AMERICAS
US chipmaker Broadcom will seek early European Union antitrust approval of its proposed $71.6bn buy of cloud computing company VMware by pointing to competition from Amazon, Microsoft and Google, Reuters reported.
Announced in May, the deal is the second biggest globally so far this year and marks Broadcom's attempt to diversify its business into enterprise software. Tech deals have drawn intense scrutiny from regulators around the world concerned about power concentration in a few players and the possibility of bigger companies acquiring start-ups only to shut them down.
VMware is advised by JP Morgan, Goldman Sachs, Gibson Dunn & Crutcher (led by Barbara Becker and Andrew Kaplan) and FGS Global (led by Paul Kranhold). Financial advisors are advised by Debevoise & Plimpton (led by Michael Diz) and Sullivan & Cromwell (led by Alison S. Ressler). Broadcom is advised by Bank of America, Barclays, Citigroup, Credit Suisse, Morgan Stanley, Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by David Karp, Ronald Chen and Viktor Sapezhnikov) and Joele Frank (led by Joele Frank). Financial advisors are advised by Cooley (led by Ben Beerle). Silver Lake is advised by Simpson Thacher & Bartlett (led by Atif Azher).
Vista Equity Partners, a global investment firm focused exclusively on enterprise software, data, and technology-enabled businesses, completed the acquisition of Avalara, a provider of tax compliance automation for businesses of all sizes, for $8.4bn. Mubadala Investment, a sovereign wealth fund, participates as a co-investor alongside Vista Equity Partners.
"For nearly two decades, Avalara has ambitiously pursued its vision to automate global compliance, making tax less taxing for businesses and governments around the world. As a leader in this category, we believe our continued investment in innovation and experience is exciting for our customers, partners, and employees. We are pleased to partner with Vista and will benefit from their expertise in enterprise software as we build and improve upon our cloud compliance platform," Scott McFarlane, Avalara CEO.
Avalara was advised by Goldman Sachs, Perkins Coie and Simpson Thacher & Bartlett (led by Mario Ponce). Goldman Sachs was advised by Cravath Swaine & Moore (led by Gregory J. Ligelis and Keith Hallam). Mubadala Investment was advised by White & Case. Vista Equity Partners was advised by Bank of America and Kirkland & Ellis (led by Sarkis Jebejian, Jonathan Davis, Joshua Ayal and Ari Levi). Debt financing was provided by Apollo Global Management, Blue Owl and HPS Investment Partners.
SailingStone Capital Partners intends to vote against the proposed $3.3bn transaction between Turquoise Hill, a mineral exploration and development company, and Rio Tinto, a metals and mining corporation.
SailingStone believes that the bid significantly undervalues Turquoise Hill Resources and attempts to take advantage of the material governance failures created by Rio Tinto and the Turquoise Hill independent directors over the last decade.
Turquoise Hill is advised by BMO Capital Markets, TD Securities, Blake Cassels & Graydon, Norton Rose Fulbright and Paul Weiss Rifkind Wharton & Garrison (led by Adam M. Givertz). Rio Tinto is advised by Credit Suisse, RBC Capital Markets, Rothschild & Co (led by Roger Ewart, Derrick Queen and Karina Danilyuk), McCarthy Tetrault (led by Shea T. Small) and Sullivan & Cromwell (led by Scott Miller).
CCP Capital Strategies, a private equity investment firm, completed the acquisition of Wireless Maritime Services, a provider of maritime cellular networks enabling secure, high-performance connectivity at sea, from AT&T, a provider of telecommunications, media, and technology services, and Anuvu, a provider of high-speed connectivity and entertainment solutions. Financial terms were not disclosed.
"This transaction is an important milestone for WMS, and we're excited to partner with CCP to continue to deliver and innovate our best-in-class wireless offerings. Our focus will remain on our customers, employees and partners as we commence this new and exciting phase for WMS," Pramod Arora, WMS President & CEO.
CCP Capital Strategies was advised by Moore & Van Allen and Morgan Lewis & Bockius. Debt financing was provided by Brightwood Capital and PhenixFIN. AT&T was advised by Kilpatrick Townsend and Wiley Rein. Anuvu was advised by Drake Star Partners, Weil Gotshal and Manges (was advised by Brian Gingold) and Kite Hill.
Thoma Bravo, a private equity firm, completed the acquisition of Ping Identity, a provider of the intelligent identity solution for the enterprise, for $2.8bn.
"This compelling transaction is a testament to Ping Identity's leading enterprise identity solutions, our talented team, and our outstanding customers and partners. Identity security and frictionless user experiences have become essential in the digital-first economy and Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions. We are pleased to partner with Thoma Bravo, which has a strong track record of investing in high-growth cloud software security businesses and supporting companies with initiatives to turbocharge innovation and open new markets," Andre Durand, Ping Identity CEO.
Private equity firms Bain Capital and Abu Dhabi Investment Authority completed the acquisition of Merchants Fleet, a fleet management services provider. Financial terms were not disclosed.
"The infusion of new capital affirms the merits of our core values and disruptive approach. While other providers grapple with the effects of a consolidating market—business interruption, systems integration, confusion and employee impacts—Merchants moves forward fearlessly at the vanguard of fleet and mobility with best-in-class solutions for fleet electrification, fueling technology and last mile. There's never been a better time to work for, or work with, Merchants," Brendan P. Keegan, Merchants Fleet CEO.
Merchants Fleet was advised by BNP Paribas, Broadhaven Capital Partners and WilmerHale (led by Joseph Conahan and Andrew P. Alin). ADIA was advised by Gibson Dunn & Crutcher (led by Kathryn Kelly). Bain Capital was advised by Davis Polk & Wardwell (led by Michael Davis) and Stanton PRM (led by Charlyn Lusk). Debt financing was provided by BNP Paribas.
Berkshire Hathaway, an American multinational conglomerate holding company, completed the acquisition of Alleghany, a private equity firm, for $11.6bn.
“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years. Throughout 85 years the Kirby family has created a business that has many similarities to Berkshire Hathaway. I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon,” Warren E. Buffett, Berkshire Hathaway Chairman and CEO.
Valeas Capital, a venture capital firm, agreed to invest $200m in Sequoia Financial, a financial planning and wealth management services provider.
