Click here to view this email online.

To ensure this email is delivered to your inbox, please add the email address
pehubwire@buyoutsinsider.com to your address book.
PeHubWire.jpg

Congratulations to the New England Patriots fans on winning their sixth Super Bowl. Now will Tom Brady retire? We can only hope.
 
It's merger Monday and we have a club deal. This morning, Ultimate Software said it agreed to be sold to a group led by Hellman & Friedman for $331.50 a share cash, or about $11 billion. Other buyers include Blackstone, GIC, Canada Pension Plan Investment Board (CPPIB), as well as JMI Equity. See our brief here.
 
The deal includes a 50-day go-shop, where Ultimate's board and financial adviser are allowed to seek out other proposals. The provision allows Ultimate to terminate its deal with the Hellman-led group to accept a better offer. Now, Hubsters, go-shops have gotten somewhat popular in the past decade, but I can't remember the last time it actually led to a deal. Can anyone recall one that did? Email me at lbeltran@buyoutsinsider.com
 
Ultimate was founded by Scott Scherr, its CEO and president, back in 1990. It went public in 1998, CrunchBase said. Goldman advised Ultimate while Qatalyst Partners provided financial advice to Hellman & Friedman.
 
Deals: In other news, I have a story on Advisor Group, which is backed by Lightyear Capital. The broker-dealer was reportedly in talks to sell Lightyear's stake to Genstar Capital in January. Now, I'm hearing that Lightyear has put Advisor Group up for sale and could get a lot more than what Genstar was pitching, according to several sources. Find out how much Advisor Group could sell for here
 
Funds: TSG Consumer Partners has closed its eighth flagship on $4 billion. See our brief here.
 
News from Buyouts Insider/VCJ: Oregon Investment Council at its Jan, 31 meeting approved more than $1 billion of private-markets commitments, including a big pledge to Blackstone Group’s eighth fund, Dietrich Knauth reports.
 
Further Global, launched by Carlyle Group’s former financial-services chief, early in its debut fundraising got a big vote of confidence from a well-known endowment. Read Chris's story here.
 
Active LPs: Private equity and venture capital helped bolster returns for U.S. colleges and universities, even as returns for their endowments fell by almost 33 percent in 2018, Preeti Singh says.
 
That’s it for me. Email any tips, comments or complaints to lbeltran@buyoutsinsider.com

Get Plugged In:  It’s time to start thinking about our 31st Annual PartnerConnect East, March 25-27 at the Hyatt Regency in Boston. This is the big one folks. Close to 500 decisionmakers across Private Equity, Venture Capital and Real Estate...200+ LPs…100+ dealmakers…400-odd private meetings between GPs & LPs…tons of A-list speakers. The ultimate networking event for senior professionals in the industry. Make your plans now to attend. Click here for more info.

Who's the best:
 Buyouts is now accepting nominations for its 19th annual Deal of the Year awards, honoring exceptional buyouts that were fully or mostly realized in 2018. The deadline for submissions is Friday Feb. 22, 2019, but there’s no time like the present to apply. We’re also adding a new category this year, secondaries of the year, to recognize the top transaction relating to the sale of LP stakes, GP-led liquidity process, secondary-led spinout or some combination of all three.
 
Don’t miss this opportunity to be recognized by the editors of Buyouts for your outstanding work in 2018. Send Chris your submissions at cwitkowsky@buyoutsinsider.comRead more here
 
Winners will be selected in six categories:
 
·         Deal of the year
·         Large market deal of the year
·         Middle market deal of the year
·         Small market deal of the year
·         Turnaround of the year
·         Secondaries of the year
·         International deal of the year

 
Today's  Take  

PE HUB First Read

First Read begins the week with news that Foxconn says its Wisconsin factory plans are back on after a talk with President Trump, General Motors is laying off 4,000 workers today, while Tom Brady and the New England Patriots win Super Bowl LIII.
Read more...  

PE HUB Second Opinion

In Second Opinion, Vice Media is laying off 10 percent of its staff, the U.S. economy added 304,000 jobs in January and Papa John's is reportedly seeking investments after takeover bids from private equity firms did not meet valuation expectation.
Read more...  

PE HUB Wire Highlights, 2.1.19

GPs consider benefits/drawbacks of long-dated PE, Top 5 factors to consider before the next downturn
Read more...  

