| | | | | | | I usually say Happy Friday but this morning seems anything but happy. I'm finding it much easier these days to just unplug from the world on the weekends. Hurdle rates: Preqin has an interesting study showing some private equity firms are pushing up hurdle rates. Preqin says GPs are doing this to appeal to limited partners. As part of the study, Preqin found the proportion of LPs who believe their interests are aligned with GPs rose from 63 percent in June 2014 to 79 percent in May 2016 – the highest Preqin has ever reported. At Buyouts Chicago in June, I listened to a panel of LPs talk about GPs trying to actually push down hurdle rates to as low as 6 percent. "Our expected returns on our investments in private equity is well above 8 percent," one of the panelists said. "If at best you can guarantee us 6 percent, we kind of scratch our heads." As one LP I spoke to after the conference said, "what's the point? You might as well drop the preferred return." Preqin's findings seem to contradict what we at the Hub hear anecdotally from LPs, who report increasingly difficult negotiations with top GPs. As we hear it, managers in high demand come back to market with less LP-friendly terms in new funds. With "one-and-done funds," LPs have no negotiating power, another LP said. "With funds that have one or two more closes, the longer it goes, the more negotiating power you have." What do you think? Reach me here. -- Chris | | Today's Take | | | | PE HUB First Read First Read ends the week with news of a despicable attack on law enforcement in Dallas, California's PE transparency bill gets watered down and private equity firms set higher hurdle rates. Read more... Goldman Sachs, Barclays top Canadian M&A rankings in first half: Reuters Canadian mergers and acquisitions slipped in the first half of 2016, with sluggish activity in natural resource sectors offsetting some large infrastructure deals, according to Thomson Reuters data released on Thursday. Read more... PE HUB Second Opinion Another day, another video of police shooting to death an African-American man, this one involving Facebook Live. Read more... Paulson's distressed-debt-fund target up by a third to $2 bln As limited partners' appetite for distressed strategies grows, Paulson & Co, a hedge fund led by the billionaire John Paulson, boosted the size of its distressed-debt private equity fund by fully a third. Paulson Strategic Partners Fund plans to raise as much as $2 billion, a recent Form D filing showed. That's up from the $1.5... Read more... CalSTRS: GPs gain power, diminishing progress made on transparency Limited partners are at risk of losing ground in the fight for improved compliance and transparency, according to California State Teachers' Retirement System. "Market dynamics have shifted some power back in favor of general partners and in some instances this has caused some progress to be reversed or become endangered," CalSTRS staff wrote in a... Read more... Astorg brings 2.1-bln-euro fund into uncertain Europe Astorg Partners closed its sixth fund on 2.1 billion euros ($2.32 billion) amid a wave of uncertainty triggered by Britain's decision to exit the European Union. The Paris firm confirmed the fund close in a statement. Commitments came from pension funds, insurers and institutional asset managers, the firm said. European limited partners made up 62 percent of... Read more... How Edison grew to raise its largest growth fund to date New Jersey firm celebrates 30th anniversary closing on a $275 million eighth fund Read more... | NETWORKING...CAPITAL...DEALS ACG Philadelphia presents M&A East
September 27 - 28, 2016 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 | | | | Unicorns grab record share of invested capital in Q2 At a time when investors are showing signs of caution, unicorn deals are flourishing. This was evident in the second quarter when venture capitalists in the United States placed a record share of capital in unicorn transactions. Read more... Crimson Ventures invests in Thrivist Crimson Ventures has made an undisclosed investment in Thrivist LLC. Based in Franklin, Tennessee, Thrivist is a learning and analytics platform for K-12 schools. Read more... British cyber-security firm Post-Quantum scores 8 mln Series A Post-Quantum, a London-based cyber-security firm developing products for government and financial clients, closed an 8 million (about $10.3 million) Series A funding round with participation from VMS Investment Group and AM Partners. The new capital adds to existing seed funding of 800,000 (about $1 million). Read more... UK data science and tech company Black Swan grabs Series B funds UK-based data science and tech company Black Swan Data Ltd has secured 6.2 million pounds in Series B funding. The investors were Albion Ventures, Blackstone and Mitsui. Read more... CoolaData picks up $5.6 mln CoolaData, a provider of behavioral analytics, has raised $5.6 million in funding. The investors were Salesforce Ventures, TEEC Angel Fund, 83North and Carmel Ventures. The capital infusion will be used for growth and expansion. Read more... | Complimentary Webinar: Improving Your Deal Sourcing Operations
During this webinar you'll learn the following:
The advantages and disadvantages of having a dedicated origination team
How to measure your firm's deal-flow market share
Top techniques for keeping your name in front of sell-side advisory firms
