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Happy Friday, Hubskis! 

Hope your week went well. It's stayed hectic as we enter these first weeks of summer. Our M&A reporters seem to be busier than ever, which is a good sign that deal activity remains steady.

How has annual meeting season gone? Anything interesting to report from the meetings you've attended (or hosted)? Hit me up at cwitkowsky@buyoutsinsider.com

Scoop: Tech reporter Milana Vinn has a big story today that Thoma Bravo has put Continuum up for sale after a two-year hold. The process is in the early stages and Thoma is now accepting first round bids, Milana reported. Check out the story here

Full circle: Anthem this week said it agreed to buy behavioral health company Beacon Health Options from Bain Capital and Diamond Castle. While a notable deal in the healthcare world, this transaction stuck out to me for another reason: Beacon was the premier asset in what was one of the first marquee GP-led fund restructurings in the market. 

Diamond Castle completed the restructuring of its $1.85 billion, 2006 fourth fund in 2014, transferring ~eight assets out of the fund into an $860 million continuation vehicle. Intermediate Capital Group led the restructuring along with Goldman Sachs

A market source said Diamond Castle's return on the sale of Beacon is strong, and once marks are official will give the portfolio a big boost. It's interesting to see, five years down the line, one of the big assets out of an early restructuring process being sold. 

Beacon was part of the rationale of Diamond Castle choosing to restructure Fund IV, giving the GP the ability to hold the asset longer, the source said. I'm not sure of the terms on Diamond Castle's continuation vehicle, but generally these SPVs get five year terms. 

"It was the biggest position in the fund restructuring five years ago and kind of proves the whole reason for the market," the source said. 

We haven't had much definitive proof of whether restructurings, at the end of their lives, prove lucrative for GPs and buyers who ran the deals, because most of these transactions are still relatively new. It will be interesting to see how some of these wrap up once their terms end. 

First-timer: We had a first-time fund closer this week, with Diversis Capital closing its first fund on its $255 million hard cap. Diversis followed a path that is usually recommended by those who have invested in new managers: build a track record deal-by-deal before hitting the market with your first fund. 

Diversis operated as an independent sponsor for about six years, completing several deals and one exit before taking the fundraising plunge. It worked out for Diversis, launched by Kevin Ma and Ron Nayot, two ex-Gores Group executives, in 2013. Diversis invests in middle market software companies. 

“It’s never easy. It takes a lot of work, traveling a lot. We met with lots of people. What resonated was that we’ve been doing this for six years, we built a core, good team that worked together very collaboratively with a good culture,” Nayot told me this week.

Do you know of other first-timers taking the fundraising plunge? Hit me up at cwitkowsky@buyoutsinsider.com

Family offices: The independent sponsor community, which sources capital for private transactions on a deal-by-deal basis, works closely with the family office world. Family offices get to partner with well-known executives who likely have come out of large PE shops or corporations and gain direct exposure to deals. And independent sponsors have an active capital pipeline for their deals. It's symbiotic. 

Institutional Investor has a new story about this ecosystem, declaring that the independent sponsor community has matured from its "shifty" origins when many deal-by-deal shops simply acted as brokers rather than deal partners. Check it out here

That's it! Have a great weekend. Hit me up with first-time fund recommendations, tips n' gossip, feedback or just to chat at cwitkowsky@buyoutsinsider.com, on Twitter @chriswitkowsky or find me on LinkedIn.  

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  

PE HUB First Read

First Read closes out the week with news that Beyond Meat stock pops after its first quarterly report since IPO debut, JPMorgan shuts down app service for young people and family offices turn to independent sponsors to gain direct exposure to private companies.
Read more...  

PE HUB Second Opinion

In Second Opinion, President Trump attends a ceremony honoring the 75th anniversary of the Allied landing in Normandy, Spotify inks exclusive podcast deal with Barack and Michelle Obama and Barnes & Noble is nearing a deal to be acquired by Elliott Management.
Read more...  

PE HUB Healthcare Wire Highlights, 6.6.19

As Goldman writes big check in eye care, others steer clear of retail health
Read more...  

PE HUB Wire Highlights, 6.6.19

Longtime fundraiser Ryan Schlitt to leave Credit Suisse; Advent to invest in Definitive Healthcare; How to tell if that deal is really SaaS
Read more...  

