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Vista talks take-private deals, plus TPG backs new investment firm Caro

Good morning, Hubsters.

MK Flynn here with today’s Wire.

As boards and leadership teams seek certainty in a volatile market for most public technology businesses, take-private deals have become increasingly popular. We share insights on the trend from Vista, which recently marked its fifth take-private deal in less than two years. 

We’re also doing a Deep Dive on a Blackford Capital manufacturing portfolio company, which recently made its first add-on deal and expects to do more.

And earlier this morning, a new investment firm launched with backing from TPG.

Private vs public

Vista Equity Partners closed the acquisition of Model N for approximately $1.25 billion in June, marking the Austin-based PE firm’s fifth take-private deal in less than two years. Based in San Mateo, California, Model N develops revenue optimization and compliance software for companies in the pharmaceutical, medtech and technology sectors. To find out more about Model N and Vista’s strategy, PE Hub’s John R Fischer turned to Michael Fosnaugh, senior managing director and co-head of Vista’s flagship fund.

Upgrade to the premium version of the Wire to read the interview.

Crossroads

Blackford Capital-backed Davalor Mold Company made its first add-on in eight years early this month in a move to boost growth and stir the company toward a milestone of 5x return and 35 percent net IRR, Martin Stein, Blackford’s founder and managing director, told PE Hub’s Obey Martin Manayiti.

Premium subscribers may read the story.

Launching

Earlier this morning came news thatCaro Investors, a new investment firm headquartered in Chevy Chase, Maryland, has launched. TPG NEXT is serving as the firm’s anchor investor.

Upgrade to find out more.

And see more coverage on the new firm from our affiliate title PERE.

ICYMI

And finally before I sign off, if you missed it last week, check out Rafael Canton’s behind-the-scenes look at Blackstone Gives Back, which awarded $1 million in grants to charities.

As always, I’d love to hear from you. My email address is mk.flynn@pei.group.

PE Hub Europe editor Craig McGlashan will be with you tomorrow.

All the best,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

The buyer and seller price mismatch beleaguering private equity dealflow might end in 2025, but a handful of factors make it difficult to predict exactly where valuations will end up, Jonathan Mussellwhite, head of Europe at OMERS Private Equity, told PE Hub Europe.

NewView Capital, led by ex-New Enterprise Associates GP Ravi Viswanathan, is seeking $700 million for two funds dedicated to secondaries in the venture industry. (Buyouts)

They said it

“We’ve seen an uptick in take-private transactions over the past two years as sponsors seek opportunities to acquire great companies at reasonable valuations, and boards and executive leadership teams seek certainty in what has been a volatile market for most public technology businesses beyond the so-called ‘Magnificent 7.’”

— Michael Fosnaugh, senior managing director and co-head of Vista’s flagship fund, on take-private deals