AMERICAS
British Columbia Investment, an institutional investor, agreed to invest in Authority Brands, a residential services franchising platform in North America. Apax Partners will retain majority ownership. Financial terms were not disclosed.
"We are proud to have partnered with the Authority Brands team to help build, both organically and through strategic acquisitions, a leading residential services franchising platform. We continue to see significant room for growth by Authority Brands and are pleased to join with BCI and members of the leadership team in the next phase of the company's journey as they extend their platform through M&A, and strategic initiatives including franchise development, technology transformation and international expansion," Ashish Karandikar, Apax Partner.
Apax Partners is advised by Boxwood Partners, Ernst & Young, Harris Williams & Co, Moelis & Co, William Blair & Co, DLA Piper, Kirkland & Ellis, Lathrop GPM, Simpson Thacher & Bartlett and Ernst & Young.
TSG Consumer Partners, a private equity firm, and Leon Capital, a diversified holding company for a privately-owned group of entities based in Dallas, Texas, completed the investment in Specialty Dental Brands, a dental support organization. Financial terms were not disclosed.
"We are proud to have launched Specialty Dental Brands alongside its outstanding management team and supported the company's significant growth over the years. We are excited about the partnership with TSG and for the next phase of growth as we work together to continue to support doctor-led innovation and expand access to high-quality care," Hunter Dallas, Leon Capital Group Partner.
Specialty Dental Brands was advised by Jefferies & Company (led by Rich Agabs), McGuireWoods and Sidley Austin. TSG was advised by SVB Securities, William Blair & Co, Ropes & Gray (led by Elizabeth Gallucci and Paul Van Houten) and FGS Global.
Wealth management firms Karp Capital Management and Corsair Capital, agreed to invest in Miracle Mile Advisors, an investment advisory firm. Financial terms were not disclosed.
"Miracle Mile and Karp Capital coming together is a unique partnership. We share a strong cultural alignment and dedication to providing clients with highly customized, fiduciary advice. Our focus on providing wealth management services to the automotive, RV, and powersports spaces complement Miracle Mile’s broad foundation in advanced financial planning and wealth advisory services,” Peter Karp, Karp Capital Founder.
Miracle Mile is advised by Raymond James (led by Elizabeth Bloomer Nesvold), WilmerHale and Prosek Partners. Corsair Capital is advised by Ardea Partners, Waller Helms Advisors and Simpson Thacher & Bartlett (led by Sebastian Tiller). Karp Capital is advised by Venable.
Veritas Capital, a private equity fund, agreed to acquire Sequa, a business managing jet engine repair and metal coating manufacturing from Carlyle, an investment company. Financial terms were not disclosed.
“Chromalloy has emerged as an industry leader by leveraging technology and innovation to drive a highly unique value proposition for customers. We are thrilled to partner with Brian and the entire Chromalloy team, who have a proven track record of delivering differentiated solutions to the global engine ecosystem. Together, we are excited to continue investing in distinctive technology and deepening Chromalloy’s relationships with both existing and new customers," Ramzi Musallam, Veritas Chief Executive Officer and Managing Partner.
Sequa is advised by Bank of America, Evercore and Latham & Watkins. Veritas Capital is advised by Covington & Burling, Gibson Dunn & Crutcher and FGS Global.
Oxford Industries, an apparel manufacturing company, completed the acquisition of Johnny Was, an operator of a fashion brand intended to serve women, from Endeavour Capital, a private equity firm, for $270m.
"We are delighted to be joining Oxford and their amazing portfolio of lifestyle brands. We believe Oxford is the perfect home for Johnny Was as our missions are aligned and they have a proven track record of successfully partnering with brand leadership to optimize investment, performance, and long term brand management to fuel growth. I am incredibly grateful to the dedicated team of people at Johnny Was for helping the brand achieve incredible milestones and look forward to our continued success together as we work with Oxford going forward," Rob Trauber, Johnny Was CEO.
Oxford Industries was advised by Kilpatrick Townsend, King & Spalding and Smith Gambrell & Russell. Johnny Was was advised by Raymond James (led by Lee Helman) and Buchalter.
Private equity firms Goldman Sachs Asset Management and Cleanhill Partners completed the acquisition of a minority stake in EPC Power, a smart inverter manufacturer. Financial terms were not disclosed.
“EPC Power is extremely proud of the strong reputation and track record we’ve built by focusing on product innovation and forging deep relationships with our customers. As the world becomes more reliant on renewable energy, inverters need to continue to get smarter. Goldman Sachs and Cleanhill Partners support this vision and are committed to investing in EPC Power and our people to capitalize on this exciting market opportunity and to positively impact the U.S. energy transition," Devin Dilley, EPC Power Co-Founder and CEO.
EPC Power was advised by William Blair & Co, Foley & Lardner and Gabriel Marketing (led by Michael Tebo). Goldman Sachs AM was advised by Kirkland & Ellis and Vinson & Elkins (led by Peter C. Marshall).
Vista Equity Partners, an American investment firm, offered to acquire KnowBe4, the provider of the world's largest security awareness training and simulated phishing platform, for $4.2bn.
KnowBe4's Board of Directors regularly considers opportunities to enhance value for its stockholders. In response to an inquiry from Vista, the Board formed a special committee of the Board, comprised solely of independent directors, to engage with Vista and take other actions that it deems appropriate, with the assistance of independent financial and legal advisors.
KnowBe4 is advised by Morgan Stanley, Potter Anderson & Corroon, Wilson Sonsini Goodrich & Rosati and Joele Frank (led by Eric Brielmann).
Stonepeak, an alternative investment firm specializing in infrastructure and real assets, agreed to acquire the safety business of Apollo-backed Intrado, a provider of technology-enabled services, for $2.4bn.
"I am pleased that the Safety team will continue to advance their vision as part of the Stonepeak portfolio, benefitting from their experience and success in investing in a wide range of digital infrastructure companies over the past decade. I remain excited about Intrado's future given Digital Workflows, Notified, and Mosaicx are industry leaders in each market they serve," John Shlonsky, Intrado President and CEO.
