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It's midweek, Hubsters.
 
We've talked a lot about bubble fears and how many expect a downturn to come very soon. Those fears appear to be one step closer to reality with the threat of a U.S.-China trade war. Many have said that tariffs are the one thing that could put a stop to the surging U.S. economy.
 
Despite a relief rally on Wall Street Tuesday, there is still a danger that a prolonged conflict could dent the economy on both sides, CNBC is reporting. Hubsters, what do you think? How dangerous would a trade war be for the economy and PE? Will the bubble finally burst? Email me at lbeltran@buyoutsinsider.com.
 
Funds: Chris, who is attending the IFC EMPEA Global Private Equity Conference in Washington, is reporting that Carlyle Group is raising its second Africa fund. Carlyle has deployed around 90 percent of the capital from its debut pool, which closed on around $700 million in 2014. Find out more about the fundraising here.
 
Lexington Partners is close to the target of its latest secondaries fund, in what would be the largest pool of capital raised for the strategy, Buyouts' sister publication, Secondaries Investor, reported. The firm had raised $10 billion for Lexington Capital Partners IX as of late April, approaching the $12 billion target, PEI said.
 
Another unicorn? Crowdstrike, the cybersecurity company backed by Warburg Pincus and Alphabet, has filed to go public. The $100 million placeholder didn't reveal how many shares the company would sell or their price. That'll come in future filings. Crowdstrike has raised $481 million in funding, MarketWatch said. See our brief here.
 
Deals: One transaction many people are waiting for is Instamed. Final bids for the healthcare payments company were due late last month, Buyouts has reported.
 
I'm hearing a winner will be announced in "a matter of days," a source said. A large payment processor is set to buy Instamed, I'm told. There's lots of talk that First Data is the buyer but I'm hearing that might not be accurate. (First Data could not be reached for comment.) Instamed is expected to sell for $550 million, or higher. This will produce "a huge number" for its VC investors.
 
"I would've been happy with a fraction of that a year ago," a source said.
 
Hubsters, any idea who is the winner? Let me know at lbeltran@buyoutsinsider.com
 
News from Buyouts/VCJ: CalPERS is developing a plan to reboot PE co-investments. CalPERS in June will present the board with a new co-investment strategy, including a new method for vetting co-investment opportunities and deciding how active to be on a deal. Read Dietrich Knauth's story here.
 
You remember Corel Corp, doncha? Corel provides graphics and office productivity software like CorelDraw, WordPerfect and WinZip. Vector Capital is selling Corel again and we have the name of the buyer. Read Milana Vinn's story here to find out more.
 
I have a story on Scott Erickson, head of business development at Gores Group, jumping to a new firm. Check out where Erickson is landing at here.
 
Active LPs: Opportunity Zones were a big deal at InterGrowth last week. Justin Mitchell has a report on how opportunity zones have made a huge splash but some experts are worried about the displacement of longtime residents. Read the 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 new deal partners and investors from this surging asset class with the most comprehensive guide available today! Pre-order your copy here before the guide ships on 5/21/19 for an exclusive pre-sale discount.  

Housekeeping
: Are you an emerging manager or an investor who works with EMs? Don’t miss your opportunity to get our latest EM benchmarking report for free! Simply take our 15-minute survey: Survey for investors | Survey for fund managers

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 ushers in the day with news that Crowdstrike files to go public, Jimmy Kimmel inks a three-year deal with ABC, and San Francisco bans city agencies, including the police, from using facial recognition technology.
Read more...  

PE HUB Second Opinion

In Second Opinion, Grocery Outlet is going public, Disney is taking full control over Hulu and Secretary of State Pompeo tells Russia not to meddle in the next U.S. presidential election.
Read more...  

PE HUB Wire Highlights, 5.14.19

Clearlake’s Ivanti gets first round bids; Ardian wins process for $5B portfolio from Japan’s Norinchukin; Elder care investors need to think differently to catch boomer wave
Read more...  

Five Questions with PJT Partners’ K. Don Cornwell on investing in sports data

K. Don Cornwell is a partner at PJT Partners, focused on media and entertainment, specifically sports and gaming. Most recently, Cornwell led the PJT team that represented Perform and its parent, DAZN Group, on its sale of Perform to Vista Equity-backed STATS. Cornwell spoke with Buyouts about regulatory changes in the sports-betting space and new investing opportunities at the […]
Read more...  

