David Grain, of Grain Management, on challenges, opportunities this year; Clearlake closes single-asset deal for Symplr

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The Wire

Jan. 5, 2022

David Grain, of Grain Management, on challenges, opportunities this year; Clearlake closes single-asset deal for Symplr

Morning!

This is Chris, on the Wire for MK. I’ll be taking the Wire column on Wednesdays. As always, hit me up with your tips n’ gossip, Drama, or whatever at cwitkowsky@buyoutsinsider.com.

A bit of housekeeping: Well, it’s cold outside, icy even, which means it must be time to recognize your great exits! We’re opening the nomination process for our 2022 Deal of the Year awards. Winners are chosen in seven categories: Deal of the Year, Large-Market Deal of the Year, Middle-Market Deal of the Year, Small-Market Deal of the Year, Turnaround of the Year, International Deal of the Year, and Secondaries Deal. Winners are announced in April.

Deadline to get in your nominations is Friday, Feb. 11. Go here for all the particulars.

Now, to the news:

Momentum: PE Hub is running an ongoing series of Q&As with industry notables sharing their market insight. Today we have an interview with David Grain, founder and CEO of Grain Management, which he formed in 2007. Read the full interview here.

Grain believes globalization will continue to provide challenges and opportunities this year:

“Globalization is top of mind for us. We are in an era that simultaneously boasts unprecedented international cooperation, and significant levels of competition at every level of policy and the economy. At Grain, we see the opportunities here and ask ourselves, “How can we, as investors, clear the hurdles and take advantage of the rich potential that international strategic partnerships can bring”? As an example, China is perhaps one of the biggest areas of opportunity, yet it’s also fraught with challenges. We’re deeply connected to China economically, but there are increasingly reasons for a strained relationship where our interests are not fully aligned.”

Fifth: Clearlake Capital completed its fifth single-asset continuation fund that it’s calling its Icon series. The latest transaction involved Clearlake’s portfolio company Symplr, which provides healthcare-specific governance, risk and compliance software. Read more here on Buyouts.

That’s it for me! Hit me up with tips n’ gossip, feedback or just your thoughts at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

HOUSEKEEPING: A reminder: we’re looking for your recommendations for rock star women in private equity, mostly on the deal side (which has been historically male-dominated). Deadline to get in your recs is January 17, for publication in March. Our annual Women in Private Equity project comprises 10 mini-profiles of highly regarded women in the industry and a feature story about some burning topic around the status of women in the industry. Check out our past coverage of Women in PE here. Reach Buyouts editor Chris Witkowsky with questions and recommendations at cwitkowsky@buyoutsinsider.com.

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Elizabeth Weymouth, founder and managing partner of Grafine Partners, penned a commentary over on Buyouts arguing that the Great Resignation is great news for private equity investors. "While we can’t expect every resignee to become the defining PE titan of the future, there is a subset of deal makers with proven track records, strong networks and entrepreneurial drives that often surpass established leaders in the field. ... It is these individuals who will define the future of the industry, and we believe there is an exciting opportunity to help them launch their own firms and bring their visions to life."

The FT's Lex says cautious banks are fueling the growth of private debt funds. "In extending loans, private equity funds are elbowing out banks which have turned leery following the financial crisis and, more recently, the pandemic."