Will the books survive?
 
On Friday, Elliott Management agreed to buy Barnes & Noble in a deal valued at $683 million, including debt. The transaction is the latest twist for Barnes, which was in talks to be acquired Leonard Riggio, Barnes founder and chairman, along with other investors, according to PitchBook.
 
B & N, a leading bookseller, has suffered in its fight against Amazon to attract customers, press reports said. Barnes has closed more than 150 stores in the last decade or so and currently has 627, the New York Times said. Elliott already owns Waterstones, the British book retailer.
 
Elliott Management, known for its shareholder activism, has a PE arm. The hedge fund asked investors earlier this year for $2 billion to take companies private, the WSJ said. Evergreen Coast, Elliott's PE arm, acquired Travelport Worldwide, along with Siris Capital, earlier this year.
 
Personally, I hope Barnes makes it. I remember when there were book shops in NYC. You could stop by one of these retailers, pick up a book and read it. Maybe peruse a magazine.
 
Healthcare: Jeffrey Stevenson, managing partner at VSS, has written a column on healthcare's pivotal digital moment. Read the article here.
 
Chris has a column on key-person provisions and GP minority stake sales, which occasionally identify different key people from the funds’ arrangements. Read Chris's column here.
 
Funding: Vectra, which provides an AI-driven threat detection platform, has raised $100 million in a round led by TCV. Read our brief here.
 
Privateer has agreed to merge with Tilray and is giving Tilray control over releasing its 75 million shares to its stockholders. Tilray, which provides cannabis research, cultivation, production, and distribution, was originally incubated and financed by Privateer before closing a Series A in February 2018. Read our brief here.
 
News from Buyouts/VCJ: Milana Vinn has a 5Q with Aaron Sack, head of Morgan Stanley Capital Partners. Sack also leads the consumer investing group. Read the 5Q here.
 
Brian Kolin, a former executive with Strategic Partners, Blackstone Group’s secondaries outfit, has joined Rothschild & Co’s Five Arrows group. Check out Chris's story here.
 
Vesey Street Capital is evaluating the sale of HealthChannels nearly five years into its investment in what is now the nation’s largest medical scribe company, Sarah Pringle reports.
 
Active LPs: Justin Mitchell has written a feature of Jim McCann, who made his fortune with 1-800 Flowers, and is now seeking innovation through his family office.
 
That’s it for me. Send 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  

Healthcare’s pivotal digital moment

By Jeffrey Stevenson, VSS Digital-IT and population-health businesses enabling providers – doctors, community and hospital systems – to better analyze data from electronic health records, claims and clinical treatment are poised to become tomorrow’s healthcare-IT winners. This is happening as the industry’s transition from fee-for-service to value-based care has gained momentum. Value-based reimbursement models are […]
Read more...  

PE HUB First Read

First Read begins the day with news that fantasy sports loses in Illinois gambling bill, a big leadership shakeup hits Uber as both its chief operating officer and chief marketing officer step down, while United Technologies and Raytheon are merging.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that FedEx will no longer provide express shipping for Amazon in the U.S., IBM is cutting almost 2,000 jobs as it reshapes the business and by 2040, more than half of new cars will be electric.
Read more...  

PE HUB Wire Highlights, 6.7.19

A GP fund restructuring comes full circle, Exploring the family office/independent sponsor ecosystem
Read more...  

PE-backed medical-scribe giant, HealthChannels, explores sale

Vesey Street Capital is evaluating the sale of HealthChannels nearly five years into its investment in what is now the nation’s largest medical scribe company, five sources familiar with the situation told Buyouts. Jefferies and Centerview Partners are advising on the sales process, they said. Sources characterized the process as tightly run and sponsor-driven, though some of […]
Read more...  

LP Scorecard: Blackstone, Neuberger Berman lead NJDOI 2012

New Jersey Division of Investment in 2012 made 12 investments in PE, the most it made since 2008. It spread those investments over six PE strategies: co-investments, distressed debt, domestic midmarket buyouts, large buyouts, special situations and venture capital. All told, NJDOI committed $1.6 billion to PE in 2012, also the most since 2008. It has […]
Read more...  

