EMEA
TPG invested £500m ($632m) in Clara Pensions, the member-first consolidator for defined benefit pension schemes. The fund committed an initial £225m ($284m), an amount expected to grow to £500m ($632m) as Clara grows to scale.
Adam Saron, CEO of Clara-Pensions, said: “Strong, patient capital is key to our model for securing members’ pensions. Finding the right partner to provide this has been a careful, crucial journey and TSSP fulfills exactly the criteria we have been looking for. Its track record and commitment to long-term capital investments chime perfectly with Clara’s aims."
Carlyle-backed Prima Solutions bolted on Effisoft.
Carlyle-backed Prima Solutions, one of Europe’s leading software provider for life, health, and property & casualty insurance companies, bolted on Effisoft, the leading vendor of reinsurance and regulatory software solutions for insurance and reinsurance companies across the globe. Financial terms were not disclosed.
This merger will enable both groups to accelerate their development in the property and casualty, health and personal protection insurance markets, sectors in strong demand for technological innovation.
Actis Capital acquired a majority stake in Kipeto Energy, a Kenyan wind power project. Financial terms were not disclosed.
Once operational, Kipeto, located in Kajiado county, as the country’s second-largest wind farm will supply 100MW of clean energy to the national grid as a significant contribution to Kenya’s Vision 2030 and Big Four Agenda.
BP launched the $3bn sale of onshore assets.
According to Reuters, the sale proceeds will partly fund the $10.5bn acquisition of BHP’s onshore assets that are mostly around oil-producing fields in Texas and Louisiana. BP had said it would sell $5bn to $6bn to finance the deal. Among potential bidders are funds Warburg Pincus and Carlyle Group.
BP is offering seven packages, all of them consisting of shale assets it held before the BHP deal, which include fields in the San Juan basin which straddles the Colorado-New Mexico border, the Cotton Valley field in East Texas, the Arkoma and Anadarko basins in Oklahoma, and the Wamsutter basin in Wyoming.
KKR and Altice formed a new telecom company Hivory.
KKR and Altice, a convergent leader in telecoms, content, media, entertainment and advertising, formed a new company Hivory, the largest independent telecoms tower company in France and third largest European tower company. Financial terms were not disclosed.
Through Hivory, Altice and KKR will proactively seek to partner with all mobile operators to develop their coverage and densification objectives in France, through the build-to-suit of new towers and facilitating colocation needs in the French mobile market. The company will seek to contribute to the development of French technology infrastructure and innovation, supporting telecom players on the eve of the ‘New Deal’ for French mobile and 5G rollout.
Chipmaker Graphcore raised $200m in funding.
Graphcore, a semiconductor company that develops accelerators for AI and machine learning, raised 200m in a Series D financing round, which valued the company at $1.7bn, more than quadrupling its prior private valuation. Atomico and Sofina co-led the round, with participation from other investors such as BMW iVentures, Microsoft and Sequoia.
Graphcore says the new funding will go towards scaling rapidly, with the company set to beef up its engineer teams at its Bristol HQ; its offices in London; Oslo in Norway; and Palo Alto in Silicon Valley.
Northleaf Capital provided funding for HPE Capital-backed PPRO.
PPRO is a leading cross-border e-payment specialist, enabling businesses to accept more than 140 alternative payment methods globally, including bank transfers, e-wallets and cash-based payments. No financial terms were disclosed.
“We are excited to begin a long-term, mutually valuable partnership with the teams at HPE and PPRO,” said Serge Koniski, Director at Northleaf. “PPRO is uniquely positioned as an independent pure player to partner with payment service providers, processing and collecting alternative payments globally. This transaction will allow PPRO to continue on its strong growth trajectory and further expand its global footprint in alternative payment methods.”
AMERICAS
Carlyle acquired StandardAero from Veritas Capital for reportedly $5bn.
Carlyle acquired StandardAero, a global provider of aftermarket engine maintenance, repair and overhaul services for the aerospace and defense industries, from Veritas Capital. Financial terms were not disclosed however, StandardAero's value was rumored to be around $5bn.
Russell Ford, CEO of StandardAero, said: “We are excited to partner with The Carlyle Group, and we thank Veritas Capital for its support and partnership. We look forward to working with Carlyle to further our aggressive growth trajectory as we continue providing world-class services to our customers as one of the world’s best and largest independent MRO service providers.”
Goldman Sachs, Morgan Stanley and Skadden Arps Slate Meagher & Flom advised Standard Aero. Credit Suisse, Macquarie, RBC and Latham & Watkins advised Carlyle. Barclays, Credit Suisse, Goldman Sachs, Macquarie, Jefferies, Nomura and RBC provided debt financing.
Centerbridge Partners acquired Civitas Solutions, the leading national provider of home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs, for $1.4bn. Under the terms of the agreement, Centerbridge will acquire all outstanding shares of Civitas common stock for $17.75 in cash per share. The offer price represents a 27% premium to the 30-day volume-weighted average price as of December 18, 2018.
“We are excited about this transaction, which follows a thorough review of alternatives by our Board of Directors,” said Bruce Nardella, President and Chief Executive Officer of Civitas. “This transaction delivers significant value for our shareholders and strengthens our ability to execute our long-term growth strategy and fulfill our mission through the expansion of high-quality, cost-effective services.