Thoma Bravo starts sale process for Continuum

Thoma Bravo has put Continuum on the block after a two-year hold, three sources familiar with the deal told Buyouts. The process is in the early stages, people said. Thoma Bravo is accepting first-round bids for Continuum, sources said. It’s unclear when the offers are due. UBS is advising Thoma Bravo on the sale, the people said. Continuum is the […]
Read more...  

Fresh Profile: Global Realty Capital looks to make an impact

Kamil Homsi, founder and CEO of Global Realty Capital, sees the U.S. as the best place to invest the wealth of his clients, all of whom are from the six Gulf Cooperation Council countries: Kuwait, Bahrain, the United Arab Emirates, Oman, Saudi Arabia and Qatar. And the reason is very simple. “There are no tax advantages for […]
Read more...  

Texas Municipal upsizes commitment to Updata

Texas Municipal Retirement System upsized its commitment to Updata Partners’ flagship fund. The system’s investment of as much as $25 million to Updata VI, which focuses on growth investments in software companies, will apply to its 2018 pacing plan rather than its 2019 PE pacing model, a presentation from its May meeting showed. The move boosted […]
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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Fertilizer startup Phospholutions nets $1.5 mln

Phospholutions, a fertilizer startup, has secured up to $1.5 million in funding. The lead investors were 1855 Capital and Maumee Ventures.
Read more...  

SiFive locks in $65.4 mln Series D

SiFive Inc, a provider of commercial RISC-V processor IP and silicon solutions, has raised $65.4 million in Series D funding. The investors were Sutter Hill Ventures, Chengwei Capital, Spark Capital, Osage University Partners, Huami and Qualcomm Ventures LLC.
Read more...  

ChartSpan picks up $15 mln Series A

ChartSpan, a healthcare managed service provider for chronic care management programs in the U.S., has raised $15 million in Series A funding. BIP Capital led the round with participation from other investors that included Blue Heron Capital, Bailey Southwell & Co., C&B Capital and Service Provider Capital.
Read more...  

Platform Group Limited snags $1.5 mln seed

Platform Group Limited, a capital markets financial technology company, has secured $1.5 million in seed financing. The investors included MaRS Investment Accelerator Fund and Blindspot Inc.
Read more...  

Step grabs $22.5 mln Series A

Step, a financial services company for families and teens, has secured $22.5 million in Series A funding. Stripe led the round with participation from other investors that included Will Smith’s Dreamers fund, Nas, Crosslink Capital, Collaborative Fund and Sesame Ventures.
Read more...  

Voatz lands $7 mln Series A

Voatz, a voting and citizen engagement platform, has raised $7 million in Series A funding. Medici Ventures and Techstars led the round with participation from Urban Innovation Fund and Oakhouse Partners.
Read more...  

AllyO nabs $45 mln Series B

Silicon Valley-based AllyO, a provider of AI recruiting solutions, has $45 million in Series B funding, according to a blog post on its site. The investors were Sapphire Ventures, Scale Venture Partners, Gradient Ventures, Randstad Innovation Fund, Bain Capital Ventures and Cervin Ventures.
Read more...  

DFJ Growth leads Series C round for Yellowbrick Data

Palo Alto, California-based Yellowbrick Data, an analytics provider, has secured $81 million in Series C funding. DFJ Growth led the round.
Read more...  

Male fertility startup Legacy inks $1.5 mln

Legacy, a male fertility startup, has secured $1.5 million in funding. Bain Capital Ventures led the round.
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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PPC invests in Private Client Resources

Public Pension Capital LLC has made an investment in Private Client Resources, a provider of client assets for wealth management firms and technology providers. No financial terms were disclosed. Marlin Associates advised PCR in the transaction.
Read more...  

Wise Equity takes majority stake in Innovery

Wise Equity Sgr has acquired a majority stake in Innovery, a system integrator with offices in Italy, Spain and Mexico. No financial terms were disclosed.
Read more...  

Genstar to buy Advarra from Linden

Genstar Capital has agreed to acquire Columbia, Maryland-based Advarra from Linden Capital Partners. No financial terms were disclosed. At the closing of the deal, Linden plans on reinvesting in Advarra via a minority investment. Advarra is a provider of institutional review board, institutional biosafety committee and compliance and regulatory consulting services.
Read more...  

Northleaf Capital buys 49 pct of Odfjell Holdings

Northleaf Capital Partners said June 5 that it has acquired a 49 percent stake in Odfjell Holdings (US) Inc. Financial terms weren’t announced. Odfjell SE will own the remaining 51 percent. Odfjell is a portfolio of bulk liquid storage terminals in the United States.
Read more...  

