Term Sheet — Wednesday, September 24

The most notable of these proposed transactions has been Miami, Fla.-based Burger King’s pending takeover of Canadian coffee-and-doughnut chain Tim Hortons, thus leading many news organizations to put images of the fast-food chain next to their coverage of the White House action.

But here’s the thing: Burger King’s deal for Tim Hortons would not be impacted on iota by the new rules.

Under terms of the proposed agreement, current Burger King shareholders would hold less than 80% of the combined company — which is the threshold set yesterday by the White House. For example, Burger King’s current majority shareholder 3G Capital would see its stake cut from 69% to around 51%.

The White House has indicated interest in lowering the 80% mark to 50%, but that would require Congress to actually pass a piece of corporate tax reform legislation (something that feels less likely than Burger King moving to a salad-only menu). So, for now, Burger King is little more than a recognizable stand-in for the more obscure pharmaceutical and medical device companies that are suffering actual heartburn from the rules change.

• New firm alert: Craftsman Capital Partners has formed as a Dallas-based private equity firm focused control deals for  lower middle-market companies with between $1 million and $5 million in EBITDA. It has $40 million in capital under management so far. Its three founding principals are Barrett Dean (ex-Renovo Capital), Paul Thompson (ex- Transition Capital Partners) and Will Walters (ex-Lone Star Investment Advisors).

• Quiz time: In an era in which many early-stage VC firm are forming “opportunities” funds to back later-stage deals, can you name the veteran firm that is going in the opposite direction? Its next fundraise will begin later this year with a single vehicle, despite having raised at least one opportunities-type fund in the past. 

• Making money: Today’s largest VC deal is for Qualtrics, a 12 year-old provider of online data collection and analytics that has raised $150 million in Series B funding. Insight Venture Partners led the round, and was joined by return backers Accel Partners and Sequoia Capital (which had invested $70 million in 2012). I emailed briefly this morning with CEO Ryan Smith, who said that the new round valued Qualtrics at north of $1 billion, and that the company is now profitable.

• No age bias here: Don’t let the name fool you, because Battery Ventures is doing plenty of buyout deals for mature companies.

Battery Ventures is best-known for backing early-stage tech startups, but the bi-coastal firm also has a vibrant buyout practice that focuses on more established companies. But perhaps none quite so mature as James Heal, a 142 year-old UK company that designs and manufactures test instrumentation and test materials for the textile and garment industry.

Battery announced the deal this morning, and plans to use James Heal as the foundation for a new global acquisition platform focused on the physical test measurement space. Battery partner Jesse Feldman says that the firm settled on this space more than a year ago, and first made contact with James Heal via a cold call.

“Cold-calling in Europe is sometimes more effective for us than in the U.S., because of less banker coverage,” Feldman explains. “The guy we bought James Heal from is the son of a man who bought the business in 1940 when it was just a small enterprise with a couple of employees. He’s done an amazing job with it.”

Feldman says that Battery has a list of “over 100 companies” for potential platform add-ons, with a particular focus on the packaging market.

• School stuff: Harvard University’s endowment management company released fiscal 2014 returns today, showing a 15.4% gain that beat internal benchmarks but trailed many of its (admittedly smaller) peers. For example, Yale yesterday reported a 20.2% gain and Stanford reported a 17% gain.

I’ll digging a bit deeper into the numbers later this morning, but it’s worth noting that Harvard plans to increase its private equity exposure from 16% to 18% (it was just 11% in 2008). This comes as Harvard reports a 20.3% return from private equity in fiscal 2014, which includes a whopping 32.8% return from venture capital. Would be interesting to see where that PE return sits if HMC hadn’t comingled a bunch of hedge funds into its PE portfolio a couple of years back…

THE BIG DEAL

• Citizens Financial Group Inc., a Providence, R.I.-based retail bank holding company owned by Royal Bank of Scotland (LSE: RBS), raised $3 billion in its IPO. It is the second-largest IPO on a U.S. exchange this year, following last week's Alibaba offering.

Citizens priced 140 million shares at $21.50 per share (below offering range of $23-$25), for an initial market cap of approximately $12 billion. It will trade on the NYSE under ticker symbol CFG, while Morgan Stanley and Goldman Sachs served as lead underwriters. Read more. 

VENTURE CAPITAL DEALS

Qualtrics, a Provo, Utah-based provider of online data collection and analytics, has raised $150 million in Series B funding. Insight Venture Partners led the round, and was joined by return backers Accel Partners and Sequoia Capital. www.qualtrics.com 

• Invoice2go, a Palo Alto, Calif.-based mobile app that helps small businesses manage cash flow, has raised $35 million in new VC funding from Accel Partners and Ribbit Capital. The company also announced that Greg Waldorf, the former eHarmony CEO and current CEO-in-residence with Accel, has its new chief executive. www.invoice2go.com

• Udacity, a Palo Alto, Calif.-based online learning startup, has raised $35 million in new VC funding. Drive Capital led the round, and was joined by Bertelsmann, Recruit (Japan), Cox Enterprises and return backers Andreessen Horowitz and Charles River Ventures. www.udacity.com  

• Tracon Pharmaceuticals, a San Diego-based developer of therapeutics for cancer and age-related macular degeneration, has raised $27 million in Series B funding. New Enterprise Associates and BioMed Ventures were joined by return backers JAFCO Co, Nextech Inves, Brookline Investments, Arcus Ventures and BHP. MTS Health Partners and Wells Fargo Securities served as placement agents. www.traconpharma.com

• Inspirato, a Denver-based luxury home rental service, has raised $20 million in new VC funding. W Capital Partners led the round, and was joined by return backers Institutional Venture Partners and Millennium Technology Value Partners. The company previously raised $48 million. www.inspirato.com