"We are delighted to welcome Valeas as a long-term strategic capital partner. The Valeas investment is further validation of Sequoia's talented team, significant growth potential, and strategic vision. It is part of our DNA to invest in our business and team ahead of the curve to achieve superior outcomes for our clients. Valeas, Kudu, and our employee-owner base provide a robust capital structure for the future," Tom Haught, Sequoia Founder and CEO.
Booz Allen Hamilton, an American management and information technology consulting firm, completed the acquisition of EverWatch, a provider of advanced solutions to the defense and intelligence communities, from Enlightenment Capital, a private equity firm. Financial terms were not disclosed.
“EverWatch’s talented workforce, national security expertise and core technical capabilities are an exceptional strategic fit with Booz Allen’s deep mission insights and robust portfolio of full-spectrum cyber operations, mission analytics, AI, and 5G offerings. The combination will deliver tremendous value to our clients as we work together to navigate a dynamic threat landscape and transform US national cyber capabilities,” Tom Pfeifer, Booz Allen President.
EverWatch was advised by Robert W Baird (led by Jean Stack and John Song), Moore & Van Allen and Morrison & Foerster (led by Damien Specht). Booz Allen Hamilton was advised by The Avascent Group, Jefferies & Company and King & Spalding.
Bain Capital, a private investment firm, completed the acquisition of a 40% stake in CitiusTech, a provider of healthcare technology services, solutions and platforms, from Baring Private Equity Asia, a private equity firm. Financial terms were not disclosed.
“We are thrilled that Bain Capital is joining BPEA EQT as an investor in CitiusTech, creating a partnership with two of the world’s leading investment firms. Both firms have significant track records scaling healthcare and technology businesses, and we couldn’t have picked two better partners to further support our growth ambitions. CitiusTech has more than doubled its revenues since our partnership with BPEA EQT in 2019. The investment from Bain Capital will help us continue to scale and innovate, to better serve existing and new customers, and enable healthcare organizations to become more care-efficient, personalized, and data-driven," Bhaskar Sambasivan, CitiusTech CEO.
Bain Capital was advised by AZB & Partners and Stanton PRM (led by Charlyn Lusk). BPEA was advised by Citigroup, J. Sagar Associates (led by Vikram Raghani) and JP Morgan.
EW Healthcare Partners, one of the largest and oldest private healthcare investment firms, completed the acquisition of Germfree Laboratories, a manufacturer of turnkey, mobile and modular cleanrooms and biocontainment facilities. Financial terms were not disclosed.
"There is an increasing demand for mobile and modular cleanrooms in biopharma to keep pace with new technologies and platforms, capacity constraints and the demand for flexible solutions that are delivered quickly. Germfree is addressing this demand for cleanrooms by designing and manufacturing advanced solutions for specialized and flexible cGMP-compliant manufacturing space. We look forward to working with Kevin and his team to further accelerate the company's growth into the fast-growing ATMP (advanced therapy medicinal products) sector," Evis Hursever, EW Healthcare Partners Managing Director.
Germfree Laboratories is advised by Jefferies & Company and Holland & Knight. EW Healthcare Partners is advised by Alvarez & Marsal, Boston Consulting Group and Kirkland & Ellis.
Odyssey Investment Partners, a private equity firm, agreed to acquire Magna Legal Services, a litigation support services provider, from CIVC Partners, an investment company. Financial terms were not disclosed.
“We chose to partner with Odyssey because of the firm’s extensive track record of supporting management teams looking to further drive growth and expand their businesses. Over the last fifteen years, we have been able to scale our business both organically and through a proven acquisition platform. Odyssey shares our vision for the future, and we are eager to leverage their team’s deep expertise and resources as we continue to execute on our ambitious business plan and build the premier firm in the legal services market. We would like to thank CIVC for their partnership over the past several years. We have achieved sustained success with their support, investment, and insights,” Mark Williams, Magna CEO.
Magna is advised by Harris Williams & Co and Ropes & Gray. Odyssey is advised by Houlihan Lokey, Latham & Watkins and Gasthalter & Co (led by Mark Semer).
Mubadala Capital, an investment firm, completed the acquisition of TruFood Manufacturing, a snack food contract manufacturing service provider, from AUA Private Equity Partners, a private equity firm. Financial terms were not disclosed.
"TruFood is an exceptional company that has firmly established itself as a market leader, a position it has achieved through a history of reliability, continuous innovation, and consistently delivering superior products for its customers. Just as importantly, it has an experienced and dedicated management team and passionate employees who are committed to driving value for the company and all its stakeholders. Even as a category leader, TruFood has significant growth potential, and we are confident that access to our resources and network, combined with the synergies within the wider Mubadala Capital portfolio, will help the company reach even greater heights," Adnan Azam, Mubadala Capital Director.
Mubadala Capital was advised by William Blair & Co and Akin Gump Strauss Hauer & Feld. AUA Private Equity was advised by Houlihan Lokey, McDermott Will & Emery and Paladin.
The Jordan Compan-backed Sunny Sky Products, a dispensed beverage manufacturer of cold dispensed, agreed to acquire GoodWest Industries, a manufacturer and supplier of low-acid aseptic beverages solutions, from Palladium Equity. Financial terms were not disclosed.
"GoodWest has experienced tremendous growth over the past few years, and its products and customer base are a natural fit for Sunny Sky. We look forward to welcoming GoodWest and its employees to the Sunny Sky family and are confident this partnership will better position us to scale our business and capitalize on our strong momentum. Additionally, we thank Palladium, who has been an excellent partner to GoodWest and has been instrumental in transforming the business into a world-class enterprise," W. Ashley Edens, Sunny Sky Products President and CEO.
GoodWest is advised by Lincoln International, Greenberg Traurig and Kekst CNC (led by Jeffrey Z. Taufield and Todd Fogarty). TJC is advised by Prosek Partners. Sunny Sky Products is advised by Kirkland & Ellis.
Apollo, a high-growth, global alternative asset manager, and Migdal Insurance, an Israeli insurance and pension company, agreed to invest $600m in Doral Renewables, a renewable energy and storage developer.
