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Thoma Bravo announces another multibillion-dollar take-private tech deal; 2022 may not be as slow as you think

Good morning, dealmakers. MK Flynn here with the Wire.

We’ve got a very busy morning for you, including a mega deal in the tech sector, a new quarterly report on PE deal activity from PE Hub and several stories from our new website, PE Hub Europe.

Take private. First up, Thoma Bravo just announced another multibillion-dollar deal, as the tech-focused private equity firm continues to take advantage of market conditions to scoop up software providers.

The firm is buying business spend management specialist Coupa Software in an all-cash take-private deal for $8 billion. The transaction includes a significant minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority.

Earlier in December, Thoma Bravo closed its newest three funds on more than $32.4 billion, with its fifteenth flagship fund at $24.3 billion. The firm also closed its fourth mid-market focused Discover fund on $6.2 billion and its second small-cap Explore fund on $1.8 billion.

You can read about the new funds on Buyouts here.

Putting the year in perspective. There’s been a lot of talk about the slowdown in deal activity this year, but I took a close look at data provided by Refinitiv for a new series of quarterly reports we’re launching today on PE Hub, and I concluded that the year may not be as bad as it feels.

Check out the charts and tables in the quarterly report, published earlier this morning on PE Hub.

And to hear perspectives on the slowdown and how factors including rising interest rates are affecting private equity dealmaking, listen to our new podcast series, Private Markets and the End of Cheap Money.

PE Hub Europe showcase. We recently launched PE Hub Europe, which provides in-depth coverage and exclusive insight on European private equity deals. 

Here’s a star-studded deal covered by the PE Hub Europe team today:

Mediawan, a content studio in Paris co-founded by actor Brad Pitt and backed by KKR and Atwater Capital, has agreed to take a “significant” stake in Plan B Entertainment, a film and television production company. Los Angeles-based Plan B’s credits includes The Tree of Life, Eat Pray Love, World War Z, 12 Years a Slave, Selma, The Big Short and Moonlight.

For more details on the deal, turn to PE Hub Europe’s coverage here.

Other stories you’ll find today on PE Hub Europe today include:

Editor Craig McGlashan wrote about a deal by LDC, the private equity arm of Lloyds Banking Group, which announced a “significant investment” in capital markets technology firm Etrading Software earlier today.

Find out how LDC plans to grow Etrading here.

Reporter Nina Lindholm interviewed David Whileman, a partner at London PE firm Inflexion, about the growing trend of taking minority stakes in companies. The firm announced in August the sale of its minority stake in Phenna Group to Oakley Capital in a deal that valued Phenna at more $1.2 billion.

You may read Nina’s interview here.

We are currently offering complimentary access to PE Hub Europe. Sign in or register to start reading today!

As I said at the beginning, today is a jam-packed day. I’ll be back tomorrow with more.

Until then, happy dealmaking,

MK

Read thefull wire commentaryon PE Hub …

Also of note (may require subscriptions)

A tale of two funds: how to gauge the fundraising market. As funds hit the market over the next few months, they will likely contend with what some sources have told me is 'LP fatigue.' (Buyouts)

Manulife Investment Management is seeking $500 million for its first vehicle prioritizing carbon sequestration over timber production. (Agri Investor)

Significant markdowns for private funds are coming once GPs release audited valuations at year’s end, a Meketa adviser said at a recent California county pension system meeting. (Buyouts)

Only 27% of LPs plan to increase their allocations to private equity over the next 12 months, down from 42% six months ago, according to Coller Capital’s latest barometer. (Private Equity International)

Data snapshot: In the last four years, the number of LPs wanting to grow or maintain their exposure to hydrocarbons has increased, according to a survey by Coller Capital. (New Private Markets)

The corporate venture arm of global construction materials manufacturer CEMEX recently launched a new accelerator program that will enable five early-stage start-ups in six countries to validate, enhance and scale their innovative products with the help of CEMEX’s resources, industry expertise and global network. (Venture Capital Journal)

"Top executives at Blackstone declared themselves baffled that so many retail investors want their money back from its giant private property fund, given its strong performance. They shouldn’t be surprised." (Wall Street Journal)

"Two venture capitalists have submitted a bid to buy the Phoenix Suns and Mercury professional basketball teams for $3 billion, an offer that could include financing from tech mogul Peter Thiel, according to people familiar with the matter and an offer sheet reviewed by The Wall Street Journal. The group is one of a handful of potential buyers, according to the people."

"Blackstone has warned of the risk of delays to the launch of a new private equity fund designed for wealthy individuals, as it copes with heavy investor withdrawals at two other funds in real estate and credit aimed at a similar clientele." (Financial Times)

"Private equity firms have suddenly become the power users of alternative data." (Pensions & Investments)

"The return expectations of investors in private-equity funds have climbed to their most optimistic level in a decade, despite challenges from the global economic downturn and turmoil in securities markets, according to secondary market buyer Coller Capital." (WSJ Pro)