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Will they or won't they? The odds got higher that the U.S. government will be heading toward a shutdown later this week.
 
Bipartisan compromise talks to fund a proposed border wall have totally broken down, according to press reports. This, of course, raises the possibility that President Donald Trump will declare a national emergency to access funds to start building his wall, Fox News reported. Much of the U.S. government is set to run out of funds at midnight Friday, the New York Times said.
 
The last shutdown cost the American economy $11 billion, DealBook said. I just got used to looking at the FTC website again.
 
After a bumper 2018, insurance M&A is set to slow down in the first half of this year as political and economic problems weigh on the minds of dealmakers, the Financial Times is reporting. Andrew Holderness, head of corporate insurance group at Clyde & Co, pointed to uncertainty caused by Brexit and the US/China trade position that would hold back deals. "Until all that becomes clearer, it will put a dampener on the M&A market," Holderness said in the story.
 
Hubsters, many are predicting that dealmaking will slow. What do you think and why? Email me your thoughts at lbeltran@buyoutsinsider.com
 
Funds: Blackstone Group is investing $200 million in a hedge fund startup run by Michael Phelps, the former head of European credit at BlackRock, Bloomberg is reporting.
 
Secondaries: Chris has a big story on the whale moving through the PE secondary market. Energy & Minerals Group is working on a secondary process that could be valued between $4 billion and $5 billion. Read his story here.
 
Deals: Francisco Partners is buying Qualcomm Life Inc, which will be renamed Capsule Technologies and operate as two business segments: Capsule, a medical device connectivity platform, and 2net, which provides wireless mobile device connectivity via cloud-based solutions. Read our brief here.
 
Carlyle Group has retained Bank of America Merrill Lynch to run a process for Addison Lee, the London taxi company, Financial News is reporting. A sale could value Addison Lee at 800 million pounds ($1.03 billion), the story said.
 
Vitech Systems Group, a New York insuretech, has received “dozens of approaches” from sponsors and potential buyers, I'm hearing. Vitech has hired RBC to handle the inbound interest. Find out how much Vitech could go for here.
 
News from Buyouts Insider/VCJ: Five months after Varsity Healthcare Partners recapitalized newly-created Emergency Care Partners, the company is adding a new investor while it more than doubles in size through its marriage with Progressive Emergency Physicians, Sarah Pringle reports.
 
Large public pensions are always on the lookout for new talent and smaller managers, and the CIOs of four large pension systems recently shared advice to firms looking to break in. Check out Dietrich Knauths story here.
 
Active LPs: HPS Investment Partners is back with its fourth mezzanine fund, targeting $8 billion, Preeti Singh said.
 
That’s it for me. Email any comments, tips or happy thoughts 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 Amazon is reportedly reconsidering its plans to open up a second headquarters in New York City, Bank of America CEO Moynihan is taking home $26.5 million after record profit last year, and Michelle Obama made a surprise appearance at the Grammy's.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that Arconic is splitting into two companies are rejecting Apollo's buyout offer, Sprint is suing AT&T, alleging it falsely brands 4G as 5G and Amazon's Jeff Bezos accused the National Enquirer of attempted blackmail.
Read more...  

PE HUB Wire Highlights, 2.8.19

High-profile PE execs hit market with new funds, Buyers take down PSP portfolio as secondaries rages on
Read more...  

Highbridge spinout HPS targets $8 bln for fourth mezz pool

HPS Investment Partners is back with its fourth mezzanine fund, targeting $8 billion, Teachers’ Retirement System of Louisiana documents show. Louisiana Teachers’ committed $100 million to HPS’s new fund. HPS’s previous mezzanine-debt fund raised $6.6 billion, the largest debt fund in 2016. Its second mezzanine fund closed at $5 billion in 2013. HPS, formed in 2007 as […]
Read more...  

Varsity’s Emergency Care Partners merges with Northeastern peer, adds Regal Healthcare to investor base

Five months after Varsity Healthcare Partners recapitalized newly-created Emergency Care Partners, the company is adding a new investor while it more than doubles in size through its marriage with Progressive Emergency Physicians. The newly-combined provider of emergency medicine and emergency-department-management services will be based in Pensacola, Florida, servicing departments at 19 hospitals across Louisiana, New […]
Read more...  

Charts of the Week: U.S. PE middle-market-deal activity hit record in 2018

Dealmaking enjoyed a record year in 2018, helped in part by strong middle-market-deal activity. Both deal count and deal value were up from the prior year, and 2018 was the first year in which deal value surpassed $400 billion, according to PitchBook’s Annual U.S. PE Middle Market Report.
Read more...  