Stonepeak is advised by Simpson Thacher & Bartlett (led by Brian Chisling). Intrado is advised by LionTree Advisors, RBC Capital Markets and Paul Weiss Rifkind Wharton & Garrison (led by Brian Scrivani and Taurie Zeitzer).
Centerbridge Partners, a multi-strategy private investment firm, and Allianz X, a venture capital firm, led a $315m Series D funding round in Pie Insurance, a tech-enabled provider of workers' compensation insurance to small businesses, with participation from White Mountains Insurance Group, Gallatin Point Capital, Greycroft and Acrew Capital.
"This round of financing is monumental in more ways than one. It's no secret that growth-stage startups, and specifically insurtechs, are facing a challenging fundraising environment. However, Pie's ability to grow rapidly while still focusing on delivering strong unit economics and sustainable loss ratios is proving to be a key differentiator. Pie is disrupting the highly fragmented small business commercial insurance market through our proprietary technology, which more accurately prices and underwrites insurance risks," John Swigart, Pie Co-Founder and CEO.
Pie Insurance was advised by Ardea Partners and Cooley. Centerbridge Partners was advised by Kirkland & Ellis (led by Kimberly Meng Han and Rajab S. Abbassi). Allianz X was advised by Sullivan & Cromwell.
LLR Partners, a private equity firm, completed the acquisition of Stratix, provider of managed mobility services, from Tailwind Capital, an investment company. Financial terms were not disclosed.
“MMS services are increasingly mission-critical to large enterprises, and Stratix has earned its leadership position. Every day, Stratix helps make enterprise mobility more convenient, simple and cost-effective for organizations, and we are truly Customer-Obsessed. I’m grateful for the partnership we have had with Tailwind - our business is thriving, and we are eager to now join forces with LLR as we continue our rapid growth,” Louis Alterman, Stratix CEO.
Stratix was advised by Guggenheim Partners and SVB Securities. Tailwind Capital was advised by FGS Global and Davis Polk & Wardwell (led by William J. Chudd).
Littlejohn & Co, a private equity firm, completed the investment in The Hiller Companies, a provider of fire and life safety services. Pon Holdings continues to be a large investor in the business. Financial terms were not disclosed.
"Littlejohn has a demonstrated track record of scaling businesses in the facility services sector, and I am excited to partner with them as we seek to expand our capabilities while continuing to deliver for our customers. We look forward to leveraging the firm's resources to accelerate our growth trajectory and execute on the meaningful organic and inorganic growth initiatives available to our company," Jeff Birch, The Hiller Companies CEO.
Littlejohn & Co was advised by Gasthalter & Co (led by Nathaniel Garnick). Hiller was advised by Robert W Baird. Pon was advised by Davis Polk & Wardwell (led by Michael Davis) and Morgan Lewis & Bockius (led by Sameer Mohan).
BlackRock LTPC, an innovative private equity strategy, agreed to acquire a majority stake in Paradigm Oral Health, a provider of oral surgery, from InTandem Capital Partners, a private equity firm. Financial terms were not disclosed.
"We are pleased to invest in Paradigm, which has established itself as an industry defining platform for the development and delivery of next-generation oral health solutions. Through its focus on providing superior clinical care, advanced technology, and continued training and education to its surgeon partners, the company is well positioned for long-term growth. We look forward to partnering with Dr. David Rallis and the entire Paradigm team," Colm Lanigan, BlackRock LTPC Head of Americas.
Paradigm is advised by Houlihan Lokey and Goodwin Procter. BlackRock is advised by Simpson Thacher & Bartlett. InTandem is advised by FGS Global.
Vector Capital, a private equity firm, agreed to invest $100m in Malwarebytes, an operator of a network security platform.
“Vector Capital’s investment is a testament to the transformational work our team has done to evolve our best-in-class endpoint protection to comprehensive offerings for both individuals and organizations, while driving profitable growth. Importantly, Vector Capital shares our mission to protect those most vulnerable to cyberattacks through cutting-edge technologies and the power of community. We believe Vector Capital’s collaborative approach and proven ability to help build global software businesses make them ideal partners in our ongoing efforts to build a safer digital world," Marcin Kleczynski, Malwarebytes Co-Founder and CEO.
Malwarebytes is advised by Jefferies & Company and Fenwick & West. Vector Capital is advised by Paul Hastings.
WindRose Health Investors, a healthcare private equity firm, completed an investment in Third Wave Recovery Systems, a provider of rebate administration services for hospitals, long-term care facilities, and select specialty physician groups. Financial terms were not disclosed.
"The acquisition of SRX cements TWRx as the premier platform within the rebate and prescription drug management space. We believe that the Company will continue to build upon its existing service offering to create further value for its clients. We are excited to partner with Dr. Moskow, Ed, and the rest of the TWRx team as they solidify TWRx as the highest quality rebate management company in the industry," Alex Buzik, WindRose Partner.
Third Wave was advised by Mintz Levin. WindRose Health was advised by McDermott Will & Emery and Lambert & Co.
Ontario Teachers, an organisation responsible for administering defined-benefit pensions, completed the acquisition of a majority stake in GPA Global, a packaging services provider, from EQT, an investment organisation. Financial terms were not disclosed.
“GPA has undergone a transformation over the past five years, from an Asia-centric consumer electronics packaging specialist, into its position today as a truly global packaging platform that has a strong market position across a diversified mix of attractive end-markets. EQT has been instrumental in supporting this journey and have been great partners in the development of our business," Tom Wang, GPA Co-Founder and President.
EQT was advised by Evercore and Baker McKenzie. GPA was advised by Evercore.
Parthenon Capital and Bain Capital-backed Zelis, a healthcare payments and pricing company, completed the acquisition of Payer Compass, a provider of reimbursement and claims pricing, administration, and processing solutions, from Spectrum Equity, a growth equity firm, and Health Enterprise Partners, a healthcare-focused investment firm. Financial terms were not disclosed.
