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| Size doesn't matter in PE fund performance over the long term |
|  | | click to read our analysis |
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Despite the dueling claims that smaller PE fund managers lack sophistication or sufficient scale, or that larger fund managers lack the nimbleness, operational focus and expertise necessary to improve portfolio companies, returns across different fund sizes are relatively uniform in the long term. Ten-year horizon IRRs for PE funds of any size bucket are all between 10% and 11%.
Interestingly, funds with less than $250 million in AUM have underperformed the rest of the asset class on one- and three-year horizons. This is at least partially due to... |
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| | | | | | | SquareTrade in Allstate's hands for $1.4B |
| | Allstate (NYSE: ALL) has agreed to acquire SquareTrade for $1.4 billion from a diverse group of investors. SquareTrade's progress from dot-com era startup to 10-figure acquisition target was aided by venture capital investment and private equity backing from firms including... |
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| | | | | | | Patience pays off for MBK Partners |
| It was just three months ago that MBK Partners called off plans to acquire Accordia Golf (TKO: 2131), an operator of more than 100 golf courses in Japan, in a deal that reportedly valued the company at up to $1.6 billion. News of the pending deal had led to a hike in Accordia’s stock price, making a takeover untenable.
On Tuesday, the Seoul-based private equity investor revealed new plans to acquire Accordia for about $760 million, according to Reuters, with MBK Partners set to pay JPY1,210 (about $10.80) per share in cash to take the company private. That price represents a 17% premium to Accordia’s closing stock price Tuesday. The company’s stock rose as high as JPY1,220 in July, in the wake of initial reports of a deal. Goldman Sachs took Accordia public in 2006. |
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| | | | | | | PitchBook is at AWS re:Invent 2016! |
| PitchBook’s technology division is at the Amazon Web Services re:Invent conference! We’d love to meet you in person and discuss all things related to Big Data, cloud computing, data science and software engineering.
If you’re attending the conference and would like to connect, reach out to us. |
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| | | | | | | | An interesting look at newly formed, diversity-focused firm The Inkwell Group. [Crain’s Cleveland Business]
A look at the somewhat incestuous nature of the relationship between Apollo Global Management and portfolio company Athene, which is planning an IPO. [Bloomberg]
A closer look at what India hopes to accomplish with its move away from paper money. [The New Yorker]
What entrepreneur Ravi Vadrevu learned from having a co-founder force him out of their company. [Backchannel] |
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| Since yesterday, the PitchBook Platform added: | | 192 Deals | 1188 People | 472 Companies | 1 Funds |
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| 2010 Vintage US Buyout Funds with B2B Investments |
| | Median IRR | | | | Top Quartile IRR Hurdle Rate | | | | 1.43x Median TVPI | $403M Average Amount Contributed |
| | | | *IRR: net of fees | | 53 Funds in Benchmark » |
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| Deals in Play & Announcements |
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| SintecMedia to acquire Operative for $200M |
| | Business Software | New York, NY | Add-on |
| Francisco Partners-backed SintecMedia, a software provider that helps media companies manage advertising operations, has agreed to buy fellow marketing software provider Operative Media. The purchase price will be almost $200 million, according to The Wall Street Journal. Operative’s management team will invest in SintecMedia as part of the transaction, with Operative founder Lorne Brown becoming SintecMedia's new president; the Operative brand will shut down upon completion of the deal. The move comes just months after Francisco Partners bought SintecMedia in April. |
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| Blue Wolf buys Great Lakes Caring from Wellspring |
| | Outpatient Services | Jackson, MI | Secondary Buyout |
| | | | | | | Oaktree supports Sterling Lumber |
| | Commercial Services | Phoenix, IL | PE Growth |
| | | | | | | Gen Cap backs air gun MBO |
| | Recreational Goods | Solon, OH | Buyout |
| Gen Cap America has backed the management of Pyramyd Air in its acquisition of the company, with president Val Gamerman continuing to run the business. Started in 1993, Pyramyd Air is an online retailer of air guns, airsoft guns, BB guns and related parts. |
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| | | | | | | Tower Arch invests in CTSI |
| | Communications and Networking | Chantilly, VA | Recapitalization |
| Tower Arch Capital has recapitalized Corbett Technology Solutions (CTSI), a provider of communications technology, in partnership with company management. Founded in 1969, CTSI designs and installs various technologies—including fire alarms, security systems and videoconference services—for a client list that includes governments, senior living facilities, places of worship, schools and corporations. |
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| KKR acquires Arle's stake in Hilding Anders |
| | Home Furnishings | Malmö, Sweden | Secondary Buyout |
| KKR has agreed to acquire a majority stake in Hilding Anders from Arle Capital Partners. Founded in 1939, Hilding Anders makes beds and mattresses sold in Europe and Asia under an array of brands. ACP first backed the business in 2006. |
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| | | | | | | Phoenix bids farewell to Karmarama |
| | Media Services | London, UK | Corporate Acquisition |
| Phoenix Equity Partners has sold its interest in marketing agency Karmarama to Accenture (NYSE: ACN); Phoenix had acquired 50% of the company in 2011. Karmarama develops advertising campaigns for a client list that includes the BBC, Honda (TKS: 7267) and Deutsche Bank. The company will be absorbed by Accenture Interactive, the digital marketing division of the professional services conglomerate. |
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| Francisco Partners-backed Ichor sets IPO range |
| | Fiberoptic Equipment | Fremont, CA | IPO |
| Ichor Systems, a portfolio company of Francisco Partners since 2011, plans to sell 5.75 million shares for between $12 and $14 each in an upcoming public offering on the NASDAQ under the ICHR ticker symbol, according to an SEC filing. A midpoint pricing would raise about $75 million. The company is a designer and manufacturer of fluid-delivery systems used in the production of semiconductor devices. |
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