Carlyle comes back with next Africa fund

Carlyle Group is raising its second Africa fund after deploying around 90 percent of the capital from its debut pool, which closed on around $700 million in 2014, according to a person with knowledge of the fund. How much Carlyle will target for Fund II is unclear. A Carlyle spokeswoman declined to discuss fundraising. While […]
Read more...  

CalPERS developing a plan to reboot PE co-investments

California Public Employees’ Retirement System in June will present the board with a new co-investment strategy, including a new method for vetting co-investment opportunities and deciding how active to be on a deal, according to CIO Ben Meng. CalPERS stopped co-investing in 2016, as part of the same long-term review of PE that led it to […]
Read more...  

KKR to buy graphics-software provider Corel from Vector

Vector Capital is selling Corel Corp again and this time the buyer is KKR, according to a source. Corel is expected to fetch more than $1 billion, the person said. UBS is advising Vector Capital on the sale process, the source said. Corel is the Ottawa provider of graphics and office productivity packaged software, known for […]
Read more...  

Gores Group’s Erickson exits for Aurora Capital

Scott Erickson has left Gores Group after eight years, according to three sources. A May 14 email to Erickson at Gores generated an automatic reply: “Please note that Scott Erickson is no longer with the firm.” Erickson no longer appears on the Gores website. Erickson joined Gores Group in May 2011, his LinkedIn said. He […]
Read more...  

CalPERS developing a plan to reboot PE co-investments

California Public Employees’ Retirement System in June will present the board with a new co-investment strategy, including a new method for vetting co-investment opportunities and deciding how active to be on a deal, according to CIO Ben Meng. CalPERS stopped co-investing in 2016, as part of the same long-term review of PE that led it to […]
Read more...  

Louisiana Teachers commits up to $275 mln to private markets

Teachers’ Retirement System of Louisiana at its May meeting pledged up to $275 million across asset classes, Executive Liaison Director Lisa Honore told Buyouts. Louisiana committed $100 million to Platinum Equity’s fifth flagship fund, targeting $8 billion. New Enterprise Associates XVII, a venture fund targeting $3.6 billion, according to an SEC filing, and focusing on healthcare and technology, […]
Read more...  

Amid OZ enthusiasm, experts worry about gentrification

Opportunity zones have made a huge splash in the wealth-management and family-office space. Firms are moving full speed ahead to take advantage, with some calling the enabling U.S. law a once-in-a-lifetime opportunity. While the law is part of President Donald Trump’s tax-cut bill, the section creating OZs was bipartisan, originally part of a bill introduced by Sen. Tim […]
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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Spark Capital backs Storr

Storr, an online retail marketplace that enables anyone to buy and sell new, brand-name products, has raised $3 million in additional funding. The investor was Spark Capital. UPDATE: This investment brings Storr's Pre-Series A funding to $7.8 million.
Read more...  

Quadric.io attracts $15 mln Series A

Burlingame, California-based Quadric.io, which is building a supercomputer designed for the real-time needs of edge devices, has secured $15 million in Series A funding. The investors included DENSO Group Company and Leawood VC.
Read more...  

IsoPlexis rallies $25 mln Series C

Branford, Connecticut-based IsoPlexis, a biotechnology company, has raised $25 million in Series C funding. Northpond Ventures led the round.
Read more...  

Skylark Travel raises $4 mln

New York City-based Skylark Travel, a next-generation luxury travel company, has secured $4 million in funding. The lead investor was 25Madison.
Read more...  

Hydrow expands Series A round to $27 mln

Hydrow, a live outdoor reality rower, has expanded its Series A funding to $27 million. The additional investors in the round include Rx3 Ventures, Wheelhouse, The Raptor Group and The Yard Ventures.
Read more...  

Algorithmia snaps up $25 mln Series B

Seattle-based Algorithmia, an open marketplace for algorithms, has raised $25 million in Series B funding. Norwest Venture Partners led the round with participation from Madrona, Gradient Ventures, Work-Bench, Osage University Partners and Rakuten Ventures. In addition to the funding, Rama Sekhar, a partner at Norwest, has joined Algorithmia’s board of directors.
Read more...  

