Francisco Partners buys IBM’s Watson Health data and analyti cs biz; new PE firms BayPine, Lone View Capital focus on tech

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The Wire

Jan. 21, 2022

Francisco Partners buys IBM’s Watson Health data and analytics biz; new PE firms BayPine, Lone View Capital focus on tech

Happy Friday, Hubsters. MK Flynn here, with today’s Wire.

Healthcare tech. There’s big news from Francisco Partners this morning. The tech-focused private equity firm that specializes in carveouts is buying the healthcare data and analytics assets from IBM that are currently part of the Watson Health business. FP has deep experience in healthcare tech.

The tech wave rolls on, with Intel this morning unveiling plans to spend more than $20 billion in the construction of two new leading-edge chip factories in Ohio, siting surging demand for advanced semiconductors. In private equity, it’s enterprise software and tech-enabled services that are spawning a new generation of private equity firms.

BayPine, a hot new tech fund led by David Roux (a co-founder of Silver Lake) and Anjan Mukherjee (a former senior managing director of Blackstone), has secured more than $1.5 billion for a debut buyout, writes Buyouts’ Kirk Falconer.

Rishi Chandna, former managing director at Golden Gate who oversaw the firm’s investments in tech, is gearing up to raise the debut fund for his new firm, Lone View Capital, sources told Buyouts' Chris Witkowsky.

Tech PE fundraising rose to dizzying heights in 2021. Some 474 North American funds collected an all-time high of $227 billion, up 14 percent from the prior peak of $200 billion raised in 2020, according to Buyouts data.

Energy transition. Blackstone today announced the launch of Blackstone Credit’s Sustainable Resources Platform, which is focused on investing in and lending to renewable energy companies.

Vista Equity Partners’ Endeavor Fund is on a roll, announcing two deals in two days. Today, the fund said it has made a $150 million in OfficeSpace Software, which develops cloud-based software aimed at helping manage workspaces, manage desk and room booking and maintain social distancing.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at [email protected]. Go here for all the rules and regs!

Weekend reading. Check out PE Hub’s Q&A series with high-profile private equity pros, including: Pam Hendrickson, vice chairman of The Riverside Company, who was recently elected chair of the American Investment Council; Trevor Clark, founder and managing partner of Twin Brook Capital Partners; David Grain, founder and CEO of Grain Management; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell & Co.

Have a great weekend,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

The SPAC ship is sinking, and investors want their money back, finds the Wall Street Journal. One of the pandemic’s hottest trades is cooling down, as the hype surrounding ‘blank-check’ companies gives way to reality.

More bad news on SPAC performance from the Financial Times.

"Private equity firm KKR & Co. is among suitors competing to acquire Bank of New York Mellon Corp.’s credit investment arm Alcentra, a deal that would add $43 billion of assets under management, according to people familiar with the matter." (Bloomberg)

"Research from Big Four firm KPMG found that concerns over environmental, social and governance (ESG) factors had caused nearly three quarters of UK private equity firms to step away from a deal, with the figure rising to 90 per cent among bigger firms." (City A.M.)