"We're pleased to support Doral's growth as the company continues to execute on its robust project pipeline. By continuing to scale and bring additional renewable energy facilities online, Doral will enhance grid stability in markets across the country while creating jobs in local communities and promoting a cleaner planet," Dylan Foo, Apollo Head of Infrastructure.
Doral Renewables is advised by Bank of America, Guggenheim Partners and Kirkland & Ellis. Apollo is advised by Allen & Overy.
KKR led a $400m investment in Skydance Media, a diversified media company, with participation from The Ellison Family, RedBird Capital and Tencent.
"We are delighted to invest behind Skydance, David Ellison and the impressive, differentiated team of creative and entrepreneurial talent he has assembled.” Ted Oberwager, Partner, who leads the gaming, entertainment, media and sports verticals within KKR’s Americas Private Equity business, added: “Skydance has already created a diverse collection of premium content across multiple formats, and we are only in the early stages of what they can accomplish. We look forward supporting the Skydance team as they continue to build their business across TV, film, animation, gaming and sports and tell compelling stories in new and innovative ways,” Jenny Box, KKR Partner.
Veritas Capital, a technology and government investment firm, agreed to acquire CAES Space Systems, an independent supplier of high-reliability electronic solutions for space, defense, healthcare and industrial applications, from CAES, a pioneer of advanced electronics. Financial terms were not disclosed.
"CAES Space Systems is uniquely differentiated by the breadth of its technical capabilities and segment expertise, as well as its long history of delivering critical solutions to customers. Operating in space and defense markets supporting national security, CAES Space Systems is well-positioned to thrive as a standalone business under Veritas ownership. We will deploy our significant government technology experience working with Mike Elias and rest of the CAES Space Systems team to accelerate growth and value proposition to customers," Ramzi Musallam, Veritas CEO and Managing Partner.
CAES is advised by Goldman Sachs and Lazard. Veritas is advised by Gibson Dunn & Crutcher and FGS Global (led by Jenny Gore).
Resource Label, a full-service provider of pressure-sensitive labels, completed the acquisition of MedLit Solutions, a pharmaceutical packaging and printing solution provider, from CORE Industrial Partners, a private equity firm. Financial terms were not disclosed.
"As an industry leader, our priority is to provide customers the highest quality, innovative solutions to meet their challenging packaging requirements. The partnership with Resource Label Group will expand our capabilities and improve the buying experience we provide to our customers. We are very excited about the opportunity ahead of us," Kevin Grogan, MedLit Solutions CEO.
CORE Industrial was advised by Mesirow Financial, Winston & Strawn and BackBay Communications.
Incline Equity Partners, a private equity firm, agreed to acquire iWave, a provider of a web research tool and fundraising services, from Sverica Capital Management, a growth-oriented private equity firm. Financial terms were not disclosed.
"We are incredibly impressed with the iWave platform and team. The company's trusted brand and scalable solution differentiate them in the market and provide an excellent foundation for continued growth and innovation. We plan to make significant investments in iWave to better serve existing clients and accelerate the pace of new client wins. Additionally, we feel there is significant opportunity to expand into adjacent workstreams across the donor relationship lifecycle through strategic acquisitions," Joseph Choorapuzha, Incline Partner.
iWave is advised by Shea & Co and Choate Hall & Stewart.
MSD Partners, a long-term-oriented investment firm, agreed to merge with BDT & Company, a merchant bank. Financial terms were not disclosed.
"MSD and BDT are remarkably complementary firms. We share similar cultures and approaches to investing, and we are both focused on serving strategic investors who seek to consistently compound capital over the long term. As we were looking to expand MSD's ability to provide superior solutions to our investment partners, we saw a perfect match in BDT's capabilities and global investor base. I've had the pleasure of knowing Byron for nearly three decades, and I look forward to working alongside him to realize the potential of our combined firm for the benefit of our clients," Gregg Lemkau, MSD CEO.
The Riverside Company, a global private investor focused on the smaller end of the middle market, completed the investment in OutSolve, a provider of outsourced labor and employment compliance solutions. Financial terms were not disclosed.
"We are excited to partner with the OutSolve team. The company's end markets are supported by strong regulatory tailwinds as well as the broader corporate move towards DE&I, ESG and social responsibility, which are all critically important. These fundamentals provide a robust platform for growth as we look to expand into adjacent service offerings and new end markets," Drew Flanigan, Riverside Partner.
The Riverside Company was advised by Jones Day (led by Lisa Lathrop).
General Catalyst led a $168m Series B round in Odyssey Therapeutics, a biotechnology company pioneering next generation precision immunomodulators and oncology medicines, with participation from Fidelity Management & Research Company, T. Rowe Price Associates, GreatPoint Ventures, Catalio Capital Management, Walleye Capital, Alexandria Venture Investments, SVB Securities, OrbiMed, SR One, Foresite Capital, Logos Capital, Woodline Partners, HBM Healthcare Investments, Colt Ventures and Creacion Ventures.
"Odyssey is pioneering next-generation therapeutics by marrying a powerful drug discovery engine integrating machine learning, biology, and medicinal and structural chemistry with an exceptional leadership team of proven drug developers. We are pleased to partner with General Catalyst and our world-class syndicate of investors and believe the interest in our immunology and oncology pipeline and capabilities further validates our approach to therapeutic development. We have made tremendous strides since our launch in 2021, and we value the support as we advance multiple candidates into IND-enabling studies in 2023," Gary D. Glick, Odyssey Therapeutics Founder and CEO.
Polychain Capital, a private equity firm, led a $165m Series B round in Uniswap Labs, a crypto exchange firm, with participation from a16z Crypto, Paradigm, SV Angel, and Variant.
The new funding will be used to support the firm’s expansion plans. In addition to “bringing the powerful simplicity and security. Uniswap Labs plans to launch non-fungible tokens and to move into mobile.
Insight Partners, a venture capital and private equity firm, led a $125m Series A funding round in Jasper, a developer of content writing platform, with participation from Coatue, Bessemer Venture Partners, IVP, Foundation Capital, Founders Circle Capital and HubSpot Ventures.