CinCor Pharma picks up $50 mln Series A

CinCor Pharma, a biopharmaceutical company, has secured $50 million in Series A funding. Sofinnova Investments led the round.
Read more...  

Neutral underwear brand TomboyX amasses Series B

Seattle-based gender neutral underwear brand TomboyX has secured Series B funding, according to a source familiar with the transaction. Craftory led the round. In conjunction with the funding, Pauline Brown of TAU Investment Management has been added to TomboyX's board of directors. UPDATE: Craftory invested a total of $18 million in TomboyX as both part of the Series B round and in additional investments.
Read more...  

Webscale pulls in $14 mln Series B

Sunnyvale, California-based Webscale, a provider of converged software for hyperscale cloud automation, has secured $14 million in Series B financing. Mohr Davidow Ventures led the round with participation from Benhamou Global Ventures and Grotech Ventures.
Read more...  

Cynora procures $25 mln Series C

Germany-based Cynora, an OLED materials company, has secured $25 million in Series C financing. The investors included SRF Partners Group LLC, DBOLED LLC, SBI Cross-Border Advantage Fund, MIG Funds and Wecken & Cie.
Read more...  

WekaIO locks in $31.7 mln Series C

WekaIO, a provider of file storage for data-intensive applications, has secured $31.7 million in Series C funding. The investors included Hewlett Packard Enterprise, Mellanox Technologies, NVIDIA, Seagate, Western Digital Capital and Qualcomm.
Read more...  

Respond Software inks $20 mln Series B

Silicon Valley-based Respond Software, a provider of robotic decision automation software for security operations, has raised $20 million in Series B funding. ClearSky Security led the round. In addition to the funding, Jay Leek, managing director for ClearSky Security and former CISO of Blackstone, will join Respond Software's board of directors.
Read more...  

Denmark’s Pleo raises $56 million to expand in Europe: Reuters

Copenhagen-based financial technology startup Pleo said on Monday it had raised $56 million in a funding round led by New York-based investor Stripes, and planned to more than triple its staff numbers by the end of next year.
Read more...  

Tempo Automation fetches $45 mln Series C

San Francisco-based Tempo Automation, a manufacturer for prototyping and low-volume production of printed circuit board assemblies, has raised $45 million in Series C funding. Point72 Ventures led the round with participation from other backers that included Lockheed Martin, Lux Capital, Uncork Capital, Cendana and Golden Seeds.
Read more...  

Trumid snags about $60 mln

New York City-based Trumid, an electronic trading platform for corporate bonds, has raised about $60 million in funding. The investors were Hillhouse Capital, SGX and Arbor Ventures.
Read more...  

86 Repairs grabs $1.5 mln

86 Repairs, a subscription service that manages repairs and maintenance for restaurant groups, has secured $1.5 million funding. Tamarind Hill led the round with participation from other investors that included Detroit Ventures, Relish Works, Network Ventures, MATH Venture Partners and M25.
Read more...  

Icometrix rakes in $18 mln

Icometrix, a provider of brain imaging artificial intelligence solutions, has raised $18 million in funding. Forestay Capital led the round with participation from Optum Ventures and return backer Capricorn Venture Partners.
Read more...  

Aleph Farms nabs $12 mln Series A

Israeli meat startup Aleph Farms Ltd has raised $12 million in Series A funding. The investors included VisVires New Protein , Cargill Protein, Strauss Group, Peregrine Ventures, CPT Capital, Jesselson investments, New Crop Capital and Technion Investment Opportunity Fund.
Read more...  

Riverwood Capital leads $123 mln for Nextdoor

San Francisco-based Nextdoor Inc, a social network for the neighborhood, has secured $123 million in funding. Riverwood Capital led the round with participation from other investors that included Benchmark, Tiger Global Management and Kleiner Perkins. In conjunction with the funding, Chris Varelas, co-founder and managing partner of Riverwood Capital, will join Nextdoor's board of directors.
Read more...  