UC Regents anchors ex-Carlyle exec’s debut fund

Further Global, launched by Carlyle Group’s former financial-services chief, early in its debut fundraising got a big vote of confidence from a well-known endowment. University of California’s endowment pledged $200 million to Further Global’s debut fund, targeting $1.25 billion for investments in financial services. The ex-Carlyle financial services executive Olivier Sarkozy left the megashop in 2016 and […]
Read more...  

Charts of the Week: Asia seen as most attractive emerging market

Ongoing trade tensions with China haven’t appeared to damp excitement about PE in the Asia-Pacific region: 84 percent of respondents in PEI’s Perspectives 2019 Survey said they will be considering the region for investments over the next 12 months.
Read more...  

Market at a Glance: Four funds each raise more than $1 bln

U.S.-based buyout and mezzanine fundraising swelled since the last issue of Buyouts, adding more than $10 billion to the YTD 2019 total, which stands at $13.5 billion. Despite the surge, fundraising trails the YTD 2018 total by $6.5 billion. Four funds in particular were responsible for the increase, each of which raised more than $1 […]
Read more...  

Charts of the Week: Asia surpasses Europe in number of fund closes

For the first time, Asia had more funds closed (250) than Europe (196), according to Preqin. Despite having fewer funds, Europe-focused funds secured $90 billion, which outraised the $80 billion secured by Asia-focused funds.
Read more...  

On the Move, Feb. 4, 2019: Carlyle names 5 partners; GA taps Goldman, Stamas, Kotzin

PRIVATE EQUITY FIRMS Carlyle Group promoted 60 professionals, including five to partner, 22 to managing director and 33 to principal and director. The new partners are Rich Dunne, AlpInvest, New York, Norma Kuntz, fund management, Washington, Matthew Savino, global capital markets, New York, Sarah Schwarzschild, metropolitan real estate, New York, and Ling Yang, Asia buyout, Shanghai. […]
Read more...  

LP Scorecard: H.I.G., Thoma Bravo lead IRR, total value for MassPRIM 2014

Massachusetts Pension Reserves Investment Management Board received more than $282.7 million in distributions from PE funds from its 2014 investments, the most in distributions for the past six years. All told, MassPRIM in 2014 made 18 commitments to PE, totaling $1.2 billion. It contributed 83 percent of that, more than $1 billion, as of June […]
Read more...  

Editor’s Letter: Secondaries hit another milestone in 2018

Every year the secondary market seems to hit another milestone. Last year will be known as the one in which the “7” number was broken. Estimated secondary market deal volume in 2018 vaulted $70 billion, according to two surveys published Jan. 24 by Evercore and Setter Capital. That would be the highest level ever in the […]
Read more...  

Lightyear seeks buyer for Advisor Group

Lightyear Capital has put Advisor Group up for sale, three years after buying the broker-dealer, three sources said. Barclays is advising on the process, one of the sources said. Advisor Group, of Phoenix, is a network of more than 5,000 financial advisers. The company is comprised of four broker-dealers: FSC Securities Corp, Royal Alliance Associates […]
Read more...  

Oregon megapledge to megafund: $500 mln to Blackstone VIII

Oregon Investment Council at its Jan, 31 meeting approved more than $1 billion of private-markets commitments, including a big pledge to Blackstone Group’s eighth fund. The council, which manages $75 billion in pension assets and more than $6 billion in other state funds, has exceeded its PE target allocation. But it plans to keep a steady […]
Read more...  

Zenyth raises $150M-plus for healthcare-focused permanent-capital vehicle

Zenyth Partners has raised more than $150 million for a new permanent-capital vehicle that will focus on building healthcare providers through a retail and consumer lens, Managing Partner Rob Feuer told Buyouts. The Great Neck, New York, investment firm initially gathered $55 million for an inaugural fund in April 2018, an SEC filing showed. The firm […]
Read more...  

Trump administration knocked over long delays in SBIC licensing

The government’s small business investment company program is losing some of its luster among managers as long licensing times and the recent government shutdown hamper LPs’ ability to reliably deploy capital to government-backed small-business funds. GPs and LPs alike complained to Buyouts about long wait times for SBIC licenses — and that was before the […]
Read more...  

Madison Dearborn eyes govtech as it’s said to make 5x on LGS

Madison Dearborn Partners will look for more carveouts in the government-tech sector as it expects to make 5x its money on the sale of LGS Innovations, a source told Buyouts. Madison Dearborn and CoVant Management said Jan. 30 they were selling LGS Innovations for $750 million to CACI International. LGS Innovations delivers communications products, R&D and […]
Read more...  