"Generative AI represents a major breakthrough in creative potential, but it's still inaccessible and intimidating to many. Jasper is working to bring AI to the masses and teach people how to leverage it responsibly so that businesses and individuals can better convey their ideas. We're grateful to our investors for believing in that potential as firmly as we do," Dave Rogenmoser, Jasper Co-Founder and CEO.
SK, a company that is engaged in various industries including energy, chemicals, information technology, and semiconductors, and Potentum Partners, a private equity investor, led a $100m Series D funding round in Swift Navigation, a developer of a global positioning system technology, with participation from New Enterprise Associates, Eclipse Ventures, EPIQ Capital, FM Capital, OVN Capital, TELUS Ventures, TWM Venture, Buckley Ventures and Schox Venture Capital.
"We have an amazing group of investors behind us and are honored to see the many customers who are using Swift technology at such incredible scale as they build the future of transportation and automation. Thank you to our loyal partners and investors at NEA, Eclipse, and EPIQ and we welcome the support of our new investors to help us deliver precise positioning across the world," Timothy Harris, Swift CEO.
KKR, an American global investment company, completed the investment in SkinSpirit, a skin care clinic. Financial terms were not disclosed.
“A shared growth mindset is at the heart of our Company. With KKR’s strong support, SkinSpirit will continue to grow with an eye toward offering best-in-class services to our clients across the country and providing our renowned teams with advanced learning and development, industry-wide leadership opportunities, and continuous improvement through unique initiatives such as our employee advisory boards,” Lynn Heublein, SkinSpirit CEO and Co-Founder.
Manulife Investment Management, a wealth and asset manager, completed the acquisition of two Central Valley orchards. Financial terms were not disclosed.
"We are proud to add these high-quality orchards to our permanent crop portfolio, managed by our experienced direct-operation team of agricultural professionals, for the benefit of our investors. We believe that orchards, as a nature-based solution, can provide both economic returns to our investor clients along with social and environmental benefits. Producing healthy, nutritious food while responsibly managing these natural resources can also contribute positively to vibrant rural communities, such as the ones surrounding these investments," Oliver Williams, Manulife Investment Management Global Head of agriculture investments.
Steve Ballmer commits $400m to Black-led venture capital and private equity.
Steve Ballmer, a billionaire owner of the Los Angeles Clippers NBA team and former CEO of Microsoft, is investing $400m to support Black-owned businesses.
Ballmer, along with wife Connie Ballmer, will partner with established private equity firms and investment banks to help address the systemic racial inequities that have hindered investment into these businesses in the past, WSJ reported.
“Our goal is to feed that need for venture start-up capital that is missing in the African American community. This is an incredible opportunity to invest in an undercapitalized market. We hope it will signal to other investors the value in giving Black investment managers access to capital," Steve Ballmer.
Investor Irenic Capital wants News Corp to split media and real estate units.
Activist investor Irenic Capital Management, which has a $150m stake in News Corp, wants the company to split its media and online real estate units, Reuters reported.
Irenic's push comes after media mogul Rupert Murdoch's proposal last week to reunite his media empire by combining News Corp and Fox Corp, nearly a decade after the companies split.
Blackstone's earnings fall 16% on sharp drop in asset sales.
Blackstone, the world's largest alternative asset manager, said its third-quarter distributable earnings fell 16% year-on-year, owing to a sharp drop in asset sales amid a downturn in the market.
Distributable earnings - the cash used to pay dividends to shareholders - fell to $1.4bn from $1.6bn a year earlier. That resulted in distributable earnings per share of $1.06, down from $1.28 a year ago, but slightly above the average analyst estimate of 99 cents, Reuters reported.
Bregal Sagemount closed its fourth PE fund at the hard cap of $2.5bn.
Bregal Sagemount, a leading growth-focused private equity firm, announced today it has held the final closing for Bregal Sagemount Fund IV at the hard cap of $2.5bn, 66% larger than its prior fund.
“We are extremely grateful and humbled by the continued confidence and support from our existing investors and are excited to welcome a select number of new thought-leading institutional investors to the Sagemount family. Despite macro headwinds, this support showcases the confidence our investor group has expressed in Sagemount’s ability to partner with market leading entrepreneurs to generate attractive investments across market cycles," Gene Yoon, Bregal Sagemount Founder and Managing Partner.
Bridge Investment Group raises $1.74bn for Bridge Workforce and Affordable Housing Fund II.
Bridge Investment Group Holdings, a private equity firm, announced the completed fundraising for Bridge Workforce and Affordable Housing Fund II, raising $1.74bn in equity commitments, ahead of its $1.50bn target.
BWAF II is dedicated to building, preserving, and rehabilitating predominantly non-government subsidized housing wherein at least 51% of residents earn below 80% of area median income, meeting the needs of the large and priced-out “missing middle” of US renters.
“We believe this represents the largest fund ever raised purely dedicated to the preservation of affordable housing in America. The US has an affordable housing crisis, with an estimated 10m households paying more than 50% of their annual incomes for housing. Currently, 82% of our Workforce and Affordable Housing residents earn less than 80% of AMI, and over 96% are not cost-burdened, typically defined as spending more than 30% of income on rent," Rachel Diller, Bridge Co-Chief Investment Officer.
Missouri pulls $500m from BlackRock over asset manager's ESG push.
Missouri has pulled $500m out of pension funds managed by BlackRock, state Treasurer Scott Fitzpatrick said, accusing the asset manager of prioritizing environmental, social and governance over shareholder returns.
Several Republican-led states have sought to cut business ties with BlackRock over its ESG push, with Louisiana earlier this month saying it would pull $794m out of the company's funds, Reuters reported.
Bonaccord Capital Partners II secures a $350m commitment from CAZ Investments.
Bonaccord Capital Partners II, the second fund from Bonaccord Capital Partners, a private equity firm, has secured a $350m capital commitment from CAZ Investments, an investment manager. The two businesses have a long-term strategic partnership, resulting in over $1bn in aggregate capital commitments since 2020.
Bonaccord, an affiliate of multi-asset class private markets solution provider P10, specializes in making strategic minority investments in mid-sized alternative asset managers across private equity, private credit, real estate, and real assets globally.
Next Play Capital closes oversubscribed Fund III at $200m.
