| | | | | | | This morning we have a column from Lawrence Aragon, our editor-in-chief, on President Obama's future plans. Take it away, Larry. Will Barack Obama become a venture capitalist when he leaves office? Speculation is running high after a recent interview Obama did with Bloomberg. When asked what industries he might go into, the President replied: "Well, you know, it's hard to say. But what I will say is that — just to bring things full circle about innovation — the conversations I have with Silicon Valley and with venture capital pull together my interests in science and organization in a way I find really satisfying..." That response wasn't terribly surprising to the folks here at PE HUB. As our affiliate publication VCJ reported after Obama was elected his first time, he had — and still has — extensive ties to the venture community. For example, he chose Julius Genachowski of Rock Creek Ventures to head the Federal Communications Commission and Karen Gordon Mills of Solera Capital to run the Small Business Administration. Also, Tom Wheeler of Core Capital Partners worked on Obama's transition team, while Mark Gorenberg, now with Zetta Venture Partners, and Ted Dintersmith of CRV were among those who helped Obama with fundraising. Broker dealer? The Wall Street Journal has a column this morning from Norm Champ, the former director of investment management at the SEC, who is questioning the regulator's enforcement action with Blackstreet Capital Management. The PE firm agreed in June to pay more than $3.1 million to settle charges that it acted as an unregistered broker-dealer, as well as for other securities-law violations, Buyouts has reported. Champ, in his WSJ column, argues that PE fund managers are not broker-dealers as the term is commonly understood. "Forcing managers of private-equity funds to become broker-dealers provides no meaningful additional protection for investors," Champ writes. Later on in the column, he said that if the SEC wants to "eliminate these fees, which are fully disclosed to investors before they commit to private-equity funds, then it ought hold a hearing and let that issue be decided in an open forum." Agree? Disagree? Contact me at lbeltran@buyoutsinsider.com News from Buyouts/VCJ: We have more SEC news today. C. Dabney O'Riordan was promoted to co-chair of the SEC Division of Enforcement's asset-management unit. She succeeds Marshall Sprung who brought SEC actions against KKR and Blackstone. Read the story here. (Guess where Sprung is working now?) Principle Capital, a CD&R partner, has hit a nearly $200 million first close on its fourth fund, Chris is reporting. Read the story here. Any comments, thoughts or complaints please send them to me at lbeltran@buyoutsinsider.com. -Luisa | | Today's Take | | | PE HUB First Read First Read kicks off the mid-week with news that New York landmark hotel will be mostly coverted into condos, Lending Club cuts 12 percent of staff and Vodafone considers moving its headquarters away from U.K. Barack Obama, venture capitalist? Will Barack Obama become a venture capitalist when he leaves office? Speculation is running high after a recent interview Obama did with Bloomberg. When asked what industries he might go into, the President replied: "Well, you know, it's hard to say. But what I will say is that — just to bring things full circle about innovation — [...] PE HUB Second Opinion A triumphant Nigel Farage sneered at the EU in Brussels, while Jeremy Corbyn lost a no-confidence vote. Airbnb seeks funds valuing it at $30 billion, says source: Reuters Apartment-sharing startup Airbnb is in talks for a new round of funding that would value the company at $30 billion, a source told Reuters. Exclusive: CarVal Investors President John Brice leaves firm John Brice, president and chief investment officer of CarVal Investors, left the firm, Ann Folkman, managing director at CarVal, confirmed to Buyouts Tuesday. Why Brice left is unclear. His last day was June 20, Folkman said. He joined CarVal Investors in 1998 and became president in 2008. During his leadership career at CarVal Investors, Brice... SEC names co-head of unit that investigates private funds The Securities and Exchange Commission named C. Dabney O'Riordan to co-head the Division of Enforcement's asset-management unit. She succeeds Marshall Sprung, who departed in April. O'Riordan, along with Anthony Kelly, will lead the SEC unit that investigates violations by private funds and investment advisers, a June 28 statement said. O'Riordan is an associate regional director in... CalPERS opens bids for younger GPs as part of $11 bln plan California Public Employees' Retirement System reiterated plans to target as much as $11 billion to emerging and transition managers by 2020 to tap younger shops with strong potential. CalPERS planned to open in July a formal solicitation for investment proposals, with an eye on eligible midsized investment managers. Commitments for the transition-manager plan will range from $50 million to... CD&R partner Principle Capital hits near-$200 mln first close Principle Capital, a Shanghai, China, firm that partners