| | | | | | | Happy Friday! New life: A big deal was completed in the secondary market. Lee Equity got liquidity for existing investors in its 2008 first fund, and raised fresh capital for a bridge fund that gives the firm capital to invest before trying to raise its next flagship vehicle. An investor group led by AlpInvest Partners bought out some existing LPs in Fund I, which closed on about $1.1 billion in 2008. Some existing LPs rolled their interests into the new vehicle, called Lee Equity Partners II, which raised about $315 million, according to a Form D filed earlier this week. The investor group, which Dow Jones said included CPPIB, Pantheon and HarbourVest Partners, also kicked in capital for the fund. This is the type of deal that is helping drive activity in the secondaries market. Restructurings, recapitalizations and tender offers have become a routine way GPs can get LPs in ageing funds an exit, and potentially get fresh capital for new investments. Each structure is different, of course, and one big issue in all these sorts of deals is whether existing LPs are being treated fairly. There is a concept known as the third option, or the status quo option, where existing investors simply choose to do nothing – they don't want to sell, they don't want to roll into a new vehicle with reset fees and carry. The only real change is time – the term of the fund will be reset to give the GP some time to make new investments and harvest. So in this situation, it would be like a fund extension for those LPs who choose to do nothing. The SEC is focused on this idea, and on making sure LPs are not left with 'two bad options', selling at a discount or rolling with the GP into a new vehicle that gives a GP who may have underperformed for many years economic benefits the LP doesn't think they deserve. Some secondary market sources have argued to me that characterizing the situation as 'two bad options' as the SEC has in the past, is misleading. Because investors get to vote on the overall deal; they can simply vote it down if they don't like what they see. But how is that vote structured -- does the deal need a supermajority full LP base vote for approval, does it simply depend on a majority vote of the LPAC? These deals are innovative, and a way to deal with ageing portfolios GPs just can't seem to exit (for whatever reason). It shows how the market, even in the absence of intense regulation, adjusts to changing realities. I'm hearing there are more headline grabbing type restructurings waiting in the wings. Let me know if you've heard anything! Read the full story here. -- Chris | | | | Today's Take | | | | Strategics take lead in AssetMarket auction after PE comes in low: sources Private equity is no longer in the running to buy AssetMark Inc, three sources familiar with the situation said. Final bids for AssetMark were due March 14, sources said. The private equity firms that submitted final bids include Advent International Corp, which teamed up with Lovell Minnick Partners LLC, to make an offer for AssetMark, two of the... Read more... Lee Equity raises new fund through secondary transaction Lee Equity Partners turned to the secondary market to provide liquidity to investors in its first and only fund and to raise fresh capital for its second. The firm, launched by Thomas H Lee after he left his eponymous firm in 2006, raised about $315 million for Lee Equity Partners Fund II, according to a Form... Read more... Fort Washington new $300 mln fund-of-funds avoids generalist GPs Fort Washington Capital Partners Group, the private-equity unit of Western & Southern Financial Group, set a fundraising goal of $300 million for its ninth fund-of-funds, in line with its predecessor, according to filings. The firm said it prefers niche funds that reflect a manager's differentiation or competitive advantage by leveraging their institutional expertise, global reach... Read more... Ex-Apollo exec draws $240 mln to invest in public and private companies Ex-Apollo Global Management partner Scott Ross held a first close on his debut fund, which invests in public equities as well as privately held companies, according to people familiar with the New York firm, Hill Path Capital. The fund will have a shorter duration than the typical 10-year private-equity fund. It'll have flexibility to buy minority positions in... Read more... Tenex closes Fund II on $814 mln Tenex Capital Management closed its second flagship fund on $814 million, according to the firm. Tenex began marketing the fund to a small group of limited partners last year and held an initial close in January. LPs in Tenex Capital Partners II include the New Jersey Division of Investment and Rhode Island State Investment Commission, Buyouts... Read more... Portfolio management in the age of unicorns Aberdeen's Peter Denious chats about the unicorn fallout and managing venture portfolios Read more... | | | | | | VC Deals | | | | Cumulus Funding raises $30 mln in Series A round, debt facility Cumulus Funding, a consumer finance company, raised $30 million, including a $6 million Series A funding round, and a $25 millino debt financing facility. The Series A was led by Continental Investors LLC along with several new equity investors including HC Technologies, D-W Investments, Bridge Investments and Service Provider Capital. Cumulus' existing investors also contributed to the funding. Read more... Pieces Tech raises $21.6 mln in Series A funding Pieces Technologies, a health information technology company based in Dallas, raised $21.6 million in Series A funding. Pacific Advantage Capital and Jump Capital led the round with participation from healthcare system Children's Health, Order of Saint Francis Healthcare System, the Parkland Center for Clinical Innovation (PCCI) and others. Read more... StanChart PE arm, Goldman invest $28 mln in Vietnam fintech startup: Reuters A private-equity arm of Standard Chartered Plc and Goldman Sachs have invested a combined $28 million in Vietnamese startup M_Service, the operator of mobile e-wallet MoMo, the companies said in a joint statement on Thursday. Read more... Gate Ventures invests $1.45 mln in VC-backed PlayJam Gate Ventures PLC invested 1 million pounds ($1.45 million) for a 5 percent stake in PlayJam, a UK-based technology company that delivers online big-screen gaming and video-on-demand content to users. Gate's share of the company will increase to 8 percent if certain criteria are met. Read more... Afluenta gets $8 mln for P2P lending in Latin America Afluenta, peer-to-peer lending network in Latin America, raised $8 million in a Series B funding round. The International Finance Corporation and Elevar Equity each invested $4 million in the company. Afluenta was launched in 2012 by Argentinean entrepreneur Alejandro Cosentino. Read more... Partech leads $36 mln Series B for M-Files M-Files Corp, a Finnish document management company, raised $36 million in a Series B funding round led by Partech Ventures with participation from Finnish Industry Investment and Draper Esprit. M-Files has offices in Europe and in Dallas, Texas. Read more... 10x Genomics scores $55 mln in Series C financing 10x Genomics, which is commercializing a genome sequencing platform, closed a $55 million Series C financing round led by Fidelity Management & Research. New investors Softbank and JS Capital Management LLC participated in the round alongside founding investors Venrock, Foresite Capital and Paladin Capital. Read more... | Meet The Man Who President Bill Clinton Described As
