Genstar, Warburg Pincus line up $632M exit; GE, Baker Hughes join forces in $32B merger; Kainos gets $895M for Fund II; Insight backs Ministry Brands
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The Daily Pitch: PE
November 1, 2016
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Today's Top Stories
 
GE, Baker Hughes set to join forces in $32B merger
 
The downturn in crude oil prices for most of the past two years has taught the major players in the space a valuable lesson: partner up to weather the cycle. GE (NYSE: GE) and Baker Hughes (NYSE: BHI) are doing just that in a merger that creates the world's second-largest oilfield services provider, with roughly $32 billion in revenue.

In order to appeal to oil & gas customers looking to improve efficiency, partnerships have become necessary to...
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Blackstone strikes $6.1B pledge with TeamHealth
 
Blackstone has agreed to buy TeamHealth (NYSE: TMH), a provider of physician outsourcing services, in a deal valued at about $6.1 billion—coming almost exactly a year after TeamHealth spurned a $5.3 billion takeover from AmSurg (NASDAQ: AMSG). The purchase price of $43.50 per share represents a 33% premium to the company’s closing price on October 3, the day before reports of a possible sale. It's the second time Blackstone has acquired the company, following a 2005 purchase that led to an IPO in 2009.

The rare take-private acquisition marks an infrequent foray into healthcare services for Blackstone, which is nowhere to be found on a list of the sector's most active PE investors. Since the start of 2014, firms have conducted 1,270 deals in the space, according to the PitchBook Platform, including 355 so far this year. The healthcare services vertical includes subsectors such as clinic & outpatient services, elder & disabled care and laboratory services.
So who's leaving Blackstone in the dust? Here are the seven busiest PE investors in healthcare services since the start of 2014, including add-ons:

1. Audax Group (54)
T-2. Summit Partners (25)
T-2. KRG Capital Partners (25)
4. Great Point Partners (21)
5. Procuritas Partners (18)
T-6. Welsh, Carson, Anderson & Stowe (16)
T-6. Webster Capital (16)

View the full list (PitchBook users)
 
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Recommended Reads
 
Flint, MI isn’t the only major US city with a lead-paint crisis on its hands. [Philly]

Should you go to the driving range or the bar? Why not both at the same time? [Bloomberg]

The Wall Street Journal seems to have finished up a many-faceted look at the rise of passive investing. [The Wall Street Journal]

Why private equity firms are falling in love with adtech. [Business Insider]
 
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Today's Headlines
  The Daily Benchmark  
  2010 US Venture Funds with IT Investments  
  Deals in Play & Announcements  
  CenturyLink to acquire Level 3 for $25B  
  Completed PE Deals  
  Insight backs Ministry Brands  
  OEP-backed Duran completes Kimble Chase add-on  
  Europe  
  Warburg Pincus adds two to European team  
  Exit & Liquidity News  
  Genstar, Warburg Pincus line up $632M SaaS exit  
  TorQuest completes GTT sale  
  Fundraising News  
  Kainos gathers $895M for second flagship fund  
 
 
The Daily Benchmark
 
2010 US Venture Funds with IT Investments
 
Median IRR
12.12%  
Top Quartile IRR Hurdle Rate
28.19%  
1.44x
Median TVPI
1.1x
Median RVPI
Fund name IRR
Menlo Ventures XI 64.22%
Union Square Ventures Opportunity Fund 62.77%
IA Ventures Fund I 34.97%
Spark Capital III 32.47%
*IRR: net of fees
99 Funds in Benchmark »
Benchmark, Peer Group & Returns Data on 20K Funds
 
 
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Deals in Play & Announcements
 
CenturyLink to acquire Level 3 for $25B
 
CenturyLink (NYSE: CTL) has agreed to acquire Level 3 Communications (NYSE: LVLT) in a deal valued at approximately $34 billion, exchanging $26.50 in cash and about 1.4 of its shares for each share of Level 3 stock. The purchase continues a decade-long spate of acquisitions by CenturyLink, including deals for Qwest Communications International, Savvis and EMBARQ, Sprint's landline business. CenturyLink's stock finished trading Monday down 12.5% at $26.58 per share, and Level 3 closed up 3.9% at $56.15.
 
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Completed PE Deals
 
Insight backs Ministry Brands
 
Application Software | Lenoir City, TN | Secondary Transaction
Insight Venture Partners has agreed to invest in Ministry Brands, the provider of a SaaS platform for churches, ministries and other faith-based organizations in the US, in a deal that could be valued at more than $1 billion, according to a Wall Street Journal report. Providence Equity Partners will exit Ministry Brands as part of the deal, while Genstar Capital will retain a significant minority stake.
Investor:
Insight Venture Partners
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OEP-backed Duran completes Kimble Chase add-on
 
Containers | Vineland, NJ | Add-on
One Equity Partners has sponsored laboratory and industrial glass manufacturer Duran Group's acquisition of Kimble Chase Life Science & Research Products, a distributor of glassware for the environmental, petrochemical, and life sciences markets, among others. OEP acquired Duran through a secondary buyout in 2014.
Investors:
Duran Group (platform), One Equity Partners (sponsor)
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View 167 comparables »
 
 
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Europe
 
Warburg Pincus adds two to European team
 
London, UK | PE/Buyout
Warburg Pincus has hired David Reis as a principal in the firm’s industrial and business services team and Flavio Porciani as a vice president on the technology, media and telecommunications team. Both will be based in London. Reis was previously head of technology in the European merchant banking division at Goldman Sachs, while Porciani was most recently a principal at Searchlight Capital Partners.
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Exit & Liquidity News
 
Genstar, Warburg Pincus line up $632M SaaS exit
 
Information Services | Cincinnati, OH | Corporate Acquisition
Genstar Capital and Warburg Pincus have agreed to sell ConstructConnect, provider of a SaaS platform for the commercial construction industry, to Roper Technologies (NYSE: ROP), a provider of engineered products, software and services. ConstructConnect’s platform is designed to help contractors manage the planning and bidding process for construction jobs. The two PE firms will exit an investment from 2014 with the $632 million sale.
Sellers:
Genstar Capital, Warburg Pincus
Buyer:
Roper Technologies
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View 635 comparables »
 
 
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TorQuest completes GTT sale
 
Commercial Services | St. Paul, MN | Acquisition
TorQuest Partners has exited an investment from 2007 with the sale of Global Traffic Technologies to Gilbarco, a provider of fuel dispenser technology. GTT develops traffic-control software used by public transit and emergency vehicles.
Seller:
TorQuest Partners
Buyer:
Gilbarco
Advisors:
Stikeman Elliott (legal), William Blair & Company (financial)
View details
 
View 229 comparables »
 
 
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Fundraising News
 
Kainos gathers $895M for second flagship fund
 
Dallas, TX | Buyout
Kainos Capital has closed its oversubscribed Kainos Capital Partners II fund on a hard cap of $895 million. The firm's debut fund closed on $475 million in 2013. Kainos invests exclusively in the food & consumer industry and has backed companies including Ghirardelli Chocolate, Earthbound Farm and SlimFast.
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View 23 investments »
 
 
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