The acquisition enables Zelis to evolve and expand our best-in-class solutions for out-of-network healthcare services for clients.
"We're thrilled to complete the acquisition of Payer Compass and join our organizations. Zelis is on a mission to create a better healthcare financial experience for all, and the powerful combination of our technology and teams advances us in achieving that aim," Amanda Eisel, Zelis CEO.
Zelis was advised by Kirkland & Ellis. Payer Compass was advised by TripleTree and Latham & Watkins.
A consortium of investors including HPS Investment Partners, Atlantic Park Strategic Capital Fund and Morgan Stanley Tactical Value, agreed to acquire a 40% stake in OneTeam Partners, a sports commercialization firm, from RedBird Capital, a private equity firm. Financial terms were not disclosed.
“We are excited to partner with OneTeam to help drive continued growth in one of the most innovative and efficient licensing and marketing platforms in professional and college sports. The strong alignment among HPS, OneTeam and the Players Associations in our collective goal of maximizing the value of athletes’ rights through this platform, provides a strong foundation for a successful long-term partnership," Scot French, HPS Managing Director.
OneTeam Partners is advised by PJT Partners, Simpson Thacher & Bartlett (led by Patrick J. Naughton) and Weil Gotshal and Manges (led by Ryan Taylor).
Bregal Sagemount, a growth-focused private capital firm, completed an investment in Solo, a software company. Financial terms were not disclosed.
“Our vision shapes everything we do, even our very name. Solo stands for Speed Of Light Operations. It is as much our obsession as it is our vision. Relentlessly pursuing our vision has enabled significant market acquisition and led us to the right strategic and capital partner in Sagemount,” Dan Larkin, Solo Co-Founder and CEO.
Solo was advised by Mayer Brown and BackBay Communications. Bregal Sagemount was advised by Goodwin Procter.
General Atlantic, an investment company, completed the acquisition of a 15% stake in Kahoot, an edtech company, from Softbank, a private equity fund. Financial terms were not disclosed.
“We are very grateful to SoftBank for their partnership over the past two years. As Kahoot! continues to pursue its mission to improve lifelong learning by building a leading global learning and engagement platform, we are thrilled to add a partner of General Atlantic’s caliber. The team at GA brings deep experience in scaling global education technology and software businesses and positioning market leaders for long-term success, and we look forward to our next phase of momentum in empowering the learning ecosystem around the world,” Eilert Hanoa, Kahoot CEO.
General Atlantic was advised by JP Morgan and Wikborg Rein.
MiddleGround Capital, a private equity firm, completed the acquisition of HLC, a distributor of bicycle parts and accessories. Financial terms were not disclosed.
“We’re thrilled to invest in and support the growth of a clear North American market leader within the bicycle parts and accessories distribution industry, which has proven to be a promising space given recent tailwinds. As the mobility industry develops, bicycles will play an important role in the transformation of the industry. HLC is uniquely positioned serving a broad and fragmented customer base with value added distribution capabilities,” John Stewart, MiddleGround Founding Partner.
HLC was advised by Lazard. MiddleGround Capital was advised by Dukas Linden Public Relations (led by Zach Kouwe and Doug Allen).
HIG Capital, a private equity and alternative assets investment firm, completed the acquisition of a majority stake in Northern Biogas, a full service renewable natural gas producer, designer, constructor, and service provider. Financial terms were not disclosed.
“We appreciate HIG’s confidence in our business plan and are excited to partner with HIG as we continue to execute on our development pipeline of dairy, landfill, and food waste RNG projects. We are solidly positioned to provide rapid, best-in-class service to our customers and partners, given our unique combination of development experience, in-house technical knowledge, and full scale, proven construction and operation expertise, all of which are now supported by HIG, an outstanding financial partner,” Chris Akers, Northern Biogas CEO.
Northern Biogas was advised by Vinson & Elkins. HIG Capital was advised by Sidley Austin.
Coliseum Capital, a hedge fund, offered to acquire Purple Innovation, a designer and manufacturer of a variety of comfort products, for $362m.
The Purple Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of Purple and all Purple shareholders.
Tiger Global, an investment firm that focuses on private and public companies in the global Internet, software, consumer, and payments industries, led a $145m Series A funding round in Opto Investments, a service provider of independent investment advisors with a total solution for accessing private market investments, with participation from 8VC, MSD Capital, Clocktower Ventures, FinVC, HOF Capital.
“The world is staring down daunting challenges in this decade and beyond. Our experience in Silicon Valley and the United States innovation ecosystem is that well-funded entrepreneurs can solve these problems and create prosperity. I co-founded Opto with top talent from the technology and financial world to open up private markets to top investment advisors and their global clients like never before—and unlock new capital for the world’s greatest innovators building for the future,” Joe Lonsdale, Opto Chairman and 8VC Managing Partner.
Opto Investments was advised by Edelman.
Gem Global Yield, a direct lending fund managed by Global Emerging Markets, led a $200m funding round in LootMogul, a sports Metaverse company.
"LootMogul is super excited about this investment commitment from GEM as it empowers athletes, fans and brands to provide an immersive engagement and tools to bridge experiences between web three metaverses and real world," Raj Rajkotia, LootMogul CEO.
BRV Capital Management, a tech-focused growth equity arm of BlueRun Ventures, led a $100m Series C round in Swiftly Systems, a provider of technology and retail media solutions for retailers worldwide.
"Our mission is to empower brick-and-mortar retailers to move from analog to algorithms, as winners in this new era of commerce will be determined by how fast they can reinvent their business to capture shoppers digitally and monetize those digital relationships. We are grateful to BRV Capital for their support that will enable us to turn today's brick-and-mortar retailers into tomorrow's omnichannel leaders," Henry Kim, Swiftly CEO.
Genstar Capital mulls $6bn exit of Prometheus.
