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Howdy, Hubsters. This morning we woke up to one of the biggest bank deals since the financial crisis. Remember bank deals? Yeah, those were trendy back in the day. This time, its BB&T buying SunTrust Banks in a merger valued at $66 billion. Read the Reuters story here.
 
Everything seems to be back to normal now that the government is working again. But a second shutdown, apparently set for Feb. 15, still looms. For IPOs, this is a huge worry, according to Keith Townsend, a partner with King & Spalding.
 
The shutdown in January put a damper on the IPO market, with only one company -- we're not counting SPACS -- actually going public. That's down from the usual 15 to 20 IPOs that typically get done during the January window, Townsend said. Wealthbridge Acquisition, a SPAC, priced this week, while two biotechs are expected to price this week, Renaissance Capital said.
 
This means companies looking to go public, but couldn't, may get pushed to the next IPO window, which is usually late February and March, he said. But a second shutdown could mess all that up and lead to a dearth of Q1 IPOs, Townsend said.
 
While biotech companies and SPACs will be able to go public, a second shutdown could put a chill on IPOs. Townsend doesn't think a second shutdown would kill the IPO market but "it could take the tailwinds out," he said.
 
Also, some big Unicorn deals might just not happen, he said.
 
The real issue, hubsters? Another shutdown may cause companies to ignore IPOs and just seek out mergers. "You don't need the IPO markets open to sell yourself," Townsend said.
 
We can't have a world without IPOs. What would happen to Uber and Lyft and all the journalists who follow their every IPO move? What would I make fun of? Would no IPOs be so bad? Email your thoughts to me at lbeltran@buyoutsinsider.com
 
Deals: Thoma Bravo is buying Aucerna, a Calgary provider of energy industry planning. See our brief here.
 
KKR is also investing in OneStream Software, which provides corporate performance management software. The deal values OneStream at more than $1 billion. Check out our brief here.
 
Cisco closed its $660 million buy of Luxtera. Luxtera had raised about $170 million in VC funding, according to PitchBook.
 
Yelp has hired Evercore to help defend the company against an activist investor, CNBC is reporting.
 
News from Buyouts Insider/VCJ: Chris has a story on Accel-KKR, which is considering running a liquidity process on its 2008 third fund, which has three remaining companies. Read his story here.
 
The acquisitive Accel-KKR has scooped up Sage Payroll Services, the former PayChoice, for about 78 million pounds ($94.4 million). This is a roughly 40 percent cut from what Sage paid in 2014 for the company. Check out my story here
 
Ensemble Health Partners, the revenue-cycle-management division of Catholic health system Bon Secours Mercy Health, is looking for a private equity partner, Sarah Pringle reports.
 
Great Hill Partners has made about 6x its money with the sale of ZoomInfo to DiscoverOrg, Milana Vinn says. Find out more about the deal here.
 
Active LPsTeachers’ Retirement System of Louisiana at its Feb. 7 meeting will consider re-ups to the latest funds from Blackstone Group and Summit Partners, 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 kicks off the day with news that Instacart is facing a class-action lawsuit regarding wages and tips, President Trump nominates David Malpass to head the World Bank, and BB&T Corp is buying SunTrust Banks in $66 billion all stock deal.
Read more...  

PE HUB Second Opinion

In Second Opinion, SoftBank launches a $5.5 billion buyback, Microsoft really doesn't want you to buy Office 2019 and New York City orders restaurants to stop serving weed-related CBD, threatening a booming industry.
Read more...  

PE HUB Wire Highlights, 2.6.19

K1 Investment Management said to acquire GoCanvas for $100M; TCV invests $200 mln in RELEX; ex-Blackstone exec’s independent sponsor buys Tender
Read more...  

Sage sells PayChoice to Accel-KKR for $94.4 mln

Sage Group is selling its payroll solutions business for an apparent loss, four years after buying the company. Accel-KKR is buying the company, formerly known as PayChoice, for about 78 million pounds ($94.4 million). Terms of the deal call for Accel-KKR to pay 73 million pounds cash on completion of the deal, while 5 million […]
Read more...  

