| | | | | | This morning: The sun is back and Buyouts East starts today in Boston. Who's going?
Deals: National Financial Partners Corp (NFP), which is owned by Madison Dearborn Partners, has scored an exit. NFP said yesterday that it was changing the name of NFP Advisor Services to Kestra Financial and selling a majority of Kestra to Stone Point Capital. NFP is reportedly retaining 20 percent of Kestra.
Financial terms of the deal weren't announced. I'm hearing the Kestra sale is the same deal I reported on in November. At that time, I heard NFP was selling its wealth management unit. They were seeking $250 million for the unit. Read our brief here.
Still healthy: Sam Sutton has a story on the supposed private equity shakeout that occurred after the financial crisis. More than a quarter of the buyout firms that successfully fundraised from 2002 to 2008 didn't raise another fund after the global financial crisis. Check out Sam's story here.
Mystery: Chris has a story on the unwitting Park Hill employee, identified as "individual 4," who helped Andrew Caspersen in his bizarre fraud scheme. Park Hill isn't firing "individual 4" nor is this person facing any charges, the story said. Read the story here.
Housekeeping: The deadline to get your free listing in our annual Guide to Secondary Buyers & Placement Agents has been extended to Friday, April 8! Placement Agents click here. Secondary Buyers click here.
As usual, if you have a tip to share, something nice to say or just have a comment, email me at lbeltran@buyoutsinsider.com. Any problems should go Chris at cwitkowski@buyoutsinsider.com.
-Luisa
|  | | Today's Take | | | | Second Park Hill staffer 'unwitting' participant in alleged Caspersen scheme A second Park Hill Group employee played a brief and unwitting role in an alleged scheme by former Park Hill executive Andrew Caspersen to defraud investors of $95 million, according to people with knowledge of the situation. Caspersen, who was fired by Park Hill, was arrested on March 28 and charged with one count of wire... Get your 2016 employee compensation data here! Looking for great employee compensation data? Take part in our sixth annual Holt-MM&K-Buyouts Insider PE/VC compensation survey and get a FREE executive summary. Plus, you will be able to purchase the full report at a discount of more than 45 percent. Ready to go? Ready to go? Click the following link to download this year's survey: North American... Chart of the Week: Healthcare and Industrials count most M&A exits in Q1 So far in 2016, there have been 125 PE-backed M&A exits by U.S. sponsors totaling over $15.4 billion in disclosed value. Healthcare and Industrials are the top sectors with 17 exits apiece. They were also the first-quarter leaders in disclosed value, with Healthcare totaling nearly $3 billion and Industrials with $2.9 billion. Back to School: Private-equity shakeout? Not really More than a quarter of the buyout firms that successfully fundraised from 2002 to 2008 didn't raise another fund after the global financial crisis, according to data included in Bain & Company's 2016 private-equity report. It could have been much worse. Bain found roughly 1,000 general partners faded from the industry in the years following the crisis. "The... Michigan's Q4 commitments dominated by re-ups State of Michigan Retirement Systems committed $675 million to private equity in the last three months of 2015, including sizable re-ups to Warburg Pincus and TSG Consumer Partners, according to a quarterly investment report released in March. Of the new commitments, $500 million went to re-ups with existing managers. With its $175 million commitment to Warburg... Venture slump overstated as growth-round deal-making rises The new year started off with less hesitation than many in venture feared during the turbulent three months On the Bleeding Edge: VR is real and on course to realize exits The big recent news in consumer tech was that Oculus VR began shipping its virtual-reality headset, Rift. This comes two years after Facebook bought the venture-backed VR company for $2 billion. In mid-March, VR seemed to have taken over the Game Developers Conference in San Francisco. Head-mounted displays were everywhere at the GDC. This barrage... | The Summit for Middle Market Debt Finance 23rd Annual Atlantic Conferences Symposium
