| | | | | | | This week: Buyouts East starts tomorrow in Boston. Who's going? Recaps: One of the more intriguing deals I've covered recently is Insight Global. Leonard Green & Partners — which has been out fundraising — is investing in Insight through a recapitalization that will see Ares get a sizable payout, sources said. Typically, investing firms get a majority with a recap but Ares is selling less than 51 percent, I've learned. Is Green getting more? Harvest Partners, which sold Insight Global to Ares back in 2012, still retains a stake. Anyway, Moody's Investors Service said the size of the dividend is $685 million. That's what Ares and other shareholders are getting, Moody's said. This would be the third time Insight has paid out a distribution since its sale to Ares in 2012. Read my story here. IPOs: BATS Global Markets has set terms of its pending IPO. The company is selling 11.2 million shares at $17 to $19 each, according to an S-1 filing. This values the company at up to $2 billion, Reuters News said. TA Associates, which owns 17.1 percent, isn't selling shares. It unclear exactly when BATS is going public but it looks like its coming soon. Read the Reuters story here. Turnover: Chris has a story on the recent turnover at Angelo, Gordon & Co. Read his story here. Logan's Roadhouse Inc, which may default on payments for its $366 million in debt, is considering alternatives, Steve Gelsi is reporting. Read the story here. Housekeeping: The deadline to get your free listing in our annual Guide to Secondary Buyers & Placement Agents has been extended to Friday, April 8! Placement Agents click here. Secondary Buyers click here. As usual, if you have a tip to share, something nice to say or just have a comment, email me at lbeltran@buyoutsinsider.com. Any problems should go Chris at cwitkowski@buyoutsinsider.com. Have a good Monday! -Luisa | | | | Today's Take | | | | Logan's Roadhouse mulls alternatives as default looms Logan's Roadhouse Inc may default on payments for its $366 million debt as the restaurant chain backed by Kelso & Co faces a drop in foot traffic, lower revenue and wider losses, according to Standard & Poor's Ratings Services and company filings. The Nashville-based operator of 235 company-owned and 26 franchised restaurants in 23 states said... Read more... Return of the megadeal Megadeals in the relatively strong sectors of consumer products, technology and real estate stood out in the first quarter for sponsored M&A, with five transactions breaking the $5 billion mark. But in the face of tighter credit markets, higher purchase-price multiples and uncertainty around commodity prices, overall deal count fell by almost a third. Total... Read more... Fundraising falls in Q1, but pipeline remains strong U.S. private equity funds closed on $41.7 billion in the first quarter through March 23, a 40 percent decline from the $69.6 billion general partners raised in Q4 2015, according to Buyouts data. But even as fundraising declined in the first quarter, it didn't feel that way to LPs, sources said. "It still feels like... Read more... SBIA Regulatory Update: Obama budget targets carry, capital gains The Obama Administration released its budget in early February with several new and re-proposed tax increases. The most notable tax proposals would change the tax treatment of carried interest, expand the 3.8 percent Medicare surtax to new income such as pass-through income, and increase the tax rates on capital gains and dividends to 28 percent.... Read more... Capital calls slowly catch up with distributions It's been a good half-decade for limited partners. Private equity fund investors enjoyed positive cash flows from 2011 through 2014, according to Pitchbook data (see Pitchbook chart). Total distributions nearly doubled the amount general partners called from LPs in 2013, and in the first half of last year, LPs received $1.43 for every dollar their fund... Read more... Angelo Gordon loses president, distressed chief Angelo, Gordon & Co has experienced some turnover recently. Lawrence Schloss, president of Angelo Gordon, left the firm in March after more than two years, according to a letter the firm sent out last month. The firm has no plans to replace Schloss, according to an LP who read the letter to Buyouts. Schloss's name and bio have... Read more... Editor's Letter: New Jersey's political-contribution prohibition is harsh — and perfect New Jersey has an aggressive policy prohibiting investment managers working with the state pension from making political contributions to state officials. And that's a good thing. Violations of the policy can lead to the system ending its relationship with the manager in question. In a recent case, CVC Capital Partners was called out after one... Read more... Exit volume plunges as market awaits first PE-backed IPO Amid turmoil in the broader economy, private equity had a tough time exiting investments in the first quarter. As the accompanying chart shows, this quarter's total exit volume marks an 11-quarter low, while the exit deal count fell to the lowest point since Q1 2013. There is still time for improvement, though, as these figures are inclusive only up to... Read more... Need to Meet: Aaron Peck, co-head specialty finance lending, Monroe Capital Monroe Capital's Aaron Peck loves looking at different companies to understand how they tick. As co-head of the firm's new specialty-finance lending unit, he'll get more opportunities than ever to do just that. "I get excited about understanding a business plan and a strategy and looking at unique types of companies," Peck said in a... Read more... On the move, 4.4.2016 PRIVATE EQUITY FIRMS Advent International said that Todd