Barclays and Kirkland & Ellis advised Civitas. Goldman Sachs, UBS, KeyBanc Capital Markets, Goodwin Procter and Simpson Thacher & Bartlett advised Centerbridge. Goldman Sachs, UBS, KeyBanc Capital Markets and RBC Capital Markets provided debt financing.
Latham Pool Products is the leading manufacturer of inground residential swimming pools and components in North America. Wynnchurch will retain a stake in the company.
Russell Gehrett, Partner at Pamplona said: “We are excited to work with Wynnchurch and the Latham management team to build on the Company’s 62 years of customer relationships and market leadership. Latham already has a reputation for building the most reliable, high quality, innovative, and affordable pools in the industry, and this will remain the focus going forward.”
William Blair, Moelis and Foley & Lardner advised Wynnchurch Capital. Cowen & Company, Nomura and Goodwin & Procter advised Pamplona Capital.
ClearLight Partners sold Pure Water Technologies, one of the nation’s leading manufacturers and marketers of point-of-use water purification coolers, to Quench USA, Inc, an operating segment of AquaVenture Holdings Limited, a water services company, for $57m.
“ClearLight was a great partner as an investor with a long-term focus on building enterprise value. Their support helped us enter new markets, expand and improve our product portfolio and bring clean water to America’s workforce,” said Bob Tangredi, CEO of Pure Water. “Pure Water Technology products are recognized as the premier systems in the rapidly growing point-of-use water industry. Quench strengthens its position in the market by adding a large, loyal customer base, leading manufacturing capabilities and a strong dealer network.”
Raymond Jones and Armstrong Teasdale advised ClearLight. Goodwin Procter advised AquaVentures.
Fleetpride is a leading national distributor of aftermarket parts for the U.S. heavy-duty truck industry. Financial terms were not disclosed.
"We are pleased to partner with Al and the rest of the FleetPride management team as they continue to execute on a strategy to drive above-market organic growth and further consolidate the industry," commented Will Manuel, a Managing Director of American Securities. "The Company's scale, best-in-class product offering, supply chain capabilities, and strong management team create a sustainable competitive advantage and make FleetPride a strong fit for our investment strategy."
Weil Gotshal and Manges advised American Securities. Barclays and Vinson & Elkins advised Fleetpride.
Warren Buffet’s stake in Home Capital Group dropped to 10%.
Canadian mortgage lender Home Capital Group completed its share buyback which caused the holding of Berkshire Hathaway to drop below 10%. The fund bought a 20% stake in Home Capital last year and extended a C$2bn ($1.5bn) credit line after the company’s investors withdrew more than 90% of funds from its high-interest savings accounts.
Berkshire could see a profit of more than 70% for the shares it bought for around C$9.55 ($7.11) apiece in June 2017 and sold back to the company at C$16.50 ($12.3) per share.
Ridgemont closed its third flagship fund at $1.6bn.
Charlotte-based Ridgemont Equity Partners closed its third flagship fund at $1.65bn, besting a $1.25bn goal. The firm will use the cash to make investments ranging from $50m to $250m in the business and industrial services, energy, healthcare, tech and telecom sectors. Ridgemont closed its second flagship fund on $995m a little more than three years ago.
APAC
GrainCorp investigating $1.7bn takeover offer by Long Term Asset Partners.
GrainCorp, a public company, whose core business is the receival and storage of grain and related commodities, asked for information including the identities of the financial backers behind the all-cash proposal made on December 3 by little known asset manager Long-Term Asset Partners, which offered a 43% premium to the stock’s previous closing price.
“The LTAP proposal at this stage is not sufficiently certain or in a form which would allow the board to make a recommendation to shareholders,” GrainCorp Chairman Graham Bradley said in a letter to shareholders.
Macquarie Group and Gilbert + Tobin are advising GrainCorp. Goldman Sachs and Westbourne Partners provided financing to Long Term Asset Partners.
CVC explores $1.8bn sale of Nirvana.
Nirvana Asia Ltd is Asia’s largest funeral services provider. It provides burial plots, niches and tomb design and construction services in Southeast Asian markets including Malaysia, Thailand, Singapore and Indonesia, according to its website. The company was acquired by CVC for $1.1bn in 2016 and could bring the private equity fund more than $1.8bn in the potential sale.
Lightspeed set a $560m target for its two Chinese funds.
Lightspeed has set a $360m target for its fourth China-focused fund and a $200m goal for its first China select fund, which will likely target follow-on investments in the firm’s best-performing portfolio companies. Lightspeed invests in a wide range of sectors, with a focus on enterprise and consumer companies. The firm's portfolio includes The Honest Company, Rubrik and Zola.
If fully raised, the $360m venture fund would be the largest one Lightspeed has raised to date.
Acendre obtained financing from Strattam Capital.
Acendre is a leader in secure, cloud-based talent management software for regulated industry verticals. The investment will enable Acendre to accelerate its growth and more quickly advance its innovative, easy-to-use Software as a Service talent management platform, which helps organizations solve some of today’s most challenging hiring problems.
“We believe the HCM market will continue to grow and believe companies like Acendre, with innovative solutions and a commitment to ensuring the security and privacy of its customers, will lead the way,” said Strattam Capital Managing Partner Bob Morse.
Bowstring Advisors advised Acendre.
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