Charts of the Week: Middle market makes up lower percentage of overall deals in 2018

Despite its record year, the middle market accounted for only 53 percent of U.S. PE deal value in 2018, lower than the 61 percent in 2017, according to PitchBook. This trend is expected to continue, as the sizes of buyouts and funds rise together.
Read more...  

CIOs of large public systems explain how new managers can get their money

Large public pensions are always on the lookout for new talent and smaller managers, and the CIOs of four large pension systems recently shared advice to firms looking to break in. The CIOs of the $151 billion Florida State Board of Administration, $150 billion Teacher Retirement System of Texas, $120 billion New York State Teachers’ […]
Read more...  

PE and strategics circle Vitech Systems

Vitech Systems Group has hired RBC Capital Markets to handle inbound interest from private equity and strategics, four sources said. The New York insuretech has received “dozens of approaches” from sponsors and potential buyers, one of the sources said. Vitech produces about $50 million Ebitda and could fetch as much as 14x to 15x, people […]
Read more...  

Energy & Minerals Group explores potential biggest-ever secondary deal

There’s a whale moving through the private equity secondary market. Energy & Minerals Group is working on a secondary process that could be valued between $4 billion and $5 billion, multiple sources told Buyouts. If completed at that valuation, the deal would be the largest ever in the secondary market. One of the largest so far, […]
Read more...  

Fund performance: Nevada pension’s venture funds, 2008 to 2010

Presented here is performance data for the Public Employees’ Retirement System of Nevada‘s vintage 2008 to 2010 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 (2008 to […]
Read more...  

Venture-investor confidence at lowest point in 10 years

Silicon Valley venture investors’ confidence in the entrepreneurial environment fell in Q4 to its lowest point in a decade. That’s according to the Silicon Valley Venture Capitalist Confidence Index, which registered investor confidence at 3.2, down from 3.52 the previous quarter. The index measures venture capitalists’ estimates of the entrepreneurial environment in the San Francisco […]
Read more...  

CIOs of large public systems explain how new managers can get their money

Large public pensions are always on the lookout for new talent and smaller managers, and the CIOs of four large pension systems recently shared advice to firms looking to break in. The CIOs of the $151 billion Florida State Board of Administration, $150 billion Teacher Retirement System of Texas, $120 billion New York State Teachers’ […]
Read more...  

Fresh Profile: Adi’s FO seeks to invest in life sciences in Israel

Adi Family Office, which invests the wealth of Adil Adi, founder of Worldlink, is seeking life-science startup opportunities in Israel, where it’s found a fertile investment environment. For a host of reasons Israel has been compelled to develop technologies around life sciences, cybersecurity and agriculture, Adi said. “We have been actively engaged in getting to […]
Read more...  

HPS 4th mezz pool targets $8 bln; Louisiana Teachers’ pledges

HPS Investment Partners is back with its fourth mezzanine fund, targeting $8 billion, Teachers’ Retirement System of Louisiana documents show. Louisiana Teachers’ committed $100 million to HPS’s new fund. HPS’s previous mezzanine-debt fund raised $6.6 billion, the largest debt fund in 2016. Its second mezzanine fund closed at $5 billion in 2013. HPS, formed in 2007 as […]
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

 
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VC Deals 

 
 
Mark Your Calendars!
PartnerConnect Event's 2019 Calendar is here!


PartnerConnect East- March 25-27th, Boston
Family Office Connect: PE Deals, Funds & the Land of OZ- May 21-22nd, NYC
PartnerConnect Midwest- June 24-26th, Chicago
Emerging Manager Connect East- 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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Carlyle hires BofA to sell Addison Lee: Financial News

Carlyle Group is considering selling Addison Lee in a deal that could value the London taxi company at 800 million pounds ($1.03 billion), Financial News is reporting. Carlyle has retained Bank of America Merrill Lynch to run the process that will likely start later this year, the story said. Addison Lee has a fleet of roughly 5,000 cars in London and serves more than 10 million customers in that year alone, Financial News said.
Read more...  

Francisco Partners buys Qualcomm Life

Francisco Partners said Feb. 11 that it acquired Qualcomm Life Inc from Qualcomm Inc. Financial term weren’t announced. Qualcomm Life will be renamed Capsule Technologies Inc and operate two business segments: Capsule, a medical device connectivity platform, and 2net, which provides wireless mobile device connectivity via cloud-based solutions.
Read more...  

