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Morning, Hubsters! How are you?
 
Today, we have an insurance deal from Lee Equity Partners, which is buying a majority of K2 Insurance Services. Financial terms weren’t announced but Endeavour Capital and Patrick Kilkenny, K2’s founder, are exiting. See our brief here.
 
K2 is a specialty insurance services holding company. The San Diego company owns and controls a group of managing general agents (MGAs) that serve the specialty property and casualty industry.
 
More insurance carriers look to MGAs to gain access to specialty product lines, said Mark Gormley, a Lee Equity partner. MGAs can better assess the risks and costs of specialized industries like bars and taverns, or ski resorts, because they often are more familiar with the sectors, he said. "It's a pretty fragmented space,” Gormley said.
 
Private equity has always been active in insurance, but Blackstone appears to be taking this interest one step further. BX is seeking to build its insurance business into a powerhouse as it targets $1 trillion in assets, the Wall Street Journal reported. Blackstone already manages around $50 billion of fixed-annuity and other insurance assets. It wants to more than double that, the WSJ said.

We have more BX news this morning. Blackstone is investing 175 million euros ($196.6 million) in Superbet, a sports betting and gaming operator in Romania. See our brief here.
 
Blackstone and Hellman & Friedman have failed in their bid to buy Scout24, Reuters reported. The 5.7 billion euros ($6.4 billion) offer from Hellman and BX failed to secure the required support of 50 percent of shares. Read the Reuters story here.
 
Cove Hill Partners LP is investing in NetDocuments, which is owned by Clearlake Capital Group. Cove Hill will have a minority, I'm told. NetDocuments provides a content services platform for law firms and corporate legal and compliance departments. Read our brief here.
 
I have more information on Lightyear's sale of Advisor Group, the wealth management firm. After a three-year hold, Lightyear stands to make a huge return on the deal. Find out how well they did here.
 
Elder care: Patrick McCormick, a partner at Plante Moran, has a column today on how elder care investors need to think differently as baby boomers start to hit old age. Read his column here.
 
News from Buyouts/VCJ: Chris has a story on Ardian, which is raising what could be the largest-ever secondaries fund. Ardian is buying a roughly $5 billion portfolio of LP interests being shopped by Japan’s Norinchukin Bank. Check out Chris's story here.
 
California Public Employees Retirement System hired an executive from Altamont Capital Partners to lead its private equity program, a post that had been vacant for more than two years. Read Dietrich Knauth's story to find out who was hired.
 
Clearlake Capital's sale of Ivanti has officially started. Read Milana Vinn's story to find out who's bidding here.
 
Active LPs: Pennsylvania State Employees’ Retirement System at its April meeting committed $875 million to private equity funds, in line with its 2018-2019 investment plan. Check out Teddy Grant'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.  

Housekeeping
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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  

To catch the baby-boomer wave, elder-care investors need to think differently

By Patrick McCormick, Plante Moran The boomers are coming: The massive generation born after World War II is starting to hit old age, a turning point that many senior-care operators and investors are viewing as a kind of salvation. As PE in recent years has poured investment into the assisted-living sector, many markets have become […]
Read more...  

PE HUB First Read

First Read kicks off the day with news that the Dow has its worst day in months, Felicity Huffman pleads guilty in the college admissions cheating scandal, while a WhatsApp flaw allows attackers to inject commercial Israeli spyware on to phones.
Read more...  

PE HUB Second Opinion

In Second Opinion, Amazon is paying employees to start their own delivery business, Bed Bath & Beyond CEO Temares quits his post and the board and legendary actress Doris Day passes away at 97.
Read more...  

Private Equity Jobs of the Week: Wind Point, Tritium and Ardenton are hiring

This week’s jobs include a private equity director at Ardenton, a vice president at Tritium and associates at Wind Point and NaviMed.
Read more...  

PE HUB Wire Highlights, 5.13.19

ION to buy Acuris for $1.8 bln from BC Partners, GIC; Fundraising set to surge in 2019; As society changes, PE finds growing opportunities in fertility
Read more...  

CalPERS hires Altamont’s Ruiz as PE director, closing 2-year vacancy

California Public Employees Retirement System hired an executive from Altamont Capital Partners to lead its private equity program, a post that had been vacant for more than two years. Greg Ruiz is the new managing director, CIO Ben Meng said at the May 13 investment committee meeting. “Greg has worked his whole career in private equity, most recently as a principal […]
Read more...  

Lightyear to make 4x its money with Advisor Group sale

After a three-year hold, Lightyear Capital stands to quadruple its investment with the sale of Advisor Group, a source said. Reverence Capital Partners said May 9 that it was buying a majority of Advisor Group. Terms weren’t disclosed, but a second person said the deal was valued at more than $2 billion. Reverence will have […]
Read more...  