Private equity firm Genstar Capital is considering strategic options for software maker Prometheus Group that could include a sale.
Genstar has held talks with potential advisers over exploring a sales process that could value Raleigh, North Carolina-based Prometheus at about $6bn, Bloomberg reported.
Prometheus, which makes plant maintenance operations and optimization software, is likely to attract interest from potential corporate buyers. A final decision hasn’t been made, and Genstar could still decide to keep the business.
Wall Street Banks are set to lose about $600m on Citrix debt.
Wall Street banks are poised to realize roughly $600m of losses after offloading financing commitments for the buyout of Citrix Systems to investors, the culmination of months of work to try and mitigate the damage from underwriting pledges made early in the year before a sharp repricing of risk assets.
While a group of underwriters led by Bank of America, Credit Suisse and Goldman Sachs ultimately found enough demand to sell $8.55bn of the total $15bn debt package via the bond and loan markets, investors required significantly higher yields than those the banks promised to private equity firms Vista Equity and Elliott Investment Management back in January, forcing the banks to absorb the losses, Bloomberg reported.
The damage could have been even worse had they tried to sell the entire financing package to money managers, with losses likely exceeding $1bn in such a scenario. Yet that means banks are also keeping a significant portion of the risk on their balance sheets for what’s likely to be an extended period.
Chamath Palihapitiya shutters two SPACs as deal hunt fails.
“SPAC King” Chamath Palihapitiya is winding down two blank check firms after a hunt to find targets to take public came up empty as the industry fizzles.
Social Capital Hedosophia VI, his largest ever special purpose acquisition company, which raised $1.15bn, and Social Capital IV, which pulled in $460m from investors, will be shut down and give cash back to investors. Last month, the two SPACs launched by Palihapitiya said they needed to push back the October deadlines they had set to make acquisitions, Bloomberg reported.
Share prices for companies he took public in earlier deals like space-tourism venture Virgin Galactic and personal-finance app SoFi Technologies, are down more than 60%, causing big losses for his followers. With that track record, it wasn’t clear investors would support his deals, making his SPACs less attractive to startups they might try to acquire. SPAC investors have been pulling money out of nearly all deals lately, making it difficult to complete mergers.
Neuberger Berman raises $4.9bn for global PE secondary fund.
Neuberger Berman, a private, independent, employee-owned investment manager, has held the final close of NB Secondary Opportunities Fund V, the firm's fifth global private equity secondary fund at $4.9bn, surpassing its target of $3bn.
SOF V's diverse investor base includes corporate and public pension plans, sovereign wealth funds, endowments, foundations, insurance companies, family offices, and high net worth individuals. Investors are global, including from North America, Europe, Asia and Latin America.
Ares Management raises $3.7bn of Sports, Media and Entertainment Capital.
Ares Management, a private equity firm, announced today that it has raised $3.7bn of dedicated capital focused exclusively on investing in sports leagues, sports teams and sports-related franchises, as well as media and entertainment companies.
Ares Sports, Media and Entertainment Finance, Ares’ inaugural fund focused on the sector, includes total equity commitments of nearly $2.2bn. Including anticipated leverage and related transaction vehicles, the total available capital for SME is expected to be $3.7bn. The Fund was oversubscribed relative to its initial target of $1.5bn.
“We are grateful to our investors for their overwhelming support for our inaugural sports, media and entertainment fund. We have witnessed significant demand for new and original content among fans, streaming platforms and networks and this has driven sports related businesses to require flexible and scalable capital to help fuel this secular growth," Mark Affolter, Ares Partner and Co-Head of US Direct Lending.
HarbourVest Partners closes Fund XII over $3bn exceeding target.
HarbourVest Partners, a global private markets investment specialist, announced the final close of its twelfth flagship US fund, HarbourVest Fund XII, which closed above its $2bn target at over $3bn, including the General Partner commitment.
“The US remains the most developed and proven market for private equity investing and one where we see a large and growing opportunity set. Our ability to provide a diversified, comprehensive solution to help investors meet their return objectives resulted in strong demand for our flagship US fund,” Ryan Gunther, HarbourVest Partners Managing Director.
Clearlake Capital closes Clearlake Opportunities Partners III with over $2.5bn in capital commitments.
Clearlake Capital Group, an investment firm founded in 2006 and operating integrated businesses across private equity, credit, and other related strategies, has completed fundraising for Clearlake Opportunities Partners III with more than $2.5bnin capital commitments.
COP III was oversubscribed and exceeded its $1.5bn target with support from existing and new limited partners.
COP III will continue Clearlake’s flexible investment strategy of investing in non-control special situations investments, utilizing the Firm’s sector-focused approach targeting investments in technology, industrial, and consumer businesses.
TA announces $1.1bn close of fifth debt fund.
TA Associates, a leading global growth private equity firm, announced the completion of its fundraising for TA Debt Fund V with total commitments of more than $1.1bn. Launched in 2022, TA Debt Fund V quickly exceeded its initial target of $600m, and is significantly larger than its predecessor fund, TA Subordinated Debt Fund IV, which closed at $542m.
“TA Debt Fund V is an exciting milestone in the continued evolution of our debt investing strategy. TA’s proven industry expertise, deep understanding of market trends, and highly experienced Capital Markets Group are integral to our continued success with this strategy going forward. We are enormously grateful for our investors’ continued confidence in the team and our ability to deliver value to our partners and portfolio companies," Ajit Nedungadi, TA Associates CEO.
TA Debt Fund V will continue the legacy of its predecessor funds with the increased flexibility to invest in the most attractive credits of both new and existing TA portfolio companies. The Fund’s broader mandate offers an expanded opportunity set to include senior secured debt while also continuing to invest in more traditional TA subordinated debt investments. The Fund will have exposure across the debt capital structure, with the option to invest across multiple tranches of credit in the same company. TA Debt Fund V’s strategy, while designed for flexibility, is informed by TA’s disciplined due diligence and decision-making process, and benefits from proprietary access to high-quality portfolio companies across TA’s five target sectors – technology, healthcare, financial services, consumer and business services.
