| | | | | | Good morning! It is I, Luisa, who will lead you this post-Brexit Monday. First up is a column from Alastair Goldfisher on Twilio's IPO. Imagine hosting a dinner with about 40 people and not having any topics to discuss. That was pretty much the case last week when DFJ held its annual media gathering at Steve Jurvetson's house in Half Moon Bay, California. Off limits for discussion was the firm's filing that day to raise a new $500 million growth fund. Nor could we ask about Tesla's interest in buying Solar City. DFJ is an investor in both, with investors on the two boards. And don't even broach the Twilio IPO, which was scheduled to go out the next morning. In fact, DFJ Partner Josh Stein missed the dinner, having flown to New York to take part in Twilio's celebratory launch on Wall Street. Actually, even if a DFJ partner had said something about the IPO or any of the other topics, I couldn't repeat it. This was an off-the-record event. What I can say, however, is that Jurvetson, as he always does, launched a couple of rockets from his beachfront property that he made himself, using a 3D printer and golf balls that strayed onto his property from the Ritz-Carlton Hotel next door. "This is my way of returning them," he said, shortly before he fired the rockets. Both veered off course and sputtered over our heads, the result of an imbalance he caused when he strapped some blinking lights to the missiles. Hey, even one of the smartest guys in Silicon Valley can miscalculate. (No one was hurt and nothing caught fire.) What didn't go awry was the Twilio IPO. The San Francisco software and cloud-based-communications-platform provider went out a day ahead of the Brexit vote tally at $15 a share, above its $12 to $14 range. Not a moonshot, but far from sputtering, too. Check out the rest here. Steven Pierson, who recently joined Lovell Minnick Partners from UBS, spoke to me recently regarding the financial technology industry and his views of generalist firms investing in financial services. Read the story here.
Russell Steenberg, managing director at BlackRock, talked to Steve Gelsi about the evolution of private equity. Read the story here.
Chris has a column on GPs diluting key-man provisions in a hot fundraising market. Check out the story here.
Any comments, thoughts or complaints please send them to me at [email protected].
-Luisa
| | Today's Take | | | PE HUB First Read First Read kicks off the week with news that Scotland is now most likely to seek independent now that Brexit is a reality, Google is preparing to release "a Google-branded phone" this year and the FCC chairman just kickstarted the race to 5G. Dealmakers wrestle with Brexit's fallout: Reuters Bankers and lawyers advising companies on takeovers and initial public offerings from London to New York fretted over their deals after a British vote to leave the European Union poleaxed company valuations and executive confidence. Wall Street bankers in London ponder life post Brexit: Reuters (Reuters) Big Wall Street banks are scouring Europe to find a new home following the Brexit vote. JPMorgan Chase & Co is considering changes to its legal entity structure in Europe, as well as moving some of its 16,000 U.K.-based employees, according to a staff memo signed by Chief Executive Officer Jamie Dimon and other senior executives. PE HUB Second Opinion Second Opinion wraps up the week with the Dow plunging over 600 points in the wake of the Brexit vote, WhatsApp hits 100 million calls per day and President Obama names an LGBT landmark as a national monument. Canada's largest pension funds eye post-Brexit bargains: Reuters Canada's largest pension funds see opportunities to invest in U.K. real estate and infrastructure at discounted prices following Britain's decision to leave the European Union, fund executives told Reuters. The funds, which manage over $1 trillion of assets and are among the biggest investors in British real estate and infrastructure, anticipate valuations falling as a result of the country's decision to leave the bloc, presenting opportunities for investors willing to take a long-term view. PE executives shocked by Brexit but widely divided on its effects Many private equity executives and bankers say they were shocked by the Brexit, Britain's decision to leave the European Union, but opinions ranged widely about how and how much the move would affect M&A, fundraising and the world. Some suggested that it might spur deal-making in the United Kingdom and Europe as uncertainty could weigh on... Twilio's rocket debut won't spark more tech IPOs Imagine hosting a dinner with about 40 people and not having any topics to discuss. That was pretty much the case last week when DFJ held its annual media gathering at Steve Jurvetson's house in Half Moon Bay, California. Off limits for discussion was the firm's filing that day to raise a new $500 million... Texas Teachers' pioneering Apollo separate account off to sluggish start Teacher Retirement System of Texas's $5 billion strategic partnership with Apollo Management has netted a 2.59 percent internal rate of return, underperforming a long-term benchmark, according to a report Buyouts obtained through an open-records request. Five years into the 20-year fund, Apollo's performance has fallen well short of its 13 percent target return. The pension has contributed... Market at a glance U.S.