Creative incentives you can use to steer more deals your way
When it makes sense to work with a buy-side advisory firm
Unconventional sources of deal flow and how to cultivate them
Register Today! In Partnership With: |
| | | | | | Back to top | | Serent backs Docutech Serent Capital has acquired a minority stake in Idaho-based Docutech, a provider of compliance and documentation technology. No financial terms were disclosed. Read more... Thoma Bravo completes Elemica acquisition Thoma Bravo has closed its previously announced acquisition of Wayne, Pennsylvania-based Elemica, a supply chain operating network for the process sectors. No financial terms were disclosed. Houlihan Lokey acted as financial advisor to Elemica on the transaction. Read more... Astra acquires LOGIX Communications Astra Capital Management has completed its buy of LOGIX Communications, a telecommunications company that specializes in fiber-based enterprise voice and data services. No financial terms were disclosed. Read more... | 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 |
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Back to top | | PE-backed Fiesta Mart buys 11 Mindyard Food Stores Fiesta Mart, which is backed by ACON Investments LLC, is acquiring 11 Minyard Food Stores in the Dallas-Fort Worth Metroplex from RLS Supermarkets LLC. No financial terms were disclosed. Read more... Teladoc acquires Frontier Capital-backed HealthiestYou Teladoc Inc is acquiring Scottsdale, Arizona-based HealthiestYou, a mobile patient engagement solutions provider. The deal is valued at $125 million. Piper Jaffray provided financial advice to Teladoc on the transaction while William Blair & Co did likewise for HealthiestYou, which was backed by Frontier Capital. Read more... VC-backed LeadPages buys Drip Minneapolis-based LeadPages, a landing page and lead generation platform, has acquired Fresno, California-based Drip, a marketing automation company. No financial terms were disclosed. FE International Inc advised Drip on the transaction. Leadpages is backed by Drive Capital, Foundry Group and Arthur Ventures. Read more... | | Firms & Funds | | |
Back to top | | Leerink Transformation Partners targets $250 mln for debut fund Boston-based growth equity firm Leerink Transformation Partners has raised over $71 million for its initial fund, according to an SEC filing. The target is $250 million. Read more... IDeA Capital and H.I.G.'s Bayside collect about $288 mln for initial corporate credit recovery fund Italian asset manager IDeA Capital Funds SGR and H.I.G. Capital's credit affiliate Bayside Capital have raised 260 million euros (about $288 million) in the first closing of their inaugural corporate credit recovery fund. The fund will back distressed Italian mid-sized companies with the aim of helping them restructure and turnaround. Read more... | | Human Resources | | |
Back to top | | Trive Capital announces promotions in top positions Trive Capital announced the promotions of Dan Lenahan to managing director, Jonathan Nunnaley to chief financial officer, and Andrew Frank and Nick Miner to senior associate. Based in Dallas, Texas, Trive invests in equity and debt securities, focusing on the middle market, with about $900 million in capital under management. Read more... IPG Photonics Corp taps ex-PE exec for board IPG Photonics Corp, a Oxford, Massachusetts-based provider of fiber lasers and amplifiers, has named Catherine P. Lego to its board of directors. Her appointment became effective July 6, 2016. Lego is a principal and founder of Lego Ventures LLC. She is also a former general partner at Oak Investment Partners. Read more... Campbell Lutyens promotes three Campbell Lutyens has promoted Edward Hutton to partner. Also, the firm has upped Xiaoni Shi and Nick Spencer to principal. Hutton joined Campbell Lutyens in 2007 while Shi came on board in 2013 and Spencer was first hired in 2010. Read more... VC-backed Trice Medical beefs up team with new addition King of Prussia, Pennsylvania-based Trice Medical, which is focused on improving orthopedic diagnostics, has appointed Mark Foster as its chief commercialization officer and vice president of worldwide sales. Previously, Foster worked at Smith & Nephew. Trice Medical is backed by HealthQuest Capital, Safeguard Scientifics and BioStar Ventures. Read more... DHI appoints Bain Capital's Deason to board of directors New York City-based DHI Group Inc, which offers specialized career websites, has named Jennifer Deason to its board of directors. Deason is executive vice president at Bain Capital. Read more... | | Odds & Ends + Hot Links | | |
Back to top | | PE HUB First Read First Read ends the week with news of a despicable attack on law enforcement in Dallas, California's PE transparency bill gets watered down and private equity firms set higher hurdle rates. Read more... Goldman Sachs, Barclays top Canadian M&A rankings in first half: Reuters Canadian mergers and acquisitions slipped in the first half of 2016, with sluggish activity in natural resource sectors offsetting some large infrastructure deals, according to Thomson Reuters data released on Thursday. Read more... PE HUB Second Opinion Another day, another video of police shooting to death an African-American man, this one involving Facebook Live. Read more... |
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