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It's Thursday, Hubsters. How is everyone?
 
We have big fund news this morning. Advent's ninth global PE fund closed on its $17.5 billion hard cap. The total is a roughly 35 percent increase from the firm's last global pool, GPE VIII, which raised $13 billion in 2016.
 
Of course, everyone is waiting for Blackstone’s mammoth pool, expected to be the biggest ever. BX's eighth PE fund raised more than $22 billion in a first close, Crain's New York Business reported in April. There's not a limit set for this Blackstone pool, which is expected to eclipse Apollo’s record $24.7 billion when it wraps up fundraising later this year, Crain's said.
 
I don't talk about fundraising too often, but it seems as if everyone is racing to get their funds set before the bubble bursts. Many GPs have talked to me about firms that are raising funds and then shelving them to use later. Sort of like the lunches you prepare for school.
 
Now Chris has written about this trend. GPs are coming back earlier than expected and raising funds that won’t be activated for months. Chris says these GPs don’t charge fees until their funds are activated, of course.
 
For me, this doesn't seem fair to those firms that are toiling away raising funds. I'm talking about the GPs that aren't having an easy time raising capital. Not only are the sought-after firms taking their slice of the pie, they're taking money that could go to other GPs. It feels like double dipping. (Cue the “Seinfeld” episode where George gets caught sticking the same potato chip into the party dip twice.)
 
Hubsters, how do you see this? Email me at lbeltran@buyoutsinsider.com
 
Also in funds, Third Rock Ventures this morning said it closed its latest flagship on $770 million. Third Rock Ventures V LP invests in life sciences companies. See our brief here.
 
And Warburg Pincus LLC is nearing the final close of an at least $4.25 billion private equity fund focusing on Chinese and Southeast Asian investments. Read the Reuters story here.
 
Chris has a story on Ryan Schlitt, a longtime executive with Credit Suisse’s Private Funds Group, who left the firm. Read Chris's story here.
 
Deals: SaaS is a buzzword that we see everywhere in tech deals. Everyone wants to invest in an SaaS, but how do you make sure a transaction really is SaaS? Scott B. Meyer, owner and principal consultant at Glenview James LLC, has written a column on how to make smarter bids for true SaaS deals.
 
Anthem is buying Beacon Health Options from Bain Capital Private Equity and Diamond Castle Holdings. Financial terms weren't announced. Beacon Health Options, of Boston, is a behavioral health organization. See our brief here.
 
Welsh, Carson, Anderson & Stowe is exiting AIM Software after more than four years. SimCorp is buying AIM for 60 million euros ($67.4 million). See our brief here.
 
News from Buyouts/VCJ: We have another insurtech deal. After getting inbound interest earlier this year, Vitech Systems has found a buyer. Read my story to find out who bought Vitech here.
 
Sarah is reporting on more preemptive bids. Genstar Capital has agreed to buy Advarra, provider of compliance-related services for clinical research. Find out how much Advarra sold for here.
 
In a second report, Advent International is investing in Definitive Healthcare, which is backed by Spectrum Equity. Definitive is a healthcare-data provider.
 
Active LPs: Teddy Grant has a 5Q with Bart Molloy, managing director at Monument Group, who talks about the rise in emerging managers.
 
That’s it for me. Email any tips, comments or happy thoughts 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! It's now shipping, order your copy here.  
 
Conference: Are you tired of traveling and wasting money on setting up meeting after meeting for your PE? Check out PartnerConnect Midwest coming to Chi-Town for a 1 ½ day event with insightful GPs and LPs who are attending to match your fundraising or investment goals. Register for this event to invest wisely and meet your bottom line for 2019 and beyond. Learn about opportunity zones, emerging managers, co-investments, credit, deals and family office. You will be glad you attended! Register Now

 
Today's  Take  

Is this really a SaaS deal?

By Scott Meyer, Glenview James LLC Everyone wants to invest in a high-growth software-as-a-service deal. It’s the holy grail. But many times PE investors spend hundreds of thousands of dollars on diligence, only to find out that the target business isn’t really SaaS after all. Here’s how to save time and money and make smarter […]
Read more...  

PE HUB First Read

First Read begins the day with a news that a gay former vice president at Goldman Sachs sues the bank for discrimination, tariffs on Mexico could cost America 400,000 jobs, and Fiat-Chrysler calls off their merger with Renault.
Read more...  

PE HUB Second Opinion

In Second Opinion, YouTube will remove thousands of videos pushing extremist views, Connected bike and treadmill maker Peloton files confidentially for IPO and ex-Chicago Mayor Rahm Emanuel is joining Centerview Partners as a counselor to large firms.
Read more...  

PE HUB Wire Highlights, 6.5.19

Insurity, backed by GA, TA and Genstar, goes up for sale; Diversis raises debut fund in six months after six years of deal-by-deal; Leon Black regrets taking Apollo public
Read more...  

