The dawn of a £1B NewDay for Cinven, CVC; Doughty Hanson reaps $1.65B for turbine maker after 15-year hold; New Mountain to exit AmWINS at $2.6B value
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The Daily Pitch: PE
October 12, 2016
Featuring data from the PitchBook Platform
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GP strategies, LP expectations and more: Sixpoint Partners on PE fundraising
 
We recently caught up with Eric Zoller, founder and partner at Sixpoint Partners, to discuss trends in private equity fundraising. Here's a highlight from the interview:

Given today’s high-multiple environment, should LPs be targeting a lower return profile than in years past?

"While EBITDA multiples are indeed high, LPs don’t necessarily need to change their targets. The best-performing funds are still targeting the same returns they always have, high teens to 20%+ IRRs and 2x+ money multiples, and are continuing to deliver. Although, if multiples stay this high for a sustained period, we may see more pressure on IRRs, as it will take longer to generate those returns; money multiples should not be affected as much."
click to read the full Q&A
 
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Doughty Hanson reaps $1.65B for turbine maker
 
Doughty Hanson has agreed to sell LM Wind Power, a Danish manufacturer and supplier of rotor blades for the wind industry, to GE (NYSE: GE), which will absorb the company into its renewable energy business. LM Wind Power operates 13 factories on four continents; the $1.65 billion sale price represents 8.3x EBITDA, and the deal is expected to close during 1H 2017.

For Doughty Hanson, an investor in the upper end of the European middle market, the transaction will mark an exit after an elongated holding period—the firm first backed LM Wind Power back in 2001. The sale is the latest step in Doughty Hanson’s ongoing transformation after the surprising death of co-founder Nigel Doughty in 2012.

Shortly after Doughty’s passing, the firm, which was founded in 1985, ceased its venture and real estate operations to focus instead on private equity. Last April, though, the firm canceled its PE fundraising efforts and announced plans to focus on realizing its portfolio. Last August, Doughty Hanson revealed plans to close four of its seven offices in Europe and that five senior partners were leaving the firm.
 
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Recommended Reads
 
There’s a real chance Donald Trump is the next president of the US. If that fate comes to pass, how can traders make money off it? [Quartz]

>From vision to governance to incentives, one private equity pro delves into the nuts and bolts of his approach to turning around a company. [McKinsey]

After two canceled public offerings in Europe, maybe that IPO window isn’t as open as most hoped. [Reuters]

With evermore private equity funding flooding into the region, it seems countries in Central and Eastern Europe are among the early beneficiaries of Brexit. [Forbes]
 
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Today's Headlines
  The Daily Benchmark  
  2007 Vintage US Buyout Funds ($1B - $5B)  
  Deals in Play & Announcements  
  I Squared Capital dips into Duke Energy  
  Completed PE Deals  
  NGP invests $524M in Luxe Energy  
  Great Point-backed Aris Radiology acquires US Teleradiology  
  Hargett Hunter takes bite out of Ruggles Green  
  Palladium Equity backs Del Real Foods  
  Clearlake recaps LTR  
  DTI Management secures $75M funding  
  Europe  
  Cinven, CVC, Värde strike NewDay pact  
  Navya picks up €30M round  
  Exit & Liquidity News  
  New Mountain to exit AmWINS at $2.6B valuation  
  Investor News  
  Bridge Growth Partners hires chairman, closes debut fund  
 
 
The Daily Benchmark
 
2007 Vintage US Buyout Funds ($1B - $5B)
 
Median IRR
9.96%  
Top Quartile IRR Hurdle Rate
14.44%  
1.52x
Median TVPI
$1.69B
Average Amount Distributed
Fund name IRR
Vista Equity Partners Fund III 28.24%
KPS Special Situations Fund III 21.73%
Kohlberg Investors VI 16.72%
*IRR: net of fees
27 Funds in Benchmark »
Benchmark, Peer Group & Returns Data on 20K Funds
PitchBook, setting a higher bar for performance benchmarking
 
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Deals in Play & Announcements
 
I Squared Capital dips into Duke Energy
 
Energy Infrastructure | Charlotte, North Carolina | Buyout
I Squared Capital has agreed to acquire full control of the Latin American businesses of Duke Energy International, an affiliate of Duke Energy (NYSE: DUK), for an enterprise value of $1.2 billion. The deal does not include DEI’s operations in Brazil; however, the acquired portfolio still represents more than 2,300 MW of hydro and thermal generation in addition to 730 KM of transmission lines and natural-gas processing facilities.
Investor:
I Squared Capital
Seller:
Duke Energy
View details
 
View 93 comparables »
 
 
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Completed PE Deals
 
NGP invests $524M in Luxe Energy
 
Energy Exploration | Austin, TX | PE Growth
NGP has deployed its NGP Natural Resources XI fund to make an equity investment in Luxe Energy in conjunction with company management. NGP previously invested another $500 million in the business in May 2015. Luxe is an acquirer of unconventional oil properties in oil & liquids-rich basins in the US.
Investor:
NGP
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View 57 comparables »
 
