| | | | | | | Reality: Forbes has a very interesting story about how private equity investment in the craft beer sector will lead to upheaval within a decade. It sounded very scandalous. PE firms have a time horizon, usually seven to 10 years, to exit their investment and pay back investors, Forbes said. The story goes through the various scenarios that may happen as firms try to get liquidity including a sale, an IPO and an ESOP. The story is interesting to me because apparently many in the craft beer industry don't realize that PE firms are required to pay back investors. They may like your beer but getting liquidity is the name of the game. Read the Forbes story here. The story, if I'm reading it right, also said the Cigar City, Oskar Blues, Perrin and the Utah Brewers Collective operate under different conditions, because they're owned by a family office. I'm embarrassed that I was unaware that Fireman Capital Partners, which owns these beer companies, was an FO. Fireman looked straight up PE to me. Here's the Fireman Capital website. Deals: I have a story up on the sale of ATI Physical Therapy to Advent International. I'm hearing that ATI sold for $1.85 billion or 13x, which is pretty huge. This is also KRG Capital's second time selling ATI (they sold it in 2010 to GTCR and bought it back two years later). The current investment is from KRG's fourth fund which last year offered LPs the ability to sell their stakes to a preselected buyer. I'm still unclear what the status is of KRG Fund IV and no, I haven't heard from KRG. Read the ATI story here. Moving: Chris has a story about the former PE officer at Pennsylvania State Employees' Retirement System joining Aegon. Read it here. Funding: Spotify has raised $1 billion in convertible debt led by TPG and Dragoneer Investment Group. Check it out here. If you have a comment, a tip, or something nice to say email me here at lbeltran@buyoutsinsider.com. If you have a complaint, email Chris at cwitkowsky@buyoutsinsider.com. -- Luisa |  | | Today's Take | | | | KRG Capital sells ATI Physical Therapy — again ATI Physical Therapy, with its sale to Advent International, finds itself owned by a private-equity firm for a fourth time. Advent said March 29 that it agreed to buy a majority of ATI, a Bolingbrook, Illinois-based outpatient physical-therapy provider. Terms weren't announced. The deal is valued at $1.5 billion to $1.75 billion, a source familiar... Oregon convenes special meeting to back Cinven VI The Oregon Investment Council on March 29 convened a special meeting to commit as much as 250 million euros ($282 million) to Cinven's sixth flagship fund. The commitment remains subject to final negotiations of terms and conditions. The firm is targeting 5.5 billion euros for Fund VI, which is offering "economic incentives" for large commitments (250 million euros... Former Pennsylvania LP joins Aegon USA Investment Management Brandon Halm, former private-equity officer at Pennsylvania State Employees' Retirement System, joined Aegon USA Investment Management as a director, according to a source and his LinkedIn profile. Halm joined Aegon in March, his LinkedIn profile said. He worked at the retirement agency from 2013 till February. Prior to the Pennsylvania pension, Halm worked at Calvert Street Capital... | The Summit for Middle Market Debt Finance 23rd Annual Atlantic Conferences Symposium
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| | | | VC Deals | | | Music streaming company Spotify raises $1 billion in convertible debt: Reuters Spotify has raised $1 billion in convertible debt from private equity firm TPG Capital and hedge fund Dragoneer Investment Group, Reuters News is reporting. 6 River Systems raises $6 mln 6 River Systems Inc said Tuesday that it raised $6 million in seed funding led by Seth Winterroth of early-stage venture fund Eclipse. Also participating was iRobot. Boston-based 6 River provides fulfillment automation for e-commerce and retail operations. Slice Labs raises $3.9 mln Slice Labs Inc said Tuesday it raised $3.9 million in seed funding led by Horizons Ventures and XL Innovate. New York-based Slice Labs is a startup insurtech company that provides an on-demand, pay-per-use insurance platform for the on-demand economy. Clearink raises $7 mln Clearink Displays Inc said Tuesday that it raised about $7 million in a second round of funding. Investors include Jinfu, LangSheng Capital and NEY from Shanghai, as well as Altus Ventures and CrossPacific Capital. Santa Monica, California-based Clearink provides reflective display technology for electronic shelf labels, wearables, and mobile devices. Havenly raises $5.8 mln in new round led by Binary Capital Interior design website Havenly has raised $5.8 million in a Series A2 round, bringing the Denver-based company's total funding to $13.3 million. The round was led by Binary Capital with participation from existing investors Foundry Group and Chicago Ventures. The company said the new capital will be used to improve its design platform and expand staff by 25 percent. Havenly previously closed on a $7.5 million Series A in November 2015. OpenView leads Lesson.ly funding Indianapolis-based Lesson.ly, which develops learning automation software, has raised $5 million in Series A funding. OpenView led the round, which included participation from High Alpha Capital and Allos Ventures. As part of the deal, OpenView Partner Ricky Pelletier will be joining the board. Memorang raises $500,000 seed round Memorang said it raised $500,000 in seed funding from angel investors including Michael Kane and Tom Palecek, founding partner at Summit Trail Advisors. Memorang will use the capital to expand its offerings. Betterment raises a $100 mln Series E Betterment said it raised a $100 million Series E round of funding with Swedish investment company Kinnevik leading the deal and previous investors Bessemer Venture Partners, Anthemis Group, Menlo Ventures and Francisco Partners participating. | | | PE Deals sponsored by | |
