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Alaska Permanent Pumps Breaks | Mass PRIM Backs Insight Emerging Manager Push
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Hello, Pro Private Equity readers! Another week is ending and the public markets have declined so much this week I think I can feel my ears pop. The steady declines in stocks and bonds this year have revived concerns among investors about the denominator effect, that familiar term used to describe the allocation challenge that results when public markets nosedive. This week has pushed those concerns to the forefront, particularly after all the fundraising and dealmaking that took place last year. One limited partner is already reevaluating its approach in light of the new dynamics facing the market. As our own Preeti Singh reports, Alaska Permanent Fund Corp. is taking another look at its commitment plans for the next fiscal year and revising them downward. Preeti also has news about Insight Partners’ new fund of funds aimed at backing
up-and-coming fund managers run by women and minorities. The fund has garnered an early anchor commitment from Massachusetts’ largest state pension manager.
Read on for more details and have a great weekend!
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The building in Juneau, Alaska, where Alaska Permanent Fund Corp.'s offices are based.
PHOTO: ALASKA PERMANENT FUND CORP.
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Alaska Permanent Fund Corp. is dialing down the amount of capital it plans to commit to private equity as the so-called denominator effect hits its investment portfolio, WSJ Pro Private Equity’s Preeti Singh reports. The $80 billion Juneau-based state sovereign fund will set aside $1.2 billion for new private-equity commitments in the fiscal year ending June 30, 2023, 25% less than the $1.6 billion it initially planned to allocate, Steve Moseley, deputy chief investment officer and head of alternative investments, told the board of trustees at their meeting Thursday.
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Massachusetts’ largest pension is putting up to $50 million toward a new fund pitched by veteran growth investor Insight Partners to support venture firms run by women and people of color, WSJ Pro Private Equity’s Preeti Singh writes. Insight launched its first fund for what it called its vision capital strategy in 2020 to invest in diverse and often overlooked fund managers. Insight has committed around $15 million from that pool, according to David Gurtz, deputy chief investment officer and director of public markets at the Massachusetts Pension Reserves Investment Management Board, or Mass PRIM.
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$98.81 Billion
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Global private-equity deal value during the month of April, a 6% increase from the gross deal value in the same month of 2021, according to data from S&P Global Market Intelligence. Although the value of deals was up, the number of transactions announced during the month was down 22% from the year-earlier period to 1,611 deals.
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Denver, where Marigny Investments is based. PHOTO: DAVID ZALUBOWSKI/ASSOCIATED PRESS
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Denver-based private-equity firm Marigny Investments acquired inmate clothing and detention supplies company Victory Supply. Financial terms weren’t disclosed, but the companies said that Kathy and Evan Trommer, who started the Tennessee-based company in 2012, will remain significant owners of Victory Supply.
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Thomas H. Lee Partners, or THL, has backed a growth investment in Inriver, which focuses on product information management solutions. Financial terms weren’t disclosed, but the firms said that it would include a significant primary capital investment and that European growth equity investment firm Verdane, and current Inriver shareholder, would retain a significant stake.
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Global alternative asset firm Brookfield has taken a stake in CrescoNet, a company that, along with its subsidiary Smart Earth Technologies, delivers metering infrastructure technology to water, gas and electric utilities, as well as solar, electric vehicle and battery connectivity, according to a press release.
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Private investment firm GI Partners has acquired 22262 Cloud Plaza, a data center based in Sterling, Va., that is leased by an unnamed global technology firm, according to a press release. Sentinel Data Centers will retain a minority interest in the ownership of the property, which offers more than 46 megawatts of power, according to the release.
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L Catterton Latin America is taking a minority stake in Mexican lending platform Crediclub. Financial terms of the deal, which is expected to close by year’s end, weren’t disclosed.
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Source Capital, an Atlanta-based lower midmarket firm, has acquired Kitchen Brains, a Stratford, Conn.-based company that designs and manufactures computers, electronic controls and software used in commercial foodservice operations, according to a news release.
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PSG, formerly Providence Strategic Growth Capital Partners, has backed a growth investment in Qmulos, a cybersecurity software and professional services firm, according to a press release.
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Accelmed Partners and Lauxera Capital Partners are backing Veranex, a company that provides design, engineering, regulatory, preclinical research, clinical development, commercial strategy, and market access services to medical technology companies. Summit Partners, which initially backed Veranex in 2021, will retain a majority stake in the company.
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Midmarket firm LLR Partners has invested in Allmark Door, a provider of commercial door and loading dock services, according to a press release.
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Boston-based growth investment firm Narrow Gauge Capital has acquired Inco-Check LLC, a provider of quality control and audit services and software for banks, credit unions and lenders, according to a press release.
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AGIC Capital, a private-equity firm that backs advanced industrial and healthcare technology companies in Asia and Europe, bought a majority stake in Grafotronic, which develops modular solutions for the digital label finishing and electronic-vehicle battery markets. Financial terms weren’t disclosed.
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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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Genstar Capital has sold down some of its stake in BBB Industries to fellow private equity firm Clearlake Capital Group, according to a press release. Genstar, which initially backed the sustainable automotive afterparts manufacturer in 2018, will retain a stake in the company, which will be majority owned by Clearlake.
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Midmarket firm Lindsey Goldberg has exited its investment in Pixelle Specialty Solutions Holding LLC, a specialty papers company that the firm initially helped form in 2018 through the carve out of the specialty papers unit of publicly traded P.H. Glatfelter, according to a press release.
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Insight Partners is looking to raise $3 billion for Insight Partners Fund XI Follow-on Fund LP, to support follow-on investments in existing portfolio companies that the firm has backed through Insight Partners XI LP, according to a meeting document from the Massachusetts Pension Reserves Investment Management Board, or Mass PRIM. The pension system has approved a commitment of up to $20 million to the follow-on fund, the documents show. Insight raised $9.5 billion for Insight Partners XI LP back in 2020.
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Midmarket firm Levine Leichtman Capital Partners said it has hired Lindsay Grider as global head of fundraising and investor relations at the firm. Ms. Grider has previously held senior positions with private-equity firms Tailwater Capital and NGP Energy Capital, according to a press release.
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China’s Communist Party will block promotions for senior cadres whose spouses or children hold significant assets abroad, people familiar with the matter said, as Beijing seeks to insulate its top officials from the types of sanctions now being directed at Russia. As the Wall Street Journal’s Chun Han Wong writes, the ban, outlined in an internal notice by the party’s powerful Central Organization Department, could play a role in Chinese leader Xi Jinping’s efforts to increase his influence at a twice-a-decade leadership shuffle scheduled for later this year.
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