Market at a Glance: Fundraising hits the brakes

The fundraising frenzy couldn’t last forever. U.S.-based buyout and mezzanine fundraising drastically slowed. Since the last issue of Buyouts, fundraising added $1.3 billion to its YTD total, which now stands at $140 billion — $61 billion more than the 2018 YTD total. Proterra Investment Partners outraised all firms. Its sustainable agricultural fund raised more than $303 […]
Read more...  

On the Move, June 10, 2019: Siris taps Tracy Harris; Silver Lake names Karr, Intel’s Anderson

PRIVATE EQUITY FIRMS Crestline Investors appointed Michael Aingorn a managing director. He previously was a partner at American Industrial Partners. BelHealth Investment Partners promoted Jonathan Spero to vice president from senior associate. He joined the healthcare-focused PE firm in 2015. Siris hired Tracy Harris as a partner in IR and product strategy. She will help manage the firm’s relationships with LPs and prospective investors […]
Read more...  

Editor’s Letter: Key-person provisions and GP minority stakes: an awkward conversation

Key-person provisions lately are a hotly debated topic, with some GPs setting up several individuals, rather than one or two, as key people on a fund. This has the effect, at least from the LP perspective, of diluting the impact of a key-person provision. After all, a key-person provision that names one or two people […]
Read more...  

Charts of the Week: Independent sponsors had a slow 2018

The survival of an independent sponsor relies on the firm’s ability to complete a deal. But 2018 was not a busy deal-making year, according to Buyouts Insider’s Guide to Independent SponsorS, 2nd Edition. A majority of the firms surveyed did not make an acquisition.
Read more...  

Charts of the Week: Most independent sponsors charge percentage of transaction value

Independent sponsors rely on receiving profits of a transaction, which is why so much focus goes into dealmaking as opposed to fundraising. According to the Guide to Independent Sponsors, two-thirds (67 percent) of independent sponsors calculate their closing fee by a percentage of the transaction value.
Read more...  

Ex-Strategic Partners veteran joins Rothschild’s Five Arrows to help build US presence

Brian Kolin, a former executive with Strategic Partners, Blackstone Group’s secondaries outfit, has joined Rothschild & Co.’s Five Arrows group, two sources told Buyouts. Kolin, who joined Five Arrows as a managing director on the multi strategy team, will help build its U.S. presence, the sources said. Five Arrows Multi Strategy runs various private equity strategies like […]
Read more...  

Texas Teachers adds $313 mln to PE in May

Teacher Retirement System of Texas committed more than $300 million to private equity in May, investing with two large buyout firms and a co-investment opportunity. The $150 billion retirement system committed $150 million to Hellman & Friedman’s H&F United Partners fund, and $150 million to TA Associates’ TA XIII-A fund. It also committed $13.3 million […]
Read more...  

Jim McCann, who made his fortune with 1-800-Flowers, seeks innovation through family office

In the 1980s, Jim McCann made his fortune when he took his small floral business and branded it on a national level as 1-800-Flowers, making it one of the first companies to integrate an 800 number into its identity. “If we weren’t out front on things and thinking two or three steps ahead, we would eventually have […]
Read more...  

Emerging Manager Roundup: GenNx360, JAZZ, AllegisCyber and more

It was a slower fundraising period for emerging managers: 17 of them raised more than $1.4 billion from May 22 through June 5, according to Buyouts data. GenNx360 led all firms. The New York firm’s third fund raised more than $298 million of a targeted $800 million. The fund will target industrial and business services […]
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.


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VC Deals
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Privitar raises $40 mln

Privitar said June 10 that it raised a $40 million Series B round led by Accel. Existing investors Partech, Salesforce Ventures, 24Haymarket and IQ Capital participated in the round. Privitar is a data privacy software company.
Read more...  

TCV leads $100 mln round for Vectra

Vectra said June 10 that it raised a $100 million funding round led by TCV. Existing investors participated in the round. Vectra, of San Jose, provides an AI-driven threat detection platform. The company has previously raised $122.74 million in funding, PitchBook said.
Read more...  

Litify attracts $50 mln Series A

New York City-based Litify, a software platform for managing law firms, has secured $50 million in Series A funding. The investor was Tiger Global Management LLC.
Read more...  

