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Arsenal Capital Raises $5.4 Billion | Washington Flexes Its Muscle in Private Markets | Wall Street Bets on Both Sides of Energy Coin
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Welcome back, Pro PE readers! This morning Arsenal Capital Partners joined the growing ranks of midmarket private-equity firms that have launched growth-equity funds, as Chris Cumming reports. The New York-based firm collected $1.1 billion for its debut growth fund, part of a more than $5 billion combined fundraising effort. Also, The Wall Street Journal’s Jon Hilsenrath looks at how two proposed bills in Congress reflect Washington’s growing involvement in the private sector, while Amrith Ramkumar looks at how Wall Street has been betting on both renewables and fossil fuel producers.
Finally, today is the day to submit your nominations for our Women to Watch list. Details and a link to the nomination page are included below.
Now, onto the news ...
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Terry Mullen, left, and Jeff Kovach co-founded Arsenal Capital Partners in 2000. PHOTO: ARSENAL CAPITAL PARTNERS
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Arsenal Capital Partners, a private-equity firm that invests in the industrial and healthcare sectors, has amassed $5.4 billion for two new funds, including its first vehicle targeting fast-growing, high-technology businesses, Chris Cumming reports for WSJ Pro Private Equity. The New York firm said on Monday it closed its sixth flagship investment vehicle, Arsenal Capital Partners VI LP, at $4.3 billion. The sum is significantly above both the $3 billion fundraising target and the size of the predecessor vehicle, which closed in 2019 with about $2.4 billion.
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With two bills advanced through Congress in recent weeks, the Biden administration has grown the federal government’s imprint on major sectors of the U.S. economy—including semiconductors, energy and health—and further buried the idea once widely held in Washington that private markets should be left alone, without government involvement, Jon Hilsenrath writes for The Wall Street Journal.
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The climate-and-energy legislation that Congress just passed includes spending for both renewables startups and fossil-fuel producers—a broad, even if seemingly contradictory, strategy that many on Wall Street are already pursuing, Amrith Ramkumar writes for the The Wall Street Journal. While pouring money into projects geared toward lowering carbon emissions, Wall Street firms have also continued financing oil-and-gas companies through direct lending, debt underwriting or infrastructure investing.
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Since 2015, WSJ Pro has published its annual Women to Watch list to highlight the accomplishments of outstanding women in the field. We’re accepting nominations for senior deal professionals, rising star deal professionals, as well as limited partner or fundraising professionals through Monday, Aug. 15. For more information and to submit your nominations, simply click on this link.
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424.38
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The increase in the Dow Jones Industrial Average on Friday, a roughly 1.27% increase, capping off another positive week.
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Globe Telecom is selling telecom towers to Stonepeak.
PHOTO: DONDI TAWATAO, REUTERS
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Infrastructure and real assets-focused Stonepeak has agreed to acquire a set of telecommunication towers and related infrastructure in the Philippines from Globe Telecom Inc. for around $472.2 million, according to a press release. The private investment firm is entering the transaction, which involves some 2,180 telecom towers, in a transaction through a joint venture between a subsidiary of private electric distribution utility company Manila Electric Company and Stonepeak, the release stated.
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Technology-focused private-equity firm Thoma Bravo submitted a takeover offer for Australian aerial-mapping provider Nearmap Ltd. and is in advanced due diligence with the company, Dow Jones’s Stuart Condie writes. Nearmap on Monday said that it received the A$2.10-a-share all-cash proposal on July 6. It said the proposal valued the company at 1.055 billion Australian dollars (US$751.7 million) and represented an 83% premium to its share price prior to receipt.
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H.I.G. Capital has agreed to buy the distribution business of publicly traded polymer materials and colorants company Avient Corp. for $950 million, according to a press release. The transaction would value the company at 10 times its last 12 months trailing earnings before interest, tax depreciation and amortization. Avient said in the release that it plans to use $750 million in after-tax proceeds from the sale to pay down existing debt.
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Renewable energy investor SolRiver Capital said it is committing to Korsail Energy to support 2 gigawatts of solar energy and storage projects at the company. Denver-based Korsail targets greenfield solar energy projects, partnerships with developers as well as projects on behalf of corporate customers, according to the firm’s website.
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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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Canadian growth investment firm Georgian Partners Growth has rounded up at least $784 million for Georgian Growth Fund VI LP and related parallel funds, according to regulatory filings. The amount raised so far puts the fund more than halfway toward a $1 billion offering amount indicated in the filings. Georgian’s previous fund had attracted at least $850 million as of 2020, WSJ Pro Private Equity reported at the time.
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Goldner Hawn, a lower midmarket buyout fund based in Minneapolis, is seeking $350 million for Goldner Hawn Fund VIII LP, according to a regulatory filing. The fund’s predecessor, Goldner Hawn Fund VII LP, raised at least $288 million, according to a separate regulatory filing issued in 2019. Goldner Hawn typically targets equity investments of $10 million to $30 million in deals ranging from $25 million to $150 million, according to the firm’s website.
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Bluestone Investment Partners, a McLean, Va.-based lower midmarket private-equity firm focused on government services and defense sectors, is seeking $150 million for Bluestone Investment Partners III LP and related parallel funds, a regulatory filing indicates. Acalyx Advisors is placing the fund, according to the filing. Bluestone typically focuses on companies with $15 million to $100 million in revenue and up to $10 million in earnings before tax, deprecation and amortization, according to the firm’s website.
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Tom Alberg, shown in 2000, made a $50,000 investment in Amazon that was valued at around $2.7 million when the company went public. PHOTO: REX RYSTADT/BLOOMBERG NEWS
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Tom Alberg, who helped launch Madrona Venture Group and was among the early investors in Amazon.com Inc., died on Aug. 5, around 14 months after suffering a stroke. As James Hagerty writes in The Wall Street Journal, Mr. Alberg build an extraordinarily varied career, in which he provided legal counsel to Boeing Co., became one of the first investors in Amazon and a director of that company for 23 years, helped run McCaw Cellular Communications Inc., co-founded Madrona, and established a vineyard and a winery.
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Monarch Private Capital said it has hired Marsha Harrington as director of renewable energy business development. Ms. Harrington was previously a director at Cornerstone Financial Advisors, where she advised lenders, tax and cash equity investors and developers in renewable energy transactions, according to a news release.
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Among the investors who bet on cryptocurrency over the past year are pension funds that manage public workers’ retirement savings. Now those funds are navigating the crash, Heather Gillers writes for the Journal. Public pension funds have increasingly ventured into less-traditional assets during the past two decades in response to low fixed-income yields. Unable to rely on bond returns to hit aggressive 7% investment return targets and pay trillions of dollars in promised benefits, retirement officials have invested in private equity, real estate and even forestland.
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