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| | | | VC Deals | | | Video advertising provider Virool raises $12 mln San Francisco-based Virool, a provider of a video marketing platform, has raised $12 million in Series A funding from Menlo Ventures, Thomvest Ventures, Yahoo Japan, Flint Capital and 500 Startups. The company, which is a graduate of the Y Combinator incubator program, previously raised $6.62 million in seed-stage funding from VC firms and individuals, including FundersClub, Troy Carter and Farzad "Zod" Nazem. AstraZeneca spinout Entasis gets $50 mln to fight drug-resistant bacteria Entasis Therapeutics, an AstraZeneca spinout developing products to treat drug-resistant bacterial infections, announced it has completed a $50 million Series B financing led by Clarus. Other investors included AstraZeneca, Frazier Healthcare Partners, Eventide Funds and Novo A/S. Entasis, based in Waltham, Massacusetts, raised a $40 million Series A from AstraZeneca in March 2015. Israel's Metabomed raises $18 mln for cancer-metabolism drugs Metabomed Ltd, an Israeli company developing drugs that target cancer metabolism, announced it has completed an extension of its Series A round from new and existing investors, bringing its total haul to $18 million. The new investors are Pfizer Inc and Arkin Holdings. They join existing investors MS Ventures, Boehringer Ingelheim Venture Fund, Pontifax Fund and the Technion Research and Development Foundation. | Get Deals Done at PartnerConnect MidWest! Join hundreds of your peers, including 150+ LPs, 200+ GPs,
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| | | | | Alloy Wheel Repair closes four bolt-on deals Alloy Wheel Repair Specialists, a portfolio company of Soundcore Capital Partners LLC, has completed four bolt-on acquisitions. It did not name the targets but said the four acquisitions serve more than 200 major dealers and auto repair shops. Financial terms weren't disclosed. The acquisitions are located in Westchester, New York; Newtown, Connecticut; Danbury, Connecticut; and Las Vegas. Atlanta-based Alloy Wheel is a full-service alloy wheel repair and replacement company Bregal Sagemount invests in Internet Truckstop Group Bregal Sagemount has invested in Internet Truckstop Group. Financial terms weren't announced. New Plymouth, Idaho-based Internet Truckstop provides technology solutions throughout the freight execution lifecycle in North America. Dave Dolan and John Roediger of Signal Hill advised Internet Truckstop. Yukon Partners invests in DuvaSawko Yukon Partners has invested in DuvaSawko. Financial terms weren't announced. Yukon's investment was part of Ancor Capital's acquisition of DuvaSawko, which was announced last month. Opus Bank provided financing. Yukon also provided mezzanine capital. Ormond Beach, Florida-based DuvaSawko provides emergency billing, coding, accounts receivable management, and data analytics services. Feelunique.com raises $28.4 mln Palamon Capital Partners said April 5 it completed a 20 million pound ($28.4 million) funding round, alongside two-coinvestors, for Feelunique.com. Palamon committed 5 million pounds to Feelunique.com alongside two co-investors. Feelunique.com, a portfolio company of Palamon, is an online retailer of haircare, skincare, cosmetics and fragrances products. Pritzker-backed Milestone AV adds on Vaddio Audiovisual equipment seller Milestone AV Technologies announced it has acquired AV company Vaddio for an undisclosed amount. Milestone, based in Eden Praire, Minnesota, is majority owned by the Pritzker Group, Duchossois Capital Management and company management. Weinberg Capital recaps commercial vent maker HoodMart Weinberg Capital Group announced that it led a group of private investors to recapitalize HoodMart Inc, which makes ventilation systems for commercial kitchens. WCG did not disclose the size of the deal, but said First National Bank provided senior financing and FNB Capital Partners provided $10 million of mezzanine financing and equity co-investment. Based in Cleveland, WCG is actively seeking add-on acquisitions for HoodMart, which is based in Elyria, Ohio. Warburg-backed Sterigenics buys Nelson Laboratories Sterigenics International LLC, a portfolio company of Warburg Pincus and GTCR, announced it has acquired Nelson Laboratories Inc. Terms of the transaction were not disclosed. Antares Capital supports Riverside's acquisition of Momentum Textiles Antares Capital announced it is serving as administrative agent, joint lead arranger and joint bookrunner on a senior secured credit facility to support The Riverside Company's acquisition of Momentum Textiles. Riverside bought Momentum from Norwest Equity Partners for an undisclosed price. Cotton Creek acquires Sterling Foods Dallas-based private equity firm Cotton Creek Capital announced it has acquired speciality bakery Sterling Foods of San Antonio, Texas, in partnership with Sterling Foods CEO John Likovich. Terms of the deal, which closed on March 30, were not disclosed. PE-backed PDC Brands buys UK cosmetics company PDC Brands, which is backed by Yellow Wood Partners of Boston, announced it has has acquired U.K.