Hillhouse Capital to buy Loch Lomond whiskies

Hillhouse Capital Management said June 6 that it is buying Loch Lomond Group from Exponent Private Equity. Financial terms weren’t announced. Loch Lomond, of Scotland, is a whisky producer.
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
 
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IPOs
 
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M&A Deals  
 
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Altice completes Cheddar acquisition

Altice USA has closed its previously announced acquisition of Cheddar, a digital-first news company. No financial terms were disclosed; however, an earlier report on this deal pegged the amount at $200 million. Cheddar’s backers included Lightspeed Venture Partners, Raine Ventures, Altice USA, Comcast Ventures, AT&T, Ribbit Capital, The New York Stock Exchange, Goldman Sachs, Liberty Global, Amazon, Homebrew, WGI Group, 7 Global Capital, Antenna Group and Dentsu Ventures.
Read more...  

PE-backed OmniSYS buys Rx-Net

OmniSYS, which is backed by Moelis Capital Partners, has acquired Rx-Net, a provider of automated pricing solutions for pharmacies. No financial terms were disclosed.
Read more...  

Welsh, Carson, Anderson & Stowe exits AIM

SimCorp said June 6 that it acquired AIM Holding SCA for 60 million euros ($67.4 mln). Welsh, Carson, Anderson & Stowe is the seller. AIM provides data management solutions with a specialized focus on the buy-side. Update: Arma Partners provided financial advice to AIM.
Read more...  
Real Estate
 
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Firms & Funds
 
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Female-focused Shatter Fund seeks $10 mln

The Shatter Fund, which invests in women-led tech companies, is seeking to raise $10 million for its debut fund, according to a regulatory filing. The filing lists the fund's address as Danville, California. The firm is led by Shelly Kapoor Collins, founding partner of the firm.
Read more...  

SRI Capital collects $45.2 mln for $100 mln-targeted fund

SRI Capital has raised $45.2 million for its debut fund, according to an SEC filing. The target is $100 million. The early-stage venture firm invests in startups mostly based in India and the U.S.
Read more...  

L Catterton racks up over $1.2 bln for third Asia fund

L Catterton has raised over $1.2 billion for its third Asia fund, according to an SEC filing. No target was listed in the document.
Read more...  

Cresco wraps up sophomore fund at $60 mln

Cresco Capital Partners, a private equity firm focused on the legal cannabis industry, has closed $60 million for its second fund. The original target was $50 million.
Read more...  

Australia’s Pacific Equity Partners set to raise $1.7 billion in new buyout fund: AFR

Pacific Equity Partners (PEP), one of Australia’s largest buyout firms, is close to raising A$2.5 billion ($1.7 billion) in its new fund, The Australian Financial Review reported on Thursday.
Read more...  
Human Resources
 
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PE-backed Apptio beefs up C-suite with two appointments

Apptio Inc, a portfolio company of Vista Equity Partners, has named Scott Chancellor as chief product officer and Todd Joseph as chief customer officer. Chancellor formerly worked at Amazon Web Services while Joseph worked at Marketo. Bellevue, Washington-based Apptio Inc is a provider of business management software.
Read more...  

Evercore ISI recruits Sibley as senior managing director and sales head

Evercore ISI has named Larry Sibley as a senior managing director and head of sales. Previously, he worked at Credit Suisse.
Read more...  
Credit
 
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PPM America closes ninth CLO at $400 mln

PPM America, an investment management firm, has closed its ninth CLO at $400 million. PPM CLO 3 is managed by PPM Loan Management Company LLC.
Read more...  
Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read closes out the week with news that Beyond Meat stock pops after its first quarterly report since IPO debut, JPMorgan shuts down app service for young people and family offices turn to independent sponsors to gain direct exposure to private companies.
Read more...  

PE HUB Second Opinion

In Second Opinion, President Trump attends a ceremony honoring the 75th anniversary of the Allied landing in Normandy, Spotify inks exclusive podcast deal with Barack and Michelle Obama and Barnes & Noble is nearing a deal to be acquired by Elliott Management.
Read more...  

PE HUB Healthcare Wire Highlights, 6.6.19

As Goldman writes big check in eye care, others steer clear of retail health
Read more...  

PE HUB Wire Highlights, 6.6.19

Longtime fundraiser Ryan Schlitt to leave Credit Suisse; Advent to invest in Definitive Healthcare; How to tell if that deal is really SaaS
Read more...  
 
 
 
 
 
 
 
 
 
 
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