SamanTree Medical lands Series A funding

Lausanne, Switzerland-based SamanTree Medical, a spin-off company from the Swiss Federal Institute of Technology, has raised CHF 9.5 million in Series A financing. Panak├Ęs Partners 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
PE Deals sponsored by  
 
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OpenGate buys Saint-Gobain’s silicon carbide unit

OpenGate Capital said May 15 that it acquired the silicon carbide division of Saint-Gobain SA. Financial terms weren’t announced. The business will be renamed Fiven A/S. Fiven provides Silicon Carbide grains and powder that are used in applications including metallurgy, refractory materials, filtration products and technical ceramics.
Read more...  

CenterOak Partners invests in Service Champions

CenterOak Partners LLC said May 15 that it completed a majority investment in Service Champions. Financial terms weren’t announced. CEO Leland Smith is retaining a stake. Service Champions, which is merging with CenterOak portfolio company Moore Home Services, provides residential service and replacement services including air conditioning repair and replacement, plumbing, solar and electrical services.
Read more...  

Kroger, Lindsay Goldberg launch PearlRock Partners

The Kroger Co and Lindsay Goldberg said May 14 that they have formed a platform, PearlRock Partners, that will invest in consumer product brands. The platform will be a part of Kroger’s alternative profit streams portfolio.
Read more...  

Artesyn Embedded Tech to sell embedded power unit to Advanced Energy

Artesyn Embedded Technologies Inc,  a Platinum Equity portfolio company, has agreed to sell its embedded power business to Advanced Energy Industries Inc for about $400 million. Artesyn’s embedded power business supplies and makes power conversion products, including AC-DC power supplies, DC input devices and board mounted DC-DC modules.
Read more...  

Milacron to sell Uniloy Blow Molding biz to Osgood Capital and Cyprium

Osgood Capital and Cyprium Investment Partners have agreed to acquire Milacron's Uniloy Blow Molding business. No financial terms were disclosed. The deal is expected to close within the next 90 days.
Read more...  

Kian Capital acquires Eastwood

Kian Capital Partners has acquired The Eastwood Company, an ecommerce provider of aftermarket automotive tools and equipment. No financial terms were disclosed. Brown Gibbons Lang & Company was financial adviser to Eastwood on the deal.
Read more...  

Graycliff acquires Sweeteners Plus

Graycliff Partners LP has acquired Lakeville, New York-based Sweeteners Plus, a maker of essential liquid and dry sweeteners for quick service restaurant, specialty beverage, bakery, confectionery and pharmaceutical customers. No financial terms were disclosed.
Read more...  

Ardian close to buying Cerberus-owned wind farms in Spain, say sources: Reuters

French investment fund Ardian is close to buying wind farms from Spanish renewables group Renovalia in a 550 million euro ($617.87 million) deal, two sources with knowledge of the deal said, marking a move into green energy where buyer interest is hotting up.
Read more...  
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IPOs
 
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Crowdstrike files for IPO

Crowdstrike, the cybersecurity company, filed May 14 to go public, according to an SEC filing. The company plans to trade on the Nasdaq under the ticker “CRWD.” Crowdstrike, of Sunnyvale, California did not reveal how many shares it would sell or their offer price. That will come in future filings. Crowdstrike is backed by Warburg Pincus, Accel and Alphabet.
Read more...  
M&A Deals  
 
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PE-backed Polytek acquires ETI

Polytek Development Corp, which is backed by Arsenal Capital Partners, has acquired Fields Landing, California-based Environmental Technology Inc, a provider of coating, casting and molding products for the professional artist, crafter and hobbyist. No financial terms were disclosed.
Read more...  

Corsica Technologies buys EDTS Cyber

Corsica Technologies has acquired EDTS Cyber, a provider of security services and sister company EDTS, an IT service provider. No financial terms were disclosed. Corsica Technologies was backed by Inverness Graham.
Read more...  
Real Estate
 
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Baceline Investments makes three acquisitions

Baceline Investments has acquired Aurora, Illinois-based Orchard Crossing, a 21,476-square-foot property, for $2.9 million. Also, the private equity real estate investment and management company has acquired New Lenox, Illinois-based Hickory Creek, a shopping mall, for $4.56 million; and Olive Branch, Mississippi-based The Crossing, a 42,000-square foot property, for $6.3 million.
Read more...  
Firms & Funds
 
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Ex-Shepherd GP’s Cure8 Ventures raises $2.6 mln toward VC fund

Cure8 Ventures has raised $2.6 million toward a venture-capital fund, according to a filing with the SEC.
Read more...  