Genstar preempts Advarra process in ~$1.3 bln deal

Preempting the highly anticipated sales process for PE-backed Advarra, Genstar Capital agreed to buy the provider of compliance-related services for clinical research, according to sources familiar with the matter. The pending acquisition values the Columbia, Maryland, company at about $1.3 billion and represents an 18x multiple of Ebitda, the sources said. In connection with the transaction, […]
Read more...  

Longtime fundraiser Ryan Schlitt leaves Credit Suisse

Ryan Schlitt, a longtime executive with Credit Suisse’s Private Funds Group, left the firm, a spokeswoman confirmed for Buyouts. Schlitt, a managing director who worked at the firm since 2000, had his last day on May 31, the spokeswoman said. Schlitt worked out of Dallas and was responsible for the U.S. Southeast and Southwest, as […]
Read more...  

After inbound interest, Vitech Systems sold to CVC

Vitech Systems Group has found a buyer, three sources said. CVC Capital Partners is acquiring Vitech, the people said. The New York insurtech produces about $50 million Ebitda and was expected to fetch a multiple of as much as 14x to 15x, Buyouts reported in February. The insurtech sold in the “$500 million Zip Code,” […]
Read more...  

Advent takes victory lap, investing in Spectrum Equity’s Definitive Healthcare

Preempting the process for Spectrum Equity-backed Definitive Healthcare, Advent International is investing in the highly sought after healthcare-data provider, according to three sources. The transaction is valued around $1.7 billion, two sources said, while a third characterized the deal as an equity recapitalization. Spectrum will remain an investor in Definitive Healthcare. Evercore provided financial advice […]
Read more...  

Five Questions with Monument Group’s Bart Molloy on emerging-manager growth

Bart Molloy is a managing director at Monument Group. He spoke with Active LPs about a rise in emerging managers and the firm’s relationship with independent sponsors. How is the PE sector performing today compared with 25 years ago? [Private equity] remains the most exciting asset class in that it continues to evolve, with increased emphasis on domain […]
Read more...  

PartnerConnect Midwest 2019
June 24-26, 2019

The Sofitel Hotel, Chicago

Join us at PartnerConnect Midwest for an impactful 1 ½ days of networking and ExecConnect private meetings to supercharge your strategy and get deals done! Don’t miss out on the opportunity to invest wisely and network with like-minded LPs and GPs. Gain more insight about trends in the market such as: opportunity zones, emerging managers, co-investments, credit, deals and family office.


Register Now


 
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VC Deals
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Hypergiant Industries procures funding

Texas-based Hypergiant Industries, an AI industrial complex for global businesses and governments, has secured an undisclosed amount of funding. The investors included Sumitomo Corporation of Americas, Align Capital, Perot Jain, the venture capital arm of the Perot Companies.
Read more...  

Carbon Health attracts $30 mln Series B

San Francisco-based Carbon Health, an healthcare provider, has secured $30 million in Series B funding. Brookfield Growth Partners led the round. In conjunction with the funding, Josh Raffaelli, a managing director at Brookfield Growth Partners, has joined Carbon Health’s board of directors.
Read more...  

Yellowbrick Data raises $81 mln led by DFJ Growth

Palo Alto, California-based Yellowbrick Data, which provides data warehousing for the enterprise analytics market, has raised $81 million in Series C funding led by DFJ Growth. New investors IVP and BMW i Ventures also participated with existing investors, including Next47, Third Point Ventures, Menlo Ventures, Threshold Ventures and GV. The company, founded in 2014, has now raised $173 million in total funding.
Read more...  

GuardKnox nets $21 mln

GuardKnox, a cybersecurity firm, has secured $21 million in Series A funding, raising its total tally to $24 million. Fraser McCombs Capital led the round.
Read more...  

PlayWorks scores funding

London-based PlayWorks, a social games provider, has secured 2 million pounds in funding. Vala Capital led the round.
Read more...  

CellPoint Mobile inks financing

CellPoint Mobile, a provider of digital commerce and payment solutions for airlines and travel companies across the globe, has secured 11 million pounds in financing. The investor was Toscafund Asset Management LLP.
Read more...  

SentinelOne lands $120 mln Series D

Silicon Valley-based SentinelOne, an autonomous endpoint protection company, has raised $120 million in Series D funding. Insight Partners led the round with participation from other investors that included Samsung Venture Investment Corporation, NextEquity, Third Point Ventures, Redpoint Ventures, Granite Hill and Data Collective.
Read more...  
Mark Your Calendars!
PartnerConnect Event's 2019 Calendar is here!


