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L Catterton Aims for Nearly $7.8 Billion | Greycroft’s $1 Billion Pool
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Good morning! Less than a month remains in what is already a record year for dealmaking, so we’re left to speculate on how much more can be done before the clock strikes midnight at the end of December. In the U.S. alone, deals have surpassed $2 trillion and set a new annual high with almost half the total involving technology companies, according to Refinitiv data. We wonder if that pace and emphasis can continue into next year or if the prospect of higher rates will tap the brakes.
In private-equity news today, our Preeti Singh reports that L Catterton isn’t wasting any time in drumming up fresh capital for its consumer-focused buyout and growth funds, aiming for a combined total of about $7.75 billion. Besides that, our Pro colleague Yuliya Chernova reports Greycroft is also in the market and could bank as much as $1 billion for its latest venture fund focused on later-stage deals.
We have those stories and many more condensed for you below, so please read on ...
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Shoppers waiting to get in a Birkenstock store in New York this summer. L Catterton acquired the brand earlier this year. PHOTO: JUHARAT PINYODOONYACHET / BLOOMBERG NEWS
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Consumer-focused private-equity firm L Catterton, which has backed brands like Kodiak Cakes and Birkenstock, is pitching its latest buyout fund to investors with the aim of raising $6.5 billion, WSJ Pro Private Equity’s Preeti Singh reports, citing people familiar with the matter. The Greenwich, Conn.-based firm expects to begin the formal fundraising process for its flagship buyout strategy’s 10th fund imminently, the people said. L Catterton is also targeting $1.25 billion for a new growth-investment fund, they said.
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Venture firm Greycroft is raising a pair of funds, including its first-ever pool that could total $1 billion, Yuliya Chernova writes for WSJ Pro Venture Capital, citing people familiar with the situation. The investor in consumer, enterprise-software, fintech and digital-health startups plans to raise about $1 billion for its fourth fund focused on later-stage deals, as well as about $500 million for its seventh main early-stage fund, according to the people. Ian Sigalow, a Greycroft co-founder and managing partner, declined to comment.
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$2.3 Trillion
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The value of U.S. M&A recorded this year through November, double the amount for the first 11 months of last year and a new record for the period, according to data from Refinitiv.
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The insides of a computer used to retrieve email. PHOTO: JENNY KANE / ASSOCIATED PRESS
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Permira has agreed to take private email security company Mimecast Ltd. for $80 a share in cash through a transaction that gives Mimecast an equity value of about $5.8 billion. The price represents a roughly 6.7% premium over the Nasdaq-traded stock’s $75 close on Monday. The offer caps a strategic review by the London-based provider of cyber-resiliency systems that was reported by The Wall Street Journal on Oct. 27, after the stock closed at $68.94.
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Battery Ventures has launched Craftview Software GmbH, a business created through the combination of six companies across Germany and the Netherlands to serve craftspeople, field-service technicians and construction-industry professionals. The six companies include WinWorker Software, es2000 Errichter Software, KS21 Software, OS Datensysteme, Moser and Gilde Software and together employ at least 300 people, according to a news release. Morad Elhafed, a general partner at Battery, told WSJ Pro Private Equity’s Laura Kreutzer that the platform represents a roughly
$200 million commitment from Battery, including money already invested and capital committed for future needs. Battery is no stranger to backing software providers for the field services and construction sectors. In the U.S., the firm has backed field-services management software provider ServiceTitan Inc.
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Sixth Street Growth led a $110 million investment in digital analytics company Heap Inc., joined by the asset management arm of Goldman Sachs Group Inc. and several existing investors in the San Francisco-based company. The series D investment was made at a $960 million valuation of the company, according to a news release.
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Lightrock and DH Capital led a $100 million investment in data center software developer Liqid Inc. Also participating were existing investors Panorama Point Partners and Iron Gate Capital, according to a news release. Broomfield, Colo.-based Liqid’s software is used to manage data center operations by customers that include the U.S. Defense Department, computer maker Dell Technologies Inc. and chip suppliers Nvidia and Intel Corp.