 
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Great Point-backed Aris Radiology acquires US Teleradiology
 
Healthcare Services | Atlanta, GA | Add-on
Radiology services provider Aris Radiology, a Great Point Partners portfolio company since 2011, has acquired US Teleradiology. Founded in 2001, the company is a physician-owned provider of professional radiology services to hospitals and other medical facilities across 25 US states.
Investors:
Aris Radiology (platform), Great Point Partners (sponsor)
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View 21 comparables »
 
 
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Hargett Hunter takes bite out of Ruggles Green
 
Food Products | Houston, TX | Buyout
Hargett Hunter Capital Partners has acquired a majority stake in Ruggles Green, a fast-casual restaurant operating five restaurants in the Houston area that use local, organic and seasonal items. The deal follows Hargett Hunter's July acquisition of the Original ChopShop, another fast-casual restaurant serving fresh and organic salads, sandwiches and juice.
Investor:
Hargett Hunter Capital Partners
Advisors:
Bergemont Location Science & Strategy (strategic), Dixon Hughes Goodman (financial), LJR Hospitality Ventures (strategic), Martin Frost & Hill (legal), Wyrick Robbins Yates & Ponton (legal)
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View 484 comparables »
 
 
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Palladium Equity backs Del Real Foods
 
Food Products | Mira Loma, CA | PE Growth
In partnership with the company's founders, Palladium Equity Partners has made a significant investment in Del Real Foods. Del Real is a provider of refrigerated Hispanic foods operating primarily in the western US. The company joins other companies such as Taco Bueno Restaurants and Sahale Snacks in Palladium's extensive food & restaurant portfolio.
Investor:
Palladium Equity Partners
Advisors:
Lazard Middle Market (financial), Simpson Thacher & Bartlett (legal), Skadden, Arps, Slate, Meagher & Flom (legal)
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View 378 comparables »
 
 
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Clearlake recaps LTR
 
Commercial Services | Odessa, TX | Recapitalization
Clearlake Capital Group has led a recapitalization of Light Tower Rentals in partnership with company management. LTR emerges from Chapter 11 bankruptcy protection, for which it filed in August, as part of the deal. Founded in 1994 and operating primarily in the Permian Basin in Texas, the company rents specialty equipment used in oil & gas operations.
Investor:
Clearlake Capital Group
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View 124 comparables »
 
 
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DTI Management secures $75M funding
 
Platform Software | Alexandria, VA | PE Growth
DTI Management offers an online ticket-selling platform for sports teams, event producers, music artists, venues and ticket brokers. DTI also supplies ticket inventory to various partners such as StubHub, SeatGeek, Vivid Seats and Ticketmaster.
Investors:
CVC Capital Partners, New Amsterdam Growth Capital
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View 307 comparables »
 
 
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Europe
 
Cinven, CVC, Värde strike NewDay pact
 
Specialized Finance | London, UK | Secondary Buyout
Cinven and CVC Capital Partners have agreed to acquire specialty finance business NewDay from Värde Partners at a reported enterprise value of around £1 billion. The company is a provider of branded credit cards and boasts more than five million customers in Europe.
Investors:
CVC Capital Partners, Cinven
Seller:
Värde Partners
View details
 
View 521 comparables »
 
 
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Navya picks up €30M round
 
Automotive | Paris, France | Growth
Founded in 2014, driverless electric vehicle company Navya creates solutions designed for the intelligent transport of people and goods. The company will use the funding primarily for international expansion throughout Europe, the US and the Gulf Region. As part of the deal, Navya has signed several strategic agreements with its investors that will help the company gain access to new technology and increase its shuttle-deployment capabilities.
Investors:
Cap Decisif Management, Gravitation, Group8, Keolis, Robolution Capital, Valeo
View details
 
View 169 comparables »
 
 
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Exit & Liquidity News
 
New Mountain to exit AmWINS at $2.6B valuation
 
Insurance Brokers | Charlotte, NC | Secondary Transaction
New Mountain Capital has agreed to sell its stake in AmWINS, a specialty insurance brokerage. Upon closing, Dragoneer Investment Group will own a 35% stake in AmWINS, the Public Sector Pension Investment Board will own 30% and the company's employees will own the remainder. New Mountain will realize a roughly 4.3x return on the sale, exiting an investment made in 2012 as part of a recapitalization of AmWINS.
Seller:
New Mountain Capital
Buyer:
Dragoneer Investment Group
Legal Advisor:
Robinson Bradshaw & Hinson
View details
 
View 66 comparables »
 
 
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Investor News
 
Bridge Growth Partners hires chairman, closes debut fund
 
New York, NY | PE/Buyout
Bridge Growth Partners has named Joseph M. Tucci chairman. Tucci was formerly chairman and CEO of EMC and has served on the firm’s advisory board since Bridge Growth Partners was founded in late 2013. The firm has also announced the close of its first fund on $410 million. Bridge Growth Partners invests primarily in the tech and tech-enabled financial services sectors.
View details
 
View 4 investments »
 
 
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VIDEO OF THE DAY
 
Who is Fundraising?
More video walkthroughs »
 
 
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