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Silversmith’s Todd MacLean on AI deals; Apollo-backed HarbourView raising new royalties fund

Morning Hubsters!

A quick note of thanks for all the recommendations for Women in PE this year. As usual, we received a ton and it’s been a tough process to whittle down the huge list to just 10. We finalized our list and will be making outreach this week. Thanks to everyone for participating!

AI: Todd MacLean, managing partner with Silversmith Capital, spoke with Georgina Tzanetos at PE Hub about the firm’s recent investment in Impel Software, which provides AI-powered customer engagement software for the automotive industry.

“Every investment opportunity we heard about for years had AI sprinkled in there somewhere, but what we learned over time is that there are two parts to making AI effective in a commercial setting,” MacLean said. The first part is the algorithm, or “mousetrap,” as MacLean put it, and the second part is the data that powers the formula.

“At the beginning of the [AI adoption] cycle, I think we saw lots of the former, lots of great tech, but they didn’t have the data to apply it to let it learn,” he explained. “We are now approaching the part of the cycle where companies are now matching their technology to these data sets and producing effective results.”

More M&A is in Impel’s future, Silversmith said. Read more here on PE Hub.

Newbie: Speaking of Women in PE, one of last year's selections, Sherrese Clarke Soares (who appeared on the cover of Buyouts), is in the news today with her new firm. 

HarbourView Equity, which focuses on royalties investments, is out with its first commingled fund targeting $500 million. The firm, formed in 2021 by Sherrese Clarke Soares, also has $1 billion in backing from Apollo through a fund-of-one structure. HarbourView focuses on royalties-producing sound recording, music publishing and composition assets. Read more here on Buyouts for the details of the fund.

HarbourView is among a handful of first-timers seeking capital in the tougher fundraising markets this year. Another we reported on recently is Coalesce Capital, formed by ex-Warburg Pincus industrials lead Stephanie Geveda. Coalesce is in market with its debut fund. Check out our extensive coverage of first-timers and emerging managers here on Buyouts.

Deals: We’ve opened the nomination process for our annual Deal of the Year awards. Winners for deals closed in 2022 are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal of the Year.

Download a PDF of the Deal of the year 2023 application. Deadline to submit your nominations is Monday, Feb. 13, 2023. Winners are announced in April. Read about past winners here.

The volume of submissions is so high that I likely won’t be able to get to every question that comes in. I urge you to read the application form closely, which lays out all the details necessary to make a submission.

That’s it for me! Have a great rest of your day. Hit me up with tips n’ gossip or feedback at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Europe is on the horizon for Texas Municipal Retirement System, which is making changes to the way it approaches its private equity portfolio construction. (Private Equity International)

Massachusetts Pension Reserves Investment Management Board committed more than $400 million to diverse private equity managers in 2022 as part of the system’s mandate to allocate at least 20 percent of its total fund to diverse-owned managers. (Buyouts)

OpenGate Capital, which is raising a third flagship buyout fund, expanded the size of its partnership team, Buyouts has learned.

Five questions on Mubadala’s life sciences playbook: Demographic shifts and the rising cost of care in Asia have boosted interest in the market, according to Varini Sharma, the SWF’s head of life sciences for direct investments in America. (Private Equity International)

S&P Global sees the size of aggregate global debt as "worrying," and believes it will require structural change to avoid "the hell of a debt crisis." (Private Debt Investor)

European asset manager McWin has acquired a majority stake in restaurant operator L’Osteria, valuing the business at almost €400 million. Financial details were undisclosed. (Agri Investor)

Verra and the offsets industry count the cost of avoidance credits: A carbon credit with inherently questionable value is no good for the climate or the sector but it’s also no good to throw the baby out with the bathwater. (Agri Investor)

"Buyout group Apollo Global Management has partnered with former SoftBank executive Marcelo Claure to explore a takeover of Millicom International Cellular that could value the Latin American telecoms company at almost $10bn, including debt, according to people familiar with the matter." (Financial Times)

"Schroders has won a mandate to invest £500mn of Welsh pension fund cash into private companies, as part of a broader plan by the UK’s largest listed asset manager to expand its private markets business." (Financial Times)

"Private label food sales grew in 2022 and are expected to do so again in 2023, which could lead to a smörgåsbord of M&A for dealmakers, according to a report by investment bank William Blair." (Axios Pro)

"10 Outrageous Predictions For Private Equity In 2023" (Forbes)

"A small but growing number of private-equity firms are backing businesses that help clients better manage their energy consumption, betting that pressure to reduce carbon emissions will expand demand for their services." (WSJ Pro)