Next Play Capital, a venture capital firm, announced the closing of its third flagship fund at $200m. The Fund exceeded its initial target size of $150m and significantly surpasses the size of its predecessor Fund II. Fund III adds 11 new institutional limited partners who embody the values that reflect Next Play Capital’s diverse LP community.
“From the beginning, we have sought to make venture more accessible to those who historically haven't been given the resources to decode it, nor have they been given a seat at the table. We are grateful for the relationships with our general managers and look forward to continuing to support their efforts to back innovative founders," Ryan Nece, Next Play Capital Managing Partner.
Seven Point closes a $120m continuation fund.
Seven Point Equity Partners has closed a continuation fund that allowed some investors to exit their stakes in The RiteScreen Company.
Seven Point raised about $120m for RS7 Continuation Fund from existing LPs as well as new investors led by Timber Bay Partners.
JP Morgan launches fundraising platform to lure startups.
JP Morgan Chase is launching a platform that aims to connect startup founders with venture capital investors to simplify the fundraising process, Reuters reported.
The new platform, Capital Connect, focuses on serving the financing needs of startups from their early stages, marking the ambition of the biggest US bank by assets to further expand into the private market and build a founder-friendly brand in Silicon Valley.
BlackRock and Manulife Investment Management back Zenyth Partners' continuation fund.
Zenyth Partners, a healthcare-focused private equity firm specialising in consumer-facing and tech-enabled healthcare services, has closed a continuation fund composed of both secondary and primary capital commitments, co-led by funds managed by BlackRock and Manulife Investment Management with support from Newbury Partners.
The fund has acquired minority stakes in three portfolio companies (the Sale Portfolio) from Zenyth Partners, a 2018 vintage permanent capital vehicle. Each of the Sale Portfolio companies were founded by the Zenyth team.
BlackRock offshore sales head quits to join KKR. (People)
Jordie Olivella, BlackRock’s Miami-based head of US offshore distribution has quit the company to join private equity firm KKR as head of Latin America wealth.
Olivella ended his six-year stay at the US asset manager last month, having most recently headed its offshore fund distribution efforts and helped develop BlackRock’s commercial offshore strategy. At KKR, Olivella will have respsonibility for building and managing relationships with US financial advisors and RIAs that serve Latin American clients, as well as wealth platforms in the region.
EMEA
Oculis, a developer of novel and transformative topical treatments, agreed to go public via a SPAC merger with European Biotech Acquisition in a $220m deal. Investors in PIPE indue Earlybird, Novartis Venture Fund, Pivotal bioVenture Partners, Tekla Capital Management, and VI Partners.
"Oculis has built a highly diversified late-stage pipeline that has the potential to revolutionize treatment in major ophthalmology segments. EBAC was formed to invest in the untapped potential in the European biotechnology sector and has screened over 100 European biotechnology companies. Oculis is a prime example of what we set out to invest in, with great innovation, a well-thought-out strategy, and an experienced management team to bring promising therapies to market for patients suffering from eye disease," Eduardo Bravo, EBAC CEO.
Oculis is advised by PricewaterhouseCoopers, Bank of America, SVB Securities, Cooley, Vischer and Consilium Strategic Communications (led by Amber Fennell and Matthew Cole). European Biotech Acquisition is advised by Arctica Finance, Bank of America, Credit Suisse, Kempen, SVB Securities, Davis Polk & Wardwell (led by Michael Davis and Derek Dostal), Maples Group, and Stibbe. Financial advisors are advised by Shearman & Sterling.
Cube Infrastructure Managers, an independent management company, agreed to acquire firstcolo datacenters, a Frankfurt-based data centre business and provider of colocation, dedicated servers, managed services, and private cloud solutions, from EMERAM Capital, a private equity firm. Financial terms were not disclosed.
"Cube invests in businesses which capitalize on megatrends driving the need for sustainable infrastructure. In the digital sector, Cube has conducted a dozen transactions since 2008, partnering with talented management teams to achieve strong and sustainable growth. We believe firstcolo to be very well positioned to address the increasing needs of German SMEs in terms of colocation and cloud services, with the ability to anticipate the future needs of customers," Stéphane Calas, Cube Infrastructure Managers Partner.
Cube Infrastructure is advised by PricewaterhouseCoopers, Fide Partners, Marsh, DLA Piper and Peregrine Communications. EMERAM Capital is advised by Solon, ING Bank, KPMG, P+P Poellath + Partners and WMP Eurocom.
Ergon Capital-backed svt, a provider of passive fire protection products and restoration management services, completed the acquisition of Technical Fire Safety Group, an independent fire safety glass specialist, producing, processing, and supplying mission critical fire-rated products, from Soho Square Capital, an investment firm. Financial terms were not disclosed.
"As part of the Technical Fire Safety Group, international expansion is a key part of our investment strategy, and this merger with the svt Group of Companies is the next step on this journey. Together with svt, we can both increase our global market share and further develop and expand our capabilities in passive fire protection," Neil Tilsley, TFSG CEO.
Digital 9 Infrastructure, an investor in the infrastructure of the internet, completed the acquisition of a 48% stake in Arqiva, a wireless infrastructure provider of television and radio broadcasting services, from Canada Pension Plan Investment Board, an investment management firm, for £300m ($340m).
"We believe the safe and reliable access to data and content across multiple devices and the closer connectivity between broadcasters, utilities and their customers will contribute to the UK's sustainable economic development. Arqiva is a long-standing trusted communications infrastructure operator in the UK and complements our investment mandate to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. Arqiva expands the Company's exposure to wireless networks and will support the Company's total return and yield targets as we continue to build a high-quality portfolio of scalable platforms and technologies," Phil Jordan, Digital 9 Infrastructure Chair.
Schroders, a British multinational asset management company, completed a €75m ($73m) investment in Fastned, the European fast-charging company.
"I'm very pleased to welcome Schroders Capital as a long-term investor to Fastned. This not only provides Fastned with the funding to continue to roll out our network, enabling us to make the next big step towards reaching our goal of 1k stations before 2030. It also marks the start of a new phase with Schroders Capital's large institutional sustainable infrastructure fund coming on board as an anchor investor, taking a long-term perspective on our business and industry, and being willing to actively support our growth plans," Michiel Langezaal, Fastned CEO.