-based cosmetics company Original Additions. Terms of the deal were not disclosed. Stone Point Capital buys Kestra Financial from NFP NFP said April 4 that it has changed the name of NFP Advisor Services to Kestra Financial and selling a majority of the unit Stone Point Capital LLC. Financial terms weren't announced. NFP is maintaining a minority stake. Austin-based Kestra Financial provides securities and investment advisory services. BofA Merrill Lynch provided financial advice while Ropes & Gray was the attorney for NFP. NFP is backed by Madison Dearborn Partners. In November, Buyouts Insider reported that NFP had put its wealth management unit up for sale. | One Of a Kind Networking in The Robust Emerging Manager Space Join LPs and Intermediaries at the Emerging Manager Connect event:
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| | IPOs | | | | | | No items | | | | | | | Altaris Capital exits M2S Medstreaming has acquired M2S. Financial terms weren't announced. Altaris Capital Partners was the seller. West Lebanon, New Hampshire-based M2S provides registry software technology which aims to improve healthcare quality. Berkery, Noyes & Co. LLC advised M2S while KeyBank Capital Markets Inc provided financial advice to Medstreaming. Nautic Partners' IPS acquires Integra Adhesives IPS Corp, the Compton, California, producer of specialty adhesives, solvent cements, and specialized plumbing products, acquired Integra Adhesives from its president and other shareholders. Terms weren't disclosed. Integra is the Abbotsford, British Columbia, producer of adhesives used to bind stone and solid-surface building products. IPS is a portfolio company of Nautic Partners VII, L.P. and Nautic Partners VII-A, L.P. Nautic Partners is the Providence, Rhode Island, middle-market private equity firm. Norwest Equity Partners divests textile distributor Momentum Group Norwest Equity Partners, the Minneapolis middle-market investment firm, divested a portfolio company, Momentum Group, the Irvine, California, distributor of textiles for office, hospitality, healthcare and university uses. Terms weren't disclosed. Dallas Cowboys owner Jones, Providence Equity back youth-sports software firm The owner of the National Football League's Dallas Cowboys, Jerry Jones, and Providence Equity Partners are backing Blue Star Sports, the Frisco, Texas, producer of software solutions for youth-sports organizations. The solutions include websites and payment and registration systems. Providence Equity is the Providence, Rhode Island, private-equity investment firm. iRobot closes sale of defense lines to Arlington Capital for up to $45 mln Arlington Capital Partners, the Chevy Chase, Md., middle-market private-equity firm, closed the purchase of iRobot's Defense & Security business for as much as $45 million, including milestone payments. iRobot is the Bedford, Mass., producer of robots for home use. Arrowhead Electrical buys the C&E companies Arrowhead Electrical Products, which is backed by the Riverside Company, has acquired the C&E companies. Financial terms weren't announced. Urbandale, Iowa-based C&E makes and distributes aftermarket and OEM engine components, primarily for the power sports industry. Ares Capital Corp and Varagon Capital Partners LP led financing. Jones Day and Deloitte advised Riverside on the investment. F inancial Advisory Partners LLC was C&E's investment banker for the transaction. Peak Rock sells mushroom producer Highline to Ireland's Fyffes An affiliate of Peak Rock Capital, the Austin, Texas, private-equity firm, sold Highline Produce, the Ontario producer and distributor of organic mushrooms for retail and food service, to Fyffes plc. Fyffes is the Dublin fruit and fresh-produce company. Terms weren't disclosed. | | Firms & Funds | | | | | KKR's second special situations fund raises $3.35 bln KKR said April 5 that its second special situations fund closed at $3.35 billion. KKR Special Situations Fund II LP focuses on credit-oriented, deep-value investing in distressed or event-driven