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Happy belated Mom's day, everyone. As I told all my friends with kids, eat up. Calories don't count. Notice that I'm not mentioning the predictable storyline of "Game of Thrones." Nope, I'm not complaining about this at all.
 
We have some big deals this morning. First up is Acuris, the firm formerly known as Mergermarket, which has inked a deal with ION Investment. ION, which is backed by Carlyle Group, is buying a majority of Acuris. BC Partners and GIC are the sellers but will retain a minority. The deal is valued at more than $1.35 billion pounds ($1.76 billion). See our brief here.
 
In truth, I was confused by this deal when I first heard about it a few weeks ago. ION acquired a majority of Dealogic, a data and analytics provider, back in 2017. Apparently, they're going to merge the companies, I'm told.
 
This is the latest deal for ION, which has been on a buying spree. ION acquired OpenLink Financial from Hellman & Friedman last year. It tried to buy eFront from BridgePoint earlier this year but failed. It then acquired Allegro Development from sellers Vector Capital and Cerium Technology, Buyouts reported in April. (Disclosure: BridgePoint owns PEI Media which acquired Buyouts, publisher of this report.)
 
Speaking of surprises, I'm still digesting that Reverence Capital Partners is acquiring Advisor Group. Reverence is buying 75 percent of Advisor Group, a wealth management platform that supports over 7,000 financial advisers. Lightyear Capital and PSP Investments, the sellers, will have 25 percent. Centerbridge Partners was supposed to buy AG for more than $2 billion, Bloomberg reported. What have I learned? Never count out Reverence's Milton Berlinski.
 
Let's talk hard to get. Sycamore Partners has revived its bid for Chico's, the womens' apparel retailer. Sycamore, a retail-focused PE firm that also owns Staples, offered to buy Chico's for $407.8 million. Chico's is studying the offer to see if it’s in the best interest of shareholders. Chico’s said it recently rejected another unsolicited offer from Sycamore for $4.30 a share cash because the offer was too low. See our brief here.
 
Sycamore had tried to buy Chico’s back in 2015 but the deal fizzled because the PE firm couldn't get financing, according to Naples Daily News.
 
To IRR or not IRR: Chris has a column on the use of IRR's and Warren Buffett's criticism of the tool. Buffett, who claims he’s not a PE executive, questioned the legitimacy of private equity using IRRs. According to Chris, a common anecdote from investors today involves tracking funds that in their first year are producing eye-popping IRRs in the 40 percent range with multiples near par. See his article here.
 
News from Buyouts/VCJ: As society evolves, PE is finding growing opportunities in fertility, Sarah Pringle reports.
 
Fundraising is expected to get even busier this year after surging last year, Joseph Weitemeyer is reporting.
 
Sarah also has a 5Q with Steve Wise, a managing director and global head of healthcare at Carlyle. See the 5Q here.
 
Active LP: Teacher Retirement System of Texas committed $389 million to private equity in April, with the biggest commitment going to Cinven. Read Dietrich Knauth's story here.
 
That’s it for me. Email any tips, thoughts or comments to lbeltran@buyoutsinsider.com

Announcing the updated and expanded Guide to Independent Sponsors, 2nd Edition! Easily connect with deal partners and investors from the Independent Sponsor surging asset class with the newest guide. Pre-order your copy here before the guide ships on 5/21/19 for an exclusive pre-sale discount.  

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Conference: Join us as we kickoff the upcoming, Family Office Connect: PE Deals, Funds and the Land of OZ conference on May 21 -22 at New York’s Harvard Club. Make plans now to join the expected 300+ professionals for 1 ½ days of networking & discussions on capital-raising, deal-making, deal-sourcing & opportunity zones with independent sponsors, family offices, LPs, GPs and service providers. Register NOW!