-based buyout and mezzanine fundraising rose alongside June temperatures in New York. In the past two weeks, the yearly aggregate grew by $16.5 billion, or 23 percent, bringing the 2016 year-to-date total to $89 billion. Even with the surge, the total now sits over $25 billion, or 22 percent, below this time in 2015. Leonard... BlackRock's Russ Steenberg on the evolution of private equity As global head of BlackRock's Private Equity Partners unit, Russell Steenberg has mapped out just about every corner of the GP world. From 1983 until 1995, he co-headed a $3.6 billion PE portfolio for AT&T's pension fund. He then co-founded and was managing director of the middle-market buyout shop Fenway Partners. His tenure at BlackRock... Thoma Bravo turns to private market for largest-ever unitranche financing Thoma Bravo's $1.1 billion loan deal to finance its take-private of Qlik Technologies Inc is evidence of the rising role of private debt solutions in deals that used to be handled by the broadly syndicated loan market, sources told Buyouts. Thoma Bravo turned to the largest publicly traded business-development company, Ares Capital Corp, as administrative agent,... Five Questions with Steven Pierson, president of Lovell Minnick Why are you joining a private equity firm? I joined Lovell Minnick Partners earlier this month, where I'm president. I spent nearly three years at UBS, where I was most recently head of FIG Investment Banking Americas and global head of financial technology and services. Before that, I was vice chairman and co-head of FIG... On the move, 6.27.2016 PRIVATE EQUITY FIRMS 3i expanded and enhanced its private equity team with three hires: Nikhil Patel came on board as an associate director in the New York office; Michael Specht joined the Frankfurt team as an associate director as well and Rafik Alili was named an associate in the Paris office. Alili was previously an M&A associate at Lazard Frres. Ardian named... GPs dilute key-man provisions in hot fundraising market To the outside world, Vista Equity Partners has always been about Chief Executive Officer Robert Smith. He is the face of and the driving force behind the firm, which has risen quickly into elite status. And so it's fitting that in past funds Robert Smith has been the hinge on which key-man provisions get triggered. Should he... GP Profile: Lariat Partners aims for a kinder, gentler PE approach The founders of Lariat Partners don't want to act like jerks. That may not sound like an audacious goal. It's even a little crass, but to portfolio company CEOs like Kenny DesOrmeaux at Ecoserv, it's Lariat's most vital and defining characteristic. "Their goal is, 'We don't want to suck,' and that's the coolest thing about the firm. They want... Need to Meet: Kyle Gann, partner, Jenner & Block Jenner & Block is a white-shoe law firm with a sterling reputation. But it "hasn't historically had a strong presence in the PE space," new partner Kyle Gann said. Now, he told Buyouts, that's changing. "In the last couple of years they've been making a lot of hires, in terms of lateral partners coming over to... Debt providers ponder Brexit uncertainty, LBO slowdown Distressed-debt specialist Howard Marks of Oaktree Capital Group said he doesn't see any long-term fundamental economic shift in Europe as a result of the surprise Brexit vote, but he said it's created uncertainty in the marketplace. Also on the lending front, David Brackett, managing partner and co-CEO of Antares Capital, said it may take longer... Chart of the week: Blackstone, Bain and Advent have most on the line after Brexit Blackstone Group, Bain Capital and Advent International are the PE firms potentially most affected by the Brexit fallout. Since 2010, Blackstone has completed 24 deals totaling about $8.4 billion involving British companies. Bain followed with 15 deals across the pond worth $4.9 billion, closely trailed by Advent's 17 for $4.8 billion. Chart of the week: CVC, BC and Apax Partners with biggest buyout funds in U.K. On June 23, a 52 percent majority voted for the United Kingdom to exit the European Union. The political and economic ramifications — especially within the private equity space — will unfurl over time. Meanwhile, CVC Capital Partners produced the largest British buyout fund since 2010, European Equity Partners VI LP, which exceeded $14.3 billion in value. Antares Capital exec projects $20 bln AUM by 2020 Antares Capital Co-Founder John Martin said he expected the middle-market-lending unit of Canada Pension Plan Investment Board to increase its assets under management by about $8 billion, or 67 percent, to $20 billion by 2020. The private-debt provider to private equity firms plans to boost its presence in healthcare lending and ramp up its $1.2 billion... Arbor Investments wrapping 2 funds for total $875 mln Arbor Investments, the Chicago specialist in middle-market food-and-beverage deals, expects to close its fourth flagship buyout fund as well as a companion debt fund for a total of $875 million in commitments, according to two sources. The firm managed to finish its fundraising effort within a few months, based on strong performance of past funds,... Recap: Summary of recent fund news from around the world Summary of fund closures and other venture firm news from the last three from around the world, including Romulus Capital, Draper Esprit, Lightspeed China and many many more | | NETWORKING...CAPITAL...DEALS Early pricing thru 7/15 at mandaeast.com Save $45 on general registration, discount code pehub16 1,300 middle market dealmakers 80% generated deal leads $125 billion in capital under one roof 1,000+ 1:1 deal meetings 80% of attendees are VP, Partner, Director |