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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Jump Capital sells Champion Healthcare to Riverside Co

Jump Capital said June 6 that it sold its portfolio company Champion Healthcare Technologies to Riverside Co. Financial terms weren’t announced. Champion provides implant management solutions to over 500 hospitals and health systems. Riverside has combined Champ with portfolio company HemaTerra Technologies.
Read more...  

Is this really a SaaS deal?

By Scott Meyer, Glenview James LLC Everyone wants to invest in a high-growth software-as-a-service deal. It’s the holy grail. But many times PE investors spend hundreds of thousands of dollars on diligence, only to find out that the target business isn’t really SaaS after all. Here’s how to save time and money and make smarter […]
Read more...  

Marlin Equity closes Webtrekk buy

Marlin Equity Partners said June 5 that it closed its buy of Webtrekk. Financial terms weren’t announced. Webtrekk, of Berlin, provides marketing analytics and customer intelligence software solutions. The deal was announced in April.
Read more...  

Wise Equity buys majority of Innovery SpA

Wise Equity Sgr said June 6 that acquired 69 percent of Innovery SpA share capital. Financial terms weren’t announced. Innovery, of Italy, is a system integrator with a specialization in cyber security.
Read more...  

Peak Rock to sell Lew’s to BDT Capital

Peak Rock Capital has agreed to sell Lew's to BDT Capital. No financial terms were disclosed. Lew's is an outdoor consumer products company. The deal is expected to close in several weeks. Robert W Baird & Co was financial adviser to Lew's on the transaction with McDermott Will & Emery LLP providing legal advice.
Read more...  

Quad recaps SchoolAdmin

Quad Partners LLC has recapitalized Austin, Texas-based SchoolAdmin, a provider of admissions and enrollment software for K-12 schools. No financial terms were disclosed. GulfStar was financial adviser to SchoolAdmin on the transaction.
Read more...  

Advent wins auction for Italian chemicals firm ICE, say sources: Reuters

Private equity fund Advent has entered exclusive talks to buy Italian chemicals firm Industria Chimica Emiliana (ICE), two sources told Reuters.
Read more...  

LLR recaps CareATC

LLR Partners has recapitalized Tulsa-based CareATC, an employee population health management company. No financial terms were disclosed. Canaccord Genuity LLC served as financial adviser to CareATC on the deal with PrayWalker providing legal counsel. And, Morgan Lewis & Bockius LLP served as legal counsel to LLR Partners. CareATC was backed by Omega Capital and the Oklahoma Life Science Fund.
Read more...  

Olympus to sell Pregis to Warburg Pincus

Warburg Pincus has agreed to acquire Pregis LLC from Olympus Partners. No financial terms were disclosed. Pregis is a protective packaging materials and automated systems manufacturer.
Read more...  
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Anthem buys Beacon Health Options from Bain, Diamond Castle

Anthem Inc said June 6 that it agreed to buy Beacon Health Options. Financial terms weren’t announced. Bain Capital Private Equity and Diamond Castle Holdings are the sellers. Beacon Health Options, of Boston, is a behavioral health organization that serves more than 36 million individuals across all 50 states.
Read more...  

Hallmark Business sells incentives unit to InComm

Hallmark Business Connections, the business-to-business subsidiary of Hallmark Cards Inc, said June 5 that it sold its incentives business to InComm Inc. Financial terms weren’t announced. Warburg Pincus acquired InComm in 2012, PitchBook said.
Read more...  

PE-backed ADG buys Heritage Capital & Tile

Artisan Design Group, which is backed by The Sterling Group, has acquired Boynton Beach, Florida-based Heritage Capital & Tile, a provider of design center and installation services for flooring and complimentary products such as shower enclosures, mirrors and window treatments. No financial terms were disclosed.
Read more...  

KPS-backed DexKo completes PCI acquisition

DexKo Global, a portfolio company of KPS Capital Partners, has closed its previously announced acquisition of Preston Chassis Industries Pty Ltd. No financial terms were disclosed. Based in Australia, PCI is a provider of chassis.
Read more...  

Thoma Bravo-backed Imperva to buy Distil Networks

Imperva, a portfolio company of Thoma Bravo, has agreed to acquire Distil Networks, a provider of bot management solutions. Distil's backers include Bessemer Venture Partners, Triangle Peak Partners, MI Ventures, Foundry Group, TechStars, ff Venture Capital, IDEA Fund Partners and Correlation Ventures.
Read more...  

PE-backed Flexera buys RISC Networks

Flexera has acquired Asheville, North Carolina-based RISC Networks, a provider of a SaaS-based analytics platform that helps companies speed their migration to the cloud. No financial terms were disclosed. Flexera's backers include TA Associates.
Read more...  