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Today's  Take  

PE HUB First Read

First Read begins the week with news that China says it will hit back at the U.S. after the latter raises tariffs on Chinese goods, Goldman Sachs is reportedly near a close to buy United Capital, and actress Felicity Huffman will plead guilty to the U.S. college cheating scam.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that struggling retailer Chico's will review Sycamore's buyout officer, Party City is closing 45 stores and Uber's IPO disappoints.
Read more...  

Uber set to debut on NYSE, hopes to avoid Lyft’s fate: Reuters

Ride services giant Uber Technologies Inc is set to make its long-awaited stock market debut on Friday, after its initial public offering was priced at the lower end of its expected range, Reuters reported.
Read more...  

PE HUB Wire Highlights, 5.10.19

Deal attribution, track record war stories, PeakEquity back in market with sophomore effort
Read more...  

TA-backed RLDatix buys iContracts in $200 mln-plus deal

Private equity-backed RLDatix agreed to acquire iContracts, extending its reach in the broader governance risk and compliance sector beyond patient-safety software. The acquisition assigns iContracts an enterprise value north of $200 million, according to a person familiar with the matter. For RLDatix, whose investor base includes TA Associates and Five Arrows Principal Investments, the transaction brings […]
Read more...  

Editor’s Letter: Warren Buffett questions legitimacy of PE’s use of IRR

Warren Buffett has long been a critic of private equity, and he was at it again this month at Berkshire Hathaway’s annual meeting, according to Bloomberg. Buffett questioned private equity’s performance calculations and cast doubt on the legitimacy of using internal rate of return as a measure of performance. He argued that firms will include […]
Read more...  

Market at a Glance: If you thought last year was busy on the fundraising trail, this year is better

In the past two weeks, U.S.-based buyout and mezzanine fundraising continued its early-year surge. Since the last issue of Buyouts, fundraising added $9.6 billion to its YTD total, which now stands at $123.2 billion — $58.6 billion more than the 2018 YTD total. Arsenal Capital led the charge. Its fifth fund closed on $2.36 billion, which […]
Read more...  

In a changing society, PE finds growing opportunities in fertility

More women are postponing motherhood, same-sex marriage is growing increasingly common and healthcare investors have taken notice. Private equity professionals are getting educated on the fertility-services market as underlying demographic and cultural trends fuel demand for everything from in-vitro fertilization to the various diagnostic tests that support reproductive medicine. “Two-and-a-half years ago when we first […]
Read more...  

Five Questions with Carlyle’s Steve Wise on healthcare investing

Steve Wise is a managing director and global head of healthcare at Carlyle. The veteran healthcare investor’s board memberships include PPD, HCR-Manor Care, Rede D’Or São Luiz SA and Ortho Clinical Diagnostics. How would you characterize Carlyle’s investment thought process in healthcare? How are you picking your spots in today’s high-priced environment? We like to say we’re part of the solution […]
Read more...  

Charts of the Week: 2019 will see mostly re-up activity

Most LP commitments this year will come by way of re-ups, according to Preqin. The largest share of commitments, 45 percent, will be a mix of new relationships and re-ups, while only 7 percent of investors plan to make solely new relationships.
Read more...  

Charts of the Week: Investors plan to make one pledge in 2019

Though private equity fundraising continues strong, many investors are proceeding with caution for fears of a looming correction. Most of the 400 investors surveyed in the Preqin Investor Outlook: Alternative Assets, H1 2019 said they would commit to only one fund in the next 12 months.
Read more...  

LP Scorecard: Growth equity leads strategies for NMERB ‘13

New Mexico Educational Retirement Board committed more than $474 million across 10 PE funds in 2013. The commitment size and number of PE funds were both second most on the system’s record. NMERB received $179 million in capital distribution from the 10 funds, which included one buyout, one co-investment, two distressed, two growth equity, two […]
Read more...  