Fund performance: Review of Nevada pension’s venture funds, 2004 to 2007

Below is performance data for the Public Employees’ Retirement System of Nevada‘s vintage 2004 to 2007 venture capital funds. The figures from the Nevada LP are current as of June 2018. An expanded spreadsheet with additional data is attached. To download the full version of the spreadsheet below with additional data, click here: Nevada PERS venture portfolio (2004 to 2007) […]
Read more...  

Asian division of BlueRun Ventures is seeking $500 mln across two fund

BlueRun Ventures Asia, the China and Korea-based division of BlueRun Ventures, is raising $350 million for BRV Aster Fund III and $150 million for BRV Aster Fund Opportunity Fund II, according to regulatory filings. First sale is yet to occur. The Asian division is led by General Partners Jui Tan in China and Kwan Yoon […]
Read more...  

UC Regents anchors ex-Carlyle exec’s debut fund

Further Global, launched by Carlyle Group’s former financial-services chief, early in its debut fundraising got a big vote of confidence from a well-known endowment. University of California’s endowment pledged $200 million to Further Global’s debut fund, targeting $1.25 billion for investments in financial services. The ex-Carlyle financial services executive Olivier Sarkozy left the megashop in 2016 and […]
Read more...  

Emerging Manager Roundup: Riverwood, LKCM, Tritium, Owl and more

Emerging managers continue a strong 2019 with more than $3.9 billion in fundraising the past few weeks. Seven private equity firms and two venture capital firms raised over $100 million. One PE firm crossed the billion-dollar threshold. Riverwood Capital raised over $1 billion for its third flagship. LKCM Headwater of Texas raised the second highest total […]
Read more...  

PE, VC helped bigger endowments generate better returns in 2018: study

Private equity and venture capital helped bolster returns for U.S. colleges and universities, even as returns for their endowments fell by almost 33 percent in 2018. While the 10-year average returns increased by 1.2 percentage points to 5.8 percent in 2018, endowments still fell short of their target of 7.2 percent, raising concern about their […]
Read more...  
 
PartnerConnect East 2019
Celebrating 31 Years of Excellence
March 25-27, 2019
Hyatt Regency, Boston

The Premier Networking Event for LPs & GPs in the Private Equity, Venture
Capital and Private Real Estate Sector


Register Now

 
pehw_66x25_VC.jpg pehw_66x25_PE.jpg pehw_49x25_IPOs.jpg pehw_49x25_M%26A.jpg pehw_94x25_firms.jpg pehw_110x25_HR.jpg pehw_83x25_odds.jpg

VC Deals 

 
 

Palo Alto in talks to buy information security firm Demisto: Reuters

Palo Alto Networks Inc is in talks to acquire U.S.-Israeli information security firm Demisto Inc, the Calcalist financial daily reported on its website on Monday.
Read more...  

Step grabs $3.8 mln seed

San Mateo, California-based Step, a new financial services company for families and teens, has secured $3.8 million in seed funding. The investors were Crosslink Capital, Collaborative Fund and Sesame Ventures.
Read more...  

Valued rakes in $1.7 mln seed

San Francisco-based Valued, a provider of compliance solutions that help HR professionals combat workplace bullying and harassment, has secured $1.7 million in seed funding. BootstrapLabs led the round.
Read more...  

Magnolia Medical lands $20 mln Series C

Seattle and Silicon Valley-based Magnolia Medical Technologies, a medical device company, has secured $20 million in Series C financing.
Read more...  

Go-Jek raises $1 billion in round led by Google, Tencent, JD: Reuters

Indonesian ride-hailing firm Go-Jek has raised around $1 billion in a funding round, led by Alphabet Inc’s Google, JD.com Inc and Tencent Holdings, sources familiar with the matter said on Friday.
Read more...  

Wyze Labs picks up $20 mln Series A

Seattle-based Wyze Labs Inc, a smart home technology company, has secured $20 million in Series A funding. Norwest Venture Partners led the round.
Read more...  

Aureus Analytics scores $3.1 mln

Aureus Analytics, a predictive analytics platform for the insurance industry, has secured $3.1 million in funding. The investors included Connecticut Innovations, Alpine Meridian and Multi-Act.
Read more...  
Mark Your Calendars!
PartnerConnect Event's 2019 Calendar is here!