Lachman and Larry Bodner have joined the firm as senior advisors. Lachman and Bodner will work closely with Advent's global retail, consumer and leisure team. Lachman is the former global president of Mars Petcare, while Bodner is the former CFO of Big Heart Pet Brands. London-based private equity firm Campbell Lutyens hired Jeffrey Griffiths as a principal in its London office and Andrew... Read more... Ares to get huge dividend with Insight Global sale to Leonard Green Leonard Green & Partners is investing in Insight Global in a deal that will pay Ares Management a huge dividend, according to a source familiar with the situation and a March 31 report from Moody's Investors Service. Ares, a Los Angeles-based alternative-asset manager that acquired Insight Global in 2012, is retaining a stake in the company, the source... Read more... Kreos, Europe grows into debt Many expanding companies in Europe are complementing their equity finance with debt and, in the absence of a diversified banking system, are turning to specialized lenders to do so Read more... | The Summit for Middle Market Debt Finance
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| | | | VC Deals | | | | Strainz raises $8 mln Strainz Inc said April 4 it raised $8 million including $6 million in Series A funding from venture capital and angel investors. Las Vegas-based Strainz is a cannabis brand management company. Read more... Schoold raises $4.5 mln Schoold said April 1 it closed a seed round of approximately $4.5 million. Investors included FastForward, Lorne Abony, a serial entrepreneur and investor, and several other private investors. San Francisco-based Schoold is a college planning startup. Read more... Slack raises $200 million in financing: Reuters Slack has raised $200 million in venture capital financing, boosting its valuation to $3.8 billion, the messaging software startup said on Friday, Reuters News reported. Read more... Rand Capital closes Gemcor II sale Rand Capital Corp said March 31 that it closed its buy of Gemcor II LLC. Rand had owned 31.25 percent of Gemcor. Gross proceeds are expected to be $15.2 million, Rand said. Read more... | Get Deals Done at PartnerConnect MidWest!
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| | | | | | Back to top | | Peak Rock Capital exits Highline Produce Holding Peak Rock Capital has sold Highline Produce Holdings Inc to Fyffes plc. Financial terms weren't announced. Ontario, Canada-based Highline produces and distributes organic mushrooms in North America. Lazard Middle Market acted as the financial advisor while McDermott Will & Emery and Blake, Cassels & Graydon were the attorneys for the company. Read more... Confie buys Axiom Insurance Agency Confie, a portfolio company of ABRY Partners, has acquired Axiom Insurance Agency. Financial terms weren't announced. Springfield, Massachusetts-based Confi specializes in personal lines insurance. Read more... Blackstone takes control of India's Mphasis in up to $1.1 billion deal: Reuters Blackstone Group (BX.N) is buying a majority stake in Indian IT outsourcing services provider Mphasis Ltd (MBFL.NS) from Hewlett Packard Enterprise Co (HPE.N) in an up to $1.1 billion deal, in the U.S. asset manager's single-biggest investment in India, Reuters News reported. Read more... NBK Capital invests in Amo Hamza NBK Capital Partners has invested in Amo Hamza. Financial terms weren't announced. Financial terms weren't announced. Amo Hamza is a seafood casual dining chain in Saudi Arabia with 13 restaurants in five cities, including eight in Riyadh and two restaurants in Jeddah. Freshfields Bruckhaus Deringer and Hourani & Associates advised NBK Capital Partners and Amo Hamza respectively. Read more... Argus Media close to stake sale, Temasek among bidders: Reuters Investment and private equity funds including Singapore's Temasek and Rothschild Group are competing to invest in Argus Media in a deal that could value the energy-market data provider at more than $1.3 billion, Reuters News reported. Read more... Time Inc considers taking on private equity partner for Yahoo bid: Reuters Time Inc ( TIME.N) is considering partnering with a private equity firm on a bid for Yahoo Inc's ( YHOO.O) core Internet assets, Reuters News is reporting. Read more... Blackstone denies seeking to acquire Brazil mall operator: Reuters Investment firm Blackstone Group LP (BX.N) on Sunday said it is not considering an acquisition of Brazilian shopping mall operator BR Malls Participacoes SA (BRML3.SA), denying a report published early in the day by newspaper O Globo , Reuters News reported. Read more... Marlin buys portfolio of McKesson software assets Marlin Equity Partners has acquired a portfolio of software assets from the Business Performance Services division of McKesson Corp. The assets include McKesson Practice Choice™, Medisoft, Medisoft Clinical, Lytec, Lytec MD and Practice Partner ("McKesson Assets"), and consist of practice management and electronic health record software solutions sold to the ambulatory care market. Financial terms weren't announced. The McKesson Assets have been merged with e-MDs Inc, a Marlin portfolio company. Read more... Welsh, Carson closes QuickBase buy Welsh, Carson, Anderson & Stowe said April 1 it has completed its buy of the QuickBase business from Intuit Inc. Financial terms weren't announced. The business will now be called QuickBase Inc and will be led by CEO Allison Mnookin. Cambridge, Massachusetts-based QuickBase provides a low-code application development platform. Read more... OneMain sells 47% stake in SpringCastle to New Residential, Blackstone OneMain Holdings Inc said April 1 that it has sold its 47 percent stake in SpringCastle to