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TSG Seeks $5 Billion for Fund 9 | PSG Returns With European Fund | Biotech Rout Hits Hedge Funds
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Welcome to another dizzying week Pro PE readers! Historically, the three weeks after Thanksgiving have been busy with private-equity firms scrambling to close both deals and funds. This year, it feels as if there are just as many firms launching marketing efforts for new funds before year end as there are trying to close them. In today’s newsletter our fundraising scoop maven Preeti Singh has news of two firms hitting the marketing trail, TSG Consumer Partners and Providence Strategic Growth Capital Partners, or PSG.
Meanwhile, our WSJ colleagues Gregory Zuckerman and Juliet Chung report on how the rout in biotech stocks has translated into losses in the hedge fund world.
Read on for more details...
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TSG has backed companies including cosmetics brand Huda Beauty. Here, Huda Beauty co-founders Huda Kattan and Mona Kattan at an event in 2019.
PHOTO: SARAH SILBIGER/BLOOMBERG NEWS
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TSG Consumer Partners, one of the oldest private-equity firms focused on investing in consumer-products companies, is pitching its ninth core buyout fund, Preeti Singh writes for WSJ Pro Private Equity. The San Francisco-based firm is seeking $5 billion for the new fund, TSG9 LP, people familiar with the fundraising said. TSG, which was founded in 1987 and used to be called the Shansby Group, has backed companies including snack maker Popchips and cosmetics brand Huda Beauty. If TSG reaches its target, the latest fund would be its largest yet, surpassing a $4 billion predecessor that closed in early 2019.
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Providence Strategic Growth Capital Partners, or PSG, has returned to the fundraising trail with plans to raise €2 billion, equivalent to about $2.26 billion, to back investments in European software and technology-enabled companies, Preeti writes, citing people familiar with the firm. The new fund, Providence Strategic Growth Europe II LP, is at least the fourth fund that the Boston-based firm has raised or sought to raise this year as investor appetite for private equity has put the industry on track for a record fundraising year.
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Biotech stocks have fallen to earth with a thud in 2021 after soaring last year amid excitement over the development of Covid-19 vaccines, dealing big losses to some hedge funds, Gregory Zuckerman and Juliet Chung report. Hedge funds managed by firms that include Perceptive Advisors, OrbiMed Partners and Logos Capital are among those that have felt the sting of shifting sands in the biotech markets.
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210,000
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The number of new jobs added to the U.S. economy in November, the smallest gain since last December.
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A Carlyle Group logo is pictured in 2021 at One Vanderbilt in New York. Photo: Carlyle Group, Reuters
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GTCR has sold a minority stake in its portfolio company Resonetics Inc. to fellow private-equity investor Carlyle Group, part of an ongoing trend that has seen private-equity firms sell down a portion of their stake in a portfolio company without exiting the company entirely. The stake sale values Resonetics at $2.25 billion, according to a press release. GTCR initially backed the company, which provides micro-manufacturing of medical devices, through a partnership the firm formed in 2017 with medtech industry executive Robert "Chip" Hance. The partnership, Regatta Medical, bought Resonetics in 2018.
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Boral Ltd. said it will sell its North American fly ash business for $755 million to Eco Material Technologies Inc., a company backed by private equity firms One Equity Partners and Quadrant Management Inc., Dow Jones Newswires’ Rhiannon Hoyle writes. Australia-listed Boral said the deal includes $735 million on completion and two deferred payments of $10 million on a 12- and 24-month horizon. The agreement also includes a possible earn-out linked to the completion and performance of the Kirkland natural pozzolan mining project, over and above the $755 million, the company said, without providing further details.
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Santa Fe, N.M.-based firm Iron Creek Partners LLC has led a recapitalization of Midwest Backgrounds Inc., which provides employment background screening for companies across the U.S.
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H.I.G. Capital has bought Waco, Texas-based Time Manufacturing Holdings LLC, which designs, manufactures and distributes aerial lifts, such as bucket trucks and derrick diggers, used in markets that include electric utilities, telecommunications, infrastructure and forestry.
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El Segundo, Calif.-based private-equity firm Charger Investment Partners has acquired PerTronix LLC, a San Dimas, Calif.-based company that designs and manufactures aftermarket automotive products.
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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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Fortive Corp. has reached a roughly $1.43 billion deal to buy Provation Software Inc. from Clearlake Capital Group LP, building on its position in critical workflow solutions for hospitals and ambulatory surgical centers, Dow Jones Newswires Maria Armental reports.
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Harbour Group has sold SP Industries Inc. to publicly traded ATS Automation Tooling Systems Inc. SP Industries, which Harbour has backed since 2015, designs and manufactures lab apparatus, biopharma-processing equipment and other life-sciences equipment.
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Argosy Private Equity has sold Paragon Energy Solutions LLC to midmarket firm Windjammer Capital. Paragon offers procurement management services for safety parts and components for the U.S. commercial nuclear industry. Argosy backed the company in 2017.
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Secondary firm Newbury Partners has raised $2 billion for Newbury Equity Partners V LP ahead of a $1.75 billion target. Newbury targets small and midsized secondary deals, typically ones ranging from $1 million to $100 million in size, according to a press release.
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Health Enterprise Partners is seeking $250 million for Health Enterprise Partners IV LP, a regulatory filing indicates. Health Enterprise Partners backs growth investments and small buyout deals in the healthcare technology, technology-enabled services and healthcare-services industries, according to the firm’s website.
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Midmarket firm Gemspring Capital said it has expanded its senior investment team with the addition of Russ Spieler as a managing director. Mr. Spieler joins Gemspring from Heartwood Partners, a midmarket private-equity firm that backs family and founder-owned companies.
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Investors punished shares of Chinese companies traded in the U.S. on Friday as Didi Global Inc. searched for ways to back out of its New York stock listing months after the initial public offering drew Beijing’s ire, Jing Yang and Keith Zhai report for The Wall Street Journal. The Chinese ride-hailing company’s decision to delist its American depositary shares from the New York Stock Exchange and pursue a listing in Hong Kong marked a new stage in the decoupling of Chinese companies from U.S. markets.
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