Fastned was advised by BNP Paribas, Rabobank and Hogan Lovells. Schroders was advised by ABN Amro and De Brauw Blackstone Westbroek (led by Jan Willem Hoevers and Michael Schouten).
Private equity firm KPS Capital Partners' German aluminium smelter Speira is set to gain EU antitrust approval for its plan to buy aluminium recycler Real Alloy Europe with its offer to sell two plants to address EU concerns, Reuters reported.
"The integration of Real Alloy Europe into Speira will accelerate our strategy of creating closed loops from scrap to final product and back. We look forward to investing further in Speira's and Real Alloy Europe's combined capabilities to meet the market's demand for sustainable and circular solutions. Following the acquisition, Speira will continue to focus on delivering third-party recycling services to existing and new customers of Real Alloy Europe. We will be serving the whole European aluminium industry, working closely with customers across the value chain," Einar Glomnes, Speira CEO.
Mubadala Investment Company, a private equity firm, agreed to acquire a minority stake in GlobalConnect, a fiber-based data communication and data center services provider, from EQT, a private equity firm. Financial terms were not disclosed.
“GlobalConnect is a perfect example of EQT Infrastructure’s strategy to back companies that provide essential services to society. As data usage and internet traffic continue to increase, it is vital that the underlying digital infrastructure keeps up to meet future demand. EQT Infrastructure remains committed to GlobalConnect’s ambition to increase societies’ digital connectivity and we are happy to welcome Mubadala to come along on this journey," Carl Sjölund, EQT Partner.
EQT is advised by Citigroup and Deutsche Bank.
Kismet Capital, a private equity investment firm, agreed to acquire Avito, a Russian classified advertisements website, from Prosus, a consumer internet group, for $2.4bn.
Proceeds from the sale will be used for general corporate purposes. Avito was valued at about $1.4bn as of end March.
Prosus is advised by Investec.
Mobile telecommunications company Zain Saudi Arabia had transferred ownership of its unit Zain Business to the Public Investment Fund, a sovereign wealth fund, paving the way for selling the company's towers infrastructure.
PIF has changed the unit's name to the Golden Lattice Investment Company, which will become the holding company in charge of selling Zain's towers infrastructure units.
The sale of 8k tower assets to a PIF-led consortium was approved in February, with the deal valued at just over $800m. Under the agreement, all the units need to be transferred to GLI within 18 months from the financial completion, by which time at least 3k sites should already be transferred over, Reuters reported.
Zain Saudi Arabia is advised by Citigroup.
ADQ, an Abu Dhabi-based investment and holding company, offered to acquire a majority stake in Abu Dhabi Aviation, an airline based in Abu Dhabi, United Arab Emirates, for $434m.
"The proposed transaction will further position Abu Dhabi as a world-leading center of aviation excellence, combining the strengths of each asset to form a global MRO and aviation services champion to capitalize on growth opportunities in the aviation industry. The proposed combination will provide a framework to investing in the future development of an advanced aviation ecosystem that supports the sustainable transformation of Abu Dhabi and the UAE's economy for the long-term," Mohamed Hassan Alsuwaidi, ADQ Managing Director and CEO.
Sistema, a publicly traded Russian investment company, agreed to acquire a 47.7% stake in Melon Fashion Group, a Russian fashion manufacturer and retailer, from Swedish investors Eastnine and East Capital Holding for $256m.
"Melon Fashion Group is growing fast and demonstrating operational excellence. The Transaction is entirely in line with our investment strategy, which is focused on consolidating high-quality assets as well as leveraging opportunities arising from the ongoing market transformation. With our extensive experience in building leaders in Russian retail, we will be delighted to take part in the next stage of Melon Fashion Group's development and to play a role in further increasing the value of its business," Tagir Sitdekov, Sistema President.
Coatue, an investment manager, Lightspeed Venture, a venture capital firm, and O'Shaughnessy Capital, a quantitative asset management firm, led a $101m funding round in Stability AI, a community-driven, open-source artificial intelligence company.
"AI promises to solve some of humanity's biggest challenges. But we will only realize this potential if the technology is open and accessible to all. Stability AI puts the power back into the hands of developer communities and opens the door for groundbreaking new applications. An independent entity in this space supporting these communities can create real value and change," Emad Mostaque, Stability AI Founder and CEO.
Royal Group plans to invest $10bn in US and Europe.
Royal Group, an investment firm controlled by a top Abu Dhabi royal, plans to plow as much as $10bn into US and European stocks and other assets hammered by rising fears of a global recession.
The group, chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, sees this as an opportunity to offload some of its existing equity holdings, reduce its exposure to riskier assets and broaden its global portfolio, Bloomberg reported.
Although the final strategy is still being drawn up, investments in equities, fixed income and physical assets - such as real estate - are all being considered.
GIP considers £3bn sale of Edinburgh Airport.
Global Infrastructure Partners is considering a potential sale of Edinburgh Airport in Scotland, as global air travel picks up again after the pandemic.
The New York-based investor is speaking with potential advisers about the feasibility of a sale next year and has informally reached out to some suitors.
Edinburgh Airport could be valued at as much as £3bn ($3.4bn) in a deal. A sale is likely to draw other infrastructure funds and financial investors keen to expand in the sector, Bloomberg reported.
Qatar in talks to invest $2.5bn in Egypt to expand support.
Qatar is in advanced talks to buy around $2.5bn of state-held stakes in Egypt’s biggest mobile network operator and other companies, as the North African nation lines up funding to cope with the economic fallout of Russia’s invasion of Ukraine.
Under the potential pact, which is expected to be finalized by the end of this year, Qatar Investment Authority would acquire 20% in Vodafone Egypt from Telecom Egypt. The QIA is the Gulf state’s sovereign wealth fund and oversees an estimated $445bn in assets, Bloomberg reported.
Parle is in talks to buy Dr Gerard.
Parle Products, a biscuit maker, is in discussions to consider buying Dr Gerard, the second largest biscuits producer in Poland, from private equity firm Bridgepoint, The Economic Times reported.
Bridgepoint, which bought Dr Gerard from Groupe Poult of France in 2013, had appointed investment bank Houlihan Lokey to exit the business earlier this year before the Russia-Ukraine war slowed the sale process considerably. Dr Gerard is valued at $122m to $146m.