On the Move, May 13, 2019: Carlyle taps Goyal, Edgewater names Kapoor

PRIVATE EQUITY FIRMS Macquarie Capital named Mark Buchanan managing director and head of North American family office coverage. He’s a former managing director at BMO Financial Group. Macquarie also appointed Mark Padjen senior vice president. Carlyle Group: Pooja Goyal joins as partner and head of the renewable and sustainable energy team. Goyal most recently headed the alternative-energy investing group at Goldman Sachs. General Atlantic: Michael […]
Read more...  

Texas Teachers: $389 mln to PE via Cinven, more

Teacher Retirement System of Texas committed $389 million to private equity in April, with the biggest commitment going to Cinven. The $150 billion system also pledged to a co-investment aggregator and a single-LP fund. All commitments were made during April. The pension committed €225 million ($252.7 million) to the seventh Cinven fund, which focuses on […]
Read more...  

TPG explores secondary process on fund formerly led by McGlashan

TPG is exploring a process to enable investors in its second growth fund to sell their interests in the fund, a deal that could total more than $1 billion, three sources told Buyouts. TPG’s growth family of funds was founded and led by Bill McGlashan, who was arrested this year for allegedly participating in a […]
Read more...  

Texas Teachers: $389 mln to PE via Cinven, more

Teacher Retirement System of Texas committed $389 million to private equity in April, with the biggest commitment going to Cinven. The $150 billion system also pledged to a co-investment aggregator and a single-LP fund. All commitments were made during April. The pension committed €225 million ($252.7 million) to the seventh Cinven fund, which focuses on […]
Read more...  

Emerging Manager Roundup: Argonne, Star America, OSP, Summit AG and more

Fundraising for emerging managers continued at a slow pace. Fifteen emerging managers raised $1.1 billion from April 24 through May 7, according to Buyouts data. Argonne Capital Partners outraised all firms. The Atlanta-based firm raised $261.3 for its debut parallel fund. It invests in restaurants, retail, automotive service and light industrials. Star America Infrastructure Partners […]
Read more...  

Family Office Connect: PE Deals, Funds, & the Land of OZ
May 21-22, 2019
Harvard Club, New York

This one-of-a-kind gathering of family offices, independent sponsors, GPs and LPs will focus on exclusive deal flow and fundraising, opportunity zone deals, interactive roundtables, specialist panel discussions and plenty of networking opportunities


Register Now


 
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VC Deals
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Philogen SpA raises 62 mln euros

Philogen SpA said May 13 that it raised 62 million euros ($69.7 million) in financing from new and private investors. Philogen is a clinical-stage biotechnology company focused on antibody-based therapeutics.
Read more...  

TreeFrog Therapeutics raises 7.1 mln euros

TreeFrog Therapeutics said May 13 that it raised 7.1 million euros ($7.8 million) in a series A round led by XAnge (Siparex Group). Galia Gestion, a new investor, along with historical investors from the earlier seed funding round, Irdi Soridec, Aquiti Gestion and SATT Aquitaine, participated. TreeFrog, of Bordeaux, France, is a stem cell company.
Read more...  

Phyn grabs $12 mln

Torrance, California-based Phyn, a provider of intelligent water solutions, has raised $12 million in funding. The investors were Uponor and Belkin.
Read more...  

Rocean pulls in over $6 mln

New York City-based Rocean, a connected water countertop device, has secured over $6 million in funding. Blue was the lead investor.
Read more...  

Podimetrics completes $13.4 million funding for disease-detecting foot mat: Reuters

Podimetrics, the maker of a smart foot mat that detects warning signs of diabetic foot ulcers, said on Thursday it raised $13.4 million in a funding round led by a group of investors, including venture capital firm Scientific Health Development.
Read more...  

Insurance tech startup OneDegree rakes in over $30 mln

Hong Kong-based OneDegree, an insurance tech startup, has raised over $30 million in funding. BitRock Capital led the round with participation from other investors that included Cyberport Macro Fund and Cathay Venture.
Read more...  

Grain snags $10 mln Series B

Grain, an online food company, has raised $10 million Series B funding. Singha Ventures led the round with participation from other investors that included Genesis Alternative Ventures, Sass Corp, K2 Global, FoodXervices, Majuven, Openspace Ventures, Raging Bull and Cento Ventures.
Read more...  