Main Capital exits Roxit Groep

Main Capital Partners said Feb. 11 that it sold its majority stake in Roxit Groep to Visma. Financial terms weren’t announced. Roxit is a Dutch governmental software company active in front-, mid- and back office applications.
Read more...  

KKR closes $510 mln Ramky Enviro Engineers buy

KKR said Feb. 11 that it closed its buy of 60 percent of Ramky Enviro Engineers Ltd for about $510 million. Ramky Enviro, of Mumbai, provides environmental services and solutions in India and overseas.
Read more...  

Euronext offers $786 million for Oslo Bors as it tries to nix Nasdaq bid: Reuters

strong>Euronext (ENX.PA) raised its bid for Oslo Bors OSLO.NFF on Monday to around 6.79 billion Norwegian crowns ($786 million), upping the stakes in a battle with Nasdaq (NDAQ.O) for the Norwegian stock exchange operator, Reuters reported.
Read more...  

Apollo nears $3 billion deal to buy Cox TV stations: Reuters

Apollo Global Management LLC is nearing a roughly $3 billion agreement to acquire Cox Enterprises Inc’s 14 regional TV stations, the biggest in a series of deals the private equity firm is lining up to become a force in U.S. broadcasting, Reuters reported.
Read more...  

Ara Partners invests in Priority Power Management

Ara Partners Group said Feb. 11 that it invested in Priority Power Management LLC. Financial terms weren’t announced. Priority Power, of Midland, Texas, is an energy management services and consulting firm.
Read more...  

Arconic to split into two after rebuffing Apollo offer: Reuters

Arconic said on Friday it would split into two companies and slashed its quarterly dividend by two-thirds, just weeks after the U.S. aluminum products maker spurned a buyout offer from Apollo Global Management.
Read more...  

CCV acquires Burger King and Pizza Hut franchisee Redberry

City Capital Ventures has acquired Toronto-based Redberry Group, a Burger King and Pizza Hut franchisee in Canada. No financial terms were disclosed. CIBC and Scotiabank provided senior debt for the transaction. McCarthy Tétrault LLP provided legal counsel to CCV with additional services provided by Perkins Coie LLP. Metronome Partners was financial adviser to Redberry Group.
Read more...  

Nielsen shortlists private equity bidders, say sources: Reuters

A private equity consortium led by Blackstone Group LP and Hellman & Friedman LLC, as well as a grouping comprising Advent International and Goldman Sachs Group Inc’s buyout arm, are through to the second round of bidding for Nielsen Holdings Plc, sources told Reuters.
Read more...  

Investor group closes take-private acquisition of Dun & Bradstreet

An investor group led by CC Capital, Cannae Holdings, Bilcar, Black Knight and Thomas H. Lee Partners has closed its previously announced take-private buyout of Dun & Bradstreet. The deal was reported to be $7.2 billion, according to a source familiar with the transaction. Financial advisers to the investor group included BofA Merrill Lynch, Citigroup and RBC Capital Markets while Kirkland & Ellis LLP provided legal advice. J.P. Morgan was financial adviser to Dun & Bradstreet with Cleary Gottlieb Steen & Hamilton LLP providing legal counsel. As a result of the transaction, Dun & Bradstreet stopped trading on the New York Stock Exchange prior to the opening of the NYSE today. Dun & Bradstreet is a provider of in commercial data, analytics and insights for businesses.
Read more...  

Brookfield in talks with India’s Reliance Industries to buy tower, fibre assets, says report.

Canadian private equity firm Brookfield Asset Management is in preliminary talks with India’s Reliance Industries to buy a stake in its optical fibre and telecom tower assets, The Times of India newspaper reported on Friday.
Read more...  

ArcLight completes buyout of Sempra Energy’s non-utility U.S. natural gas storage facilities

ArcLight Capital Partners has closed its previously announced acquisition of Sempra Energy‘s non-utility U.S. natural gas storage facilities. The transaction was for $328 million in cash. Wells Fargo Securities LLC provided financial advice to Sempra Energy on the transaction while Jones Day provided legal advice. Based in San Diego, Sempra Energy is an energy services holding company.
Read more...  

KKR to take minority stake in Söderberg & Partners

KKR will acquire a minority stake in Söderberg & Partners, a provider of wealth management and corporate pension and insurance services in the Nordic region and the Netherlands. The sellers include TA Associates. No financial terms were disclosed. The deal is expected to close during the second quarter of 2019.
Read more...  
PROMOTE YOUR BRAND! GENERATE AWARENESS!  SELL YOUR PRODUCTS & SERVICES! 
 