Shell among bidders for PE-backed Nature Energy.
Shell is among a number of companies joining a second bidding round to acquire Danish biogas producer Nature Energy, as energy firms race to boost low-carbon businesses, Reuters reported.
The sale is due to close by the end of this year and could value Nature Energy at around $2bn. It comes amid growing interest in biogas, which is produced from agricultural and other biological waste and could replace some of the fossil fuels that keep the world's major economies running.
EQT and Tillman are lining up rival bids for a stake in TDF.
EQT and Tillman Infrastructure are eying to buy Brookfield's 45% stake in French towers firm TDF, a business worth about $6.8bn excluding debt, Reuters reported.
The two investment firms are carrying out due diligence on the company and are expected to submit rival bids in November to replace Brookfield as TDF's single largest investor.
Enel to sell stake in its grid services unit to CVC.
Italy's biggest utility Enel is in advanced talks to sell a stake in its grid services unit to private equity firm CVC, Reuters reported.
Under the agreement, which could be signed in the next few days, CVC would buy a stake of 50% in Enel's Gridspertise unit. The sale is part of Enel's broader strategy dubbed 'stewardship business model' under which the Italian group aims to attract investments from partners to jointly develop some of its businesses in the areas of renewable energy, electrification or services.
Elliott takes a stake in Fresenius.
Investment firm Elliott Investment Management has taken a stake in Fresenius, with a view to potentially untangling the sprawling health-care company, Bloomberg reproted.
The Paul Singer-led firm has a substantial position in Bad Homburg, Germany-based Fresenius. It hasn't yet crossed the 3% disclosure threshold under German securities rules.
CQS and Napier Park take on Elliott with rival bid for Matalan.
CQS and Napier Park are among five funds preparing to take on Elliott Investment Management with a rival bid for struggling UK discount fashion retailer Matalan, Bloomberg reported.
The funds hold a majority of the retailer's £80m ($91m) junior debt and are fine-tuning a pitch that will include converting their debt into equity and fully repaying existing creditors.
Credit Suisse looks for capital from Mideast.
Credit Suisse Group has approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds are looking at the scandal-hit Swiss bank's businesses as potential investment opportunities.
Abu Dhabi and Saudi Arabia were weighing up, through their sovereign wealth funds, whether to put money into Credit Suisse's investment bank and other businesses. An investment would be to take advantage of low valuations, Reuters reported.
Abu Dhabi transfers Etihad Aviation Group to wealth fund ADQ.
Abu Dhabi sovereign wealth fund ADQ said the government had transferred full ownership of Etihad Aviation Group to the fund, Reuters reported.
"The transfer of EAG complements ADQ's efforts to transform Abu Dhabi into a global aviation hub anchored in end-to-end airport service excellence," ADQ.
Credit Suisse’s SPG unit said to draw interest from Mizuho.
Mizuho Financial Group has emerged as a suitor for at least part of Credit Suisse Group’s securitized products group as the Swiss bank moves closer to a final deal.
The Japanese bank is competing against parties including Apollo Global Management, Centerbridge Partners, Pimco and Sixth Street, Bloomberg reported.
PIF eyes investment in BeIn Media.
Public Investment Fund, Saudi Arabia’s sovereign wealth fund is considering an investment in BeIn Media Group, in what would be a major shift by the kingdom which until only recently had banned the Qatari broadcaster.
The PIF is among parties that have informally signaled interest in partnering with Doha-based BeIn. US private equity firms are also keen to invest.
Deliberations are in the early stages and there’s no certainty they’ll result in any investments in BeIn. The broadcaster could also explore alternatives including an initial public offering, Bloomberg reported.
Russell Investments launches new global unlisted infrastructure fund.
Global investment solutions provider Russell Investments has launched a new global unlisted infrastructure fund. The Luxembourg-domiciled open-ended private markets fund aims to invest in opportunities that address the need for new infrastructure solutions to meet evolving social and economic demands.
It is classified as Article 8 for SFDRi purposes, in line with the firm’s commitment to offering sustainable solutions to help achieve clients’ investment goals.
Credit Suisse places US asset management arm for sale, looks for capital increase, top banker to leave. (People)
Credit Suisse Group, an investment bank and financial services firm, is considering selling its US asset management business. The unit, which includes a platform for investing in collateralized loan obligations, is expected to draw interest from private equity firms. A capital increase, under the name Project Ghana, could come after the bank’s formal restructuring announcement on October 27. Credit Suisse's investment banking chief, Christian Meissner, will be leaving the bank then.
Credit Suisse has approached at least one Middle Eastern sovereign wealth fund for a capital injection, while some funds are looking at the scandal-hit Swiss bank's businesses as potential investment opportunities.
Credit Suisse Group is working with Royal Bank of Canada and Morgan Stanley on a potential capital increase, should the bank need to shore up its balance sheet and raise funds for its restructuring, Bloomberg reported.
APAC
EQT Partners, a purpose-driven global investment organization, completed the acquisition of Baring Private Equity Asia, a private markets investment firm in Asia, for $7.4bn.
"Asia is home to more than half of the world's population and predicted to generate over 40 percent of global GDP within ten years – as a result, it's expected that the growth of the Asian private market will accelerate at nearly double the pace of global markets through 2025. As a combined firm, we offer local experience and global capabilities – underlined by shared values – that puts EQT in an even stronger position to capture the opportunity through our leading investment strategies across private equity, infrastructure and real estate," Christian Sinding, EQT CEO and Managing Partner.
EQT Partners was advised by Ernst & Young, Morgan Stanley, AZB & Partners (led by Ashwath Rau, Rushabh Maniar and John Adwet Raghav), Clifford Chance, Kirkland & Ellis (led by Roger Johnson and Adrian Duncan), Vinge (led by Sofie Bjartun and Erik Sjoman), Greenbrook (led by Andrew Honnor) and Kekst CNC (led by Daniel Yunger). BPEA was advised by Goldman Sachs, JP Morgan, Mannheimer Swartling, Paul Weiss Rifkind Wharton & Garrison (led by Ariel Deckelbaum and Adam Wollstein), Simpson Thacher & Bartlett (led by Elizabeth Cooper) and SEC Newgate.