Kairos Ventures leads $6 mln round for Integra Devices

California-based Integra Devices, a next-generation micro-device company, has secured $6 million in funding. Kairos Ventures led the round.
Read more...  
Mark Your Calendars!
PartnerConnect Event's 2019 Calendar is here!


Family Office Connect: PE Deals, Funds & the Land of OZ- May 21-22nd, NYC
PartnerConnect Midwest- June 24-26th, Chicago
Emerging Manager Connect - July 23rd, NYC
PartnerConnect West- September 23-25th, San Francisco
 Family Office Connect- October 29-30th, NYC
PartnerConnect Texas- December 9-11th, Dallas
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Lender takes control of Flywheel Sports: Bloomberg

Kennedy Lewis Investment Management LLC seized control of Flywheel Sports last month and is working with an adviser to gauge interest from buyers, Bloomberg reported. Flywheel Sports is known for its high-intensity indoor cycling and barre classes, the story said.
Read more...  

Sycamore Partners makes $407.8 mln offer for Chico’s

Chico's FAS Inc said May 10 that it received an unsolicited proposal from Sycamore Partners to buy the company for $3.50 a share cash. The women’s apparel retailer said its board will review the bid, which Reuters valued at $407.8 million, and determine if it’s in the best interest of shareholders. Chico’s said that it recently rejected another unsolicited offer from Sycamore for $4.30 a share cash because the offer was too low. Goldman Sachs & Co LLC is financial adviser to Chico's FAS, while Paul, Weiss, Rifkind, Wharton & Garrison LLP is legal counsel.
Read more...  

ION to buy majority of Acuris from BC Partners, GIC

BC Partners said May 13 that it sold a majority of Acuris to ION Investment Group. Financial terms weren’t announced although press reports pegged the sale at more than 1.35 billion pounds. GIC is also selling its stake. Acuris is a financial media and data firm. ION is backed by Carlyle Group.
Read more...  

U.S. fund to invest $50 million in low-cost carrier Viva Air: Reuters

Low-cost airline Viva Air, which operates in Colombia and Peru, said on Thursday it has received a $50 million investment from U.S. capital fund the Cartesian Capital Group, which it will direct toward expansion plans.
Read more...  

Prostar to acquire oil storage terminal facility for about $250 mln

Prostar Capital has agreed to acquire an oil storage terminal facility on Saint Eustatius from NuStar Energy LP for about $250 million. The deal is expected to close by the end of the second quarter of 2019.
Read more...  

Ironwood exits Lewis Clark Recycling Disposal

Ironwood Capital has exited its investment in Harrisburg, Illinois-based Lewis Clark Recycling Disposal LLC, a solid waste management company. No financial terms were disclosed. The exit comes as a result of Waste Connections' acquisition of Lewis Clark.
Read more...  

BlackRock buys eFront, merges with Aladdin

BlackRock Inc has acquired Paris-based eFront, an alternative investment management software and solutions provider. No financial terms were disclosed. BlackRock will merge eFront with portfolio company Aladdin.
Read more...  
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Uber set to debut on NYSE, hopes to avoid Lyft’s fate: Reuters

Ride services giant Uber Technologies Inc is set to make its long-awaited stock market debut on Friday, after its initial public offering was priced at the lower end of its expected range, Reuters reported.
Read more...  

Saudi sovereign fund invests indirectly in Arabian Centers IPO, say sources: Reuters

Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, has indirectly invested in the $747 million initial public offering of mall operator Arabian Centers, sources told Reuters.
Read more...  
M&A Deals  
 
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Liquidnet buys RSRCHXchange

Liquidnet said May 13 that it acquired RSRCHXchange. Financial terms weren’t announced. RSRCHXchange is a marketplace and aggregator for institutional research. Liquidnet is backed by Maverick Capital and TH Lee Putnam Ventures, PitchBook said. Nex Group invested in RSRCHXchange in 2017.
Read more...  