Marketing brand Zyper inks $6.5 mln Series A

New York City-based Zyper, a marketing brand, has secured $6.5 million in Series A funding. Talis Capital led the round with participation from Forerunner Ventures and Y Combinator.
Read more...  

Cylus nabs $12 mln Series A

Tel Aviv-based Cylus, a provider of rail and metro cybersecurity services, has raised $12 million in Series A funding. The investors included Cyient, Cerca Partners, GlenRock, Magma Venture Partners and Vertex Ventures.
Read more...  

Swiftly nabs $10 mln Series A

San Francisco-based Swiftly, a developer of a mobility operating system for cities, has raised $10 million in Series A funding, according to a blog post on its site. The investors included Via ID, Aster Capital, Renewal Funds, Total Energy Ventures, Samsung NEXT, RATP Dev, Wind Capital, 1776, Plug and Play Group, Elemental Excelerator and Stanford StartX-Fund.
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
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Elliot Management to buy Barnes & Noble

Elliot Management is buying Barnes & Noble Inc in a deal valued at $475 million, according to regulatory filings. Including debt, the transaction is valued at $683 million, the Wall Street Journal reported. Once the deal closes, Elliot will own both Barnes & Noble and U.K. book chain Waterstones, the WSJ said.
Read more...  

Gryphon-backed Water’s Edge to buy Coast Dermatology

Water’s Edge Dermatology, a portfolio company of Gryphon Investors, said June 10 that it acquired a controlling interest in Coast Dermatology. Financial terms weren’t announced. Coast Dermatology, of Venice, Florida, is a medical/cosmetic dermatology practice.
Read more...  

CVC to buy slight majority of Teneo: Wall Street Journal

Teneo Holdings LLC has agreed to sell a slight majority stake in the company to CVC Capital Partners, according to the Wall Street Journal. BC Partners is selling some of its stake but will continue to own nearly 50 percent, the story said. Teneo is a communications and advisory firm.
Read more...  

Healthcare’s pivotal digital moment

By Jeffrey Stevenson, VSS Digital-IT and population-health businesses enabling providers – doctors, community and hospital systems – to better analyze data from electronic health records, claims and clinical treatment are poised to become tomorrow’s healthcare-IT winners. This is happening as the industry’s transition from fee-for-service to value-based care has gained momentum. Value-based reimbursement models are […]
Read more...  

H.I.G buys Cardinal Logistics

H.I.G. Capital said June 10 that it acquired Cardinal Logistics. Financial terms weren’t announced. Cardinal, of Concord, North Carolina, provides outsourced transportation and logistics solutions to customers across diverse end markets.
Read more...  

Travelstart to buy Club Travel Group

Travelstart, which is backed by Amadeus Capital Partners and HarbourVest, is buying the Club Travel Group. Financial terms weren’t announced. Thebe Tourism Holdings is selling. Club Travel, of Capetown, is a travel agency with over 400 branded and non-branded franchises and a corporate travel division. Thebe and Travelstart will jointly invest in and own Club Travel Corporate, a level one B-BBEE rated division of Club Travel Group.
Read more...  
PROMOTE YOUR BRAND! GENERATE AWARENESS!  SELL YOUR PRODUCTS & SERVICES! 
 
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IPOs
 
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Japanese biz card app operator Sansan prices IPO

Sansan, a Japanese business card app operator, has priced its IPO, raising $360 million, according to Reuters. The stock will list on the Tokyo Stock Exchange on June 19. Sansan's backers include Japan Post Capital and T. Rowe Price.
Read more...  
M&A Deals  
 
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Trive sells Southern Towing Company to CCI

Trive Capital has sold Southern Towing Company LLC to CC Industries Inc. No financial terms were disclosed. Memphis-based STC is an inland tank barge operator.
Read more...  

EveryAction acquires fundraising analysis firm DonorTrends

EveryAction, which is backed by Insight Partners, has acquired Virginia-based DonorTrends, a fundraising analysis firm. No financial terms were disclosed.
Read more...  
Real Estate
 
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RM Adviser acquires two Texas multifamily assets

RM Adviser, a subsidiary of RealtyMogul, has acquired two El Paso, Texas-based multifamily assets. No financial terms were disclosed.
Read more...  