Silver Hill Energy Partners closes $1bn fund.
Silver Hill Energy Partners has closed the franchise’s third partnership and first institutional private equity fund, Silver Hill Energy Partners III, representing total capital commitments of $1bn. The Partnership has formed Silver Hill Energy Partners III, Silver Hill III Midstream and other regional affiliates, which is focused on the direct acquisition and development of operated onshore oil, natural gas and related infrastructure assets in premier basins across the US.
“Silver Hill is strongly committed to responsible and environmentally-conscious development of energy resources in the United States. Through our direct partnership with like-minded institutional partners, we are uniquely positioned to make rapid decisions as attractive oil and gas assets become available for acquisition,” Kyle D. Miller, Silver Hill Founder, President and CEO.
Resurgens Technology Partners closes its $500m software-focused Fund II.
Resurgens Technology Partners, a tech-focused private equity firm, today announced it has completed fundraising for Resurgens Technology Partners II with greater than $500m in total capital commitments. Fund II was oversubscribed and reached its revised hard cap at close.
“We are thankful for the support from our existing and new limited partners. This closing represents an exciting chapter for Resurgens and will enable us to continue to invest behind our team and capabilities, building on our strong position in the evolving and dynamic lower middle-market software sector," Fred Sturgis, Resurgens Managing Director.
Resurgens was advised by Sparring Partners, Proskauer Rose and MiddleM Creative.
HCAP Partners announces the final close of its new $353m SBIC Fund.
HCAP Partners, a California-based private equity firm, announced the final close of its second SBIC fund, HCAP Partners V. The Fund was oversubscribed with total commitments of $353m including anticipated leverage from the SBA, exceeding the initial fundraising target by over 40%.
More than twice the size of its predecessor fund, HCAP Partners V had strong support from a diverse investor base of existing limited partners from previous funds and new limited partners, including highly regarded foundations, financial institutions, and family offices. The firm is currently deploying capital from its new Fund with a focus on investments in the healthcare, software, and services industries.
"We are grateful for the confidence placed in us by both our returning and new investors. This backing is a reflection of the strong team we have built and all of their hard work supporting the success of our portfolio companies. The new funding enables HCAP to continue providing creative and flexible deal structures to growth-stage companies. As a leading impact investor, we are excited about expanding our portfolio and providing not only capital solutions but also our expertise to companies in our target markets," Tim Bubnack, HCAP Partners Managing Partner.
US pension fund CalSTRS commits $325m to vehicles of PAG, Greystar.
California State Teacher's, one of the largest US pension funds, has committed a total of $325m to Asia-focused real estate funds managed by PAG and Greystar, DealStreetAsia reported.
In its 2022 semi-annual report, CalSTRS said it committed $200m to PAG Real Estate Partners III and another $125m to Greystar EP Asia I through its real estate programme.
Union Capital Associates closes $309m Fund III.
Union Capital Associates, a lower middle-market private investment firm, has closed its newest fund, Union Capital Equity Partners III, oversubscribed at its hard cap of $309m.
As with its predecessor, Fund III will invest in US founder-owned businesses where Union Capital is typically the first institutional investor. Union Capital has a long history of successfully partnering with business owners, entrepreneurs, and management teams. The firm’s Managing Partners have worked together for more than 15 years and are supported by several of the firm’s former portfolio company CEOs, who provide operations expertise to assist management teams as well as provide deep industry knowledge in the areas of Union Capital’s focus: food manufacturing, business process outsourcing, franchised restaurants, and specialty manufacturing.
Fund III received strong support from a globally diverse group of investors, including endowments, foundations, pension funds, financial institutions, and family offices.
Digital Transformation Capital Partners holds first close of Growth Equity III Fund at $300m.
Digital Transformation Capital Partners successfully completed the first closing of its Growth Equity III Fund at $300m. The fund was launched in March 2022 and has raised capital from new and existing investors including Deutsche Telekom and SoftBank Group International, alongside other institutional, pension fund, corporate, and family office investors. DTCP plans to continue to raise significant capital for the Fund and aims to close fundraising in 2023.
Following the proven proprietary data-driven investment strategy of DTCP, GE III invests in cloud-based enterprise software and business Software-as-a-Service companies in the fields of cybersecurity, web3, AI, fintech, vertical SaaS solutions as well as IT applications and cloud infrastructure software. The Fund is targeting about 25 equity investments in the range of $20 to $25m for businesses in early growth or growth stage, typically as part of a Series B to D or late-stage funding round. The fund focuses on category leaders in Europe, Israel, and the US with a defensible market position and technological advantage.
EMEA
Investindustrial, a private equity firm, agreed to acquire a 52% stake in Eataly, an operator of an e-commerce platform providing food products and beverages, for €200m.
"This partnership will allow us to strengthen our unique format worldwide, promote innovative projects related to innovation and enhance our capabilities. We are happy to take this new path together with such a reputable partner as Investindustrial, who shares Eataly's values and vision, and has chosen to support us in achieving our goal to be the Italian ambassador for "Made in Italy" around the world. The know-how and resources that Investindustrial will bring to the Eataly model represent an extraordinary lever to look to the future with greater confidence and momentum, strengthened by our history and in continuity with the results achieved to date thanks to the work of all of Eataly's global team members," Nicola Farinetti, Eataly CEO.
Eataly is advised by Danow McMullan & Panoff, Fivelex, Olshan Frome Wolosky, Tarter Krinsky & Drogin, Brunswick Group (led by Alessandro Iozzia), Rubenstein Associates (led by Chris Giglio) and Studio Biscozzi Nobili. Investindustrial is advised by Deloitte, Boston Consulting Group, Willis Towers Watson, Ramboll, UniCredit, Chiomenti, Kirkland & Ellis, Edelman and Maitland.
Ares Management is considering financing US entrepreneur John Textor’s proposed offer for Olympique Lyonnais, the French Ligue 1 football team.