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L Catterton’s Asia strategy led a more than $50 million investment in Chinese brands aggregator Nebula Brands, according to a news release from the company based in China. Nebula focuses on the roughly 600,000 third-party sellers from China who do business over the Amazon.com Inc. website.
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Telecom Italia SPA has picked financial and legal advisers to evaluate KKR & Co.’s takeover offer, Giulia Petroni reports for Dow Jones Newswires. The Italian telecommunications company named Goldman Sachs Group Inc. and LionTree LLC as financial advisers. Last month, KKR offered €0.505 per Telecom Italia share, giving the company an equity value of roughly €10.79 billion, or about $12.18 billion, excluding debt.
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JMI Equity led a $50 million growth investment in digitally connected access hardware maker ButterflyMX Inc., joined by Volition Capital, Egis Capital, and RiverPark Ventures. The New York-based company makes interactive video door latches, elevator controls and area access systems based on smart phones. The company has installed its systems in more than 6,500 buildings, according to a news release.
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J.F. Lehman & Co. has acquired the assets of L3Harris Technologies Inc.’s Narda-MITEQ division and Narda Safety Test Solutions GmbH, according to a news release. The units design and manufacture radio-frequency and microwave equipment used in defense and commercial products and employ about 400 people.
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Leeds Equity Partners is backing literacy and educational products supplier 95 Percent Group Inc. The Lincolnshire, Ill.-based company focuses on reading, vocabulary, phonics and other skills, according to its website.
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Onex Corp. has agreed to buy education-technology services provider Tes Global Ltd. from fellow private-equity firm Providence Equity Partners, Colin Kellaher reports for Dow Jones Newswires. Toronto-based Onex said it is making the acquisition through Onex Partners V, a $7.2 billion buyout fund that closed in late 2017. Onex said the fund will be about 78% invested once the deal closes, expected next year, adding that managers of London-based Tes also will invest. Providence Equity acquired Tes from TPG in late 2018.
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Arctaris Impact Investors is joining minority-owned Asland Capital Partners and Goldman Sachs Group Inc. to develop a 13-acre site in Washington, D.C.’s Benning Road area in a $600 million multi-step project, according to an emailed news release. In the initial $150 million phase, the city’s 700-employee General Services department is relocating into the neighborhood, which is expected to serve as a catalyst for further development. The agency is the city’s first to relocate east of the Anacostia River to an historically underserved part of the community.
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Main Post Partners has invested in convenience-store foodservice brand Krispy Krunchy Food Inc. The Alexandria, La.-based company’s Krispy Krunchy Chicken brand is offered in more than 2,600 retail locations in 48 states, according to an emailed news release.
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Wynnchurch Capital has acquired the thermal coating business of Appvion Holding Corp. The Appleton, Wis.-based operation provides products used in making labels and packaging materials.
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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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Oaktree Capital Management-backed Oaktree Acquisition Corp. II plans to acquire and take public biosimilar maker Alvotech Holdings SA in Iceland, Colin Kellaher reports for Dow Jones Newswires. The combined company would have an implied initial enterprise value of about $2.25 billion. The deal is expected to provide Alvotech with gross proceeds topping $450 million, including $250 million held by Oaktree and $150 million from a private placement.
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Silver Lake-backed Vacasa Inc. shares fell about 1.5% in their first day of trading on the Nasdaq stock market after completing its combination with blank-check company TPG Pace Solutions, closing at $9.84 each on Tuesday. The deal with the special-purpose acquisition company brought the vacation rentals site operator more than $340 million in gross proceeds, Adriano Marchese writes for Dow Jones Newswires. The deal implied a pro forma equity value of about $4.5 billion for the Portland, Ore.-based company.