Clearlake is said to receive first-round bids for Ivanti

Clearlake Capital’s sale of Ivanti has hit the first round, three sources told Buyouts. Bids for Ivanti are due today, sources said. A handful of PE firms are vying for Ivanti, people said. These include Thoma Bravo, Golden Gate Capital, Veritas Capital and TA Associates, which have submitted proposals, sources said. A few sovereign-wealth funds are also […]
Read more...  

Ardian said to win process for historic $5 bln portfolio from Japan’s Norinchukin Bank

Ardian, which is raising what could be the largest-ever secondaries fund, will acquire a roughly $5 billion portfolio of LP interests being shopped by Japan’s Norinchukin Bank, three sources told Buyouts. The Paris shop emerged as the winner of a competitive process for the portfolio, sources said. Several large firms looked over the portfolio, though […]
Read more...  

PA SERS backs Ares and Permira in latest round of PE funding

Pennsylvania State Employees’ Retirement System at its April meeting committed $875 million to private equity funds, in line with its 2018-2019 investment plan, meeting documents show. The investment plan set its annual pacing for new PE commitments at $650 million to reach its target allocation of 16 percent. Its current annual pacing sits at $750 […]
Read more...  

CalPERS hires Altamont’s Ruiz as PE director, closing 2-year vacancy

California Public Employees Retirement System hired an executive from Altamont Capital Partners to lead its private equity program, a post that had been vacant for more than two years. Greg Ruiz is the new managing director, CIO Ben Meng said at the May 13 investment committee meeting. “Greg has worked his whole career in private equity, most recently as a principal […]
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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Soundstripe nabs $4 mln Series A

Nashville-based Soundstripe has raised $4 million in Series A financing. Vocap Investment Partners led the round.
Read more...  

Livionex grabs $4 mln Series A

Los Gatos, California-based Livionex, a biotech firm, has raised $4 million in Series A funding. The investors were not named.
Read more...  

Hatch lands $5 mln Series A

Hatch, a destination and lifestyle brand for women before, during and after pregnancy, has secured $5 million in Series A funding. Silas Capital led the round with participation from M3 Ventures.
Read more...  

Agile Analog inks $5 mln

UK-based Agile Analog, an analog IP startup, has raised $5 million in funding. The investors were Delin Ventures, firstminute Capital and MMC Ventures.
Read more...  

Greenspring Associates leads $50 mln round for Xometry

Gaithersburg, Maryland-based Xometry, an on-demand manufacturing marketplace, has raised $50 million in funding. Greenspring Associates led the round.
Read more...  

NanoPhotonica snags $3.5 mln

Florida-based NanoPhotonica, a provider of quantum dot, nanomaterials and device technology, has raised $3.5 million in funding. Samsung Ventures led the round with participation from DeepWork Capital.
Read more...  

Locus picks up $22 mln Series B

Locus, a supply chain optimization company, has secured $22 million in Series B funding. The investors included Falcon Edge Capital, Tiger Global Management, Exfinity Venture Partners and Blume Ventures.
Read more...  

ElevateBio racks up $150 mln Series A

Cambridge, Massachusetts-based ElevateBio, a biotech holding company, has secured $150 million in Series A financing. The investors included UBS Oncology Impact Fund, EcoR1 Capital, Redmile Group and Samsara BioCapital.
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
PE Deals sponsored by  
 
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Cove Hill invests in NetDocuments

Cove Hill Partners LP said May 14 that it invested in NetDocuments. Financial terms weren’t announced. NetDocuments, a Clearlake Capital Group portfolio company, provides a cloud-based content services platform for law firms and corporate legal and compliance departments.
Read more...  

Blackstone invests in Superbet

Superbet said May 14 that Blackstone has invested 175 million euros ($196.6 million) in the company for a minority stake. Superbet is a sports betting and gaming operator in Romania.
Read more...  

CITIC invests in Cityneon

CITIC Capital Holdings Ltd has invested in Cityneon Holdings. Financial terms or the size of CITIC’s stake weren’t announced. Cityneon partners with major movie and gaming studios globally to secure IPs to hold exclusive exhibitions to create iconic experiences for their audience.
Read more...  

Riverside Partners buys majority of 3Play Media

Riverside Partners LLC said May 14 that it completed a majority investment in 3Play Media Inc. Financial terms weren’t announced. 3Play Media provides video captioning, transcription, subtitling, and audio description services to more than 2,500 customers across industries.
Read more...  

HealthpointCapital to buy control of CrossRoads Extremity Systems

HealthpointCapital is taking a controlling stake in CrossRoads® Extremity Systems. Financial terms weren’t announced. CrossRoads Extremity is a medical device company that is developing foot and ankle implant systems and services. MB Venture Partners, a seller, and CrossRoads' management team will remain investors.
Read more...  

