View this email online 

Thoma Bravo, FP and TPG close take-private transactions; plus, 5 PE-backed music deals

Good morning, dealmakers. Thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the Wire.

Fridays are often rather quiet on the deal front, but this morning there’s news of a big health tech transaction closing: Thoma Bravo has completed its $1.8 billion acquisition of NextGen Healthcare, which develops software for handling electronic medical records.

Earlier in the week, an even bigger tech deal closed, when Francisco Partners and TPG announced the completion of their $6.5 billion take-private deal of software tools developer New Relic.

There may be growing optimism about dealmaking in 2024, finds Dykema's 19th annual M&A Outlook Survey.

And, for your listening pleasure, we’re capping off the week on a light note, with a roundup of five musical PE deals.

Ambulatory healthcare

Thoma Bravo has completed the $1.8bn take private of NextGen Healthcare, an Atlanta-based provider of software used in handling electronic medical records. The deal was announced in September.

NextGen Healthcare serves more than 100,000 ambulatory healthcare providers who care for more than 65 million patients in the US.

Subscribe to the premium version of the Wire to get more on this deal.

Another done deal

Earlier in the week, Francisco Partners and TPG completed the previously announced take-private deal of New Relic, a provider of tools for developing software, for $6.5 billion.

New Relic stockholders approved the deal on November 2.

Premium subscribers have more on this deal.

Turn on the music

Investing in music royalties and copyrights has become a popular trend in private equity over the past few years. A key reason for the sector’s allure is its recession-resistant ability to provide stable and consistent cashflow in a shaky economy, writes my colleague Iris Dorbian.

Lately, Round Hill Music Royalty Partners and HarbourView Equity Partners seem to dominate the space; however, the bullishness has been spreading to other firms: Last week, Morgan Stanley Tactical Value, the private equity and credit investment platform of Morgan Stanley Investment Management, said it was teaming up with renowned music publisher Kobalt to form a $700 million plus venture focused on acquiring music royalties.

Iris looked at these five music deals that struck a resonating chord with us this past year. Here’s a pair of examples:

Upgrade to the premium version of the Wire to learn more about the five deals.

Survey says…

As the curtain begins to close on 2023, many dealmakers are already looking ahead to 2024 and feeling cautiously optimistic.

Dykema's 19th annual M&A Outlook Survey polled more than 260 senior executives and advisers engaged in M&A.

Fifty-seven percent of respondents said they expect the M&A market will strengthen over the next 12 months.

Premium subscribers have access to deeper insights from this survey.

Here’s hoping for the best.

That’s it for this week. As always, you can reach me at obey.m@pei.group.

MK Flynnwill be back with the newsletter on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Los Angeles County Employees Retirement Association has made between $1 billion and $1.5 billion of private equity commitments in 2023, well below its original plan of dedicating $3 billion to funds raising capital. (Buyouts)

With impact fundraising, the data looks bleak but the outlook does not. What a series of success stories tells us about the market for sustainable private markets fundraising. (New Private Markets)

Are hurdle rates too high for the current environment? It’s never a bad idea to rethink incentivization models in the interest of LPs’ returns. (Private Equity International)

Ares Management’s dedicated wealth unit expects to see a broader product line-up for individual investors and more tech partnerships in the near term as it seeks to scale its platform. (Private Equity International)

PIMCO Prime Real Estate, the core and core-plus real estate business of the asset management behemoth, is expecting to exit almost $500 million of assets in India and China as part of a portfolio rebalancing strategy in the region. (Priavte Equity Real Estate)

CPP Investments, the world’s biggest investor in private equity according to Private Equity International's GI 100, was both a buyer and seller on the secondaries market in the most recent quarter. (Secondaries Investor)

"Two U.S. senators introduced a bipartisan bill on Thursday that would require private equity firms to make public how much they invest in China and other countries of concern." (Reuters)

"China Investment Corp has hired a new North America head for its New York office, two people familiar with the matter said, filling a months-long vacancy and showing the sovereign wealth fund wants to maintain the outpost despite flaring U.S.-Sino tensions." (Reuters)

"Everstone Capital Asia Pte is seeking $1 billion for its latest private equity fund for India and Southeast Asia, according to people familiar with the matter." (Bloomberg)