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Happy Friday! 

The holiday break seems like a distant memory at this point; this first full week of the year was so jam-packed. We can debate the state of the economy all day, but when things are this busy with deals, fundraising and promotions/new hires, it all looks healthy and vibrant from my POV. 

Recap: Owl Rock ran a more than $600 million recap of SFW Capital-backed Gerson Lehrman Group, which allowed SFW to get most of its money back on the deal. That's from our new reporter, Milana Vinn. Check out the story here and reach Milana to say hi, or with deal tips, at mvinn@buyoutsinsider.com. Milana is covering tech M&A. 

BDC: I recently wrote a piece saying KKR/FS Investments are shopping stakes in older BDCs on the secondary market. Several sources said BDCs are exploring the secondary market, generally trying to sell equity stakes out of older vehicles. BDCs pick up equity stakes through warrants or small equity allocations to help juice returns. 

BDCs, business development companies, raise capital from public shareholders, and other borrowings, and lend to middle-market businesses. BDCs can use up to 2:1 leverage. 

The KKR deal is one of several that are either on market or exploring possible secondary transactions. Hit me up if you've heard of other such deals, or have details of this one. I'm at cwitkowsky@buyoutsinsider.com

I'm also hearing a recent secondary deal may include not only LP stakes in an older fund, but also co-investment stakes that certain existing LPs in the older fund want to unload. Are you seeing co-investment stakes hit the secondary market? Let me know.  

Big deal: I'm expecting to see a bunch of high-profile GPs run secondary processes on older funds this year. By the holiday break, secondary advisers were introducing new processes into the market to allow buyers to get early looks and get prepared for the new year. 

The latest big transaction I wrote about was Milestone Partners, a Philly-area shop that is working on a liquidity process for its third and fourth funds. Milestone had been raising a fifth fund, according to a Form D filing as of January 2018. It's not clear how much the firm has raised for Fund V or if the secondary deal will include a staple component into Fund V. 

We revealed late last year, as everyone was breaking for the holidays, that Coller Capital, Neuberger Berman and GIC emerged as lead investors on the restructuring of Thomas H. Lee Partners Fund VI. That process is expected to wrap up soon. It will be interesting to see what kind of sale uptake it gets from existing Fund VI LPs. 

Hit me up if you've heard of any interesting processes on the market, or as always, any contentious situations at cwitkowsky@buyoutsinsider.com

New fund: Genstar, which has consistently raised bigger funds, is back in market with its largest fund, targeting $5 billion for Fund IX. The firm also will raise an overage fund that could boost the total target above $5 billion.

Genstar's performance in its recent funds is impressive. I imagine Fund IX will get raised in a blink. Check out my story here

Book update: I'm still plugging away. I'm on a chapter now about one of the firm's portfolio companies, which is in distress and may have to file. My PE Guy is looking for money from his rich mother to inject some rescue equity into the business. And chaos ensues. 

That's it! Have a great weekend. As always, reach out with tips n' gossip, feedback, complaints, book recs or whatever at cwitkowsky@buyoutsinsider.com, on Twitter @chriswitkowsky or find me on LinkedIn. 

LAST CALL … DEADLINE TODAY FOR THESE:

WHAT’S AHEAD IN 2019? Find out at PartnerConnect Outlook on January 22 NYC’s Pierre Hotel, as we kick off the year with more than 60 speakers including newly named Co-CEO of The Carlyle Group Kewson Lee and Susanne Forsingdal, US head of $14B+ asset manager Allianz Capital, to give you their views on what the year might look like and what strategies they’re deploying now. Over 100 LP’s will be on hand. It’s a great day for senior execs to compare notes and start the year off to get deals done.

PE/VC/RE fund managers interested in meeting the 100+ LPs that will be onsite need to register by today as our ExecConnect private meeting program deadline comes to a close. Check out the website for details or contact Kevin at kmccaffrey@buyoutsinsider.com directly to sign up.
 
SERVICE PROVIDERS / PLACEMENT AGENTS! Placement agents! Don’t miss your opportunity for a free listing in our widely distributed Guide to Emerging Manager Investors and Service Providers. Scores of firms are listed for potential clients to see – make sure yours is too!