ABC International, an investment banking unit of the Agricultural Bank of China, led a $278m Series B round in Hithium, an energy storage startup, with participation from Matrix Partners China, Fenghe Capital, Dayone Capital, and Chengtun Mining Group.
Hithium is a high-tech enterprise formally established in 2019, specializing in the R&D, production and sales of lithium-ion battery core materials, LFP energy storage batteries and systems. Hithium is committed to providing safe, efficient, clean and sustainable green energy solutions for the world.
Qatar Investment Authority, the sovereign wealth fund of the State of Qatar, led a $250m funding round in Byju's, the Bengaluru-based ed-tech giant.
"Byju's is now at that sweet spot of its growth story where the unit economics and the economies of scale both are in its favor. This means the capital that we now invest in our business will result in profitable growth and create sustainable social impact. Regardless of the adverse macroeconomic conditions, 2022-23 is set to be our best year in terms of revenue, growth and profitability. Continued support from our esteemed investors re-affirms the impact created by us so far, and validates our path to profitability," Byju Raveendran, Byju's Founder and CEO.
Warburg Pincus is investing $350m to set up an insurance platform Oona.
Warburg Pincus is investing $350m to set up a Southeast Asian digital
general insurance platform called Oona Insurance, marking the US-based private equity firm's largest investment in the insurance sector in Asia.
Warburg Pincus is partnering with Abhishek Bhatia, a former group chief officer of Asian insurance company FWD Group's new business models unit, to set up the new business.
"With consistently rising incomes and accelerating digital adoption, we believe Oona is well positioned to capture the tremendous growth opportunity for digital insurance across Southeast Asia," Saurabh Agarwal, Warburg Pincus Managing Director.
Evercore explores a $314m stake sale in Restaurant Brands Asia.
Evercore Capital, a private equity firm, explores a $314m stake sale in Restaurant Brands Asia, the master franchisee of Burger King in India and Indonesia.
Everstone Capital, through its investment vehicle QSR Asia holds a 40.9% stake in Restaurant Brands. The Singapore-headquartered buyout firm is in talks with one adviser to explore the sale.
The potential sale comes at a time when consumer spending is rebounding following the easing of coronavirus restrictions in India and Indonesia, which have helped boost their second quarter economic growth to their fastest pace in a year, Reuters reported.
CPE taps Credit Suisse for sale of China’s Hairology.
CPE is reviving a sale of Chinese hair treatment chain Zhuhai Hairology after halting the process during the pandemic, Bloomberg reported.
The buyout firm is working with Credit Suisse Group and is reaching out to possible buyers. A deal for Hairology could fetch between $300m and $400m.
EQT sees near-record deals in Japan.
Reuters reported that Sweden-based private equity firm EQT has a near-record number of Japanese deals in the pipeline despite market turbulence, helped by the country’s relatively stable financing environment and a flow of corporate shake-ups.
EQT’s robust deal-making activity in Japan puts the world’s third-biggest economy in the private equity limelight at a time when higher borrowing costs have suppressed buyouts in the United States and Europe after a record 2021.
“The deal flow right now has been as high as last year, when (private equity) markets hit record highs,” Tetsuro Onitsuka, EQT Asia Private Equity Partner.
CDH Investments and PAG consider joining fray for Vnet.
Buyout firms CDH Investments and PAG are considering bids for US-listed Chinese data center company Vnet Group, Bloomberg reported.
CDH and PAG have separately been exploring financing and deal structures for a potential offer. The investors could either bid on their own or form a consortium with other prospective bidders.
Indonesia sets up a $1bn fund to improve access to clean water.
Indonesia has launched a $1bn fund that will invest in projects providing clean water access throughout the archipelago.
Dubbed the Indonesia Water Fund, the government has assigned state-owned fund management firm Danareksa, construction company Nindya Karya, and water management companies Perum Jasa Tirta 1 and Perum Jasa Tirta 2 to manage the fund and build the necessary infrastructure.
Vertex Ventures is set to raise nearly $500m for China-focused fund.
Venture capital firm Vertex Ventures, backed by Singapore state investor Temasek, is set to raise nearly $500m for a new fund that will invest in efforts to step up China's domestic tech development, DealStreetAsia reported.
The new fund's size will exceed an initial target of $400m, compared with an earlier, similar fund that raised $275m, said Tay Choon Chong, Vertex Ventures Managing Partner.
PAG-backed Indian wealth manager weighs $362m debt fund.
Edelweiss Wealth Management, backed by Hong Kong-based private equity fund PAG, is looking to raise about INR30bn ($362m) for a new venture debt fund, Bloomberg reported.
Edelweiss Crossover Yield Opportunities Fund will focus on lending to new age or high-growth companies in India that count private equity firms and venture capital funds as investors, according to Pranav Parikh, managing partner and head of private equity at Edelweiss Wealth.
SaaS-focused Avataar Venture Partners seeks to raise $350m for second fund.
Software-as-a-service and B2B technology-focused Avataar Venture Partners – the backer of unicorns such as Amagi and Zenoti – has launched its second fund with a target corpus of $350m, DealStreetAsia reported.
Fund II, which has hit the first close with investments from institutional investors from the US, Europe and West Asia, may end up raising $400m in the final close, per media reports.
Alteria Capital hits first close of third fund as venture debt gains traction.
Venture debt provider Alteria Capital Advisors, which has backed the likes of Indian startups BharatPe and Dunzo, has hit the first close of its third fund at $121m as venture debt asset class gains traction amid the funding winter, DealStreetAsia reported.
Alteria expects to complete the entire fundraise over the next few quarters, it said in a statement. The fund is seeking to raise a total of $243m for the third vehicle.
VinaCapital Ventures looks to launch second $100m fund next year.
VinaCapital Ventures, the VC arm of Vietnam-based asset manager VinaCapital, plans to launch its second $100m fund, which will focus on providing growth capital, next year.
Trung Hong, partner at VinaCapital Ventures, said during the firm's investor conference recently that the new vehicle will look at writing cheque sizes of up to $10m at the Series A+ and Series B stages, DealStreetAsia reported.
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