Ensemble, RCM unit of Bon Secours Mercy Health, to pursue PE partnership

Ensemble Health Partners, the revenue-cycle-management division of Catholic health system Bon Secours Mercy Health, will seek a private equity partner, according to people familiar with the matter. The Cincinnati system is interested in selling a slight majority ownership stake in Ensemble, one of the people said, while cautioning that could change as the process develops. […]
Read more...  

Accel-KKR considers liquidity options for 2008 fund

Accel-KKR is considering running a liquidity process on its 2008 third fund, which has three remaining companies, sources told Buyouts. The firm, if it brings a process to market, would be one of numerous high-profile private equity shops turning to the secondary market to deliver liquidity to investors in older funds and find ways to […]
Read more...  

Great Hill reaps 6x return on sale of ZoomInfo

Great Hill Partners, which has deployed more than half its 2017 Fund VI, scored an about 6x return on its sale of B2B software provider ZoomInfo, sources told Buyouts. Great Hill on Feb. 4 said it sold ZoomInfo to DiscoverOrg. Sources pegged the price at about $800 million. Great Hill initially bought the company for $240 […]
Read more...  

TCV Fund X seals first deal: $200 mln RELEX investment

Technology Crossover Ventures invested $200 million in retail-planning-software provider RELEX Solutions, a pioneer investment out of TCV Fund X. The growth and VC firm plans to complete 20 to 25 investments out of the fund, John Doran, lead on the RELEX deal and general partner at TCV, told Buyouts. RELEX “is right in the sweet spot” […]
Read more...  

Acquisition deal sizes grew in 2018

The trend in 2018 was larger, but fewer M&A deals, according to the annual M&A Report from PitchBook. North American M&A activity hit $2 trillion for the fourth year in a row, the report said. The number of deals, however, steadily dropped to 11,208 from 14,452 in 2015, implying that deal sizes have inched up […]
Read more...  

Slack’s bid to become a public decacorn

By Rohit Kulkarni, SharesPost Slack recently announced that it has filed confidential documents for an IPO with the Securities and Exchange Commission. While the company’s prospects look strong, several big questions loom for the messaging and collaboration platform. When will the 10-year-old company reach profitability? Can Slack continue to innovate and thus remain the market […]
Read more...  

Louisiana Teachers’ mulls re-ups to Blackstone, Summit

Teachers’ Retirement System of Louisiana at its Feb. 7 meeting will consider re-ups to the latest funds from Blackstone Group and Summit Partners. Blackstone’s eighth flagship fund targeting $20 billion will make 15 to 20 control investments of $50 million to $1 billion each. The fund will invest in large buyouts, carveouts and buy-and-builds; it […]
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


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VC Deals 

 
 

Haven Cyber Tech buys Onevinn

Haven Cyber Technologies, which is backed by C5 Capital, said Feb. 7 that it acquired Onevinn. Financial terms weren’t announced. Onevinn, of Sweden, provides Microsoft cloud security services and solutions.
Read more...  

Netography raises $2.6 mln from Andreessen Horowitz

Netography said Feb. 7 that it raised $2.6 million in seed funding from Andreessen Horowitz. Netography provides autonomous network security.
Read more...  

Home rental startup Jetty grabs $25 mln Series B

New York City-based Jetty, a home rental startup, has secured $25 million in Series B funding. Keith Rabois of Khosla Ventures led the round with participation from other investors that included Valar Ventures and Ribbit Capital. In addition to the funding, Rabois will join Jetty's board of directors.
Read more...  

BDC, Chevron top up Inventys’ Series C round to $16 mln

Inventys, a Vancouver-based carbon technology company, has raised $5 million from BDC’s cleantech practice as well as a follow-on investment from Chevron Technology Ventures. The investments add to the Series C financing raised by Inventys in 2018, bringing the total to about $16 million. The round’s first tranche was led by OGCI Climate Investments. The company said it is planning for a final close of about $21 million before the end of June.
Read more...  

Modern contract platform Outlaw nets $2 mln seed

Brooklyn, New York-based Outlaw Inc, a modern contract platform, has secured $2 million in seed funding. Bowery Capital led the round.
Read more...  