Spur Energy, KKR partner to buy Percussion Petroleum’s Permian Northwest Shelf assets

Spur Energy Partners LLC and KKR said May 14 that they formed a partnership to buy the Permian Northwest Shelf assets of Percussion Petroleum LLC. Financial terms weren’t announced. The deal includes interests in about 380 gross producing wells and 22,000 net acres situated in the core of the Yeso formation in Eddy & Lea Counties, New Mexico, as well as associated water and midstream assets.
Read more...  

To catch the baby-boomer wave, elder-care investors need to think differently

By Patrick McCormick, Plante Moran The boomers are coming: The massive generation born after World War II is starting to hit old age, a turning point that many senior-care operators and investors are viewing as a kind of salvation. As PE in recent years has poured investment into the assisted-living sector, many markets have become […]
Read more...  

Post Capital invests in Property Registration Champions

Post Capital Partners said May 14 that it has recapitalized Property Registration Champions LLC. Financial terms weren’t announced. Prochamps is a technology and program administrator for property registration programs across the country.
Read more...  

ArchiMed takeover of Bomi Group closes

ArchiMed said May 14 that its 70 million euro takeover of Bomi Group has closed. ArchiMed has acquired the more than 99 percent of Bomi Group, which provides transport, warehousing and supply chain management services for healthcare companies.
Read more...  

Scout24 takeover offer by Hellman & Friedman, Blackstone fails: Reuters

A takeover bid for Germany’s Scout24 led by Hellman & Friedman and Blackstone has failed as it did not secure the required support of 50 percent of shares, Reuters reported.
Read more...  

Lee Equity to buy K2 Insurance Services

Lee Equity Partners LLC said May 14 that it agreed to buy a majority of K2 Insurance Services LLC. Financial terms weren’t announced. K2 is a specialty insurance holding company. Endeavour Capital and Patrick Kilkenny, a founder, are exiting. The deal calls for Aegis Security Insurance Co to be spun off and remain under Endeavour’s and Kilkenny’s ownership. Evercore advised Lee Equity while TigerRisk Capital Markets & Advisory</strong
Read more...  

BlackBern acquires Zentech Manufacturing

BlackBern Partners has acquired Zentech Manufacturing, an electronics contract manufacturer. No financial terms were disclosed.
Read more...  

Sky Island buys Material Sciences Corp

Sky Island Capital has acquired Canton, Michigan-based Material Sciences Corporation, a provider of advanced materials and specialty coated metals. No financial terms were disclosed.
Read more...  

Sterling Partners’ EOF invests in Reading Plus

Sterling Partners’ Education Opportunity Fund has made an investment in Vermont-based Reading Plus, a provider of literacy solutions for grades 3-12. No financial terms were disclosed.
Read more...  

L Squared divests its stake in Virtium to Court Square

L Squared Capital Partners has sold its stake in Virtium to Court Square Capital Partners. No financial terms were disclosed. Based in Rancho Santa Margarita, California, Virtium is a provider of solutions provider of industrial-grade memory and storage solutions for OEMs.
Read more...  

Oakley Capital buys Videotel from KVH for $90 mln

Oakley Capital has acquired KVH's maritime training business Videotel. The price of the acquisition was $90 million.
Read more...  

Webster acquires Vivona from Inflexion

Webster Equity Partners has acquired Vivona Brands from Inflexion Private Equity. No financial terms were disclosed. London-based Vivona is a provider of beauty, wellness and lifestyle products. No financial terms were disclosed.
Read more...  

Colfax nears deal to sell air and gas unit to KPS, say sources: Reuters

Welding and valves manufacturer Colfax Corp (CFX.N) is nearing a deal to sell its air and gas handling division to private equity firm KPS Capital Partners for more than $1.8 billion, sources told Reuters.
Read more...  

Sale of EQT’s Swiss outsourcing company VFS stalls, say sources: Reuters

Buyout group EQT Partners is putting plans for a sale of outsourcing firm VFS on ice as suitors’ views on valuation were too far away from EQT’s expectations, sources told Reuters.
Read more...  

West Lane takes majority stake in Fantasy Files

West Lane Capital Partners LLC has acquired a majority stake in California-based Fantasy Files, a provider of specialty cosmetic products. No financial terms were disclosed.
Read more...  

Tikehau backs Medtrade

Tikehau Capital is investing 26 million pounds in Medtrade. Based in the UK, Medtrade is a developer of medical device products.
Read more...  

