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Clearlake Capital Banks $14.1 Billion for Fund VII | ILPA's Choi Sees Promise in SEC Fund Proposals
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Good day Pro readers! Despite the market volatility, fundraising for some private-equity firms continues to chug along. This morning, our own Preeti Singh has news about the latest flagship fundraising from Clearlake Capital Group, which garnered more than $14 billion. Meanwhile, Chris Cumming caught up with Jennifer Choi of the Institutional Limited Partners Association to talk about some of the Securities and Exchange Commission’s new proposed private fund rules, and WSJ Pro Bankruptcy’s Alexander Saeedy reports that KKR-backed Envision Healthcare is in talks with lenders about including them in a follow-up transaction to a debt exchange it did last month.
Read on for more details on these and other stories…
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Behdad Eghbali (left) and Jose E. Feliciano of Clearlake Capital Group. Credit: Clearlake Capital Group
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Clearlake Capital Group LP has amassed $14.1 billion for its seventh flagship fund, outpacing a $10 billion target, WSJ Pro Private Equity’s Preeti Singh writes. Clearlake Capital Partners VII LP is nearly double the size of its predecessor, which closed on $7.1 billion in April 2020. Clearlake conducted the latest fundraising virtually in roughly five to seven months, and the firm added over 50 new investors, although more than 95% of investors in the prior fund also committed capital, according to José E. Feliciano, co-founder and managing partner.
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The Securities and Exchange Commission in February proposed a massive slate of new rules for private funds that would require detailed new disclosures of fees and expenses while banning certain practices. Among the proposals is a rule that would require firms to disclose details of side letters, documents that spell out agreements between a fund manager and one of its investors to alter certain terms of a fund for that specific investor. The private-equity industry has come down hard on the proposal, arguing that the new rules are unnecessary, would be expensive to implement and would hurt fund returns. WSJ Pro Private Equity’s Chris Cumming spoke with Jennifer Choi, managing director for
industry affairs at the Institutional Limited Partners Association, a trade group that represents institutions that invest in private equity, about how its members see the rules.
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KKR & Co.’s Envision Healthcare Inc. is in discussions with lenders about including them in a follow-up transaction to a debt exchange that stripped their collateral rights to a roughly $2.5 billion corporate asset, Alexander Saeedy writes for WSJ Pro Bankruptcy, citing people familiar with the matter. Envision and its advisers are speaking with lenders that were left out of the debt exchange last month, saw the value of their holdings plummet as a result and may now be interested in tendering their loans for new debt, likely at a discount to face value, the people said.
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$14.1 Billion
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The amount of capital Clearlake Capital Group raised for its seventh main private equity fund, making Clearlake Capital Partners VII LP the firm’s largest private-equity fund.
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A natural gas pipeline. Photo: Petras Malukas,Agence France-Presse/Getty Images
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ArcLight Capital Partners has acquired a 25% interest in natural gas pipeline Gulf Coast Express Pipeline as part of the $857 million acquisition of a wholly owned subsidiary of Targa Resources Corp. GCX is operated by Kinder Morgan Inc. and provides critical residue gas takeaway service from the Permian Basin to U.S. Gulf Coast end-markets, including key emerging demand regions such as the growing liquefied natural gas export market in south Texas, according to a press release.
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Riverstone Holdings has led an $80 million investment in Infinitum Electric, a company that produces motors used in the electric vehicle market, according to a press release. Other investors that participated in the investment round include Alliance Resource Partners, Applied Ventures, LLC, the venture capital arm of Applied Materials, Inc., Cottonwood Technology Fund, Chevron Technology Ventures, Aventurine Partners, Energy Innovation Capital and Ajax Strategies, according to the press release.
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Black Bay Energy Capital acquired a majority interest in Advanced Industrial Devices from Rock Island Capital, seeking to capitalize on a shift toward cleaner, electric driven equipment. Tulsa, Okla.-based AID is a provider of electric motor automation and control solutions for oil and gas and industrial applications. Financial terms weren’t disclosed.
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Midmarket private-equity firm Gemspring Capital said it has acquired GoldenSource Corp., which offers enterprise data management technology for financial services companies.
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DC Capital Partners Management LP is taking a controlling investment in Valkyrie Enterprises LLC and merging it with portfolio company Hill Technical Solutions LLC. Virginia-based Valkyrie provides a range of professional, engineering, information technology and technical services to the U.S. Department of Defense and federal government, and allied nations’ security and diplomatic missions.
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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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Sustainable real assets investor Vision Ridge Partners LLC has sold a portfolio of mitigation banking assets in southeast Texas, according to an emailed press release. Mitigation banks are properties with wetland, stream or aquatic resources that have been restored or preserved in exchange for credits. The portfolio Vision Ridge sold includes three mitigation banks that the firm developed in partnership with ecological restoration company The Earth Partners, the release stated.
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BT Pension Scheme, one of the UK’s largest pension plans with£57 billion, the equivalent of $70.23 billion, in assets as of June 30, 2021, has awarded $1 billion to Hermes GPE LLP, a subsidiary of responsible investor Federated Hermes, Inc., to invest in private equity over the next three years. The new mandate, which is named Horizon III, will be evenly split between fund commitments and co-investments, according to a press release.
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Grafine Partners, an alternative asset firm that backs experienced investment managers that are starting their first private-equity funds, has hired Christone Winslow as a managing director at the firm. Ms. Winslow previously served as director of private equity for Dutch pension fund manager PGGM, according to a press release.
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Kayne Anderson Capital Advisors LP said it has hired Brody J. Browe as global head of intermediary business development to help the firm with product development, marketing and distribution across wealth management channels. Mr. Browe previously served as managing director and head of institutional business development at alternative asset manager FS Investments, according to a press release.
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BEX Capital appointed Bernard Charpentier as the firm’s first general counsel. Mr. Charpentier joined from global alternatives manager Quilvest Capital Partners. BEX Capital, which focuses on secondaries in private equity fund-of-funds, said it would also add a vice president and two portfolio managers to its investment team over the next few months.
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One of Allianz SE’s U.S. investing divisions pleaded guilty to securities fraud and agreed to pay about $6 billion in penalties and restitution to investors who suffered losses when some of the subsidiary’s hedge funds tanked during the March 2020 market selloff, James Fanelli, Justin Baer and Julie Steinberg report for The Wall Street Journal.
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