HSE wraps up fund

Hull Street Energy has raised over $500 million for its first institutional fund. The fund's limited partners include endowments and foundations, insurance companies, consultants, corporate pension plans, funds of funds and family offices. HSE targets middle-market power deals. Eaton Partners was the placement agent for the fundraising.
Read more...  

Collider Ventures gathers over $7.2 mln for $50 mln-targeted fund

Collider Ventures has raised over $7.2 million for its inaugural fund, according to an SEC filing. The target is $50 million. Collider is an early-stage blockchain and crypto-focused venture firm.
Read more...  

Blue Highway collects over $24.7 mln for fund

Blue Highway Capital has raised over $24.7 million for its new growth fund, according to an SEC filing. The target is $75 million. The Boston-based private equity firm invests in companies in rural America.
Read more...  
Human Resources
 
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Parente joins General Atlantic as chairman of Brazil

General Atlantic said May 15 that Pedro Parente will join the firm as chairman of Brazil, as of June 18. Parente is currently the chairman and CEO of food company BRF.
Read more...  

Spence joins General Atlantic

Michael Spence, a renowned economist and Nobel Laureate, has joined General Atlantic as a special adviser. Dr. Spence, currently a professor of economics at New York University, is an expert in macro and micro economic growth.
Read more...  

Bertram promotes Ono to CFO

Bertram Capital has promoted Ivy Ono to chief financial officer. Previously, Ono was the controller at Bertram. Also, Ingrid Swenson, a partner and managing director, will retire, effective June 3, 2019.
Read more...  

Early-stage VC Defy adds Brian Rothenberg as partner

Early-stage investor Defy Partners, which recently raised $262 million for its second fund, has tapped former Eventbrite exec Brian Rothenberg as a partner. He joins Co-Founders and Managing Directors Neil Sequeira and Trae Vassallo, who launched the firm in late 2017.
Read more...  

Wynnchurch beefs up advisory board with new addition

Wynnchurch Capital has added retired U.S. Army Lieutenant General Joe Anderson to its executive advisory board. Previously, Anderson was the deputy chief of staff operations, plans and training for the Army.
Read more...  

PE-backed Marketron appoints CEO and adds SVP to team

Hailey, Idaho-based Marketron, a provider of enterprise revenue management and digital software solutions, has named Jim Howard as CEO and Jimshade Chaudhari as senior vice president, product. Howard is an ex-operating partner at Diversis Capital while Chaudhari worked at Sling TV. Marketron is owned by Diversis Capital.
Read more...  
Credit
 
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EIP provides loan to Mobidiag

Mobidiag Ltd, a Finnish commercial stage molecular diagnostics company, has secured a loan of 25 million euros from the European Investment Bank. The financing will be used for research and development.
Read more...  

AGL taps Comer as COO

AGL Credit Management, a private credit investment firm, has named Wynne Comer as chief operating officer. Her appointment becomes effective immediately. Previously, she worked at Bank of America Merrill Lynch.
Read more...  

Ex-KKR dealmakers launch All Seas Capital: Wall Street Journal

Two senior dealmakers from KKR have launched All Seas Capital Partners, a European private credit firm, that plans to kick off fundraising later this year, the Wall Street Journal reported. Marc Ciancimino, KKR's former head of European credit, and Cristobal Cuart set up All Seas earlier this year but have yet to set an official target, the story said.
Read more...  
Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read ushers in the day with news that Crowdstrike files to go public, Jimmy Kimmel inks a three-year deal with ABC, and San Francisco bans city agencies, including the police, from using facial recognition technology.
Read more...  

PE HUB Second Opinion

In Second Opinion, Grocery Outlet is going public, Disney is taking full control over Hulu and Secretary of State Pompeo tells Russia not to meddle in the next U.S. presidential election.
Read more...  

PE HUB Wire Highlights, 5.14.19

Clearlake’s Ivanti gets first round bids; Ardian wins process for $5B portfolio from Japan’s Norinchukin; Elder care investors need to think differently to catch boomer wave
Read more...  
 
 
 
 
 
   
 
 
 
 
 
 
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