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Monterro Raises Over $2 Billion For Nordic Software Bets | Gramercy Raises $760 Million Credit Fund

By Luis Garcia

 

Good morning. Happy Monday! We start the week with fundraising stories from my WSJ Pro colleagues.

Monterro, a private-equity firm in Stockholm, has raised €1.725 billion, or just over $2 billion, across two funds that invest in business-to-business software makers from the Nordic region, as they play an increasingly prominent role in the global software sector, our Chris Cumming reports.

Meanwhile, Gramercy Funds Management has collected $760 million so far for its fourth dedicated private-credit fund, our Isaac Taylor writes, citing a letter to fund investors. The emerging markets-focused investment firm plans to invest much of the fund in Latin America, a region Gramercy sees as a “potential winner” because of the relatively low U.S. tariff rate.

Now onto the news ...

 
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Today's Top Stories

A view of Stockholm, where Monterro is based. PHOTO: MIKAEL SJOBERG / BLOOMBERG NEWS

Private-equity firm Monterro has raised two new funds to invest in high-growth business-to-business software companies in the Nordic region, WSJ Pro’s Chris Cumming reports.The Stockholm-based firm, whose legal name is Monterro Software Investment, raised €1.375 billion, or about $1.61 billion, for its fifth main investment fund, and €350 million, or about $409 million, for its second lower-midmarket fund. Both vehicles hit their hard caps, or upper fundraising limits, and were raised in under four months in parallel fundraising processes, Monterro said Monday.

Gramercy Funds Management has collected $760 million so far for its fourth dedicated private-credit fund, WSJ Pro's Isaac Taylor reports, citing a letter to fund investors viewed by The Wall Street Journal. The fresh capital, all of which was collected from outside investors, will be used to continue the firm’s strategy of backing global emerging-markets opportunities, according to the letter signed by Robert Koenigsberger, the firm’s managing partner and chief investment officer. The firm has a $1.5 billion target for the vehicle, Gramercy Capital Solutions Fund IV, according to a person familiar with the matter. Gramercy declined to comment. In July, the firm reported in a securities filing that it had collected $260.3 million for the fund.

 
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Big Number

$570.7 Billion

The value of private-equity backed mergers and acquisitions this year through Sept. 18, up nearly 17% from the same period of last year, according to London Stock Exchange Group data

 

Deals

Electronic Arts is known for games such as 'EA Sports FC 25.' PHOTO: INA FASSBENDER / AGENCE FRANCEI-PRESSE / GETTY IMAGES

A group of investors including private-equity firm Silver Lake, Jared Kushner’s investment firm Affinity Partners and Saudi Arabia’s Public Investment Fund is near a deal to take private game-maker Electronic Arts in what would likely be the largest leveraged buyout of all time, the Journal reported, citing people familiar with the matter. Shares of the publisher best known for its sports games like Madden NFL rose Friday on news of the possible buyout and closed with a 15% gain at $193.35.

Buyout shop GTCR is acquiring Dentalcorp Holdings, a Toronto-listed network of dental practices, in a transaction that values the business at about 2.2 billion Canadian dollars, or $1.58 billion, Colin Kellaher reports for WSJ Pro. Shareholders will receive C$11 a share in cash, a nearly 33% premium to Thursday's closing price of C$8.28 for the Toronto company. Private-equity firm L Catterton has agreed to roll over at least part of its 37% stake in the company into the acquired operation. L Catterton has backed Dentalcorp since 2018.

Permira has received more time to negotiate a deal to take private London-listed professional services business JTC, with the deadline to declare its intent to submit an offer or walk away extended to Oct. 24, Cristina Gallardo reports for Dow Jones Newswires. The U.K. private-equity firm first approached the company in August, but was rebuffed. JTC said last month it had received several indications of interest, including from Warburg Pincus in New York.

Healthcare investor Sheridan Capital Partners is backing materials manufacturer Currier Plastics, which makes custom components for healthcare and life sciences applications, according to an emailed news release. The Auburn, N.Y., company also offers engineering and design services as well as assembly.

Foresite Capital and Concord Health Partners joined with several other investors in a $97 million growth investment in cancer-focused Thyme Care. The Nashville, Tenn., company provides systems to automate administrative work and promote cancer-patient feedback, among other things.

 

Add-On Deals

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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Exits

Shares in digital lender Noba Bank Group jumped on their first day of trading on Stockholm’s stock exchange. PHOTO: COMPANY SUPPLIED IMAGE

Nordic Capital and Finnish insurer Sampo sold 108.7 million shares total in digital lender Noba Bank Group's initial public offering in Stockholm, with the stock rising 27%, Elena Vardon reported for the Journal. Nordic Capital controlled about 80% of the company's shares before the offering and Sampo about 19%. Following the IPO, Nordic was expected to retain more than 60% of Noba's stock while Sampo was to have 14%, the prospectus shows.