Security Properties and Rockwood Capital acquire Seattle property

Security Properties and Rockwood Capital have acquired Seattle-based Legacy at Pratt Park, a 249-unit mixed-use property. No financial terms were disclosed.
Read more...  

Starwood and Arrow buy Australian office complex

Starwood Capital Group and Arrow Capital Partners have acquired the Sydney, Australia-based Zenith office complex. No financial terms were disclosed.
Read more...  

Ares and Douglaston to develop Manhattan luxury residential project

Ares Management Corporation and Douglaston Development have formed a joint venture to develop 601 W. 29th Street, a luxury residential development in Manhattan. A syndicate of banks led by HSBC provided construction financing for the project.
Read more...  
Firms & Funds
 
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Jaguar Ventures to raise $25 mln for second fund

Jaguar Ventures is seeking to raise $25 million for its second fund, according to an SEC filing. The Mexican venture firm targets early-stage investments in Latin America.
Read more...  

Rotunda Capital targets $175 mln for sophomore fund

Rotunda Capital Partners is seeking to raise $175 million for its second fund, according to an SEC filing. Based in Bethesda, Maryland and Evanston, Illinois, the private equity firm invests in lower-middle market companies.
Read more...  

Barings rakes in $943 mln for debut PE/real assets fund

Barings LLC has closed $943 million for its first private equity/real assets fund. Barings Asset-Based Income Fund's limited partners include public and private pensions, insurers, sovereign wealth, family offices and foundations from the U.S., Europe and Asia-Pacific.
Read more...  
Human Resources
 
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Silicon Valley Bank is seeking to add a VP to its Sponsor Finance team.  This person will provide creative leveraged capital solutions to private equity clients in support of their investments in the technology sector. The VP will have experience in leveraged finance, investment banking and/or financial sponsor coverage. Find out more info here.
 

PE-backed CMIT Solutions appoints CEO

Austin-based CMIT Solutions, a managed service provider of enterprise-level information technology services to the small and mid-market business community, has named Roger Lewis as CEO. Previously, Lewis co-founded AllianceTech. CMIT is backed by Craftsman Capital.
Read more...  

L Catterton Europe taps Feola as managing partner

L Catterton Europe has named Luigi Feola as a managing partner. The appointment becomes effective September 1, 2019. Previously, he was senior managing director of Europe and joint head of consumer at Temasek. Feola will be based in Milan.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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Conway donates $20 mln to Catholic University: Washington Business Journal

Bill Conway, co-founder and co-executive chairman of Carlyle Group, and his wife, Joanne, have made a $20 million donation to Catholic University, according to Washington Business Journal. Conway’s financial support of the school comes to $40 million, the story said.
Read more...  

Privateer to release 75 mln Tilray shares

Privateer Holdings Inc is releasing 75 million shares it owns in Tilray Inc to Privateer’s equity holders. The stock represents 77 percent of Tilray’s total shares outstanding. Tilray, which provides cannabis research, cultivation, production, and distribution, was originally incubated and financed by Privateer before closing a Series A in February 2018.
Read more...  

Hot Dog on a Stick opens China location

Global Franchise Group LLC, franchisor of Hot Dog on a Stick brand, said June 10 that it opened a Hot Dog on a Stick location in Shanghai China. Global Franchise Group LLC is an affiliate of Lion Capital LLP and Serruya Private Equity Inc.
Read more...  

PE HUB First Read

First Read begins the day with news that fantasy sports loses in Illinois gambling bill, a big leadership shakeup hits Uber as both its chief operating officer and chief marketing officer step down, while United Technologies and Raytheon are merging.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that FedEx will no longer provide express shipping for Amazon in the U.S., IBM is cutting almost 2,000 jobs as it reshapes the business and by 2040, more than half of new cars will be electric.
Read more...  

PE HUB Wire Highlights, 6.7.19

A GP fund restructuring comes full circle, Exploring the family office/independent sponsor ecosystem
Read more...  
 
 
 
 
 
 
 
 
 
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