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Insight Partners’ Thomas Krane: Cybersecurity a ‘mass market problem’; Cinven sells minority stake in Synlab

Morning Hubsters, Craig McGlashan here with the US Wire.

Cybersecurity has been one of the biggest opportunities for tech-minded private equity investors over the last few years, so this morning we take a deep dive into one of the biggest exits from the sector – Insight Partners’ $2.65 billionsale of Recorded Future to Mastercard. Insight managing director Thomas Krane talks us through the lifecycle of the investment and why the sector is only going to get bigger.

Next we switch to medical diagnostics, where Cinven has sold a minority stake in Synlab, a company with which it has history going back nearly a decade, through listings, take-privates and more.

HR tech has been busy this year and we’ve got two fresh deals to report – one involving Luminate Capital Partners and the other involving Nexa Equity.

Finishing up, Sverica Capital Management has made a growth investment in a company that helps technology companies do business with the public sector.

‘Unsolved problem’

The “ever-evolving” nature of cybersecurity provides ripe opportunities for private equity firms, Insight Partners managing director Thomas Krane told reporter Obey Martin Manayiti.

Read the premium version of the Wire to find out more about the exit, how Recorded Future moved from being a venture capital to a private equity investment and how generative AI is a boon to cybersecurity professionals – but also to cyber criminals.

Cybersecurity deals are coming thick and fast. This morning, Iris Dorbian reported that Agellus Capital has invested in BlackPoint IT Services, a Seattle-based provider of managed IT and cybersecurity services.

Strategic sale

Switching continents where Cinven has agreed to sell an indirect minority stake in Synlab, a medical diagnostic services and specialty testing provider in Europe, to Labcorp.

Read the premium version of the Wire for details including the size of the investment, plus Cinven’s investment history in Synlab.

People management

One sector that’s been getting a lot of attention lately is human resources, thanks in part to the move to remote and hybrid working since the covid pandemic.

We’ve got two deals to report in that area this morning.

Luminate Capital Partners has acquired a SaaS platform for leave of absence and accommodations management based in Golden, Colorado, from Norwest Venture Partners and Bow River Capital.

Meanwhile, Nexa Equity-backed Easy Metrics, a labor analytics platform for warehouses and manufacturers, has acquired a Naples, Florida-based labor management system provider.

Public sector play

Finally, after Iris Dorbian rounded up some deals in the govtech sector on Friday, we’ve got another deal with links to the public sector.

Sverica Capital Management has made a growth investment in a boutique aggregator focused on helping technology companies do business with the public sector.

Right, that’s a wrap for me. I’ll be back with you in the London morning tomorrow with the Europe Wire, while Rafael Canton will be on US newsletter duty tomorrow.

Cheers,

Craig

Read the full Wire commentary on PE Hub ...

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They said it

“You don’t have to look too far to realize that cybersecurity continues to be an unsolved problem. Threat actors are extremely dynamic, and there’s ever-evolving surface area for those adversaries to breach and attack businesses.”

— Thomas Krane, managing director, Insight Partners, on the sale of Recorded Future