with Clayton Dubilier & Rice, hit a first close on its fourth fund on almost $200 million, according to sources with knowledge of the situation. Principle Capital Fund IV is targeting $350 million, and has another $100 million circled but not closed, one of the sources said. Fund... Corporate VC vet Gold tapped to lead Iris Capital's expansion in North America Paris-based Iris Capital, a growth-stage venture firm focused on the digital economy, announced today it has added Bernhard Gold as a partner and managing director of its North American operations The People Page: Pishevar's Cup runneth over Uber and Hyperloop investor Shervin Pishevar has had a lot to celebrate lately. Uber, in which he was an early backer, raised $3.5 billion in new funding to kick off June. His San Francisco-based Sherpa Capital, where he's co-founder and managing director, announced it raised $470 million for a pair of funds. He traveled to Russia and met 18... Here's how to make QSBS work for the entrepreneurial ecosystem It's time for Congressional reform to help boost U.S. entrepreneurialism, say three industry insiders | | NETWORKING...CAPITAL...DEALS Early pricing thru 7/15 at mandaeast.com Save $45 on general registration, discount code pehub16 1,300 middle market dealmakers 80% generated deal leads $125 billion in capital under one roof 1,000+ 1:1 deal meetings 80% of attendees are VP, Partner, Director |
| | | | VC Deals | | | Scoot Networks closes new round led by Mahindra, Vision Ridge Scoot Networks, Inc., a provider of shared, smartphone-activated electric scooters in San Francisco, closed a new round of funding led by Mahindra Partners and Vision Ridge Capital. Tom Dinwoodie and other investors from previous rounds also participated. Terms were not disclosed. Perthera scores $8.7 mln Series A from Pilot Growth Equity Pilot Growth Equity led an $8.7 million Series A financing in Perthera, Inc. Founded by Emmanuel Petricoin and investor Dendy Young, Perthera is developing methods to provide molecular information about cancer tumors to physicians. Airbnb seeks funds valuing it at $30 billion, says source: Reuters Apartment-sharing startup Airbnb is in talks for a new round of funding that would value the company at $30 billion, a source told Reuters. Community Sift pulls in $1.6 mln seed British Columbia-based community management software Community Sift has raised $1.6 million in seed funding. The investors included iNovia Capital and Comerica. Anki takes in $52.5 mln San Francisco-based Anki, an entertainment robotics company, has raised $52.5 million in Series D funding, according to a spokesperson for the company. J.P. Morgan led the round with participation from Andreessen Horowitz, Index Ventures and Two Sigma. This current funding puts Anki's total tally at $182.5 million. Movile rakes in $40 mln Latin American mobile commerce platform Movile has secured $40 million in Series F funding. Naspers Ventures led the round with participation from Innova Capital. Verodin fetches $10 mln Series A Reston Virginia-based Verodin, a provider of cybsersecurity solutions, has raised $10 million in Series A funding. The investors were Blackstone, Rally Ventures, Crosslink Capital and Cisco Investments. Modern Meadow racks up $40 mln Series B New York City-based Modern Meadow, a biofabrication company that grows animal-free leather made from living cells, has secured $40 million in Series B financing. Horizons Ventures and Iconiq Capital led the round with participation from other investors that included ARTIS Ventures, Temasek, Breakout Ventures, Red Swan Ventures, Collaborative Fund and Tony Fadell. Crowded.com pulls in $3.3 mln Crowded.com, a network where hourly and on-demand workers get verified, has raised $3.3 million in seed funding. Tokalon Ventures led the round with participation from other backers that included ARC Angel Fund, EarlyStage.nyc Fund and Gambit Ventures. Triton backs Abreo Biosciences Healthcare company Abreo Biosciences has secured an undisclosed amount of seed funding. The investor was Triton Technology Fund. Intensity Therapeutics scores $10 mln Intensity Therapeutics Inc, a developer of cancer immunotherapy products, has raised $10 million in financing. The investors included Batterson Venture Capital, VCapital, FastForward Innovations and SalvaRx Group PLC. Clipchamp nets $1.1 mln seed Australia-based Clipchamp, a user-generated video platform, has secured $1.1 million in seed funding. The investors were not named. The capital infusion will be used for product development and expansion. UK startup Storm Therapeutics picks up Series A funds UK-based Storm Therapeutics, which focuses on developing small molecule drugs that target RNA-modifying enzymes, has raised 12 million pounds in Series A funding. The investors were Imperial Innovations, Cambridge Innovation Capital, Merck Ventures and Pfizer Venture Investments. | Complimentary Webinar: Improving Your Deal Sourcing Operations During this webinar you'll learn the following:
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| | | | | Carlyle invests in German clinic chain Schoen: Reuters Buyout group Carlyle (CG.O) has bought a minority stake in German clinic chain Schoen to help the family-owned company expand in its home market as well as abroad, Reuters News reported. Main Capital invests in Axxerion Main Capital has acquired a majority stake in Axxerion. Financial terms weren't announced. Axxerion, of the Netherlands, provides SaaS solutions for facility management, real estate and general business automation software. General Atlantic invests in Insurity General Atlantic has invested in Insurity Inc. Financial terms weren't announced. GA joins TA Associates and Genstar Capital as an investor. Hartford, Connecticut-based Insurity provides insurance software, data integration and analytics solutions. Rimini Street grabs $125 mln Las Vegas-based Rimini Street, a provider of enterprise software support services, has raised $125 million in financing. Colbeck led the round. Brookside Mezzanine Partners invests as Pilgrim buys Water-Jel Brookside Mezzanine Partners supported the acquisition of Water-Jel Technologies Holding Co., LLC by Pilgrim Capital Partners, LLC and management. Terms of the transaction were not disclosed. Headquartered in Carlstadt, New Jersey, Water-Jel manufactures emergency burn care treatments as well as over-the-counter pharmaceutical preparations. Investcorp to buy Coresec Systems Investcorp has agreed to acquire Coresec Systems, a Scandinavian cybersecurity service provider. No financial terms were disclosed. Kinder Morgan sells 50 percent stake in Ohio pipeline to PE firm: Reuters Kinder Morgan Inc said it agreed to sell half of its stake in an Ohio pipeline project to Riverstone Investment Group LLC and the private equity firm would help fund construction and commissioning of the pipeline. PNC Riverarch Capital buys Steelite International PNC Riverarch Capital has acquired UK-based Steelite International, a maker of tabletop products for the hospitality industry. No financial terms were disclosed for the transaction that was done in partnership with Steelite's Americas division President John Miles. Bank of Montreal and The Private Bank provided the senior financing for the deal. In addition to the transaction, Miles has been named CEO of Steelite International. | One of a Kind Networking in The Robust Emerging Manager Space Join LPs and Intermediaries at the Emerging Manager Connect event: a one day networking opportunity with emerging superstars who will produce blockbuster returns in the next 5-10 years. Register Today! July 19, 2016 | Harvard Club | NYC |
| | IPOs | | | | | Carlyle-backed Solasto goes public on Tokyo Stock Exchange Solasto Corp, which is majority owned by the Carlyle Group, went public June 29 on the Tokyo Stock Exchange. Carlyle is expected to sell a maximum of 40 percent of Solasto's outstanding shares, including the overallotment, through the listing. Tokyo-based Solasto, formerly known as N.I.C. Corp, provides medical administrative and staffing services. Carlyle acquired the company in 2011 in a deal valued at $149 million, Reuters News reported at the time. | | | | | | | Ship Supply buys R.S. Stern Ship Supply International, a portfolio company of H.I.G. Capital, has acquired R.S. Stern Inc. Financial terms weren't announced. Baltimore-based R.S. Stern is a ship chandler that provides provisions, cabin equipment, bonded stores and deck & engine supplies to clients throughout the Mid-Atlantic region. AT&T closes Quickplay Media buy AT&T said June 28 it closed its buy of Quickplay Media Inc from Madison Dearborn Partners. Financial terms weren't announced. Quickplay provides managed services for the distribution of multi-screen video to IP-connected devices. AT&T said it plans to retain Quickplay's team of more than 350 employees and contractors. The deal was announced in May. Huron Capital's XLerate Group adds another auto auction site The XLerate Group, a portfolio company of Huron Capital Partners LLC, acquired EPI-El Paso, which operates an auto refurbishing and auction facility in El Paso, Texas. This is the third add-on for XLerate. Addison Lee buys VC-backed European exec car service Tristar Addison Lee has acquired European executive car service Tristar Worldwide. No financial terms were disclosed. Tristar was backed by Octopus Ventures. PE-backed Imagine! to buy marketing agency Midnight Oil Imagine! Print Solutions, which is backed by Oak Hill Capital Partners, has agreed to acquire Burbank, California-based Midnight Oil Agency, a marketing agency. No financial terms were disclosed. New Direction Partners provided financial advice to Midnight Oil on the transaction. PE-backed Prism Plastics acquires Tech Molded Plastics Prism Plastics, which is backed by Altus Capital Partners, has acquired Meadville, Pennsylvania-based Tech Molded Plastics Inc, a provider of precision molding and production injection molds. No financial terms were disclosed. Cisco to buy VC-backed CloudLock for $293 mln Cisco has agreed to acquire Waltham, Massachusetts-based CloudLock Inc, a cloud security company, for $293 million. The transaction is expected to be completed in the first quarter of fiscal year 2017. CloudLock was backed by