Hurry! Deadline to answer is today. Take a few minutes to fill out our survey now:

Service Providershttps://www.surveymonkey.cm/r/Z6THZ5L

Placement Agencieshttps://www.surveymonkey.com/r/ZH3LP5B

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.comRead 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

 
Today's  Take  

PE HUB First Read

First Read ends the week with news that Alphabet's board is sued for its role in allegedly covering up sexual misconduct by senior executives, Macy's stock has its worst day in history and former British Prime Minister to advise Partners Group on impact investing.
Read more...  

Levine Leichtman racks up $2.5 bln for sixth fund

Levine Leichtman Capital Partners has closed its oversubscribed sixth fund at a hard cap of $2.5 billion, beating its $2.2 billion target.
Read more...  

PE HUB Second Opinion

In Second Opinion, BlackRock is cutting three percent of its workforce amid market uncertainty, Sears chairman confirms new $5 billion bid to save bankrupt retailer and with no end in sight, thousands of federal workers file for unemployment.
Read more...  

PE HUB Healthcare Wire Highlights, 1.10.19

JPM Week sets the agenda for 2019: What's on deck for healthcare?
Read more...  

PE HUB Wire Highlights, 1.10.19

New Mountain said to seek $1B fund to buy minority co stakes; Penfund mid-market fund raises C$1.15B; Are div recaps worth the pain?
Read more...  

Chris Williams officially out at Twin Brook Capital Partners

Twin Brook Capital Partners co-founder and Partner Chris Williams has stepped down from the middle-market lender, according to a source. Williams resigned from Twin Brook last year and his departure was effective Dec. 31, the source said. He no longer appears on the Twin Brook website. Williams, along with Partner Trevor Clark, launched Chicago-based Twin Brook in […]
Read more...  

Genstar targets $5 bln for largest flagship fund yet

Genstar is back in market with its next flagship vehicle, targeting up to $5 billion for what will be its biggest fund yet if it reaches its goal, according to pension documents and a source with knowledge of the firm. Genstar is raising Genstar Capital Partners IX along with an overage pool that could bring […]
Read more...  

Littlejohn-, Pamlico-backed cloud-software company is said to seek add-ons

A new cloud-services-software company backed by Pamlico Capital and Littlejohn & Co sees opportunities to grow via add-ons in a consolidating market, a source told Buyouts. Littlejohn-backed Hostway and Pamlico-backed Hosting said Jan. 8 they’d merge the companies, creating a multiproduct global software business. The new company – it’s mulling naming ideas from customers and […]
Read more...  

Venture investing sets $130 bln all-time record in 2018

Venture capital investments in the United States set an all-time record in 2018, sprinting to more than $130 million during a year that saw a record number of big deals and unicorns created, according to several reports. The year ended on a strong note with U.S. companies raising as much as $43 billion in the […]
Read more...  

As Ahoy Capital sets sail, LP Chris Douvos discusses his investment strategy and the fertile ground in seed

With the start of the new year, Managing Director Chris Douvos ended his employment at Venture Investment Associates and set sail full time with his new firm, Ahoy Capital, though he remains a partner in some VIA funds. In a way, not much has changed! Ahoy operates a fund of funds targeting seed and early-stage […]
Read more...  

Fund Performance: A review of SFERS’s vintage 2016 portfolio

Below is performance data for the San Francisco Employees’ Retirement System‘s vintage 2016 venture capital funds. The figures from the San Francisco LP are current as of December 2017. Investment multiples are calculated by VCJ. To download the full version of the spreadsheet below with additional data, click here: SFERS venture portfolio (2016) SFERS venture portfolio (2016) Fund  […]
Read more...  

Alameda County mulls new relationship with Genstar

Alameda County Employees’ Retirement Association is mulling a $33 million commitment to Genstar Capital Partners’ ninth fund targeting $5 billion. Genstar invests in North American middle-market businesses in financial services, software, industrial technology and healthcare, targeting companies with enterprise values between $250 million and $1.25 billion. Nebraska Investment Council committed $50 million to Genstar’s ninth […]
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

 
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 

 
 

Kayne backs Decisiv

Virginia-based Decisiv Inc, a provider of service relationship management solutions, has secured $30 million in funding. The investor was Kayne Partners, Kayne Anderson Capital Advisors' growth equity group.
Read more...  

Black Diamond Therapeutics nabs $85 mln Series B

Black Diamond Therapeutics Inc, a biotechnology company developing next-generation precision medicines for cancer, has closed $85 million in Series B financing. New Enterprise Associates and RA Capital Management led the round with participation from NexTech Invest, The Invus Group, Perceptive Advisors and Versant Ventures.
Read more...  

