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Riverwood Raises $1.8 Billion Tech-Focused Fund | Overseas Firms Re-Discover Brazilian Market
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Welcome back! As the days tick down to Thanksgiving here in the U.S., I can’t help but reflect on the many things I am grateful for, including all of you loyal readers out there! Although the news cycle here in the U.S. tends to slow down as we head into the Thanksgiving holiday, this week kicks off with news of Riverwood Capital’s newest and so far largest tech-focused private equity fund, as Chris Cumming writes. Meanwhile, Luis Garcia looks at the private capital industry in Brazil, which is starting to lure back overseas investment firms as its markets continue to mature.
Read on for more details on these and other stories…
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Riverwood Capital’s office in Miami. PHOTO: RIVERWOOD CAPITAL
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Private-equity firm Riverwood Capital, formed 15 years ago by former KKR executives, has raised its largest pool of capital to date to invest in high-growth technology companies, Chris Cumming reports for WSJ Pro Private Equity. The firm collected $1.8 billion for its fourth fund, Riverwood Capital Partners IV, and related vehicles, said firm co-founders Francisco Alvarez-Demalde and Jeff Parks. The sum exceeds Riverwood’s $1.5 billion target as well as the firm’s previous fundraising effort, a 2019-vintage vehicle that gathered $1.4 billion.
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Brazil’s private-capital industry continues to mature and is attracting U.S. asset managers looking to expand in new regions, as investment risks increase in other markets such as China, WSJ Pro Private Equity’s Luis Garcia reports. A retreat from Brazil by overseas private market investors in recent years left a shortage of capital that has translated into stronger potential returns for some of those firms that stuck around, despite the risks, investors said.
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$211.3 Billion
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The value of private equity-backed mergers and acquisitions through Thursday, down 36% from the same period of last year, according to data provider Refinitiv.
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The leading bid shows how much the value of New York’s rent-regulated apartment sector has deteriorated in recent years. PHOTO: SCOTT HEINS/GETTY IMAGES
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Private markets giant Blackstone and asset management firm Rialto Capital are emerging as lead bidders for a portfolio of commercial real estate loans of Signature Bank, while an investor group that includes Related Fund Management is poised to snag a portfolio of property loans backed by New York apartments that were held by the failed bank, The Wall Street Journal’s Peter Grant reports. The Signature loan sale of $33 billion in real-estate loans and other assets, which is being conducted by the Federal Deposit Insurance Corp, has been the largest commercial-real-estate transaction of the year.
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The credit and distressed investment arm of T. Rowe Price, Oak Hill Advisors, has refinanced the operations of car wash company Mammoth Holdings through transactions totaling more than $500 million, according to a news release. The Dallas-based company, which operates at 122 locations and whose backers have included CCMP Growth Advisors and Red Dog Equity, said the recapitalization will help it reach its goal of 500 locations across the U.S., including through acquisitions.
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Shares of U.K. soccer club Manchester United surged as much as 10% in New York Friday after reports in Britain that a sale of a minority interest to billionaire Jim Ratcliffe’s Ineos Group is imminent, capping a year-long process started by the controlling Glazer family last November, James Rogers reports for sister publication MarketWatch. The shares rose after Sky News reported that Ratcliffe’s Ineos Sport could announce a $33 a share deal to buy a 25% stake in the club as early as Monday, a deal that would value the club at as much as $6.5 billion, Reuters reported. The Florida family that has controlled the club since 2005 was said to be keen to finalize a deal before
the Thanksgiving holiday on Thursday.
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Apollo Global Management is partnering with the Automotive Systems unit of Panasonic Holdings in Japan, announcing a memorandum of understanding to acquire a stake in the business from the big manufacturer. The unit, set up as an operating subsidiary last year, supplies in-dash digital displays and related electronics to carmakers around the world, according to a news release that also indicated that Apollo may seek a public listing for the business. The unit generates annual sales of around ¥1.3 trillion yen, equivalent to about $8.61billion, with roughly 30,000 employees working from 61 locations worldwide. Details of the transaction are expected to be final by next
March.