| | | | VC Deals | | | Quikly raises $3 mln Quikly said June 24 that it raised $3 million in funding led by Plymouth Ventures. Quikly, of Detroit, provides marketing services focused on customer retention, acquisition, and revenue generation. Ayla Networks raises $39 mln Ayla Networks said June 27 it raised $39 million in Series C financing led by Ants Capital. Other investors include 3NOD, Mitsui and Acorn Pacific. Existing Ayla investors Cisco Investments, Crosslink Capital, International Finance Corp (IFC, a division of World Bank Group), Linear Venture, SAIF Partners/Oriza Ventures, SJF Ventures and Voyager Capital also reinvested. Santa Clara, California-based Ayla provides a global Internet of Things (IoT) platform for manufacturers. Bitcoin startup Quoine grabs $20 mln Singapore-based Quoine, a bitcoin trading platform, has secured $20 million in funding. JAFCO led the round. In addition to the funding, the company has appointed Ken Mazzio as head of compliance and information security. VR app Spash nabs $2.5 mln Berlin-based virtual reality app Splash has raised $2.5 million in funding. Greycroft Partners led the round with participation from other investors that included Advancit, Felix Capital, BDMI, Seedcamp, DeNA , Kevin Wall and e.ventures. | Complimentary Webinar: Improving Your Deal Sourcing Operations During this webinar you'll learn the following:
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| | | | | Oaktree Capital invests in NGL Energy Partners Oaktree Capital Management LP has increased its investment in NGL Energy Partners LP to $240 million from $200 million. The transaction, private placement, includes a vehicle funded by Partners Group. KKR invests in Resource Environmental Solutions KKR is investing in Resource Environmental Solutions LLC (RES). Financial terms weren't announced. RES provides ecological solutions in the United States. Carlyle invests in NEP The Carlyle Group has made an undisclosed but "significant" investment in Pittsburgh-based NEP Group Inc, a provider of teleproduction services. Barclays and Morgan Stanley provided financial advice to both NEP and existing backer Crestview on the transaction. French buyout group acquires Swiss industrial software group Autoform: Reuters French private equity group Astorg has agreed to acquire Swiss industrial software group Autoform for almost 700 million Swiss Francs ($721 million), sources told Reuters. Arlington acquires EOIR Arlington Capital Partners has acquired Fredericksburg, Virginia-based EOIR, a provider of state-of-the-art tech solutions to the Department of Defense and intelligence community. No financial terms were disclosed. | One of a Kind Networking in The Robust Emerging Manager Space Join LPs and Intermediaries at the Emerging Manager Connect event: a one day networking opportunity with emerging superstars who will produce blockbuster returns in the next 5-10 years. Register Today! July 19, 2016 | Harvard Club | NYC |
| | IPOs | | | | | Line IPO range announcement delayed until Tuesday: Reuters Japanese messaging app firm Line Corp has delayed setting a tentative price range for its initial public offering (IPO) by one day, until Tuesday, the company said in a regulatory filing, citing the "market environment," Reuters News reported. | | | | | | | Bank bonds plummet as UK walks away from EU: Reuters UK bank bonds were hit hard in secondary markets on Friday following the nation's vote to leave the European Union, storing up a period of huge uncertainty for the sector, Reuters News reported. Intel considers sale of cyber security business: FT Chipmaker Intel Corp (INTC.O) is considering the sale of its cyber security business, the Financial Times reported on Sunday. Dealmakers wrestle with Brexit's fallout: Reuters Bankers and lawyers advising companies on takeovers and initial public offerings from London to New York fretted over their deals after a British vote to leave the European Union poleaxed company valuations and executive confidence. | | Firms & Funds | | | | | | No items | | Human Resources | | | | | Wall Street bankers in London ponder life post Brexit: Reuters (Reuters) Big Wall Street banks are scouring Europe to find a new home following the Brexit vote. JPMorgan Chase & Co is considering changes to its legal entity structure in Europe, as well as moving some of its 16,000 U.K.-based employees, according to a staff memo signed by Chief Executive Officer Jamie Dimon and other senior executives. Ghosh joins Paradigm Precision Paradigm Precision, a portfolio of the Carlyle Group, said June 24 that Ronojoy Ghosh was named Vice President Business Development. Gosh was most recently General Manager, Global Engine Systems, Aero Nozzles and Aero Blades & Vanes in the Engine and Environmental Control Systems business unit of UTC Aerospace Systems. | | Odds & Ends + Hot Links | | | | | PE HUB First Read First Read kicks off the week with news that Scotland is now most likely to seek independent now that Brexit is a reality, Google is preparing to release "a Google-branded phone" this year and the FCC chairman just kickstarted the race to 5G. Twilio's rocket debut won't spark more tech IPOs One great IPO debut from the unicorn Twilio won't help save a bad year for offerings from VC-backed companies PE HUB Second Opinion Second Opinion wraps up the week with the Dow plunging over 600 points in the wake of the Brexit vote, WhatsApp hits 100 million calls per day and President Obama names an LGBT landmark as a national monument. Canada's largest pension funds eye post-Brexit bargains: Reuters Canada's largest pension funds see opportunities to invest in U.K. real estate and infrastructure at discounted prices following Britain's decision to leave the European Union, fund executives told Reuters. The funds, which manage over $1 trillion of assets and are among the biggest investors in British real estate and infrastructure, anticipate valuations falling as a result of the country's decision to leave the bloc, presenting opportunities for investors willing to take a long-term view. |
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