situations. KKR's first dedicated special situations vehicle collected $2 billion in 2013. PineBridge Structured Capital Partners Fund III closes at $600 mln PineBridge Investments said April 4 it closed its latest structured capital fund at $600 million, surpassing the pool's $500 million target. PineBridge Structured Capital Partners III LP will invest in junior capital securities including mezzanine debt and structured equity issued by privately-owned middle market companies across all sectors in North America. New investors include major institutions in the US as well as Europe, the Middle-East and Asia. DFW Fund V closes at $360 mln DFW Capital Partners said April 4 that it closed its fifth fund at $360 million. This is up from DFW's fourth fund, which raised $162.5 million in December 2013. DFW Capital Partners V LP was oversubscribed and exceeded its fundraising target. Griffin Financial Group LLC was the placement agent. Teaneck, New Jersey-based DFW seeks to invest in lower middle market companies, specializing in the healthcare, business-services and industrial-services sectors. | | Human Resources | | | | | Welch joins TSG Consumer Partners Colin Welch has joined TSG Consumer Partners a Partner and Managing Director. He will focus on transactions in the consumer sector and be based in New York. Welch was previously President and Chief Operating Officer of Financo LLC and CEO of Financo Europe. Martz joins TA Associates TA Associates said April 5 that it hired Diana Martz as its Vice President, Human Capital. Martz was previously Director of Talent for OpenView Venture Partners. Morgan named Chairman of Chi-X Australia Dr. David Morgan has assumed the Chairman's role of Chi-X Australia. Morgan is currently Executive Chairman of Europe and Asia Pacific at J.C. Flowers & Co. Last month, J.C. Flowers closed its buy of Chi-X Australia, Chi-X Japan and Chi-Tech. Deutsche Telekom Capital names Fitbit investor Young partner, head of VC Deutsche Telekom Capital Partners, which makes venture capital and private equity investments, announced Jack Young has joined the Hamburg, Germany-based firm as partner in charge of global venture capital operations. Young previously served as managing director at Qualcomm Ventures, where he invested in Fitbit. DTCP also announced the opening of its new U.S. office in Menlo Park, Calif. Former Vonage chief Lefar takes helm at PE-backed RentPath RentPath LLC, which is backed by TPG and Providence Equity Partners, has named former Vonage Holdings chief Marc Lefar as president and CEO. RentPath had been looking to fill the position since November 2015, when former President and CEO Chip Perry resigned after just four months in the post to take the top job at TrueCar. RentPath's Kim Payne resumes her job as CFO after serving as interim president and CEO. DT Capital Partners taps Qualcomm's Jack Young as head of VC Deutsche Telekom Capital Partners, the German telecom group's investment-management division, named Jack Young partner in charge of global venture operations. Young joins DT Capital Partners from Qualcomm Ventures, the investment unit of the San Diego chipmaker, where he was a managing director responsible for venture investment and portfolio management in North America. JEGI names Doug Stowe EVP of professional services New York investment bank JEGI announced it has hired Doug Stowe as executive vice president of its Professional Services Group. Stowe previously served as an executive director in the investment banking group at Oppenheimer & Co for eight years. Get your 2016 employee compensation data here! Looking for great employee compensation data? Take part in our sixth annual Holt-MM&K-Buyouts Insider PE/VC compensation survey and get a FREE executive summary. Plus, you will be able to purchase the full report at a discount of more than 45 percent. Ready to go? Click the following link to download this year's survey: North American PE/VC compensation [...] | | Odds & Ends + Hot Links | | | | | Hedge fund firm Arrowgrass raises over $600 million for M&A fund: Reuters London-based hedge fund firm Arrowgrass Capital Partners has amassed over $600 million for a mergers and acquisitions fund which launched in October, Reuters News reported. PE HUB First Read To start your morning, Walt Disney COO Thomas Staggs is leaving the company this year, Groupon receives a $250 million investment from Atairos and Villanova beats North Carolina for NCAA title. |
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