Ascent Venture Partners. McKesson's IT unit to merge with Change Healthcare: Reuters Healthcare services provider McKesson Corp (MCK.N) said it would combine most of its information technology business with Change Healthcare Holdings Inc to form a new company with combined pro forma annual revenue of $3.4 billion. | | Firms & Funds | | | | | Ardian raises 1 bln euros for small and mid-cap investments: Reuters French private equity firm Ardian said on Wednesday it had raised 1 billion euros in its latest fundraising round for investments in small and mid-sized companies in France, Germany, Italy, Belgium, Austria and Spain, Reuters News reported. Origami Capital Partners fund III raises nearly $371 mln Origami Capital Partners has closed its third fund at nearly $371 million. Investors of Origami Opportunities Fund III LP include endowments, foundations, multi-manager funds, consultants, public pensions, corporate pensions and family offices. Fund III targets assets trapped in complex legal structures or difficult ownership situations. Origami, with offices in Chicago and London, invests globally with a focus on North America and Europe. Sixpoint Partners served as the placement agent while Sidley Austin LLP provided legal counsel for Fund III. Cinven's sixth fund raises about $8 bln Cinven said June 29 that its sixth fund closed at its hard cap of seven billion euros (about $8 billion). Cinven invests in European buyouts. The private equity firm targets six sectors including business services, consumer, financial services, healthcare, industrials and technology, media and telecommunications. Siemens to invest $1.1 billion in new startups unit: Reuters German industrial group Siemens plans to invest $1.1 billion over the next five years in a new startups unit to help it develop businesses in areas such as artificial intelligence and decentralized electrification. Lemkin closes on $68.2 mln for SaaStr Fund I Jason Lemkin has closed on $68.2 million for his first early stage fund, according to a filing with the SEC. Invision Capital nabs over $29 mln for second fund Invision Capital has raised over $29 million for its second fund, according to an SEC filing. The target is $50 million. Partech raises about $442 mln for inaugural growth fund Partech Ventures has closed its debut growth fund at 400 million euros (about $442 million). Partech Growth's limited partners included European insurance companies and institutional investors. The fund will invest between 10 million and 50 million euros in fast-growing tech and digital companies. Lightspeed China Partners wraps up third fund at $260 mln Lightspeed China Partners has closed its oversubscribed third fund at $260 million. Also, LCP has raised a "substantial" amount for its first RMB fund that has a target of 500 million RMB (about $75 million). LCP focuses on China-based early stage companies in sectors that include internet, mobile and enterprise technology. | | Human Resources | | | | | Hinrichs joins Monroe Capital Monroe Capital said June 29 that Steve Hinrichs has joined the firm as Managing Director in its Los Angeles office. Hinrichs will serve as the firm's Group Head for the Southern California region. He was previously a Managing Director at Capital One Business Credit. Barack Obama, venture capitalist? Will Barack Obama become a venture capitalist when he leaves office? Speculation is running high after a recent interview Obama did with Bloomberg. When asked what industries he might go into, the President replied: "Well, you know, it's hard to say. But what I will say is that — just to bring things full circle about innovation — [...] Great Rock beefs up team with two new hires Great Rock Capital Partners has named Lori Potter as managing director of originations and Christina Zielinski as vice president of portfolio and underwriting. Previously, Potter worked at Monroe Capital LLC where she was managing director of originations while Zielinski served as as assistant vice president of natural resources and credit risk at Barclays. Praesidian Capital adds new associate to team Praesidian Capital has named Bill Johnston as an associate. Previously, Johnston worked at PNC Capital Markets LLC. Renaissance Venture Capital Fund adds two new officers Michigan-based The Renaissance Venture Capital Fund added two new officers, Vince Nystrom and Jessica Scott. Nystrom is currently vice president of business development, and Scott recently joined the fund as chief administrative officer. CD&R taps ex-Omnicare CEO/president as operating adviser Clayton, Dubilier & Rice has named Nitin Sahney as an operating adviser to CD&R's funds. Sahney is the former president and CEO of Omnicare Inc. | | Odds & Ends + Hot Links | | | | | PE HUB First Read First Read kicks off the mid-week with news that New York landmark hotel will be mostly coverted into condos, Lending Club cuts 12 percent of staff and Vodafone considers moving its headquarters away from U.K. PE HUB Second Opinion A triumphant Nigel Farage sneered at the EU in Brussels, while Jeremy Corbyn lost a no-confidence vote. |
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