PE-backed Truck Hero buys Lund

Truck Hero, a portfolio company of CCMP Capital Advisors LP, has acquired Buford, Georgia-based Lund, a provider of branded automotive accessories. No financial terms were disclosed. Ropes & Gray LLP advised Truck Hero and CCMP on the transaction while Katten Muchin Rosenman LLP advised Lund and Highlander. Lund was a portfolio company of Highlander Partners LP.
Read more...  

Brewin Dolphin to buy Investec’s Irish wealth business: Reuters

Britain’s Brewin Dolphin has agreed to buy Investec’s Irish wealth business for 44 million euros ($49 million) in cash in a deal it said on Friday would make it one of the country’s top-three wealth managers.
Read more...  
Real Estate
 
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Firms & Funds
 
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Ecosystem Integrity Fund raises $95.7 mln for venture-capital fund

The Ecosystem Integrity Fund has raised $95.7 million for a third venture-capital fund, according to a filing with the SEC.
Read more...  

U.S. Venture Partners raised $293 mln towards $350 mln 12th fund

U.S. Venture Partners, the Menlo Park, California-based firm, has raised almost $293 million towards a $350 million fund 12th fund, according to a regulatory filing. USVP increased the size of the fund by $50 million. The SEC filing from a year ago stated that the firm was seeking $300 million. General Partners Casey Tansey, Steve […]
Read more...  

USVP racks up over $292 mln for twelfth fund

U.S. Venture Partners has raised over $292 million for its twelfth fund, according to an SEC filing. The target is $350 million. Based in Menlo Park, California, the venture firm invests in technology and healthcare.
Read more...  
Human Resources
 
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Tensen joins Pamplona Capital Management

Pamplona Capital Management said May 13 that Olaf Tensen has joined the firm as a country partner for Benelux. Tensen was previously a partner at AAC Capital for 16 years.
Read more...  

PE-backed Western Industries Plastic Products appoints CEO

Western Industries Plastic Products LLC, which is backed by Littlejohn Capital, has named Richard Haueter as CEO. Haueter is a former CEO of DeltaTech Controls and ex-senior operations executive at Armacell LLC. Winfield, Kansas-based Western is a manufacturer of large blow-molded products.
Read more...  

FTV Capital recruits Mason as partner

FTV Capital has named Alex Mason as a partner. Previously, Mason was managing director at Carrick Capital Partners.
Read more...  

Wilshire Phoenix taps Milkove as partner

Wilshire Phoenix has named Harlan Milkove as a partner. Milkove is a co-founder of Reonomy.
Read more...  

Gallant Capital hires ex-Presto executive Jamie Kim as head of business development

Gallant Capital hired Jamie Kim as head of business development. Kim joined Gallant from Presto, where she was vice president of corporate development and strategy. Prior to Presto, she worked on the business development team at Platinum Equity.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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Actress Felicity Huffman to plead guilty to U.S. college cheating scam: Reuters

Actress Felicity Huffman is due to plead guilty on Monday to paying to have someone cheat on her daughter’s behalf on a college entrance exam, part of a wide-ranging scandal in which wealthy parents used bribery and fraud to secure their children spots at prominent U.S. universities, Reuters reported.
Read more...  

PE HUB First Read

First Read begins the week with news that China says it will hit back at the U.S. after the latter raises tariffs on Chinese goods, Goldman Sachs is reportedly near a close to buy United Capital, and actress Felicity Huffman will plead guilty to the U.S. college cheating scam.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that struggling retailer Chico's will review Sycamore's buyout officer, Party City is closing 45 stores and Uber's IPO disappoints.
Read more...  

PE HUB Wire Highlights, 5.10.19

Deal attribution, track record war stories, PeakEquity back in market with sophomore effort
Read more...  
 
 
 
 
 
   
 
 
 
 
 
 
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