Investors pour $310 mln into electric scooter maker Lime at $2.4 bln valuation

San Mateo, California-based Lime, the fast-growing provider of electric scooters and bikes for short-term rentals, announced it has raised $310 million in Series D financing at a $2.4 billion valuation. A group of returning backers and new investors, Andreessen Horowitz, Bain Capital Ventures, Fidelity Investments, GV and IVP, led the round. Existing investors Alphabet, Coatue Management, Fifth Wall Ventures, DCM Ventures, GGV Capital, Singapore’s GIC and others also joined the round with several new investors, including GSV Capital, FJ Labs, Bling Capital, Europe’s GR Capital and St. Augustine Partners.
Read more...  

Roofr nabs $4 mln seed

Roofr, a roofing service startup, has raised $4 million in seed funding. Crosslink Capital led the round with participation from other investors that included Y Combinator and Ace & Company.
Read more...  

2nd Address picks up $10 mln in GV-led round

San Francisco-based 2nd Address, a rental platform for business travelers, has secured $10 million in funding, according to a blog post on its site. GV led the round with participation from other investors that included Foundation Capital and Amicus Capital.
Read more...  

Fintech marketplace Raisin fetches $114 mln Series D

Berlin-based Raisin, a fintech marketplace for savings and investment products, has raised $114 million in Series D funding. The investors were Index Ventures, PayPal, Ribbit Capital and Thrive Capital.
Read more...  

Meditation app Calm picks up $88 mln Series B

Calm, a meditation app, has raised $88 million in Series B financing. TPG Growth led the round with participation from Creative Artists Agency, Insight Venture Partners and Sound Ventures.
Read more...  

Bedrock Capital leads $6 mln round for Crayon

Boston-based Crayon, a market and competitive intelligence company, has raised $6 million in funding. Bedrock Capital led the round.
Read more...  

eCare Vault lands funding

Boston-based eCare Vault, a provider of document management, care team collaboration and service tracking platform for special education and healthcare, has raised an undisclosed amount of funding. The investor was EduLab Capital Partners.
Read more...  

Embleema snags $3.7 mln Series A

New Jersey and France-based Embleema, a healthcare blockchain network for secure sharing of personal health records, has secured $3.7 million in Series A funding. Pharmagest and Techstars led the round.
Read more...  

BlueCross BlueShield Venture Partners backs Ideal Option

Kennewick, Washington-based Ideal Option, a provider of medication-assisted treatment and behavioral counseling services for individuals suffering from opioid use disorder, has secured an undisclosed amount of funding. The investor was BlueCross BlueShield Venture Partners.
Read more...  

New mobile game app Flashbreak inks $2 mln seed

Flashbreak, a new mobile game app, has secured $2 million in seed funding. The investors were Alven and Kima Ventures.
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

Hull Street Energy buys two plants from NextEra Energy

Hull Street Energy LLC said Feb. 6 that it agreed to buy ownership interests in the Bayswater and Jamaica Bay natural gas-fired electric generating stations from NextEra Energy Resources LLC. Financial terms weren’t announced. The two facilities are located in Far Rockaway, New York and provide approximately 110 megawatts of start power generation capacity to the region.
Read more...  

Thoma Bravo to buy Aucerna

Thoma Bravo LLC said Feb. 7 that it agreed to buy Aucerna. Financial terms weren’t announced. Aucerna provides integrated planning, execution and reserves services for the energy industry.
Read more...  

KKR invests in OneStream Software

KKR has agreed to invest in OneStream Software LLC. Financial terms weren’t announced. The investment values OneStream at over $1 billion. OneStream, of Rochester, Michigan, provides cloud or on-premise corporate performance management solutions for mid-sized to large enterprises.
Read more...  

Equity38 invests in TRX

Equity38 LLC has made an investment in TRX, a provider of functional training solutions. No financial terms were disclosed.
Read more...  

Platinum Equity buys Orbit Irrigation and Hydro-Rain

Platinum Equity has acquired Pro-Mark, the parent company of irrigation products providers Orbit Irrigation and Hydro-Rain. No financial terms were disclosed.
Read more...  

L Catterton invests in Grupo MYT

L Catterton has made an investment in Grupo MYT, a designer and operator of restaurant brands in Mexico. No financial terms were disclosed.
Read more...  

BV recaps Intelliteach

BV Investment Partners has recapitalized St. Louis-based Intelliteach, a provider of tech- enabled, business process outsourcing solutions for law and accounting firms. The seller was Dominus Capital LP. No financial terms were disclosed.
Read more...  