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Castle Harlan has agreed to sell soil stabilization and reinforcement provider Tensar Corp. to strategic buyer Commercial Metals Co. in a transaction valued at $550 million, Colin Kellaher reports for Dow Jones Newswires. The middle-market investor in New York acquired Alpharetta, Ga.-based Tensar in 2014.
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Summit Partners has agreed to sell Appway AG to wealth management technology company FNZ Group less than two years after investing in the business. Appway provides software used by financial institutions to serve new and existing clients, according to a news release. Summit first backed Zurich-based Appway early last year.
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Carlyle Group Inc. has sold New York wind power company Valcour Wind Energy to energy producer AES Corp. Valcour’s six installations have a combined generating capacity of 612 megawatts and have been operated by another Carlyle portfolio company, Cogentrix Energy, since the Washington-based firm acquired the assets in 2018, according to a news release. AES is taking over the operations with its purchase.
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Audax Group has sold identity verification and compliance software supplier Acuant Inc. to strategic buyer GB Group PLC in the U.K. Audax first backed Los Angeles-based Acuant, which now serves more than 1,000 customers, in September 2018.
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Angelo Gordon & Co. has named Allison Binns as head of environmental, social and governance as well as sustainable investing strategies, a new position. She is a former executive director for global sustainability research at Morgan Stanley.
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Healthcare investor OrbiMed has promoted Matthew Rizzo and Peter Thompson to general partner, effective at year-end. Mr. Rizzo joined the firm in 2010 and leads its royalty monetization and private credit group. Dr. Thompson also joined in 2010 as a venture partner and more recently has worked as a private equity partner, leading portfolio companies.
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Strategic Value Partners has hired Jonathan Waggoner as a managing director and co-head of its investment-operating team in North America. He joins the Greenwich, Conn., firm from New Mountain Capital where he was a managing director in its operating group.
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General Atlantic has made a raft of promotions, moving up eight people to managing director and six to principal. It also promoted Fred Carvalho to operating partner and and Hilary Lindemann to operating principal while naming eight new vice presidents and three operating vice presidents.
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Lower middle market investor Ridgewood Infrastructure has promoted Ryan Stewart to partner from managing director. He joined the firm from Fortress Investment Group in 2019, according to his LinkedIn page.
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Astara Capital Partners has promoted Lindsey Tannenbaum to partner. She joined the firm earlier this year.
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China Evergrande’s headquarters rises above Shenzhen, China. PHOTO: ALY SONG / REUTERS
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China Evergrande Group didn’t make payments due on some U.S. dollar bonds before a final deadline expired on Monday, Frances Yoon, Alexander Saeedy and Elaine Yu report for The Wall Street Journal, citing people familiar with the matter. That could set the stage for a massive default by a business with more than $300 billion in liabilities and one of the country’s largest-ever debt restructurings. Evergrande didn’t pay $82.5 million of interest payments originally due Nov. 6 on two sets of dollar bonds by the end of a 30-day grace period on Monday, the people said.
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Private investment firm 777 Partners, the Miami-based holding company whose focus includes aviation and airlines, is buying 30 more 737 MAX jetliners from Boeing Co., the aircraft maker said on Tuesday. The new order is valued at $3.7 billion based on list prices, Boeing said. 777 Partners had ordered 38 planes earlier this year. The firm’s portfolio includes Bonza Aviation Pty. Ltd., a budget carrier that flies 737s across Australia, and Flair Airlines Inc. in Canada, according to its website.
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Hedge-fund manager and real estate owner John Paulson is testing the market in Puerto Rico with his Condado Vanderbilt Hotel and La Concha Renaissance San Juan Resort, Peter Grant reports for The Wall Street Journal. Mr. Paulson purchased the Condado Vanderbilt and La Concha Resort for $260 million in 2014. If the global debt and equity markets open up to Puerto Rico, they could fetch a total of more than $500 million, other hotel owners and brokers say.
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