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Secondary and Private Credit Fundraising Fell in 2019
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Good day! As we reported last week, global private-equity fundraising dropped slightly in 2019 from the prior year's levels. This morning we dive into two subasset classes, secondaries and private debt, that experienced even steeper fundraising declines than the overall private-equity industry in general, as Soma Biswas and I report.
Read on for more details.
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While the secondary investing strategy in which one fund hands off an investment to another fund—for a price—remains popular, the amount raised for funds that do the buying declined last year, according to Preqin Ltd. PHOTO: EDDIE MOORE/ALBUQUERQUE JOURNAL VIA ZUMA WIRE
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Global secondary fundraising dropped in 2019 as many secondary firms focused on keeping pace with what was seen as another record year for dealmaking, Laura Kreutzer writes for WSJ Pro. But a handful of managers expected to wrap up fundraising this year for the strategy could boost dollar volume again in 2020.
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The recent boom in nonbank lending appears to have waned or at least taken a pause, with funds raised by private credit funds last year down sharply compared with 2018, according to Preqin, a data provider focused on the private-equity industry. As WSJ Pro's Soma Biswas reports, 152 private credit funds raised $107 billion in 2019, compared with 210 funds that raised $120 billion in 2018, Preqin data show.
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$71.4 Billion
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Total capital still being sought by 58 global secondary firms pitching new funds as of this month, according to data provider Preqin Ltd.
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Downtown Phoenix, where Blackstone’s newest hotel does business, bakes in the heat of the Sonoran Desert in midsummer last year. PHOTO: MATT YORK/AP
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Blackstone Group Inc. added the Sheraton Phoenix to its hotel portfolio, buying the 1,003-room downtown edifice for $268 million, Marriott International Inc. said Friday in a regulatory filing. The hotel, which Marriott bought in 2018, will serve as a showcase for the chain’s revamped Sheraton brand with renovations set to wrap up by the end of this year’s first half.
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Aligos Therapeutics Inc. has raised $125 million to develop treatments for hepatitis B and other liver diseases in a series B fundraising led by Wellington Management Co. and an undisclosed private-equity firm, WSJ Pro’s Brian Gormley reports. The South San Francisco-based company has three main drugs in development and plans to use the new financing to usher all three through clinical trials, according to Dr. Lawrence Blatt, Aligos chief executive.
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KPS Capital Partners LP has agreed to buy Harsco Corp.’s IKG business for $85 million. IKG, a Houston-based maker of steel and aluminum bar grating, will become the second portfolio company of KPS Special Situations Mid-Cap Fund.
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Long Ridge Equity Partners has led a majority growth investment in NinjaTrader, a provider of trading and brokerage software and services. DRW Venture Capital also participated in the deal.
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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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Ardian has agreed to sell German pharmaceutical company Riemser Pharma GmbH to Esteve, a drugmaker based in Barcelona. Ardian acquired Riemser in 2012 and refocused it on the specialty drug segment.
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Secondary firm Coller Capital has raised at least $4.9 billion so far for its latest flagship fund—Coller International Partners VIII LP—and related parallel funds, according to regulatory filings. The amount raised so far is a bit more than half of the fund’s $9 billion offering amount indicated in the filings.
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Aberdeen Standard Investments said it has raised $425 million for its latest fund focused on U.S. small and midmarket buyout funds, direct investments and secondary deals. Aberdeen U.S. Private Equity VIII exceeded a $350 million target, according to the firm.
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Audax Group has raised just over $800 million so far for its Audax Senior Loan Fund I, according to regulatory filings. The Boston-based private-equity firm also raised the capital across onshore and offshore vehicles for the senior loan fund, which was previously called Audax Credit Opportunities.
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Thomas Hicks Jr., co-chair of the Republican National Committee, speaks at an event in New York in March 2019. PHOTO: MICHAEL BROCHSTEIN/ZUMA PRESS
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Investment firm Hicks Equity Partners and other allies of President Trump are pursuing an effort to acquire right-leaning news channel One America News Network, The Wall Street Journal reported, citing people familiar with the matter. The bid seeks to shake up a conservative media market that has been dominated by Fox News.
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LongueVue Capital Partners has hired Geoff Glass and Pete Allen as operating partners focusing on health-care investments. Mr. Glass is a veteran drug-company executive and is currently chairman of Avadel Pharmaceuticals. Mr. Allen is a former executive of several medical services companies, including Becton Dickinson and, most recently, Vizient Inc.
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Shares of Sorrento Therapeutics Inc. surged almost 40% Friday after the drug developer said it had received a nonbinding buyout proposal from an unidentified private-equity firm for a majority for up to $7 a share. The San Diego company’s stock closed at $4.76 a share in New York trading, up from $3.41 on Thursday.
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Ted Bunker, Laura Cooper, Chris Cumming, Luis Garcia, William Louch, Preeti Singh, Chitra Vemuri.
Follow us on Twitter: @LCooperReports, @LHVGarcia, @LauraKreutzer, @william_louch.
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