|
Permira Aims for $2.5 Billion | Pension Trustee Sues Her Board | HPE Builds a Single-Asset Fund
|
|
|
|
|
|
Good day! The week, like the weeks and months before, continues to be awash in deals, and we summarize many below. And with businesses flush with cash, as our colleagues Nina Trentmann and David Benoit report, there’s likely no end in sight.
Private-equity firms are also sitting on mountains of money, but as our Preeti Singh and Laura Cooper report, that isn’t keeping some, such as Permira, from raising more. For some, the goal is simply to extend an earlier investment, as in the case of HPE Growth, as Preeti reports.
In another vein, Preeti also offers a look at the legal efforts of state Sen. Katie Muth, a Pennsylvania pension fund trustee trying to obtain information about the system’s past investments. A federal investigation into some of those deals is complicating matters.
We have these stories and many more for you, so please read on...
|
|
|
|
|
The growth opportunities funds of London-based Permira typically focus on minority positions in companies that don’t fit the mandate of its flagship funds.
PHOTO: JASON ALDEN / BLOOMBERG NEWS
|
|
|
Permira aims to raise some $2.5 billion for its second growth fund focused on investments in smaller, growing technology companies, Preeti Singh and Laura Cooper report for WSJ Pro Private Equity, citing people familiar with the fund. If the London-based firm hits its target, the new vehicle would be 47% larger than its predecessor. Its first growth technology fund, Permira Growth Opportunities I LP, closed with $1.7 billion in July 2019.
|
|
Pennsylvania state Sen. Katie Muth is suing the public pension system whose board she joined earlier this year, seeking records that have been withheld amid a federal investigation of the organization, Preeti Singh reports for WSJ Pro Private Equity. Ms. Muth is asking a state court to force the $64 billion Pennsylvania Public School Employees’ Retirement System, its executive director and its board chairman to provide her with documents regarding past investment decisions. The decisions predated her service as a trustee, which began in February. A statement sent by a spokeswoman for the system said the suit was without merit.
|
|
European growth investor HPE Growth is joining the ranks of private-equity firms turning to the secondary market to buy more time and capital for a single portfolio holding, Preeti Singh writes for WSJ Pro. The firm has raised €160 million (or roughly $194.9 million) for a continuation fund that will house its investment in PPRO Financial Ltd., a payments infrastructure technology provider that the firm initially backed in 2014 out of a debut fund raised in 2011.
|
|
|
|
$17.09 Trillion
|
The amount of cash on deposit at U.S. commercial banks as of May 26, a Federal Reserve figure that grew sharply last year as companies raised cash to deal with the coronavirus pandemic.
|
|
|
|
|
Boston-based Valo operates a system called Opal, which it said would be able to speed up drug discovery and development. PHOTO: VALO HEALTH
|
|
|
Flagship Pioneering-backed drug developer Valo Health LLC is going public through a combination with a special-purpose acquisition company in a deal that values the business at about $2.8 billion, Dave Sebastian reports for Dow Jones Newswires. Flagship Pioneering founded Boston-based Valo in 2019 and the company has developed a system to accelerate drug discovery. The SPAC, Khosla Ventures Acquisition Co., is sponsored by Khosla Ventures.
|
|
Sixth Street and Goldman Sachs Group Inc. are joining New Mountain Capital in backing Ciox Health LLC as it combines with biomedical data aggregator and analytics company Datavant Inc. in a deal valued at about $7 billion. New Mountain helped create Alpharetta, Ga.-based Ciox, a clinical data exchange operator, in December 2014 when the private-equity firm combined four portfolio companies. San Francisco-based Datavant was founded by Roivant Sciences Ltd. Sixth Street and Goldman Sachs’s West Street Strategic Solutions fund are acquiring minority stakes in the combined business.