The alternative asset manager is in talks about potentially backing Textor’s bid for the French club’s owner Olympique Lyonnais. Textor has been seeking additional capital after US investor Bill Foley indicated he might significantly scale back his funding commitment to the deal, Bloomberg reported.
Olympique Lyonnais is advsied by Ernst & Young, and Gide Loyrette Nouel. Eagle Football Holdings is advised by DLA Piper. Holners is advsied by Delsol Avocats. Pathe is advsied by Allen & Overy. IDG Capital is advsied by The Raine Group, and Allen & Overy (led by Marc Castagnede, and Frederic Moreau).
CMA starts an investigation on a $4.2bn acquisition of Student Roost.
The Competition and Markets Authority is considering whether it is or may be the case that a $4.2bn acquisition of Student Roost, a purpose-built student accommodation provider, from Brookfield by GIC and Greystar will result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
The CMA announced the launch of its merger inquiry by notice to the Parties on September 22, 2022, and has a deadline of November 17, 2022, for its phase 1 decision.
GIC, a sovereign wealth fund, agreed to acquire a majority stake in Sani/Ikos Group, a group of luxury resorts in unique beachfront locations in the Mediterranean, from investment firms Oaktree Capital Management, Goldman Sachs Asset Management, Moonstone, Florac and Hermes GPE at €2.3bn valuation.
"We are excited to welcome GIC on board and look forward to bringing the Sani/Ikos Group magic to guests across the Mediterranean and beyond. Over the past years, the Sani/Ikos Group has led a remarkable path, with significant investments, international expansion and strong financial performance. This was achieved despite the pandemic and thanks to the support of our shareholders, who were outstanding partners, and to our management and employees whose dedication and talent are second to none in our industry. We can now solidify our leading position across the Mediterranean, to the benefit of our shareholders, our people and the communities where we operate," Andreas Andreadis and Mathieu Guillemin, SIG CEOs.
Sani/Ikos Group is advised by Morgan Stanley, Kirkland & Ellis and Edelman.
Intermediate Capital Group, an asset management and private equity firm, completed a $240m investment in ZEPLUG, a provider of electric vehicle charging services.
"The transaction will strengthen ZEPLUG's position in France while providing us with the financial means to fuel our growth in the US and expand our presence in other parts of Europe. It will also enable us to grow our Tech platform, with additional features for smart charging, energy optimisation and streamlining of the overall infrastructure cost at a global scale," Frederic Renaudeau, Nicolas Banchet and Gilles Gomis, ZEPLUG Founder & President, CEO and Deputy-CEO.
ICG was advised by Euros / Agency. ZEPLUG was advised by Credit Suisse and Latham & Watkins (led by Mike Turner).
The Competition and Markets Authority has opened a consultation on undertakings proposed by CapVest Partners, which in turn owns and controls Rodericks Dental, a provider of private and specialist dental services, to address competition concerns over CapVest's acquisition of Dental Partners from CBPE.
On August 23, 2022, the CMA announced that it would refer the acquisition for an in-depth investigation unless acceptable undertakings are offered to address the CMA's concerns. The CMA found that the acquisition gives rise to a realistic prospect of substantially lessening competition in two local areas in the UK. To address the CMA's concerns, CapVest has offered to divest the one Rodericks dental practice in each SLC area or, in the alternative, the one Dental Partners practice in each SLC area.
The CMA has until November 3, 2022, to consider whether to accept the undertakings or a modified version of them with the possibility of extending this timeframe to January 3, 2023, if it believes that there are special reasons for doing so. As part of this process, the CMA is now consulting publicly on whether the proposals are sufficient to address the CMA's competition concerns.
PSG Equity, a growth equity firm partnering with software and technology-enabled services companies, agreed to invest €50m ($50m) in Zenchef, a French restaurant tech company that develops technology solutions for the restaurant industry.
"We believe this partnership with PSG marks the beginning of a new chapter of growth and reaffirms both the relevance of our solutions and our strategic position within the restaurant industry. In PSG, we have found an ideal partner with a strong track record in accelerating growth for software companies. With their strategic, operational and financial support, we are solidifying our ambition to become Europe's champion. In our view, PSG will enable us to identify the relevant synergies to better serve restaurant owners and their customers, and help us pursue our ambitious recruitment plan. With the upcoming launch of our first consumer mobile app, we are closer to fulfilling our mission to an industry that has been severely tested in recent years and to which we want to bring the best technological solutions," Xavier Zeitoun, Zenchef CEO.
Zenchef is advised by Agence Melchior (led by Magali Bluzat). PSG is advised by Prosek Partners (led by Ryan Smith).
Qatar Investment Authority, a private equity firm, led a $250m Series D round in Innovafeed, a privder of of insects for animal and plant nutrition, with participation from Creadev, Temasek, ADM, Cargill, Future French Champions, ABC Impact, IDIA Capital Investissement and Grow Forward.
"The confidence demonstrated in us by our partners through a new round of fundraising confirms the insect industry is a key solution for our planet’s food production needs. Their support will allow us to accelerate our deployment in service of an ever healthier, natural and sustainable food system," Clément Ray, Innovafeed Co-founder & CEO.
Innovafeed was advised by Financial Profiles.
Hapag-Lloyd, a shipping and container transportation company, agreed to acquire a 49% stake in Spinelli Group, a logistics and shipping company from ICON Infrastructure, a private equity firm. Financial terms were not disclosed.
“We see it as a complementary service from our side and together we have the common interest to have a really good product ready for our customers. Investments in strategic assets along the supply chain are a key part of Hapag-Lloyd’s Strategy 2023," Juan Pablo Richards, Hapag-Lloyd Senior Managing Director.
ICON Infrastructure is advised by Citigroup.
ITS Technology Group, a telecommunications service provider in England, completed the acquisition of NextGenAccess, a neutral host, managed fibre infrastructure service provider, from International Public Partnerships, a large British publicly listed investment company dedicated to infrastructure investments. Financial terms were not disclosed.