Raptor Technologies buys LobbyGuard Solutions

Raptor Technologies, a JMI Equity portfolio company, said June 5 that it acquired LobbyGuard Solutions LLC. Financial terms weren’t announced. LobbyGuard provides a visitor management and front office automation system.
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Real Estate
 
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HGI invests $3.25 mln in West Hollywood multifamily property

Harbor Group International LLC, a real estate investment and management firm, has invested $3.25 million in Casa Real, a West Hollywood, California-based multifamily property. A Concord Capital Partners affiliate is slated to buy the property for about $17 million once escrow closes.
Read more...  

German property group DIC Asset to buy German Estate Group: Reuters

German property group DIC Asset has agreed to buy German Estate Group (GEG) for 225 million euros ($253 million) in cash from real estate investor TTL and private equity firm KKR, the companies said on Wednesday.
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Firms & Funds
 
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Third Rock fifth flagship closes on $770 mln

Third Rock Ventures LLC said June 6 that its latest flagship closed on $770 million. Third Rock Ventures V LP invests in life sciences companies. Third Rock also said that Steve Kafka, previously a venture partner, was named a partner.
Read more...  

Advent’s ninth global PE fund raises $17.5 bln

Advent International said June 6 that its ninth global PE fund closed on its $17.5 billion hard cap. GPE IX Limited Partnership surpassed its $16 billion target after six months. Advent’s previous global fund, GPE VIII, raised $13 billion in 2016.
Read more...  

Warburg Pincus nearing close of $4.3 billion China-Southeast Asia fund: Reuters

Warburg Pincus LLC is nearing the final close of an at least $4.25 billion private equity fund focusing on Chinese and Southeast Asian investments, Reuters reported.
Read more...  

Jazz Venture Partners raises $287 mln human performance venture-capital fund

Jazz Venture Partners has raised a $287 million venture-capital fund focused on companies improving human performance, according to a filing with the SEC.
Read more...  

Elsewhere Partners collects $70 mln for maiden fund: updated

Elsewhere Partners has raised $70 million for its debut fund, according to an SEC filing. The venture firm backs software companies.
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Fund manager Glennmont raises 850 million euros for clean energy investment: Reuters

Fund manager Glennmont Partners has raised 850 million euros ($947 million) at the final close of its third clean energy fund, which will invest in renewables projects in Europe and Britain, it said on Tuesday.
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Aaron Rodgers’ Rx3 Ventures unveils $50 mln growth fund

Rx3 Ventures has launched a $50 million growth fund focused on consumer brands. Aaron Rodgers, a two-time NFL MVP and Super Bowl champion, is co-founder and general partner of the firm.
Read more...  
Human Resources
 
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PE-backed Artivest appoints Hale as platform head

Artivest, a digital platform for alternative investing, has named James Hale as head of platform. Previously, Hale worked at Raymond James Financial. Artivest's backers include Aquiline Capital Partners, Genstar Capital, KKR and Thiel Capital.
Read more...  

Sole Source Capital adds new operating partner to team

Sole Source Capital has appointed Ruth Dreessen as an operating partner. She is the former managing director at Lion Chemical Partners.
Read more...  

Armis recruits Williams as CRO

Palo Alto, California-based Armis, an enterprise IoT security company, has hired Jeff Williams as chief revenue officer. Williams has spent the last four years as an operating partner at Bain Capital Ventures.
Read more...  

VC-backed Tachyum taps finance senior director

Silicon Valley-based Tachyum Inc, a cloud chip startup, has named Elena Zokhidova as senior director of finance. Previously, she worked at NVIDIA Corporation where she served as the financial business controller. Tachyum is backed by IPM Growth. 
Read more...  
Credit
 
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Golub Capital provides loan to CloudSense

Golub Capital has provided a credit facility to CloudSense, a provider of sales and delivery software solutions. No financial terms were disclosed. CloudSense is backed by Vector Capital. Golub was administrative agent and lead arranger on the financing.
Read more...  

FNB recruits McCormick as MD

First National Bank has hired Martin McCormick as a managing director and head of FNB Mezzanine Finance. Previously, he was a managing director for Huntington Capital Investment Company.
Read more...  
Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read begins the day with a news that a gay former vice president at Goldman Sachs sues the bank for discrimination, tariffs on Mexico could cost America 400,000 jobs, and Fiat-Chrysler calls off their merger with Renault.
Read more...  

PE HUB Second Opinion

In Second Opinion, YouTube will remove thousands of videos pushing extremist views, Connected bike and treadmill maker Peloton files confidentially for IPO and ex-Chicago Mayor Rahm Emanuel is joining Centerview Partners as a counselor to large firms.
Read more...  

PE HUB Wire Highlights, 6.5.19

Insurity, backed by GA, TA and Genstar, goes up for sale; Diversis raises debut fund in six months after six years of deal-by-deal; Leon Black regrets taking Apollo public
Read more...  
 
 
 
 
 
 
 
 
 
 
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