New Residential Investment Corp. and The Blackstone Group. The $112 million cash sale includes a 10 percent holdback to be held in escrow for a period of up to five years with the release tied to ultimate portfolio performance. OneMaine formed SpringCastle, a joint venture, with New Residential and Blackstone to buy the consumer loan portfolio from HSBC. Read more... Thorkilsen, TZP Group buy This Old House Ventures Eric Thorkilsen and TZP Group have acquired This Old House Ventures LLC from Time Inc. Financial terms weren't announced. This Old House offers homeowners information and advice through two TV series, "This Old House" and "Ask This Old House." Thorkilsen was named CEO of This Old House Ventures. Portico Capital Securities served as financial advisor to the acquirers. Read more... NewSpring Mezzanine invests in South Moon Under NewSpring Mezzanine Capital, the dedicated mezzanine arm of NewSpring Capital, has made a $9.6 million debt and minority equity investment in South Moon Sales Inc. NewSpring partnered with JPB Capital Partners in the deal. Ocean City, Maryland-based South Moon provides men's and women's clothing, swimwear, accessories, jewelry, and gifts for the home. Read more... Leveraged loan market improves, some postponed deals return: Reuters (Reuters) The improving tone in the U.S. leveraged loan market is helping banks to relaunch some deals that were stuck in the market at the end of last year, including a $550 million buyout loan for Web conferencing provider Premiere Global Services, although investors remain wary of highly leveraged deals. Read more... Silver Lake invests in Ancestry.com: Reuters (Reuters) Private equity firm Silver Lake Partners has agreed to acquire a minority stake in Ancestry.com in a deal that values the privately held genealogy website at $2.6 billion, including debt, people familiar with the matter said on Friday. Read more... | One Of a Kind Networking in The Robust Emerging Manager Space
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| | IPOs | | | | Back to top | | BATS Global Markets sees IPO valuation of up to $2 bln: Reuters Exchange operator BATS Global Markets Inc said its initial public offering was expected to be priced at between $17 and $19 per share, valuing the company at up to $2 billion, Reuters News reported. Read more... | | | | |
Back to top | | Alaska Air to buy Virgin America for $2.6 billion: Reuters Alaska Air Group Inc (ALK.N) said on Monday it had agreed to buy Virgin America Inc (VA.O) for $2.6 billion to expand its flights on the U.S. West Coast, Reuters News reported. Read more... Palamon Capital to sell Towry for $853.4 mln Palamon Capital Partners has agreed to sell Towry to Tilney Bestinvest for 600 million ($853.4 million). Towry, of the U.K. is a wealth manager with more than 9 billion pounds of client assets. Palamon expects to make 13x investment capital with the sale of Towry, the statement said. Read more... Mars Petcare scoops up Whistle for $119 mln Pet food conglomerate Mars Petcare has acquired San Francisco-based Whistle, maker of a GPS location monitor and fitness tracking device for dogs, TechCrunch reported. Bloomberg reported Mars Petcare, a subsidiary of the candy food maker, acquired Whistle for $119 million. Read more... TSYS closes $2.35 bln buy of TransFirst TSYS said April 1 it completed its buy of TransFirst. The $2.35 billion sale was announced in January. Vista Equity Partners was the seller. TransFirst is one of the largest providers of secure payment processing in the United States. TransFirst's president and CEO John Shlonsky was elected as Senior Executive Vice President of TSYS and will lead the combined businesses. Read more... Diageo invests in Reserve Reserve, the restaurant reservations app, has acquired Dash. Financial terms weren't announced. New York-based Dash is a payments app. Diageo, the huge beverage company, has also made a strategic investment in Reserve, the company said on its blog. Read more... TierPoint closes Cosentry buy TierPoint LLC said March 31 it has completed its previously announced buy of Cosentry. Financial terms of the deal, announced in January, weren't disclosed. TA Associates, the seller, will retain a stake and is joining other Cosentry investors including Ontario Teachers' Pension Plan, Cequel III, RedBird Capital Partners, The Stephens Group, Thompson Street Capital Partners, and Jordan/Zalaznick Advisers Inc. Omaha-based Cosentry provides cloud, colocation and managed services. Read more... | | Firms & Funds | | |
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Back to top | | John Doerr steps back at Kleiner Perkins as generational transition gets underway John Doerr has announced he will step back from his managerial role at Kleiner Perkins Caufield & Byers to become the firm's first chair. Read more... | | Odds & Ends + Hot Links | | |
Back to top | | PE HUB First Read In First Read, Time Inc considers taking on private equity partners for Yahoo bid, Zero Internet or tech companies went public on US exchanges during the first quarter and the Panama Papers have been released, revealing the global elite's secret cash havens. Read more... VC investment slowdown: an important test for equity crowdfunding The ongoing success of equity crowdfunding sites must rely on syndicates as the 'killer app' to survive Read more... PE HUB Second Opinion To end your week, we have news that the Slack has raised $200 million at a $3.8 billion post-money valuation, Saudi Arabia is creating the world's largest sovereign wealth fund for the kingdom's most prized assets, and you know the Tesla Model 3 doesn't exit yet, right? Read more... |
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