PartnerConnect East- March 25-27th, Boston
DealConnect Family Office & Independent Sponsor Spring- May 21-22nd, NYC
PartnerConnect Midwest- June 24-26th, Chicago
Emerging Manager Connect East- July 23rd, NYC
PartnerConnect West- September 23-25th, San Francisco
 DealConnect Family Office & Independent Sponsor Fall- October 29-30th, NYC
PartnerConnect Texas- December 9-11th, Dallas
PE Deals sponsored by  
 
Back to Top

Hellman-led group to buy Ultimate Software for $11 bln

An investor group led by Hellman & Friedman is buying Ultimate Software for $331.50 share cash or about $11 billion. In additional to Hellman, buyers include Blackstone, GIC, Canada Pension Plan Investment Board (CPPIB), as well as other investors including JMI Equity. Ultimate Software provides cloud-based human capital management and employee experience solutions, with more than 48 million people records in the cloud.
Read more...  

One Equity closes MediaKind buy

Ericsson said Feb. 1 that it closed the divestment of MediaKind to One Equity Partners. The deal was previously announced. One Equity Partners is majority owner of MediaKind, while Ericsson has 49 percent of shares. MediaKind is an independent video technology company.
Read more...  

Weir Group close to selling unit for about $390 mln, says source: Reuters

Engineering company Weir Group Plc is close to selling a unit, which supplies pumps and valves to power and oil and gas industries, for more than 300 million pounds ($390 million), a source told Reuters.
Read more...  

Carlyle takes majority stake in SERgroup

The Carlyle Group has acquired a majority stake in SERgroup, a German enterprise content management solutions software company. No financial terms were disclosed.
Read more...  

TPG commits $300 million to new autism services company Kadiant

TPG Capital has committed $300 million in equity to Kadiant, a new autism services company. Viola Ventures will invest alongside TPG. TPG and Lani Fritts partnered up to form Kadiant. Fritts will serve as CEO of Kadiant while Dr. Fred Cohen, co-founder of Vida Ventures, will serve on Kadiant's board.
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
 
For more information about advertising, print & digital content contribution opportunities please click here       
 
IPOs
 
Back to Top
M&A Deals  
 
Back to Top

Merfish Pipe merges with United Pipe & Supply

Merfish Pipe & Supply, a portfolio company of One Equity Partners, said Feb. 4 that it is merging with United Pipe & Supply. Financial terms weren’t announced. United, of Ipswich, Massachusetts, distributes plastic pipe, copper tube and electrical conduit, serving the construction, electrical supply, fire protection, HVAC, mechanical and plumbing industries.
Read more...  

Ribbon Communications buys Anova Data

Ribbon Communications Inc said Feb. 4 that it acquired Anova Data Inc. Annova will receive an aggregate of 3.3 million shares of Ribbon common stock in exchange for substantially all of the assets and liabilities of Anova Data. Anova, of Westford, Massachusetts, provides advanced analytics solutions.
Read more...  

AE Industrial-backed Belcan buys Sitec Design, Sitec Recruitment

Belcan LLC, a portfolio company of AE Industrial Partners LP, has acquired Sitec Design Ltd and Sitec Recruitment Ltd. Financial terms weren’t announced. Sitec is an engineering services and technical recruitment supplier serving aerospace, defense, nuclear, and industrial customers in the UK and Europe.
Read more...  

C.H. Guenther buys Wback

C.H. Guenther & Son LLC, a portfolio company of Pritzker Private Capital, said Feb. 4 that it acquired Wback GmbH. Financial terms weren’t announced. Wback, of Bönen, Germany, supplies fresh hamburger and hotdog buns to foodservice and retail customers.
Read more...  

Solenis, BASF close merger pf paper and water chemicals business

BASF and Solenis have completed the previously announced merger of BASF’s wet-end paper and water chemicals business with Solenis, a Clayton, Dubilier & Rice portfolio company. BASF will own 49 percent of the combined company, while Solenis management and CD&R will have 51 percent. The merger includes the paper and water assets of BASF’s Performance Chemicals unit but not BASF’s paper coating chemical business.
Read more...  

Arlington Capital to sell MicroPact to Tyler Technologies

Arlington Capital Partners has agreed to sell MicroPact Inc to Tyler Technologies. No financial terms were disclosed. Spurrier Capital Partners provided financial advice to MicroPact on the transaction while Sheppard Mullin served as legal adviser. Based in Herndon, Virginia, MicroPact is a provider of case management and business process management applications for government.
Read more...  

