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JMI Equity Raises $3.1 Billion in Under Six Months | Silver Lake's $400 Million Data-Center Power Bet
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Good morning. I hope you had a refreshing weekend.
We start the week with our editor Laura Kreutzer reporting on a new, $3.1 billion private-equity fund that software specialist JMI Equity raised in less than six months. It is the firm’s first fund since it completed a leadership transition.
Also, private-equity firm Silver Lake is looking to capitalize on rising demand for land and power sources to develop data centers with a $400 million joint venture, CIO Journal’s Isabelle Bousquette writes.
We have those stories and more news below. Please, read on ...
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A view of JMI Equity’s office in Washington, D.C. The firm returned some $5 billion to earlier fund investors through 35 full or partial exit deals over the past five years, generating investor support for the new vehicle. Photo: Sam Kittner
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JMI Equity has raced to a $3.1 billion final closing for its newest fund targeting investments in fast growing software and technology services companies, the firm’s first fund since it completed a leadership transition that has left Peter Arrowsmith as its sole managing partner, WSJ Pro’s Laura Kreutzer reports.The final tally for JMI Equity Fund XII came in about 29% larger than the $2.4 billion the firm raised for its previous main fund with nearly all of the investors in the prior fund signing onto the newest offering.
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Silver Lake has joined with Commonwealth Asset Management principals Adam Fisher and Peter Rumbold in an effort to identify and prepare land and power supplies needed for developing new data centers in the U.S., Canada and the U.K. The joint venture, with around $400 million in working capital, has already secured power supplies and is developing sites in Texas and Georgia, Isabelle Bousquette reports for CIO Journal.
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11.4 Million
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The number of U.S. jobs that could be lost once artificial intelligence technologies are fully adopted across the American economy, according to research from Goldman Sachs, which didn't give the number of new jobs AI might create
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Blackstone offices in Manhattan. Photo: Mike Segar/Reuters
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Blackstone and Thoma Bravo are both in talks with Australian financial-technology provider Iress, which has already considered an earlier $1.28 billion proposal from New York-based Blackstone, Stuart Condie reports for the Journal. Iress said the discussions will help it determine whether either firm could make an offer that its board could recommend to shareholders.
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Multi-strategy asset manager KKR & Co. is backing Harvest Partners in its investment in billing software provider Med-Metrix, leading investors providing financing for the deal. Harvest agreed to make a growth investment in Parsippany, N.J.-based Med-Metrix in June, with previous owner A&M Capital retaining a minority stake in the business. A&M is also committing fresh capital through the latest transaction.
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Family-backed investment firm Hoffmann Family of Cos. has backed Elmer Chocolate, a family-owned manufacturer of seasonal chocolates. Rob and Michael Nelson, who are third generation family owners of the company, will retain a stake in Elmer and continue to lead the company.
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Blue Owl Capital and Pacific Investment Management Co. have agreed to lead $29 billion in financing for a data center in Louisiana, both Reuters and Bloomberg News reported, citing people familiar with the matter. Pimco is expected to handle the bulk of the financing through issuance of about $26 billion of debt while Blue Owl is contributing around $3 billion in equity capital. Pimco and Blue Owl edged out KKR & Co. and Apollo Global Management for the deal, Bloomberg reported.
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European buyout firm CVC Capital Partners has joined WithSecure founder and Chairman Risto Siilasmaa in a €1.70 per share offer to acquire the cybersecurity provider, valuing the Helsinki-listed business at about €299 million, or roughly $348.1 million. The offer represents a 72% premium to the company's closing price Thursday. WithSecure shares soared 70% to close at €1.68 Friday.
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Our add-on deal interactive tool allows you to sort and analyze volumes of add-on deal data compiled by WSJ Pro. View more.
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Infrastructure investment firm Infratil in Wellington, New Zealand, and the New Zealand Superannuation Fund are selling senior housing developer RetireAustralia to the property investing arm of Invesco for 845 million Australian dollars, or roughly $550.8 million. Infratil and the pension each own a half interest in the business and have held it for about 11 years. The listed firm said the sale would result in a loss of about 80 million New Zealand dollars, or $47.6 million, after it receives proceeds of about A$300 million from the sale. Infratil said it is selling the business
because it would be unlikely to scale under its ownership.
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Francisco Partners is selling deal-sourcing data provider Sourcescrub to strategic buyer Datasite, which is controlled by CapVest Partners. The purchase of San Francisco-based Sourcescrub is part of an expansion plan financed with $500 million from CapVest, which included the acquisition of Grata in June. Francisco Partners backed Sourcescrub in late 2021.
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Australian used-car refurbisher and dealer Carma, backed by both Tiger Global Management and Australia's Regal Funds Management, is eyeing a potential stock-market listing among a range of alternatives to finance expansion, Stuart Condie reports for Dow Jones Newswires. The Sydney-based company buys second-hand vehicles from consumers before refurbishing the cars and selling them online.
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Accel-KKR in Menlo Park, Calif., has raised about $1.9 billion for a single-asset continuation fund to extend its hold on personnel management software maker Isolved, in a deal led by the alternatives arm of Goldman Sachs. The capital collected for the vehicle, AKKR Isosceles CV, is expected to provide investors with liquidity and $350 million for the company's expansion. Accel-KKR's original 2011 investment in the business generated a gross return of about 19.2 times the money invested, according to a person familiar with the matter. AKKR Strategic Capital
software secondary fund that closed last year with $2.2 billion also participated in the new vehicle, marking its sixth commitment to date. The first continuation fund created to hold Isolved and some other portfolio companies, Accel-KKR Capital Partners CV III, set up in 2019 with about $1.4 billion, notched a return of 3.5 times invested capital, the person said.
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CapitalSpring, a private equity and debt investment firm in the food services and retail sectors, is seeking $1 billion for CapitalSpring Investment Partners VII and related parallel funds, regulatory filings indicate. The firm closed the new fund’s predecessor back in 2022 with $950 million, ahead of a $750 million target. As of the end of last year, CapitalSpring managed about $2.2 billion, according to a separate filing.
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GoldenTree Asset Management's GLM III has wrapped up a collateralized loan obligation vehicle with about $500 million. GoldenTree Loan Management US CLO 26 is initially backed by $476 million of senior secured loans as well as other credits, and has a five-year reinvestment term and a two-year non-call period.
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Evolution Credit Partners in Boston has added Scott Barek as a managing director based in New York, leading structured credit investments. He was most recently in a similar role with Bank of America Securities.
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The difficulties private-equity firms are facing in selling portfolio companies—and monetizing performance fees—are creating opportunities for private-credit and other lenders to provide capital not only to buyout shops, but also to their principals. Citizens Bank, for one, recently began offering a credit line tailored to partners and professionals of private-equity and venture-capital firms.
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