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| | | | | | Back to top | | Bowmark Capital merges two portfolio companies to form property services group London-based Bowmark Capital, a mid-market private equity firm, merged two of its portfolio companies, Leaders and Romans, to form a property services group. The two brands will continue to operate autonomously. Bowmark backed the respective management buy-outs of Leaders in March 2010 and Romans in September 2013. Read more... Riverside makes majority investment in Bottom Line Systems Riverside Partners LLC made a majority equity investment in Kentucky-based Bottom Line Systems, a provider of revenue cycle management technology to healthcare providers. Financial terms of the deal were not disclosed. Read more... Gary Petroleum partners with Old Ironsides Energy to buy upstream assets Colorado-based Gary Petroleum Partners LP partnered with Old Ironsides Energy LLC, an oil and gas investment manager, to pursue the acquisition and development of upstream energy assets in the Permian Basin under the name Gary Permian LLC. Read more... Riverside to make majority investment in hospitality software company Guestline The Riverside Company agreed to make a majority investment in UK-based Guestline Ltd, a provider of software for the hospitality sector. Financial terms of the transaction were not disclosed. Read more... Liberty Hall buys Bromford Industries Liberty Hall Capital Partners acquired UK-based Bromford Industries, a supplier of engine and landing gear parts for the aerospace and power generation industries. Terms of the transaction were not disclosed. Read more... HIG backs Halex Istar's acquisition of Isofarma HIG Capital made a strategic investment in Halex Istar to facilitate the acquisition of Isofarma. Both companies are Brazilian providers of pharmaceutical parenteral solutions. Financial terms of the transactions were not disclosed. Read more... Blackstone nears deal to buy HP's stake in India's MphasiS: Reuters Blackstone Group LP ( BX.N) is nearing a deal to acquire HP Inc's ( HPQ.N) controlling stake worth about $940 million in Indian IT outsourcing services provider MphasiS Ltd ( MBFL.NS), according to three sources directly involved in the deal. Read more... Cinven to sell Prezioso Linjebygg to Altrad Cinven entered into exclusive negotiations to sell Prezioso Linjebygg Group to France's Altrad Group for an undisclosed amount. Prezioso, which was acquired by Cinven in 2012, is a Norwegian provider of technical and engineering services to the energy and infrastructure sectors. Read more... Diversified lands investment from Tailwind Capital, acquires Technical Innovation Middle market private equity firm Tailwind Capital invested in New Jersey-based Diversified, which offers media technology, engineering, and integration services. In connection with the investment, Diversified acquired Technical Innovation, a provider of presentation technology and broadcast solutions. MSouth Equity Partners, Technical Innovation's former owner, is a minority investor in the combined company. Financial terms of both transactions were not disclosed. Read more... | How can you get involved at Buyouts East?
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| | IPOs | | | | Back to top | | No items | | | | |
Back to top | | Riverside's BioAgilytix buys IPM Biotech Riverside Partners portfolio company BioAgilytix, a provider of contract bioanalytical testing services, acquired IPM Biotech, a German bioanalytical contract research laboratory. Financial terms of the deal were not disclosed. Read more... Brazil's iFood buys technology of now-defunct SpoonRocket Brazil's iFood, an online food delivery platform in Latin America, acquired the technology of meal delivery service SpoonRocket, which shut down on Tuesday. Read more... | | Firms & Funds | | |
Back to top | | Partners Group closes sixth PE secondaries fund at $2.83 bln Partners Group said Thursday it closed its sixth private equity secondaries fund at its hard cap of 2.5 billion euros ($2.83 billion). The fund's predecessor, Partners Group Secondary 2011, raised 2 billion euros and closed in 2012. Read more... Felicis Ventures seeks $150 mln for fifth fund Felicis Ventures has set out to raise $150 million for its fifth fund, according to a filing with the SEC. Read more... Ex-gaming execs launch $50 mln virtual reality fund Two former gaming industry executives launched a venture capital fund dedicated to investing in early-stage virtual reality, augmented reality, and mixed reality startups. The Virtual Reality Fund is targeting $50 million in capital commitments, according to a filing with the SEC. A first close has been reported. Read more... | | Human Resources | | |
Back to top | | Campbell Lutyens adds principal in London and SVP in New York London-based private equity firm Campbell Lutyens hired Jeffrey Griffiths as a principal in its London office and Andrew Symons as a senior vice president in New York. Read more... | | Odds & Ends + Hot Links | | |
Back to top | | PE HUB First Read Just when it was getting warm, snow is in the forecast. Everything is terrible: TransCanada to buy Columbia Pipeline Group for $10.2 bln, just over half of U.S. billion-dollar startups are formed by immigrants and February was the hottest month in 137 years. Read more... PE HUB Second Opinion In Second Opinion, Google is said to put Boston Dynamics up for sale in robotics retreat, TPG is reportedly vying for a stake in India's state-owned IDBI Bank, Founders Fund is said to have raised $1 bln for new fund. Read more... |
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