|
|
Ardian Infrastructure has agreed to invest as much as €1.5 billion (or roughly $1.83 billion) in a new “green energy” venture established with Italian utility company A2A SPA, which is contributing energy generation, supply and storage assets worth about €3 billion. The assets generated about €360 million in pro forma earnings before interest, taxes, depreciation and amortization last year, according to a news release. Ardian will own as much as 45% of the newly established business, which would have an enterprise value of about €4.1 billion, and aims to develop renewable energy assets in Italy, according to A2A.
|
|
Bain Capital has committed another $350 million to engineered materials and optoelectronic components provider II-VI Inc. The added capital increases the Boston firm’s commitment to the publicly traded company to about $2.15 billion through purchases of convertible preferred shares. The latest investment supports the Saxonburg, Pa.-based company’s plan to combine with laser maker Coherent Inc. in a roughly $7 billion deal.
|
|
Eastman Chemical Co. has agreed to sell its global tire additives business to One Rock Capital Partners for around $800 million.The sale price includes $725 million cash and up to $75 million to be paid after the deal closes provided the unit hits certain performance milestones, according to a press release.
|
|
KKR & Co. has set up a mental health services company called Geode Health and put Gaurav Bhattacharyya, a former Elite Dental Partners chief executive, in charge as CEO. Chicago-based Geode plans to partner with practitioners and to open new clinics to provide for unmet needs. KKR is investing in the company through its Health Care Strategic Growth strategy.
|
|
KPS Capital Partners has agreed to acquire forged metal parts maker Siderforgerossi Group SPA. The Veneto, Italy company makes large-diameter components used in structures like electricity-generating windmills as well as in automotive, construction and other energy industry applications. The New York firm is investing through its KPS Special Situations Mid-Cap Fund.
|
|
The Ontario Municipal Employee Retirement System joined Volkswagen AG, Goldman Sachs Group Inc. and other institutional investors in investing $2.75 billion in electric-vehicle battery maker Northvolt AB. The Ontario pension invested in the European lithium-ion cell producer through its Omers Capital Markets arm.
|
|
Cathay Capital is investing in Kojin Therapeutics Inc., participating in a $60 million investment with Polaris Partners and Newpath Partners. Cathay is backing the therapeutics developer in Cambridge, Mass. through its Cathay Health strategy, according to an emailed news release.
|
|
Carlyle Group Inc. has acquired a majority stake in 1E Ltd., an enterprise software company that helps organizations manage and monitor things like employee digital engagement, remote work and service desk efficiency. Sumir Karayi, founder and chief executive of 1E, will retain a significant minority stake in the company, which Carlyle backed out of its €1.35 billion (or about $1.65 billion) Carlyle Europe Technology Partners IV fund, which closed in 2019.
|
|
The Pritzker Foundation has invested $100 million to acquire a minority stake in Steward Partners Global Advisory LLC, a wealth management firm that manages $23 billion in client assets.
|
|
Sterling Group is carving out the plastics recycling business of portfolio company Greenbridge Packaging, which renamed itself from Polychem LLC in April. The Clyde, Ohio-based recycling company is called Evergreen and is being combined with CarbonLite Inc. in Riverside, Calif.
|
|
H.I.G. Capital is backing software-as-a-service provider Cleo Communications Inc. The Rockford, Ill. company works with some 4,000 businesses to help them track and analyze enterprise data.
|
|
Northlane Capital Partners said it has invested in EBS Inc., a healthcare cost-management technology provider for small and medium businesses, which does business as the Difference Card.
|
|
|
|
Our add-on deal interactive tool allows you to sort and analyze volumes of add-on deal data compiled by WSJ Pro. View more.
|
|
|
|
Wallbox Chargers SL, an electric vehicle charging technology company backed by Cathay Capital Private Equity, is being acquired and taken public by Kensington Capital Acquisition Corp. II, a blank-check company, Chris Wack reports for Dow Jones Newswires. The deal implies a roughly $1.5 billion valuation for Barcelona, Spain-based Wallbox, which makes charging stations and devices for plug-in vehicles. The Paris-based midmarket private-equity firm backed the company through its Cathay Innovation venture capital affiliate.