Infinitum Electric rakes in $1.8 mln Series A

Infinitum Electric, a developer of electric motors, has secured $1.8 million in Series A financing. Cottonwood Technology Fund led the round.
Read more...  

TemperPack scores $22.5 mln Series B

TemperPack, a provider of sustainable thermal packaging solutions, has raised $22.5 million in Series B financing. Revolution Growth led the round with participation from Harbert Growth Partners, Arborview Capital, Tao Capital Partners and SJF Ventures. In conjunction with the funding, Todd Klein, a partner at Revolution Growth, and Brian Carney, a general partner at Harbert Growth Partners, will join the board.
Read more...  

E-scooter startup Bird raising $300 mln: Axios

Bird, an e-scooter startup, is raising $300 million in funding, according to Axios. Fidelity is the lead investor. The funding will allow Bird to maintain its current $2 billion "pre-money valuation," said the report.
Read more...  

Piano fetches $22 mln in Updata Partners-led round

Piano, a content monetization and audience intelligence technology company, has raised $22 million in Series B funding. Updata Partners led the round.
Read more...  

Edtech company Emeritus snags $40 mln Series C

Emeritus, an edtech company that partners with U.S. and European universities to provide online courses to working professionals globally, has raised $40 million in Series C funding. Sequoia India led the round with participation from Bertelsmann India Investments.
Read more...  

Badi inks $30 mln Series B

Badi, a room-rental marketplace, has raised $30 million in Series B funding. Goodwater Capital led the round.
Read more...  

OneLogin pulls in $100 mln

San Francisco-based OneLogin, a provider of unified access management solutions, has secured $100 million in growth financing. Greenspring Associates and Silver Lake Waterman led the round with participation from other investors that included CRV and Scale Venture Partners.
Read more...  

Breakthrough Energy Ventures leads Series A round for Boston Metal

Woburn, Massachusetts-based Boston Metal, a provider of metals production solutions, has raised $20 million in Series A funding. Breakthrough Energy Ventures led the round with participation from Prelude Ventures and The Engine.
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  
 
Back to Top

LNK exits Beachbody

LNK Partners has sold its minority stake in Beachbody, a provider of fitness and weight-loss solutions. The buyer was not identified. No financial terms were disclosed.
Read more...  

Kriya Capital buys RSSI

Kriya Capital has acquired Natchez, Mississippi-based Receivable Solutions Specialist Inc, a provider of revenue cycle management services to healthcare organizations. No financial terms were disclosed.
Read more...  

Gallant invests in Aero Turbine

Gallant Capital Partners has made an investment in Stockton, California-based Aero Turbine, an aerospace maintenance, repair and overhaul service provider. No financial terms were disclosed for the transaction that was done in partnership with Doug Clayton and Dave Mattson.
Read more...  

TPG and CICC to form China Synergy platform

TPG and CICC Capital have agreed to form the China Synergy platform. David Bonderman, founder and chairman of TPG; Mingjian Bi, CEO of CICC; and Teh Kok Peng, senior adviser of CICC and former president of GIC Special Investments, will sit on the steering committee.
Read more...  

Incline Equity Partners acquires Profile Products

Incline Equity Partners has acquired Buffalo Grove, Illinois-based Profile Products, a maker of engineered horticultural growing media, erosion control products and soil amendments. No financial terms were disclosed.
Read more...  

Luminate Capital buys LiquidFrameworks

Luminate Capital Partners has acquired LiquidFrameworks Inc, a provider of quote-to-cash and field ticketing software across oilfield services, industrial services and environmental services industries. The seller included Houston Ventures. No financial terms were disclosed.
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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Pinnacle Dermatology buys Silverton Skin Institute

Pinnacle Dermatology, which is backed by Chicago Pacific Founders, has acquired Michigan-based Silverton Skin Institute, a provider of dermatology services. No financial terms were disclosed.
Read more...  

Battery-backed PST acquires NTRON

Process Sensing Technologies, which is backed by Battery Ventures, has acquired Navan, Ireland-based NTRON Limited, a provider of gas-measurement sensors and process-oxygen analyzers. No financial terms were disclosed.
Read more...  
Real Estate
 
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Carson picks up $3 mln in BuildingLink-led round

Carson, a provider of an integrated technology platform and service for unstaffed residential buildings, has secured $3 million in Series Seed financing. BuildingLink led the round.
Read more...  