Warburg Pincus and investor Tiptree Financial are selling Fortegra Group to strategic acquirer DB Insurance Co., a Korean insurer, for about $1.65 billion. Fortegra had net income of about $140 million on gross written premiums of $3.07 billion last year operating across the U.S. and in eight European countries. Tiptree acquired Fortegra in 2014, taking the listed company private for about $218 million, while Warburg first backed the Jacksonville, Fla.-based specialty insurance services provider in 2022, according to the firm's website.

Providence Equity Partners is selling online car classified advertising company La Centrale to strategic buyer OLX Group for €1.1 billion, or about $1.28 billion. Providence has backed the French business since 2021. OLX is owned by technology investment holding company Prosus in the Netherlands.

Accel-backed insurance-technology company Ethos Technologies filed for an initial public offering of shares without saying how many it plans to sell or at what expected price range. Accel and Sequoia Capital were among the insure-tech's earliest investors with commitments in 2018. The company provides life insurance through a smartphone app and reported net income of $61 million on revenue of $320 million in the 12 months ending in June, with revenue rising 57% from the previous year.

 

Funds

The investment arm of Norway’s central bank, Norges Bank, backed Brookfield Asset Management's latest energy-transition fund. PHOTO: REUTERS / VICTORIA KLESTY

Norges Bank Investment Management, the arm of Norway’s central bank that manages the country’s $2 trillion sovereign-wealth fund, agreed to invest $1.5 billion in Brookfield Asset Management’s latest energy transition fund, Dominic Chopping reports for the Journal. The bank's commitment to Brookfield’s Global Transition Fund II marks the vehicle's second indirect investment through another fund. In July, Brookfield reported that it had raised about $15.67 billion for the strategy, including related vehicle and the firm's own commitment, with its first investor coming aboard in December 2023.

Tactical Infrastructure Partners has raised at least $212.6 million so far for Tactical Infrastructure Partners Fund and related parallel funds, according to a regulatory filing. Tactical Infrastructure Partners was founded by Michael Feldman in 2021 and backs debt, equity and hybrid structured investments in sectors that include renewable energy, distributed generation, waste, social infrastructure, midstream, transportation and other infrastructure or infrastructure-related subasset classes, according to the firm’s registered investment adviser filing.

Apollo Global Management is setting up three new evergreen investment vehicles tailored to investors in Europe, Asia and Latin America. The three funds, Apollo European Private Credit ELTIF, Apollo Global Diversified Credit ELTIF and Apollo Global Private Markets ELTIF, will provide qualified individual investors with access to the New York firm's private markets assets.

Ares Management aims to raise roughly $8 billion to invest in data center development by 2028, including $2.4 billion collected in this year's first half, according to an investor presentation Thursday by Blair Jacobson, the firm's co-president. Under current projections of data center demand, Ares said, about $5.2 trillion in new investment is needed to build, equip and power the operations around the world.

 

People

Two senior dealmakers in London have teamed up to start their own buyout shop, Sebastian McCarthy reports for sister publication Private Equity News, citing people familiar with the matter. Former Inflexion partner Mark Williams and ex-Houlihan Lokey banker Leon Gillespie are setting up a firm called Goldenpeak. Their move marks the latest sign of bullish emerging manager activity in London, where a raft of senior figures have recently left larger firms to pursue their own ventures.

 

Industry News

The artificial-intelligence boom has ushered in one of the costliest building sprees in world history, with massive commitments to build data centers. A big problem: No one is sure how they will get their investment back—or when, Eliot Brown and Robbie Whelan report for the Journal. The building rush is effectively a mega-speculative bet that the technology will rapidly improve, transform the economy and start producing steady profits.

Former financier Howard Rubin was charged Friday with trafficking dozens of women whom federal prosecutors said he sexually and physically assaulted during encounters in a Central Park penthouse with a sex dungeon, ​​James Fanelli reports for the Journal. A 10-count indictment said Rubin, a 70-year-old former money manager with Soros Fund Management, recruited ex-Playboy models and other women for paid sex and during the sessions tied them up, drugged them and beat them without their consent. He was arrested at his Fairfield, Conn., home Friday. Rubin's lawyers didn’t immediately respond to a request for comment.

The Securities and Exchange Commission on Friday asked for public comment on how the agency can improve rules surrounding the creation of residential mortgage-backed securities as well as regulations concerning asset-backed securities in general. The regulator is looking to see if current rules hinder the formation of the derivative securities and whether disclosure requirements should be revised.

 
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About Us

Send us your tips, suggestions and feedback. Write to:

Maria Armental; Ted Bunker; Chris Cumming; Luis Garcia; Laura Kreutzer; Isaac Taylor; Chitra Vemuri.

Follow us on Twitter:@wsjpe, @LHVGarcia, @LauraKreutzer

 
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