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Healthcare focused firm ARCHIMED said in an emailed statement that it has acquired and merged two contract research organizations focused on dermatology. The firm bought U.S.-based Symbio and merged it with Germany-based Proinnovera in an all equity deal to create Symbio Proinnovera. The newly formed company will offer consulting, testing and clinical research through every development stage. The deal marks the fifth transaction from the private-equity firm’s MED III fund, which closed in 2021 with €650 million, equivalent to $707.8 million.
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German real estate company Aareal Bank plans to delist its shares from the Frankfurt Stock Exchange after Tuesday's close, following completion of its takeover by Advent International, Centerbridge Partners, the Canada Pension Plan Investment Board and other co-investors, Helena Smolak reports for Dow Jones Newswires.
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Financial services and real estate specialist Rithm Capital said it closed its take-private deal for New York-based hedge-fund manager Sculptor Capital Management at $12.70 per share, adding a business with assets of $32.8 billion. When announcing the deal in July, asset manager Rithm said it would pay $11.15 per share in a transaction valued at about $639 million. But the price rose first to $12 and then to $12.70 last month after an investor group led by Boaz Weinstein offered a competing bid of
around $13 per share for Sculptor, formerly known as Och-Ziff Capital Management, the Journal reported at the time. The closed deal had a value of about $719.8 million.
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Denver-based Bow River Capital said its private credit strategy has invested in a tranche of growth capital financing for Gas N Wash, a family-owned chain of gas stations, convenience stores and car washes. Private credit firm Freedom 3 Capital led the growth financing.
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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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Blackstone has rounded up at least $17.5 billion so far for Blackstone Capital Partners IX LP and related parallel funds, according to a regulatory filing. Blackstone President and Chief Operating Officer Jonathan Gray said during the firm’s second quarter earnings call that Blackstone expects the fund’s total size to be in the low $20-billion range. Investors that have disclosed commitments to the fund include the California State Teachers’ Retirement System, Public Employees’ Retirement System of Idaho, Minnesota State Board of Investment and the Regents of the University of California
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Midmarket firm Kohlberg & Co. has raised at least $2.53 billion so far for Kohlberg Fund X and a series of related parallel funds, according to a regulatory filing. Investors that have disclosed commitments to the fund so far include the Santa Barbara County Employees’ Retirement System, Public Employees Retirement System of Idaho and Teachers’ Retirement System of Louisiana. The amount indicated in the filing puts the new fund nearly three quarters of the size of its predecessor, which closed with $3.4 billion in 2021.
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Shorehill Capital in Chicago said it has collected $260 million for its second lower midmarket investment fund, Shorehill Private Equity II, exceeding a $250 million target for the vehicle. The firm founded in 2014 said in a March regulatory filing that it managed about $378 million in private fund assets. Shorehill invests in companies that provide industrial services, including value-added distribution, and makers of engineered industrial products, according to its website.
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Russ Steenberg will retire from his role as chairman of BlackRock Private Equity Partners at year-end, according to an internal BlackRock email viewed by WSJ Pro Private Equity. Steenberg, who founded BlackRock Private Equity Partners in 1999, shifted to a chairman role last year and handed off management of the unit to Lynn Baranski and John Seeg, WSJ Pro Private Equity previously reported.
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After nearly four decades, Jim Chanos is shutting down hedge funds he manages that wager against companies he believes are overpriced or fraudulent, Gregory Zuckerman and Peter Rudegair report for The Wall Street Journal. His career as a short seller spanned a contrarian bet against Enron that paid off when the energy trader collapsed as well as yearslong, money-losing campaigns against Tesla and AOL.
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Investment bank Peel Hunt in London said 63% of participants in a survey of more than 250 private-equity firms said they expect tax changes to drive dealmaking next year, Sebastian McCrthy reports for sister publication Private Equity News. A general election next year could usher in a Labour government, and Rachel Reeves, the party’s shadow chancellor, has vowed to end favorable tax treatment for carried interest collected by firms as their part of investment profits.
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