NGA owns and operates a network of ultrafast wholesale fibre broadband infrastructure across England and Wales. NDIF has financed a major expansion of its network across the UK, deploying high-capacity fibre routes supporting enterprise and business customers across Bristol, Newport, Essex and London. NGA will continue to operate as a standalone business as part of ITS.
Mubadala weighs investment in EQT’s $7bn fiber unit.
Mubadala Investment is considering buying a stake in private equity firm EQT’s fiber network operator GlobalConnect, in a deal that could value the business at more than $7bn, Bloomberg reported.
The Abu Dhabi wealth fund is in talks with EQT to acquire a minority stake in the Nordic company. No final agreements have been reached and while discussions are ongoing, talks could fall apart or other buyers may emerge.
First Sentier plans a $1.5bn sale of Coriance.
First Sentier Investors, a global asset management business, is considering a sale of French district-heating operator Coriance in a deal that could value the company at as much as $1.5bn, Bloomberg reported.
The investment firm is working with an adviser and may start the sale process by the end of the year. Coriance is expected to mostly attract interest from private equity investors with funds specialized in infrastructure.
Credit Suisse’s SPG unit draws interest from Apollo and BNP.
Apollo Global Management and BNP Paribas are among investors showing interest in acquiring at least part of Credit Suisse securitized products group.
The Zurich-based firm is exploring deals to sell the entire business, while potential investors may pitch to acquire specific portfolios or risk classes. Credit Suisse previously said that it’s looking for third party funds for the unit, which is profitable but uses a lot of capital.
The bank is still considering other options for the business and no final decisions have been made. Executives have said they’d like to keep some of the revenues, rather than an overall sale, Bloomberg reported.
Starboard Value builds a 9% stake in Wix.
Starboard Value, an activist hedge fund, has built a 9% stake in website development platform Wix.
Starboard had been building the stake, and spoke to Wix about how it can improve operations. Wix has been struggling with losses since the fourth quarter of 2021 amid a slowdown in e-commerce driven by rampant inflation and people making fewer purchases online in the wake of the Covid-19 pandemic. It has adopted a three-year cost-cutting program in a bid to boost its ailing stock price.
Starboard supports Wix's bid to become profitable and believes the company has a significant opportunity to improve its margins and grow further. The fund has been discussing its ideas with Wix's management and is not seeking board seats at this time, Reuters reported.
Silver Lake becomes Manchester City's second-largest shareholder.
Silver Lake increased its stake in the parent company of Manchester City FC, becoming the football club’s second largest shareholder in the process.
The private equity firm added about 4.1% to its existing holding in City Football Group, which is controlled by UAE deputy prime minister Sheikh Mansour Bin Zayed Al Nahyan. The stake was acquired from Chinese investor CMC Football Holdings at some point between early 2020 and January 2022.
Mirova completes record fundraising for fifth energy transition infrastructure fund at €1.6bn.
Mirova, an asset managerment company, has raised $1.6bn for the Mirova Energy Transition 5, its fifth energy transition infrastructure equity fund.
This historic fundraising round, which lasted 18 months, is testament to the hard work of Mirova's teams, who have been active in the energy transition infrastructure sector for 20 years. The team launched their first fund of $46m in 2002 alongside ADEME to kick-start the wind energy sector in France. It then raised two further funds of $94m in 2008 and $354m in 2014 to open up to new geographies and technologies. Finally, the fourth fund raised $859m in 2018 and extended its scope of activity to low-carbon mobility. Over the years, Mirova has financed more than 330 projects for a total of over 6.5 GW of potential generation capacity across Europe and Asia.
Glennmont Partners launches a new renewable energy infrastructure fund.
Fund manager Glennmont Partners had launched a new renewable energy infrastructure fund to invest in brownfield clean energy projects across Europe.
Glennmont Partners was acquired last year by Nuveen, which manages $1.1tn in assets on behalf of institutions and individuals around the world, Reuters reported.
The new fund, called Nuveen European Core Renewable Infrastructure, is in partnership with MN, one of the largest pension investors in the Netherlands.
APAC
KKR, an American global investment company, agreed to invest $450m in Hero Future Energies, an independent power producer.
“Hero Future Energies is a pioneer in India’s renewables sector, and has a strong track record of delivering innovative clean energy solutions to support India’s renewable energy ambitions. HFE’s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” Hardik Shah, KKR Partner.
Guangdong Macao Semiconductor Industry Investment Fund, Guangzhou Industrial and Emerging Development Fund and Goldstone Investment led a $100m Series A+ funding round in Leader-Tech, a provider of integrated circuit materials and packaging solutions, with participation from Dening Capital and Qianhai Great Wall Fund.
The company targets to ramp up investment in technology R&D and manufacturing expansion to deliver domestically-made chips. The Series A+ round is expected to help the firm replenish its working capital and forge long-term strategic cooperation to speed up the construction of new manufacturing facilities and its expansion in the domestic market.
Advent, a US-based buyout firm, completed the investment in Wagas, a Chinese healthy food and bakery chain. Financial terms were not disclosed.
Wagas, which had been looking to offload its business since last year, was reportedly looking to hit nearly $188m in sales.
Amara Capital, a fund management company, completed the investment in Thalias Hospitality Group, a restaurant and hotel group. Financial terms were not disclosed.
“We have a high conviction in the growth in demand for high-end cuisine in Cambodia along with the economic growth of the nation and post-Covid tourism recovery. Thalias has been and will be the choice for the growing high-end segment,” Taihei Yamada, Amara Capital Chairman.
Temasek said to be in talks to invest in Motilal Oswal PE-backed VVDN Technologies.
Singapore-based investment firm Temasek Holdings, a backer of Indian unicorns including Open, ShareChat, upGrad, and Shiprocket, is in talks to invest in VVDN Technologies, a global provider of engineering, manufacturing, and digital services and solutions, DealStreetAsia reported.