|
|
An Altimeter Capital-backed special purpose acquisition company is pushing back the closing schedule for its nearly $40 billion deal to acquire and take public Grab Holdings Inc. because it is still finalizing its financial audit for 2018, 2019 and 2020 in accordance with U.S. Securities and Exchange Commission requirements, Yifan Wang reports for Dow Jones Newswires. The deal was initially set to close in July and is now expected to be wrapped up during this year’s fourth quarter. Grab also posted a 5.2% increase in the consolidated gross merchandise value on its platform during the first quarter.
|
|
Gobi Acquisition Corp., a blank-check company backed by private-equity firm PAG, is looking to raise about $250 million to invest in a business with a strong connection to the Asia-Pacific region, Maria Armental reports for Dow Jones Newswires. The special-purpose acquisition company is led by Weijian Shan, PAG’s chairman and chief executive, and CEO Jack Li, a PAG managing director.
|
|
SoFi Technologies Inc., which went public by merging with a special purpose acquisition company, is giving retail investors a chance to invest in four SPACs set up by Chamath Palihapitiya, the venture capitalist behind the blank-check company that took SoFi public. Now SoFi account holders can buy shares of the non-public SPACs focused on biotechnology, called Social Capital Suvretta Holdings Corps. I, II, III and IV, at $10 a share ahead of their initial public offerings, Luisa Beltran reports for sister publication Barron’s.
|
|
|
Golden Gate Capital has sold 2020 Technologies Inc. to fellow private-equity firm Genstar Capital. The Laval, Quebec-based company provides technology supporting industries that span interior design, space planning and furniture manufacturing.
|
|
Madison Dearborn Partners is selling 15 million shares of publicly traded Option Care Health Inc. at $20 each, according to a company news release. The Chicago firm recently increased the public offering by 50% and has given the underwriters the option to sell an additional 2.25 million shares. Madison Dearborn’s stake in the company would fall to as low as roughly 38% following the sale.
|
|
L Squared Capital Partners is selling video streaming company Kanopy Inc. to OverDrive Inc., a digital reading platform for libraries and schools. L Squared originally backed the company in 2018.
|
|
|
Onex Corp. is hiring Judy Cotte as head of the firm’s environmental, social and governance efforts. Ms. Cotte joins Onex from ESG Global Advisors, a firm that she founded. She has also previously served as head of corporate governance and responsible investment for RBC Global Asset Management.
|
|
H.I.G. Capital has expanded the European team at its WhiteHorse affiliate with the addition of Sebastian Lorenz as a principal and head of the DACH region, which spans Austria, Germany, and Switzerland. Mr. Lorenz previously served as a director in the private finance division of Barings and also worked at Ares Management Corp.
|
|
|
The Connecticut Investment Advisory Council, which helps manage the state’s pension system, approved new commitments to private-markets funds at its meeting Wednesday. The council voted for investments of up to $150 million to Strategic Value Special Situations Fund V, which is targeting $4 billion. Also, the council approved as much as €150 million (or about $182.7 million) for ICG Europe Fund VIII, which is targeting €7 billion, and up to $125 million in Basis Investment Group Real Estate Fund II, which has a $750 million fundraising goal.
|
|
A Hellman & Friedman-backed financial services company in Madrid, Allfunds Bank SAU, is teaming up with Institutional Capital Network Inc., or iCapital, in New York to expand access to alternative investment assets across the Atlantic, according to an emailed news release. The partnership will make investments through the iCapital system available to Allfunds Connect platform users, including individual investors, small institutional funds and their advisers.
|
|
The Securities and Exchange Commission has updated its public listings of unregistered entities that solicit investments using misleading or false information, adding 55 names of groups that use ruses such as phony names and locations. The agency said some entities impersonate genuine firms and others create fictitious regulatory bodies.
|
|
|
|
|
|