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Seidler Bags $800 Million | A Secondary Market Shift | L Catterton's Coronavirus Lessons
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Good day! Yesterday, the markets staged a Rocky Balboa-style comeback, as investors anticipate the passage of a massive $2 trillion government stimulus package designed to bolster the economy. However, with more than 3 million jobless claims last week alone, the economy is clearly in for a rough ride.
As Chris Cumming reported yesterday, many private-equity portfolio companies may not be able to access stimulus money outside of a few industries. More on that, however, when the final version gets signed into law. The market turmoil promises to upend secondary deal volume this year, as I write in this morning's newsletter. In more positive news, Seidler Equity Partners has locked in $800 million for its latest fund and L Catterton is embracing lessons learned from its experience in Asia.
Have a safe and socially distant weekend...
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Seidler Equity Partners acquired sports equipment maker Rawlings Sporting Goods Co. alongside Major League Baseball.
PHOTO: GENE J. PUSKAR/ASSOCIATED PRESS
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Seidler Equity Partners has raised $800 million for a seventh fund after less than three months in the market, Will Louch reports for WSJ Pro Private Equity, citing a person familiar with the matter. Seidler Equity Partners VII closed on its hard cap earlier this month and was oversubscribed with most of the money raised for it coming from investors in previous Seidler funds, the person said.
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Market turmoil and economic uncertainty stemming from the spread of the novel coronavirus promise to dramatically affect secondary deal volume in 2020, WSJ Pro's Laura Kreutzer reports. Buyers and intermediaries predict that the market will favor smaller deals and deal structures that offer buyers some downside protection. Secondary dry powder hit $103 billion in 2020, according to a new report from secondary intermediary Campbell Lutyens.
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L Catterton, one of the oldest and largest private-equity firms focused on consumer products and services, is embracing lessons learned from managing its Asian portfolio companies, as it looks to help its U.S. portfolio companies navigate the coronavirus pandemic, Luis Garcia writes for WSJ Pro.
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33%
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The percentage of an estimated $103 billion of dry powder in the secondary market that is represented by individual firms with $2 billion or less each, according to secondary intermediary Campbell Lutyens.
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Participants in a half Ironman triathlon event enter the Red Sea. Photo Credit: Artur Widak/NurPhoto via ZUMA Press
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Media investment firm Orkila Capital is backing the acquisition of the Ironman Group events business from Wanda Sports Group Co. by the owner of Advance Publications Inc. and Condé Nast magazines. The growth-equity firm is investing alongside Advance, the media company formed by S.I. Newhouse, which plans to leave Wanda Group in charge of operating the business. Ironman sponsors more than 235 events across over 50 nations annually, including endurance contests and bicycle races. Orkila co-founders Jesse Du Bey and Taylor Storms, who had both worked for Providence Equity Partners,
started their firm in 2013 in New York. Providence previously owned the group that sponsors the Ironman events but sold it to Dalian Wanda Group Co., Wanda Sports' parent, for $900 million in 2015.
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Hamilton Lane Advisors has entered into a $75 million multi-draw term loan facility agreement with First Republic Bank, according to a regulatory filing. The firm plans to use the money for working capital and general corporate purposes, the filing indicates. The term loan accrues a 4% interest rate and matures on July 1, 2030.
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TA Associates has made a growth investment in Accion Labs Inc., joining Basil Technology Partners in backing the engineering company that specializes in developing software for emerging technologies. Founded in 2011, the Pittsburgh-based company has about 2,250 employees and develops systems that utilize artificial intelligence, cloud applications and big data sets.
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Levine Leichtman Capital Partners has invested in Blue Ridge ESOP Associates, alongside management. The Charlottesville, Va.-based company provides technology and services to help clients administer employee stock ownership plans and associated contributory retirement plans.
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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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TA Associates has exited a minority equity stake in hedge fund manager Evanston Capital Management LLC by selling the stake back to the firm. Evanston’s senior management team, headed by Chief Executive and Chief Investment Officer Adam Blitz, led the buyout. TA forged the partnership with Evanston in 2010, according to a news release.
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Origami Capital Partners has raised $520 million for its Origami Opportunities Fund IV LP, which has closed at that level. The Chicago-based firm founded in 2008 focuses on “opportunistic special situations” and provides capital to free illiquid assets. Metric Point Capital served as the fund’s placement agent. The firm targeted $450 million for its third opportunities fund in 2015, a regulatory filing shows.
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Leeds Equity Partners, a midmarket firm focused on education, training, information services and software companies, is seeking $1 billion for its newest fund, according to a regulatory filing. The offering amount for Leeds Equity Partners VII LP is larger than the firm's prior flagship fund, which closed with more than $750 million back in 2018.
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DBL Partners, one of the oldest impact investment firms, is seeking $450 million for its newest fund, DBL Partners IV LP, according to a regulatory filing. The offering amount for the new fund is slightly larger than the $400 million that the firm raised for its prior fund back in 2015. DBL Partners, originally known as Double Bottom Line, targets venture capital and growth investments with the goal of generating both financial returns and social or environmental benefits. The firm focuses on industries that span clean technology, technology, sustainable products and services, as well as health care, according to the firm’s website.
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The specter of widespread corporate defaults in the coming months has caused a massive selloff in junk bonds around the world, as many debt-laden companies face the prospect of going weeks or months with virtually no revenue, Serena Ng and Xie Yu write for The Wall Street Journal.
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Ares Management says it has $34.6 billion available to invest as of year-end 2019 in an annual letter to shareholders. The publicly traded firm added that $25.2 billion of that amount represented assets under management that were not yet generating fees and were available for future deployment.
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Colony Capital, a global investment firm with a focus on real estate, has appointed Severin White as managing director, head of public investor relations. Mr. White joins the Los Angeles-based firm from Niagara Share LLC, a financial advisory practice he founded.
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