While the amount Temasek is looking to inject into the Gurugram-headquartered company is not known, the total financing VVDN is eyeing in the current round could be in the range of $125-150m.
Chubu Electric joins all-Japan Toshiba buyout consortium.
Chubu Electric Power, a Japanese electric utilities provider for the middle Chūbu region of the Honshu island of Japan, said it is joining private equity firm Japan Industrial Partners in conducting due diligence for a potential buyout of Japanese conglomerate Toshiba.
Toshiba, which is exploring going private and other options, has selected Bain Capital, CVC Capital Partners, Brookfield Asset Management and a consortium involving JIP and state-backed Japan Investment to proceed to a second bidding round, Reuters reported.
Japan state-backed fund said to be in talks with Bain Capital for Toshiba buyout.
A state–backed Japanese fund is in talks with private equity firm Bain Capital to form a consortium and bid for Toshiba, after breaking off from its previous partner, DealStreetAsia reported.
It would mark a second proposal for Toshiba from state–backed Japan Investment. The fund had previously joined forces with private equity firm Japan Industrial Partners and their bid had made it past the first round of bidding.
Warburg eyes a 30% stake in Vistaar for $150m.
Warburg Pincus, a private equity firm, is in talks to invest around $150m in Indian small-business lender Vistaar Finance.
Warburg‘s discussions with Vistaar are for a 30% stake in the shadow lender. Deal talks are at an advanced stage and will value Vistaar at roughly $450m.
Kotak Mahindra Capital is advising Vistaar on the talks for the private equity deal.
CVC Capital to sell its 25% stake in toll road arm of Road King.
CVC Capital Partners a private equity firm, decided to sell its 25% stake in the toll road arm of China’s Road King Infrastructure, an investment holding company, as part of a deal that aims to value the unit at up to $3bn, DealStreetAsia reported.
The private equity firm’s exit from Road King Expressway International Holdings will come alongside a partial sale by the Chinese parent of its 75% stake. RKE operates five expressways in China and three in Indonesia.
Singapore’s SATS confirms talks to buy Cerberus-backed WFS.
Catering and gateway services provider Sats is in talks to acquire air cargo handler Worldwide Flight Services, the company confirmed Wednesday.
The Singapore-listed company has sounded out financing for the potential purchase. An announcement could come as soon as in the coming weeks should the parties reach an agreement, Bloomberg reported.
HappyFresh wins funding, revamps board as business resumes.
HappyFresh has secured funding from investors to resume online grocery operations in Indonesia, staving off a potential cash crunch fomented by the regional economic slowdown.
The Instacart-style grocery delivery service said it’s restarting operations in its home market on Wednesday, after a strategic review. It will work with venture debt funds Genesis, Innoven and Mars on restructuring the business, Bloomberg reported.
As part of a reshuffle, representatives of US firm Kroll will replace three former directors on its board, including Naver's Lee Jung An. Jason Kardachi, who leads Kroll’s restructuring practice in Southeast Asia, will work with HappyFresh on its overhaul. The startup, which didn’t disclose the amount of new funding, said it will now focus on Indonesia while considering options for its businesses in Thailand and Malaysia.
Investment bank ABCI, PE investor Hony Partners file to list HKEX's next SPAC.
A special purpose acquisition company backed by the investing arm of Chinese investment bank ABC and Hony Partners Group has filed to list in Hong Kong.
The blank cheque firm, called Everest Acquisition, will seek merger targets from sectors including healthcare, consumer, and green industries in Greater China, according to a filing to the Hong Kong stock exchange on Monday.
Invesco raises $5.4bn in China investments in first half.
US asset manager Invesco's Chinese joint venture withstood a volatile first half and attracted $5.4bn from local investors.
Invesco's 49% owned China joint venture, Invesco Great Wall Fund Management, managed to raise $5.4bn from Chinese investors in the first six months of this year, mostly into its fixed-income funds against a sluggish fundraising market.
Invesco Great Wall in March launched a fund advisory business and has partnered with seven fund distributors, including Ant Fund and Tiantian Fund, two of China's largest non-banking fund sales agencies, Reuters reported.
Singapore allocates $1bn to global credit fund managers in a bid to become private markets hub.
Singapore’s central bank will be allocating $1bn to top global private credit fund managers as part of the nation’s efforts to develop itself as a full-service private markets hub, DealStreetAsia reported.
The move is part of an expansion of the private markets programme, which allocates investment mandates to private equity and infrastructure fund managers who commit to establishing or deepening their presence in Singapore, Ravi Menon, managing director of the Monetary Authority of Singapore, said at the SuperReturn Asia conference.
TPG to reach first-close of new Asia fund at over $3bn.
US private equity firm TPG is set to reach first-close of its new Asia-focused fund at more than $3bn, Reuters reported.
TPG kicked off fundraising of its eighth private equity fund for the region in January, targeting $6bn, the company said during its March earnings call. If successful, the fund will be its largest Asia fund to date.
C Capital is raising $500m to invest in crypto, PE.
C Capital, a firm started by Hong Kong real estate tycoon Adrian Cheng, plans to raise $500m to invest in blockchain assets, credit and private-equity over the next 18 months, betting prices of private companies and digital assets are bottoming out.
Also co-founded by ex-Bank of America banker Ben Cheng, the firm is marketing a $200m blockchain fund and plans to gather about $300m to invest in private-equity and private credit strategies next year, Bloomberg reported.
“When people are on defense, we’re on the offense,” Ben Cheng, the firm’s CEO and president, said in an interview. This type of environment historically “will yield the best result. After another 6 to 9 months, it will come back."
Arbor Ventures draws $193m so far for third venture fund.
Arbor Ventures, one of Asia’s oldest fintech-focused venture capital firms, has so far raised $193m for its third venture capital fund, according to a filing with the US Securities and Exchange Commission.
The US SEC filing typically only represents capital raised from US investors, DealStreetAsia reported.
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