abry Partners has agreed to make an investment in Millennium Trust Company, a provider of technology-enabled retirement services and institutional custody solutions for businesses, institutions, adviser and individuals. No financial terms were disclosed. As a result of the transaction, Parthenon Capital Partners will retain a minority stake in Millennium Trust. Raymond James & Associates and William Blair & Company served as financial advisers to Millennium Trust and Parthenon.
Read more...  

Gen Cap America acquires Blower Application Company

Gen Cap America has acquired Wisconsin-based Blower Application Company, a specialty manufacturer of shredders, fans and other scrap handling and pneumatic conveying equipment. No financial terms were disclosed for the transaction that was done in partnership with BloApCo management.
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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Madison-backed Amynta Group buys ClearView Risk

Amynta Group, a portfolio company of Madison Dearborn Partners, said Jan. 7 that it acquired ClearView Risk Holdings LLC. Financial terms weren’t announced. ClearView, of Dallas, is a managing general agent and wholesale brokerage that controls more than $200 million of premium.
Read more...  

PE-backed Pueblo Mechanical & Controls buys Commercial Air

Pueblo Mechanical & Controls, which is backed by Huron Capital, has acquired Phoenix-based Commercial Air Inc, a provider of air conditioning, refrigeration and heating systems. No financial terms were disclosed.
Read more...  

FSAC and Agiliti Health complete merger

Federal Street Acquisition Corp, a blank check company backed by Thomas H. Lee Partners LP, and Agiliti Health, a portfolio company of Irving Place Capital Management LP, have closed their merger. The implied value for the combined company is about $1.74 billion. Agiliti Health is a provider of healthcare technology management and service solutions. Citigroup Global Markets Inc and BofA Merrill Lynch served as financial advisers to FSAC with Kirkland & Ellis LLP providing legal advice. And, Weil, Gotshal & Manges LLP served as legal adviser to Agiliti Health.
Read more...  
Real Estate
 
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Firms & Funds
 
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WindRose Health fifth fund raises $705 mln

WindRose Health Investors LLC said Jan. 7 that it closed its fifth fund on $705 million in commitments. WindRose, of New York, is a healthcare-focused private equity fund.
Read more...  

Tusk Ventures to raise $70 mln second venture-capital fund

Tusk Ventures has set out to raise a $70 million second venture-capital fund, according to a filing with the SEC.
Read more...  

Third Kind Venture Capital targets $65 mln for sophomore fund

Third Kind Venture Capital is seeking to raise $65 million for its second fund, according to an SEC filing. The New York-based venture firm is focused on early-stage investments.
Read more...  

MiddleGround collects $140 mln for inaugural fund

Lexington, Kentucky-based MiddleGround Capital has raised $140 million for its debut fund, according to an SEC filing. No target was listed in the document.
Read more...  

Bowmark Capital closes fourth mid-market fund

London-based Bowmark Capital, a mid-market private equity firm, has raised 600 million pounds for its fourth fund. Bowmark Capital Partners VI will focus on mid-market companies that include technology-enabled B2B service companies. The fund's investors include pension funds, insurance companies, funds-of-funds, financial institutions, endowments, foundations and family offices. Campbell Lutyens was the financial adviser on the fundraising.
Read more...  
Human Resources
 
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Perez joins General Atlantic as an operating partner

General Atlantic said Jan. 7 that Rob Perez has joined the firm as an operating partner. Perez is the former president and CEO of Cubist Pharmaceuticals Inc.
Read more...  

TA Associates announces promotions

TA Associates said Jan. 7 that 10 staff members were promoted from its Boston, Menlo Park, Hong Kong and Mumbai offices.
Read more...  

PE-backed Infogroup taps Goldstein as CFO

Nebraska-based Infogroup, a provider of data and multichannel marketing solutions, has named Andy Goldstein as chief financial officer. Previously, he worked at Purch where he was CFO. Infogroup is backed by Court Square Capital Partners.
Read more...  

Spectrum Equity promotes four

Spectrum Equity promoted Jeff Haywood to managing director, Parag Khandelwal to principal, Adam Gassin to vice president and Maureen Sullivan to manager of investor relations. Haywood joined Spectrum in 2007 and focuses on healthcare IT, software and information services. He was closely involved in Spectrum's investments in Passport Health, Net Health, MedHOK and RainKing. Khandelwal joined in 2012 and focuses on software, information services and internet. Gassin joined in 2017 while Sullivan joined the same year from Harvard Management Co.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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Sears picks liquidator should rescue talks fall through: Reuters

A long-standing liquidator is now first in line for one of the U.S. retail sector’s most daunting assignments: shutting down 126-year-old department store chain Sears Holdings Corp (SHLDQ.PK), Reuters reported.
Read more...  

PE HUB First Read

First Read begins the week with news that Marriott says that hackers swiped millions of passport numbers, Taylor Swift's app shuts down, and "Bohemian Rhapsody" wins best picture at the Golden Globes.
Read more...  

PE HUB Second Opinion

In Second Opinion, Lowe's looks to hire 65,000 new employees in tightest labor market in decades, the Dow surges 800 points and Federal Reserve Chairman Jerome Powell says the central bank will be "patient" on rake hikes and that he won't resign if President Trump asks.
Read more...  

PE HUB Wire Highlights, 1.4.19

CalPERS interviews PE pros for new structure, PE and no-fault divorces
Read more...  
 
     
 
 
 
 
 
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