PE-backed Kofax buys Nuance Document Imaging

Kofax, which is backed by Thoma Bravo, has acquired Nuance Document Imaging from Nuance Communications Inc. The price of the acquisition was $400 million, according to a source familiar with the transaction.
Read more...  
Real Estate
 
Back to Top

Brookfield closes third global real estate fund, secures $15 bln

Brookfield Asset Management has closed its latest flagship global private real estate fund, raising $15 billion in committed capital. Brookfield Strategic Real Estate Partners III, the Canadian alternative asset manager’s largest private fund to date, exceeded its target of $10 billion. In all, 150 limited partners backed the fund, including pension plans, sovereign wealth funds, financial institutions, endowments and foundations, family offices, and investors from Brookfield’s private wealth channel. Brookfield committed $3.75 billion. BSREP III has so far deployed $5 billion to 10 global real estate investments.
Read more...  

Magnify taps Stewart as chief investment officer

Austin, Texas-based Magnify Capital, a real estate investment firm, has hired Michael Stewart as chief investment officer. Previously, he worked at Castle Hill Partners.
Read more...  

CDPQ-backed Avison Young acquires GVA

Toronto-based Avison Young, a commercial real estate services firm, has acquired UK-based GVA, a real estate adviser. No financial terms were disclosed. As a result of the closing, the two companies will combine and operate under the Avison Young brand. Credit Suisse and KPMG LLP provided financial advice to Avison Young on the deal. Avison is backed by Caisse de dépôt et placement du Québec.
Read more...  

Highbridge buys Tribune Tower from Harvest Properties and True North

Highbridge Equity Partners has acquired Oakland, California-based Tribune Tower, a local landmark property, from Harvest Properties and True North Management Group. No financial terms were disclosed.
Read more...  
Firms & Funds
 
Back to Top

TSG Consumer Fund VIII raises $4 bln

TSG Consumer Partners said Feb. 4 that it closed its eighth flagship fund on $4 billion of limited partner capital commitments. TSG8 LP, which was oversubscribed, will target consumer companies and make equity investments between $200 million and $800 million.
Read more...  

NMS raises $450 mln for third fund

NMS Capital has closed its third private equity fund at a hard cap of $450 million, beating its $350 million target. The fund's investors included public and corporate pension funds, foundations, family offices and other institutional investors in the U.S. and abroad. Stanwich Advisors LLC was the placement agent while Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal advice.
Read more...  

Victress Capital targets $20 mln for initial fund

Victress Capital is seeking to raise $20 million for its debut fund, according to an SEC filing. Victress invests in companies with female founders or gender-diverse teams.
Read more...  

Kleiner Perkins racks up $600 mln for 18th fund

Silicon Valley-based venture firm Kleiner Perkins has raised $600 million for its 18th fund, according to a company announcement. The fund will focus on making early-stage investments.
Read more...  

Ascribe Capital wraps up fourth fund at $825 mln

Ascribe Capital LLC has closed its fourth fund at $825 million. Ascribe Opportunities Fund IV's investors include asset managers, insurance companies, pension funds and sovereign wealth funds. Ascribe invests in securities of companies that are distressed.
Read more...  
Human Resources
 
Back to Top

Whetstone joins Clinical Innovations

Clinical Innovations, an EQT portfolio company, said Feb. 4 that it hired Jason Whetstone as vice president of human resources.
Read more...  

TGV adds two experienced cannabis investors to senior advisory board

Treehouse Global Ventures has added Emily Paxhia and Tahira Rehmatullah to its senior advisory board. Paxhia is co-founder and managing partner of cannabis-focused Poseidon Asset Management while Rehmatullah is chief financial officer of MTech Acquisition Corp and managing director of Hypur Ventures, which invests in the cannabis space.
Read more...  
Credit
 
Back to Top
Odds & Ends + Hot Links 
 
Back to Top

PE HUB First Read

First Read begins the week with news that Foxconn says its Wisconsin factory plans are back on after a talk with President Trump, General Motors is laying off 4,000 workers today, while Tom Brady and the New England Patriots win Super Bowl LIII.
Read more...  

PE HUB Second Opinion

In Second Opinion, Vice Media is laying off 10 percent of its staff, the U.S. economy added 304,000 jobs in January and Papa John's is reportedly seeking investments after takeover bids from private equity firms did not meet valuation expectation.
Read more...  

PE HUB Wire Highlights, 2.1.19

GPs consider benefits/drawbacks of long-dated PE, Top 5 factors to consider before the next downturn
Read more...  
 
   
 
 
 
 
 
BO_PEHUBHC
 
 
 
 
 
View Online Version| Free Registration| Advertising Info | Email Us

This email was sent by: PE HUB Wire (US), 9 East 38th Street, 11th Floor, New York, NY 10016, USA.

Click here to unsubscribe or to update your subscription preferences.
We respect your right to privacy. View our privacy policy .