Insight Partners’ Thomas Kr ane: Cybersecurity a ‘mass market problem’; Cinven sel ls minority stake in Synlab

View this email online

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 ...

Also of note (may require subscriptions)

In an effort to raise the fund’s exposure to private markets, Texas Permanent School Fund’s board outlined plans to make co-investments and incrementally increase private equity commitments. (Buyouts)

Women’s World Banking Asset Management has a big focus on sub-Saharan Africa with its second emerging markets fund, president and CEO Mary Ellen Iskenderian told PE Hub in the latest of its Dealmakers to Watch series.

Ardian, the largest secondaries firm by fundraising per the SI 50, is set to become the latest manager to move into the evergreen space, Secondaries Investor has learned.

As an asset class, infrastructure has its roots in the privatization of state utilities, telecommunications and transportation. But the sheer breadth of business that falls within the infrastructure universe has expanded dramatically over the past quarter of a century. What makes a given asset an infrastructure play, though – and what makes it an appealing investment opportunity in 2024 – is a slightly different question. (Infrastructure Investor)

Silver Point Capital, a credit investor founded in 2002 and based in Greenwich, Connecticut, has held a final close on its latest opportunistic credit fund at $4.6 billion, nearly triple the size of its precursor fund, which closed at $1.7 billion in 2019. (Private Debt Investor)

Moderne Ventures has held a final close on more than $230 million for its third flagship fund, making it the second-largest women-led venture fund raised this year. (Venture Capital Journal)

There is a tidal wave of commercial real estate debt coming due at the end of 2024, and the stakes for lenders and borrowers who need to refinance will only rise in the coming years, according to a report by S&P Global Market Intelligence. (Private Debt Investor)

Simon Treacy will transition from CEO of private equity real estate to become a senior adviser at Singapore-headquartered real estate firm CapitaLand Investment as part of the company’s latest senior management restructuring to consolidate its private funds business. (Private Equity Real Estate)

Palico, an online platform for private market funds, has received regulatory approval to process LP fund transfers as more high-net-worth individuals are drawn to secondaries. (Secondaries Investor)

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