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IPOs
 
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VC-backed Harpoon Therapeutics debuts IPO

South San Francisco-based Harpoon Therapeutics Inc, a clinical-stage immunotherapy company, has raised $75.6 million for its IPO after pricing its 5.4 million shares at $14 per share. The stock began trading February 8, 2019 on the NASDAQ under the ticker symbol "HARP." Citigroup and SVB Leerink are the lead underwriters. Harpoon's pre-IPO backers include OrbiMed, Cormorant, Ridgeback Capital Investments, Lilly Asia Ventures, NS Investment, MPM Capital, Oncology Impact Fund, Arix Bioscience, New Leaf Venture Partners and Taiho Ventures LLC.
Read more...  

VC-backed Gossamer Bio goes public

San Diego-based biopharmaceutical company Gossamer Bio has raised $276 million for its IPO after pricing its 17.25 million shares at $16 per share. The stock began trading February 8, 2019 on the NASDAQ under the ticker symbol "GOSS." BofA Merrill Lynch, SVB Leerink, Barclays and Evercore ISI are the lead underwriters. Gossamer's pre-IPO backers include Omega Funds and and ARCH Venture Partners.
Read more...  
M&A Deals  
 
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Blue Delta Capital sells The Tauri Group to LMI

Blue Delta Capital Partners has sold The Tauri Group to LMI. No financial terms were disclosed. Based in Alexandria, Virginia, The Tauri Group is a government contracting firm "confronting national and homeland security challenges."
Read more...  
Real Estate
 
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PSG-backed Propertybase buys BoldLeads

Propertybase, which is backed by Providence Strategic Growth, has acquired BoldLeads.com, an SaaS-based real estate lead generation technology platform. No financial terms were disclosed. The Forbes M+A Group advised BoldLeads on the deal.
Read more...  
Firms & Funds
 
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Blackstone to invest $200 mln in Phelps’s hedge fund startup: Bloomberg

Blackstone Group is investing $200 million in a hedge fund startup run by Michael Phelps, the former head of European credit at BlackRock, Bloomberg is reporting. Phelps’s Tresidor Investment Management is on course to become one of London’s biggest funds this year, the story said.
Read more...  

PIR Equities Fund III raises 275 mln euros ($312 mln)

PIR Equities said Feb. 11 that its third flagship fund closed on 275 million euros ($312 million). PIR Equities, of Geneva, targets deals in sectors including wealth & asset management, energy, infrastructure and payments.
Read more...  

Bioventure Creation Fund to raise $100 mln venture-capital fund

Bioventure Creation Fund has set out to raise a $100 million venture-capital fund, according to a filing with the SEC.
Read more...  

Hoxton Ventures targets $100 mln for sophomore fund

Hoxton Ventures is seeking to raise $100 million for its second fund, according to an SEC filing. Based in London, Hoxton is an early-stage technology venture firm.
Read more...  

Anacapa Partners collects over $78.1 mln for third fund

Anacapa Partners has raised over $78.1 million for its third fund, according to an SEC filing. Based in San Mateo, California, Anacapa is a private equity firm focused on the lower middle market.
Read more...  

Altor closes fifth fund at 2.5 bln euros

Swedish private equity firm Altor Equity Partners has closed its fifth fund at a hard cap of 2.5 billion euros. Altor Fund V's limited partners include Nordic institutions, U.S. university endowments, charitable foundations and other international institutions. Monument Group was the placement agent.
Read more...  
Human Resources
 
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HealthCare.com’s Pivot Health taps Keeler as business development VP

New York City-based HealthCare.com, an online health insurance company, has named David Keeler as vice president of business development for its insurance division Pivot Health. Previously, Keeler was senior vice president of business development at IHC Specialty, which is part of The IHC Group. HealthCare.com is backed by PeopleFund.
Read more...  
Credit
 
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Odds & Ends + Hot Links 
 
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PE HUB First Read

First Read begins the week with news that Amazon is reportedly reconsidering its plans to open up a second headquarters in New York City, Bank of America CEO Moynihan is taking home $26.5 million after record profit last year, and Michelle Obama made a surprise appearance at the Grammy's.
Read more...  

PE HUB Second Opinion

Second Opinion wraps up the week with news that Arconic is splitting into two companies are rejecting Apollo's buyout offer, Sprint is suing AT&T, alleging it falsely brands 4G as 5G and Amazon's Jeff Bezos accused the National Enquirer of attempted blackmail.
Read more...  

PE HUB Wire Highlights, 2.8.19

High-profile PE execs hit market with new funds, Buyers take down PSP portfolio as secondaries rages on
Read more...  
 
 
 
   
 
 
 
 
 
 
 
 
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