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Term Sheet — Thursday, August 21

August 21, 2014, 12:46 PM UTC

Random Ramblings

Greetings from New York City, where I'm in town for a series of meetings (including with new Fortune editor Alan Murray). A couple quick notes before I walk over to HQ:

Stake sale: America’s largest public pension system quietly sold around 30% of its stake in tech-focused private equity firm Silver Lake Partners in early 2013, Fortune has learned.

The California Public Employees’ Retirement System (CalPERS) originally invested around $275 million in 2008 for a 9.9% stake in Silver Lake’s management company, similar to how it previously had bought into the management companies of both The Carlyle Group and Apollo Global Management (when those firms were still privately-held).

CalPERS maintained almost the entire position for more than four years, revaluing its market price each year in its annual investment report. But in its most recent report– which already is more than a year out of date — the pension reports a book value of just under $194 million (i.e., 30% smaller than the original investment size).

A source familiar with the situation says that Silver Lake bought the “missing” units back from CalPERS in early 2013, but didn’t know the price paid. CalPERS does not appear to have disclosed the sale in any of its monthly investment reports, and a pension spokesman has not yet provided additional details.

CalPERS also has invested in several Silver Lake funds, including a $400 million commitment to the firm's current flagship fund.

Speaking of public pensions: The New Jersey State Investment Council still has not decided on the fate of its $15 million commitment to a venture capital fund managed by General Catalyst Partners, after the discovery that General Catalyst 'executive-in-residence' (and current MA gubernatorial candidate) Charlie Baker donated $10,000 donation to The New Jersey Republican State Committee (arguably a violation of the state's pay-to-play prohibitions). The issue was referred to the NJ Treasury's auditor nearly three months ago, but the auditor somehow is still investigating.  


 Shutterfly Inc. (Nasdaq: SLFY), a Redwood City, Calif.-based photo-sharing site with a market cap of around $1.9 billion, reportedly has received multiple buyout offers. Suitors that have progressed to the second round of bidding include Bain Capital, Hellman & Friedman and Silver Lake. Read more


Thumbtack, a San Francisco-based marketplace and review site for local services, has raised $100 million in new funding. Google Capital led the round, and was joined by return backers Tiger Global Management, Sequoia Capital and Javelin Venture Partners.

Xamarin, a San Francisco-based cross-platform development platform for native apps, has raised $54 million in Series C funding. Backers include Ignition Partners, Lead Edge Capital, Insight Venture Partners, Floodgate and Charles River Ventures. There had been reports earlier this year that Microsoft was considering a purchase of Xamarin.

Dermira, a Redwood City, Calif.-based biopharma company focused on dermatology, has raised $51 million in Series C funding. Apple Tree Partners, Aisling Capital, Rock Springs Capital and Sabby Capital were joined by return backers Bay City Capital, New Enterprise Associates, Canaan Partners and UCB SA.

Alfresco Software, a UK–based enterprise content management provider, has raised $45 million in growth equity funding. Sageview Capital led the round, and was joined by return backers Accel Partners, Mayfield Fund and SAP Ventures.

DoubleDutch, a San Francisco-based mobile event app, has raised $19 million in Series D funding. Mithril Capital Management led the round, and was joined by Enspire Capital and return backers Bessemer Venture Partners, Index Ventures and Bullpen Capital.

Wearable Intelligence, a San Francisco-based developer of enterprise applications for wearable technologies like Google Glass, has raised nearly $8 million in new VC funding led by Lightspeed Venture Partners, according to a regulatory filing.  The company previously raised seed funding from such firms as Andreessen Horowitz, First Round Capital, Google Ventures, Kleiner Perkins Caufield & Byers, Initialized Capital and Subtraction Capital. Read more.

FeeX, a New York-based service for finding and reducing hidden investment fees, has raised $6.5 million in Series B funding. Horizon Ventures led the round, and was joined by return backer Blumberg Capital.

OnBeep, a San Francisco-based maker of wearable devices for instant group collaboration, has raised $6.25 million in Series A funding led by Avalon Ventures.

StudioNow, a Nashville-based creator of low-cost videos for businesses, has raised $5 million in Series B funding. FCA Venture Partners led the round, and was joined by return backer Claritas Capital.

Nervana Systems Inc., a San Diego-based developer of a “deep learning solution optimized from algorithms to hardware,” has raised $3.3 million in Series A funding. DFJ led the round, and was joined by AME Cloud Ventures, Fuel Capital and return backer Allen & Co.

Imoji, an app that lets users turn “any picture” into shareable emoji, has raised $2 million in VC funding from Goodwater Capital and Joe Lacob.


 Bain Capital has agreed to acquire a 50% stake in TOMS, a Santa Monica, Calif.-based shoemaker, at a reported enterprise value of $625 million. Read more.

 Endless LLP has agreed to acquire Office2Office PLC, a UK-listed provider of business supplies and outsourced business solutions, for approximately £19 million.

 RuffaloCODY, a Grand Rapids, Iowa-based provider of tech-enabled fundraising and enrollment management services for higher education and nonprofit groups, has acquired Noel-Levitz, a Coralville, Iowa-based provider of education consulting services. RuffaloCODY shareholders include Summit Partners, while Noel-Levitz had been backed by Quad Partners.

 OMERS Private Equity has acquired DTI, an Atlanta-based provider of legal process outsourcing services, from Harvest Partners.


 Axalta Coating Systems Ltd., a Philadelphia-based maker of liquid and powder coatings, has filed for a $100 million IPO (likely a placeholder figure). Citigroup is listed as left lead underwriter, with eight other banks also listed on the S-1. The Carlyle Group acquired Axalta in 2012 for $4.9 billion from Dupont. The company reports $22.9 million in net income on $4.34 billion in revenue for the year ending June 30, 2014.


 XPO Logistics Inc. (NYSE: XPO) has agreed to acquire New Breed Holding Co., a High Point, N.C.–based provider of non-asset based contract logistics, for $615 million from Warburg Pincus and Jacobs Private Equity.


 Carl Icahn disclosed an 8.48% stake in Hertz Global Holdings (NYSE: HTZ). Read more

 CST Brands Inc. (NYSE: CST) has agreed to acquire Nice N Easy Grocery Shoppes, a Canastota, N.Y.-based operator of 77 corporate and franchise convenience stores in Central New York. No financial terms were disclosed.

 Family Dollar (NYSE: FDO) has rejected a $9.7 billion takeover bid from Dollar General (NYSE: DG), saying that antitrust concerns have caused it to favor an $8.5 billion bid from Dollar Tree (Nasdaq: DLTR). Read more.

 Infineon Technologies AG, a listed German chipmaker, has agreed to acquire El Segundo, Calif.-based International Rectifier Corp. (NYSE: IRF) for approximately $3 billion, or $40 per share (around a 50% premium to Tuesday’s closing price).


 JMI Equity, a Baltimore-based growth equity firm focused on software and services, has closed its eighth growth equity fund with $1 billion in capital commitments.

 Moonscape Ventures, an early-stage VC firm focused on the Internet-of-Things, has closed its debut fund with $120 million in capital commitments.

 Orchid Asia, a Chinese private equity firm, has closed its sixth fund with $920 million in capital commitments.


No personnel news this morning.

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