Carlyle to sell UK healthy snack brand Graze to Unilever

The Carlyle Group has agreed to sell UK-based healthy snack brand Graze to Unilever. No financial terms were disclosed.
Read more...  

Boyne buys Adapt Laser

Boyne Capital has acquired Kansas City, Missouri-based Adapt Laser Systems, a provider of laser cleaning solutions. No financial terms were disclosed.
Read more...  

Abry recaps physicians’ social platform Sermo

Abry Partners has recapitalized Sermo, a social platform for physicians and healthcare professional survey company. No financial terms were disclosed. Marlin & Associates was financial adviser to Sermo on the deal while Ernst & Young and Chestnut Hill Partners did likewise for Abry.
Read more...  

Consonance Capital recaps Orsini

Consonance Capital Partners has recapitalized Elk Grove Village, Illinois-based Orsini Pharmaceutical Services LLC, a national specialty pharmacy focused on patients with rare and complicated diseases. No financial terms were disclosed. Latham & Watkins LLP and Bass, Berry & Sims PLC advised Consonance Capital on the transaction while Barone Law Group P.C., Levenfeld Pearlstein LLC, and Brown & Fortunato, P.C. advised Orsini Pharmaceutical Services.
Read more...  
PROMOTE YOUR BRAND! GENERATE AWARENESS!  SELL YOUR PRODUCTS & SERVICES! 
 
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IPOs
 
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Earth Capital exits UK Energy Efficiency Investments Fund

Earth Capital said Feb. 7 that it has exited the UK Energy Efficiency Investments Fund after the pool went public in December via a 100 million pound IPO. Other investors of the fund include Green Investment Bank, Earth Capital investee SDCL EEco LLP (‘SDCL’), the European Investment Bank and other institutional LPs. SDCL Energy Efficiency Income Trust acquired the assets of the Fund in conjunction with the IPO.
Read more...  

Sweden’s EQT may sell 1 billion euro stake in Stockholm IPO, say sources: Reuters

EQT, the largest private equity firm in the Nordic region, is planning a Stockholm listing that could take place in the third quarter with the aim of raising about 1 billion euros ($1.1 billion), sources told Reuters.
Read more...  
M&A Deals  
 
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Cisco closes $660 mln buy of Luxtera

Cisco said Feb. 6 that it completed its $660 million buy of Luxtera Inc, an optical chip company. The deal was announced in December. Luxtera had raised about $170 million in VC funding, according to PitchBook.
Read more...  

Yelp hires Evercore for activist defense: CNBC

Yelp has hired Evercore to help defend the company against an activist investor, CNBC is reporting. SQN, which owns 4 percent of Yelp shares, recently called for a board shakeup and potential sale, the story said.
Read more...  

BB&T Corp to buy SunTrust Banks for $28 billion in stock: Reuters

BB&T Corporation said on Thursday it will buy SunTrust Banks Inc for $28.24 billion in an all-stock deal, creating the sixth largest U.S. bank based on assets and deposits, Reuters reported.
Read more...  

PE-backed Topix buys skincare company ClarityRx

Topix, which is backed by New Mountain Capital, has acquired Newbury Park, California-based ClarityRx, a provider of skincare products. No financial terms were disclosed. Stubbs Alderton & Markiles LLP served as legal advice to ClarityRx on the deal while Lowenstein Sandler LLP did likewise for Topix and New Mountain Capital.
Read more...  

Airgas to buy PE-backed Tech Air

Airgas, a subsidiary of Air Liquide, has agreed to acquire Tech Air, a distributor of industrial gases and welding supplies serving various geographies in the U.S. No financial terms were disclosed. Tech Air is backed by CI Capital Partners.
Read more...  

Weld North Education to buy PE-backed Glynlyon

Weld North Education, which is backed by Silver Lake, has agreed to acquire Rock Rapids, Iowa-based Glynlyon Inc, a digital curriculum company. No financial terms were disclosed. Glynlyon Inc is a portfolio company of Linsalata Capital Partners. Macquarie Capital Inc was financial adviser to Glynlyon on the transaction.
Read more...  
Real Estate
 
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Access Private Capital and NexPoint invest in VineBrook Homes

Access Private Capital and NexPoint have invested $11.5 million in VineBrook Homes, a provider of quality rental homes that are mostly located in the Midwest. Access Private Capital is the private equity arm of Berkeley Capital Partners.
Read more...  