| | | | | Castanea invests in Jeni's Splendid Ice creams Castanea Partners has invested in Jeni's Splendid Ice Creams. Financial terms were not disclosed. Columbus, Ohio-based Jeni's Splendid is a retailer and wholesaler of branded artisanal ice creams. Sunrise Strategic Partners invests in Perky Jerky Sunrise Strategic Partners has acquired a minority stake in Perky Jerky. Financial terms weren't announced. Greenwood Village, Colorado-based Perky Jerky makes beef and turkey meat snack products. Bluefin Payment raises $6 mln Bluefin Payment Systems said Tuesday it raised $6 million in growth equity financing led by Financial Partners and Camden Partners. Other investors include Jeff Liesendahl, the former CEO of Accertify, and members of the management team. Atlanta-based Bluefin is the former Capital Payments, provider of payment solutions for U.S. and Canadian merchants. Blue Point Capital invests in J. America Blue Point Capital Partners said Tuesday it invested in J. America Inc via a recapitalization. Financial terms weren't announced. Webberville, Michigan-based J. America designs and distributes decorated and blank apparel and headwear to major retail and wholesale accounts. Anbang teams with Flowers and Primavera on $14 bln bid for Starwood: Reuters (Reuters) China's Anbang Insurance Group Co raised its offer for Starwood Hotels & Resorts Worldwide Inc to almost $14 billion, Starwood said on Monday, in the latest challenge to the U.S. hotel operator's merger with Marriott International Inc. Anbang's consortium, which includes private equity firms J.C. Flowers & Co and Primavera Capital Ltd, has offered $82.75 per share in cash, in what is reasonably likely to lead to a proposal that is superior to the deal with Marriott, Starwood said on Monday. Choo-choo! Trive recaps Iowa Northern Railway Dallas-based private equity firm Trive Capital announced that it has recapitalized Iowa Northern Railway Company, joining with the company's senior management on the deal. The size of the investmet was undisclosed. Based in Cedar Rapids, IANR operates about 250 miles of track in eastern and northern Iowa, serving regional customers in the grain, fertilizer and specialty chemical markets. The railroad was built in the 1870s and has been owned and operated by the Sabin family since 1994. CapX provides debt financing to PE-backed Two Twenty Records CapX Partners announced that it has provided $7.4 million in debt financing to Two Twenty Records Management, enabling the data storage outsourcing provider to refinance its current debt facility and access working capital. Two Twenty, based in Edison, New Jersey, is owned by Topspin LBO and AUA Private Equity Partners, which bought the company in October 2010. Riverside buys minority stake in Bentley Laboratories The Riverside Company bought a minority stake in Bentley Laboratories LLC for an undisclosed amount. Based in Edison, New Jersey, Bentley provides outsourced manufacuturing for beauty products and over-the-counter pharmaceuticals. Managing Partner Hal Greenberg and Partner Michael Kessler led the deal for Riverside, along with Vice President Jay Reynolds and Associate Director of Origination Cheryl Strom. Riverside was advised by Loeb & Loeb (legal) and WeiserMazars (accounting), and Bentley was advised by Carriage Hill Inc (corporate finance) and Giordano Halleran & Ciesla (legal). Livingstone completes credit facility for Premium Inspection Livingstone, a Chicago-based mid-market M&A and debt advisory firm, announced that it has closed a new credit facility for Premium Inspection & Testing Inc, a portfolio company of Calvert Street Capital Partners. First Midwest Bank and Patriot Capital provided the financing to support the portfolio company's recapitalization of Capitol Ultrasonics LLC. | Registration is Now Open for PartnerConnect MidWest! Join hundreds of your peers, including 150+ LPs, 200+ GPs,
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| | IPOs | | | | | | No items | | | | | | | State Street to buy GE Asset Management State Street Corp said Wednesday it agreed to buy GE Asset Management. The total purchase price is up to $485 million subject to adjustments. GE Asset Management, a global asset manager, had $110 billion in assets under management as of Dec. 31. | | Firms & Funds | | | | | Goldman raises $1.5 billion in infrastructure fund first close: Reuters Goldman Sachs Group Inc (GS.N) closed the first stage of fundraising for its newest infrastructure fund with about $1.5 billion, Reuters News reported. | | Human Resources | | | | | Majors joins Data Point Capital Mike Majors has joined Data Point Capital as a Managing Partner. Majors most recently was the founder and head of Siemens Venture Capital's $100 million early-stage Industry of the Future Fund. Perale joins Creative Artists Agency Matteo Perale has joined Creative Artists Agency to help execute CAA's growth and diversification strategy. Perale was previously with Infront Sports & Media, where he served as the Director of Strategic Development. CAA is backed by TPG. | | Odds & Ends + Hot Links | | | | | Silicon Valley investors launch San Francisco Deltas Silicon Valley and Brazil entrepreneurs are launching the San Francisco Deltas, a professional soccer team in that city. Led by Colombian-born entrepreneur, Brian Andrs Helmick, the investor group includes individuals from Draper Fisher Jurvetson, Felicis and Precursor. The Deltas will begin playing in February 2017. PE HUB First Read To start your morning, Google just unveiled the Fiber Phone, a $10 a month home phone service; Spotify has raised $1 billion in debt from investors led by TPG and Dragoneer; and a survey finds that one in five employees would sell their work passwords, some for the price of dinner. PE HUB Second Opinion To end this sunny Tuesday in the east, SecondOps brings news about the mystery source whose info helped bring down Bear Stearns, Waze rolls out speed alerts and Nintendo debuts first mobile app in US. |
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