The elusive quality that makes for a great co-investor, Providence makes majority investment in Tenstreet

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The Wire

Oct. 8, 2021

The elusive quality that makes for a great co-investor, Providence makes majority investment in Tenstreet

Happy Friday!

The severe shortage of computer chips to run all kinds of processes from onboard vehicle computers to smartphones is an opportunity for North American investors to help fund a revitalization of manufacturing in the US.

That’s according to Prashant Boccasam, partner at Cota Capital, who spoke on an alternative assets panel as part of EisnerAmper’s Alternative Investment Summit Thursday. Boccasam was answering a question about attractive areas of investment overlooked by other investors.

“There’s a very severe chip shortage in this country and we relied on one main source to get access to silicon-based chips. We need to take our head out of the sand and head back into silica, and start creating foundries and making chips in the states,” Boccasam said.

Also ... Co-investments are on the rise, so what makes a great co-investor? Institutions need to be able to make a quick decision on an investment, providing GPs with a solid yes or no. Quick decisions on making a direct investment involves the willingness to plunge directly into an investment with less than perfect information about the business, Hunter Carpenter, partner at RedBird Capital, said on the panel. Read it here.

That’s it for me! Have a great weekend. Reach me with your juicy tips n’ gossip, feedback or explication of unknowable mysteries at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Recruit: Providence Equity Partners made a majority investment in Tenstreet, which provides driver recruiting software and workflow services for the trucking industry. Existing investor Spectrum Equity will retain a significant minority stake. Read it here.

Visa: Blackstone Group agreed to acquire VFS Global, which provides visa outsourcing services like administrative and non-judgmental tasks related to visa, passport and consular services. Blackstone is acquiring the business from EQT. Read more here.