TruAmerica Multifamily buys Orlando apartment community for $64 mln

TruAmerica Multifamily has acquired Orlando-based Island Club, an apartment community. The price of the acquisition was $64 million.
Read more...  
Firms & Funds
 
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Edgewater amasses over $1.3 bln for fourth fund

Chicago-based private equity firm The Edgewater Funds has raised over $1.3 billion for its fourth growth fund, according to an updated SEC filing. Edgewater focuses on middle-market companies.
Read more...  

Momenta Partners unveils second venture fund

Momenta Partners has launched its second venture fund focused on low power wide area networks. No financial terms were disclosed. Momenta Ventures, Momenta Partners' investment arm, is managing the fund.
Read more...  

Bernhard racks up $1.2 bln for sophomore PE fund

Bernhard Capital Partners Management, an industrial services-focused private equity firm, has closed its second private equity fund at $1.2 billion, beating its $1 billion target. Metric Point Capital and Moelis & Co. served as placement agents while Kirkland & Ellis LLP provided legal counsel for the fund.
Read more...  
Human Resources
 
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Campbell named CEO at BackOffice Associates

BackOffice Associates, a portfolio company of Bridge Growth Partners LLC, said Feb. 7 that Kevin Campbell was named CEO. Campbell was previously president of global consulting and services. David Booth is retiring as CEO of BackOffice and will continue to serve as an advisor to the business.
Read more...  

Siapikoudis joins Campbell Lutyens

Campbell Lutyens said Feb. 7 that Peter Siapikoudis has joined the firm as an advisory director in Asia-Pacific. Siapikoudis most recently was a principal consultant and head of infrastructure at Frontier Advisors, an Australian asset consultancy.
Read more...  

H.I.G. appoints Saad as Andean region head

H.I.G. Capital has named Fabio Saad as head of Andean region. Saad, who is based in H.I.G.'s office in Bogotá, Colombia, joined the private equity firm's Latin America team in 2014.
Read more...  

Sterling promotes four

The Sterling Group has promoted Scott MacLaren and Franny Jones to managing directors. Also, the Houston-based operationally focused private equity firm promoted Max Klupchak to general counsel and upped Claudine Lussier to principal.
Read more...  

Adams Street recruits de Beau as partner

Adams Street Partners has named Mattias de Beau as a partner on its primary investments team. Prior to joining Adams Street, de Beau worked at StepStone Group where he co-headed EMEA investment activities covering primary, secondary and co-investment opportunities in London.
Read more...  

Eclipse Ventures adds two general partners

Eclipse Ventures has named Mike McNamara and Sanjay Jha as general partners. Previously, McNamara was CEO of Flex while Jha led Global Foundries and Motorola Mobility.
Read more...  

Oak Hill expands team with two new hires

Oak Hill Capital Partners has named Ennio Montinaro as chief administrative officer and Todd Cullen as a senior adviser and operating consultant. Previously, Montinaro was a managing director at Nomura and Citi while Cullen was managing director and led the enterprise and customer analytics practice at KPMG.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read kicks off the day with news that Instacart is facing a class-action lawsuit regarding wages and tips, President Trump nominates David Malpass to head the World Bank, and BB&T Corp is buying SunTrust Banks in $66 billion all stock deal.
Read more...  

PE HUB Second Opinion

In Second Opinion, SoftBank launches a $5.5 billion buyback, Microsoft really doesn't want you to buy Office 2019 and New York City orders restaurants to stop serving weed-related CBD, threatening a booming industry.
Read more...  

PE HUB Wire Highlights, 2.6.19

K1 Investment Management said to acquire GoCanvas for $100M; TCV invests $200 mln in RELEX; ex-Blackstone exec’s independent sponsor buys Tender
Read more...  

Teachers Union wants pensions to avoid PE investments in prisons: Bloomberg

The American Federation of Teachers is encouraging pensions to consider avoiding private equity investments that profit from mass incarceration, Bloomberg reported. “Private prisons and private equity firms that invest in corrections companies are profiting from jailing people -- disproportionately people of color -- and are a major contributor to the United States’ world-leading incarceration rate,” said Randi Weingarten, AFT’s president, in the story.
Read more...  
 
   
 
 
 
 
 
 
 
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