BV invests in CivicPlus

BV Investment Partners has made an investment in Manhattan, Kansas-based CivicPlus, a tech platform for local government. No financial terms were disclosed. The investment was made in partnership with Ward Morgan, founder of CivicPlus.
Read more...  
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IPOs
 
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Slack listing planned for June 20 in wake of underwhelming Uber IPO: Reuters

Slack Technologies, the owner of a popular workplace instant messaging app, plans to go public on June 20, the company said on Monday, a test of investor appetite for loss-making technology stocks in the wake of Uber Technologies Inc’s underwhelming market debut.
Read more...  
M&A Deals  
 
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Swanton Care buys Values in Care, GRS Care

Swanton Care & Community, a portfolio company of Apposite Capital, said May 14 that it acquired Values in Care Ltd and GRS Care Ltd. Financial terms weren’t announced. Values in Care, of East Wales, is a specialist residential care provider for adults with complex learning disabilities, complex mental health and challenging needs. GRS Care provides supported living & domiciliary care in South West Wales.
Read more...  

Pegasystems buys VC-backed In The Chat Communications

Pegasystems Inc (Nasdaq: PEGA) has acquired In The Chat Communications (ITC), a Waterloo-based digital messaging platform. Terms weren’t disclosed. Founded in 2010 by President and CEO John Huehn, ITC helps businesses more effectively find and engage with customers through social media. Pegasystems, a Cambridge, Massachusetts-based software company, said ITC’s platform will be integrated with its artificial intelligence-powered customer engagement solutions. ITC was a portfolio company of Canadian seed-stage investor MaRS Investment Accelerator Fund.
Read more...  

Mill Point-backed Avenue acquires Windward and GRIDS

Avenu Insights & Analytics, which is backed by Mill Point Capital, has acquired the operations and assets of The Windward Group and GRIDS Information Technologies. No financial terms were disclosed. Windward is a provider of  document imaging and enterprise content management solutions while GRIDS is a provider of government record management software. Both companies are based in Louisiana.
Read more...  

PE-backed GTI acquires Jetco

GTI Transport Solutions Inc, a portfolio company of Novacap, has acquired Houston-based Jetco, a carrier serving small businesses to Fortune 500 companies. No financial terms were disclosed. Brian Fielkow, CEO of Jetco, will remain in his role. GTI is a provider of open-deck, specialized and over-dimensional freight services.
Read more...  

PE-backed Splash Car Wash acquires Wash Co

Splash Car Wash, which is backed by Palladin Consumer Retail Partners, has acquired Middletown, New York-based Wash Co, an operator of car wash facility and laundromat. No financial terms were disclosed.
Read more...  
Real Estate
 
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Nuveen Real Estate acquires Azola Apartments

Nuveen Real Estate has acquired Florida-based Azola Apartments, a multifamily apartment community. The sellers were ZOM Living, The Mattoni Group and Clarion Partners. No financial terms were disclosed.
Read more...  

Carlyle and Stonehenge NYC recap The Ritz Plaza

The Carlyle Group and Stonehenge NYC have recapitalized The Ritz Plaza, an apartment building in Manhattan. No financial terms were disclosed. Ackman Ziff advised Carlyle on the transaction.
Read more...  
Firms & Funds
 
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Sapphire Ventures to raise $150 mln opportunity fund

Sapphire Ventures has set out to raise a $150 million opportunity fund, according to a filing with the SEC.
Read more...  

TR Capital targets $300 mln for fourth fund

TR Capital is seeking to raise $300 million for its fourth fund, according to an SEC filing. The Asian private equity firm is focused on mid-market secondary investments.
Read more...  
Human Resources
 
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PE-backed Opus Agency appoints chief creative officer

Opus Agency, a marketing adviser to brands, has named John Trinanes as chief creative officer. Prior to joining Opus, Trinanes was senior vice president of creative at George P. Johnson. Opus Agency is a portfolio company of Growth Catalyst Partners.
Read more...  

Forge recruits Carrier as digital assets SVP

Forge Global, a fintech company, has named Michael Carrier as senior vice president of digital assets. Carrier is the former CTO of IRA Services. Forge's backers include Tim Draper, Peter Thiel, FT Partners and Munich Re.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read kicks off the day with news that the Dow has its worst day in months, Felicity Huffman pleads guilty in the college admissions cheating scandal, while a WhatsApp flaw allows attackers to inject commercial Israeli spyware on to phones.
Read more...  

PE HUB Second Opinion

In Second Opinion, Amazon is paying employees to start their own delivery business, Bed Bath & Beyond CEO Temares quits his post and the board and legendary actress Doris Day passes away at 97.
Read more...  

PE HUB Wire Highlights, 5.13.19

ION to buy Acuris for $1.8 bln from BC Partners, GIC; Fundraising set to surge in 2019; As society changes, PE finds growing opportunities in fertility
Read more...  
 
 
 
 
 
   
 
 
 
 
 
 
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