JMA Ventures launches second qualified opportunity zone fund

JMA Ventures LLC, a real estate investment and development firm, has launched its second qualified opportunity zone fund. No financial terms were disclosed. The fund will invest in ground-up development and renovation projects based in the Western U.S. in areas designated as qualified opportunity zones.
Read more...  

Capitol Square 1031 buys Virginia multifamily property

Capitol Square 1031 has acquired Virginia Beach, Virginia-based Woodshire Apartments, a 288-unit multifamily property. No financial terms were disclosed.
Read more...  

Way Past Shelter acquires virtual realtor services provider Listingly.com

Way Past Shelter has acquired Listingly.com, a provider of virtual realtor services. No financial terms were disclosed. The acquisition follows Listingly raising $2.2 million in a funding round led by WPS Capital.
Read more...  
Firms & Funds
 
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Levine Leichtman racks up $2.5 bln for sixth fund

Levine Leichtman Capital Partners has closed its oversubscribed sixth fund at a hard cap of $2.5 billion, beating its $2.2 billion target.
Read more...  

Penfund closes sixth mid-market fund at C$1.15 bln hard cap

Penfund wrapped up its sixth mid-market fund, raising C$1.15 billion, thanks to a private-debt strategy that resonated with investors. Penfund Capital Fund VI, launched in early 2018, closed in December above its C$900 million target, Chairman and Partner John Bradlow and Partner Richard Bradlow told PE Hub Canada. The fund is the largest in the Toronto junior-capital provider’s 40-year history, exceeding by 59 percent the C$724 million its predecessor raised in 2016. The close brings assets managed by Penfund to C$1.8 billion.
Read more...  

Energy Spectrum Partners racks up nearly $779 mln for eighth fund

Energy Spectrum Partners has raised nearly $779 million for its eighth fund, according to an SEC filing. The target is $1.3 billion. The Dallas-based private equity firm focuses on the North American oil and gas industry's midstream sector.
Read more...  
Human Resources
 
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Svoboda Capital promotes Rubin to principal

Svoboda Capital Partners LLC has promoted David Rubin to principal. Rubin joined the firm as a vice president in 2015.
Read more...  

Kline Hill expands with several hires

Kline Hill Partners, a small-market focused secondaries shop, has made several hires over recent months. The firm, based in Greenwich, Conn., hired Aristidis Economou and Kathryn Cholko as deal associates last year. Economou joined from Deutsche Bank, while Cholko joined from Deloitte. More recently, Kline Hill hired Alyson Seufert as an executive assistant; Eric Giorno as a junior fund accountant; and James Bradshaw as a deal associate. Seufert formerly worked as an executive assistant at Greenfield Partners; Giorno graduated from Pace University in December; and Bradshaw previously worked as an assistant manager at Deloitte.
Read more...  

Gen II Fund Services promotes Rosewall to principal

Gen II Fund Services, a private equity fund administrator, has promoted Merryn Rosewall to principal, quality control. Rosewall has over 20 years of accounting, auditing and private equity administration experience.
Read more...  

SEP promotes Haller to principal

Sumeru Equity Partners has promoted Mark Haller to principal. Haller joined Silver Lake Sumeru, Silver Lake's middle-market investment team, in 2012.
Read more...  
Credit
 
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Monroe Capital supports Warren Equity’s buy of StormTrap

Monroe Capital said Jan. 10 that it provided debt to support Warren Equity Partners’s buy of StormTrap LLC. Financial terms weren’t announced. StormTrap, of Romeoville, Illinois, designs, engineers, and licenses precast concrete systems that store stormwater runoff in underground chambers.
Read more...  
Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read ends the week with news that Alphabet's board is sued for its role in allegedly covering up sexual misconduct by senior executives, Macy's stock has its worst day in history and former British Prime Minister to advise Partners Group on impact investing.
Read more...  

PE HUB Second Opinion

In Second Opinion, BlackRock is cutting three percent of its workforce amid market uncertainty, Sears chairman confirms new $5 billion bid to save bankrupt retailer and with no end in sight, thousands of federal workers file for unemployment.
Read more...  

PE HUB Healthcare Wire Highlights, 1.10.19

JPM Week sets the agenda for 2019: What's on deck for healthcare?
Read more...  

PE HUB Wire Highlights, 1.10.19

New Mountain said to seek $1B fund to buy minority co stakes; Penfund mid-market fund raises C$1.15B; Are div recaps worth the pain?
Read more...  
 
     
 
 
 
 
 
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