• NexSteppe, a South San Francisco-based provider of sustainable feedstock solutions, has raised $22 million in third-round funding. Total Energy Ventures and ELFH Holding co-led the round, and were joined by Braemar Energy Ventures, CYM Ventures and DuPont Ventures. www.nexsteppe.com

• Accuris Networks, an Ireland-based provider of cellular and WiFi connectivity solutions, has raised $15 million in new VC funding. New backers include Ulster Bank Diageo Venture Fund and China Ireland Growth Technology Fund. www.accuris-networks.com

• Numerify, a Cupertino, Calif.-based provider of cloud-based business IT analytics, has raised $15 million in Series B funding. Sequoia Capital led the round, and was joined by return backer Lightspeed Venture Partners. www.numerify.com

• Performance Horizon Group, a provider of partner marketing solutions for enterprises, has raised $10 million in Series B funding. Mithril Capital Management led the round, and was joined by return backers DN Capital and Greycroft Partners. www.performancehorizon.com

• Centage Corp., a Natick, Mass.-based provider of budgeting and forecasting software for small and mid-sized businesses, has raised $9.5 million in Series A funding. TVC Capital led the round, and was joined by Northgate Capital. www.centage.com

• WiserTogether Inc., a Washington, D.C.-based provider of healthcare treatment comparison software, has raised $9 million in Series B funding. Martin Ventures and Merck Global Health Innovation Fund co-led the round, and were joined by return backers Grotech Ventures, Harbert Venture Partners, 7Wire Ventures and Blue Heron Capital. www.wisertogether.com

• Massdrop, a San Francisco-based group buying platform for enthusiasts, has raised $6.5 million in Series A funding. Mayfield Fund led the round, and was joined by return backers Kleiner Perkins Caufield & Byers, First Round Capital and Cowboy Ventures. www.massdrop.com

• Content Analytics, an ecommerce analytics platform for major retailers and brands, has raised $4 million in Series A funding. Almaz Capital led vthe round, and was joined by Dunnhumby Ventures. www.contentanalyticsinc.com

• Wedding Spot Inc., a San Francisco–based online marketplace for booking wedding venues, has raised $3 million in seed funding. Atlas Venture and KEC Ventures co-led the round, and were joined by Great Oaks Venture Capital, Maiden Lane, Canyon Creek Capital and individual angels. www.wedding-spot.com

• Favor, an Austin, Texas-based delivery service for local stores and restaurants, has raised $2 million in seed funding from backers like Silverton Partners and Tim Draper. www.favordelivery.com

PRIVATE EQUITY DEALS

• Advicent Solutions, a portfolio company of Vista Equity Partners, has acquired Figlo, a Dutch provider of interactive software for real-time communication and collaboration between financial advisors and their clients. No financial terms were disclosed. www.advicentsolutions.com

• GIC is in talks to acquire RAC Ltd., a British roadside assistance company, from The Carlyle Group for more than £2 billion, according to Sky News. www.rac.co.uk

• Magnitude Software, a Redmond, Wash.–based provider of enterprise information management software, has secured up to $100 million in new funding led by Audax Group. The deal also included a “significant personal investment” from company chairman and CEO Chris Ney. www.noetix.com

• Oakley Capital has acquired a majority stake in Facile it SpA, an Italian auto insurance broker and price comparison website. No financial terms were disclosed. www.oakleycapital.com

• Ontario Teachers' Pension Plan is among several bidders for British snack-maker United Biscuits, which is being sold by The Blackstone Group and PAI Partners for around £2 billion, according to MarketWatch. Other suitors reportedly include Kellogg Co. (NYSE: K), Ulker Biskuvi Sanayi AS (Turkey) and San Miguel Corp. (Philippines). Read more. 

• The Riverside Company has acquired Medical Payment Exchange Inc., a Rockville, Md.-based provider of reimbursement claims management solutions for healthcare providers. No financial terms were disclosed. www.riversidecompany.com

IPOs

• CyberArk Software Ltd., an Israeli provider of cyber attack security software, raised $86 million in its IPO. The company priced 5.4 million shares at $16 per share (above $13-$15 range), for an initial market cap of approximately $473 million. It will trade on the Nasdaq under ticker symbol, CYBR, while J.P. Morgan served as left lead underwriter. It reports an $18,000 net loss on nearly $39 million in revenue for the first half of 2014. Shareholders include Jerusalem Venture Partners (46.6% pre-IPO stake), Goldman Sachs (24.1%), Vertex Venture Capital (11.6%) and Cabaret Security Ltd. (7.7%).www.cyberark.com

• Medley Management Inc., a New York-based asset management firm with around $3.3 billion in AUM, raised $108 million in its IPO. The company priced 6 million shares at $18 per share (below $18-$20 offering range). It will trade on the NYSE under ticker symbol MDLY, while Goldman Sachs and Credit Suisse served as co-lead underwriters.

• MOL Global Inc., a Malaysian online payments company, has set its IPO terms to 19.46 million shares being offered at between $12.50 and $14.50 per share. It would have an initial market cap of approximately $911 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq with Citigroup serving as left lead underwriter. www.global.mol

EXITS

• Acorda Therapeutics Inc. (Nasdaq: ACOR) has agreed to acquire Civitas Therapeutics, a Chelsea, Mass.-based developer of a Parkinson’s disease treatment that leverages a respiratory delivery platform, for $525 million in cash. Civitas had been in registration for an IPO that would have valued the company at around $363 million, and has raised around $120 million in VC funding, from Longitude Capital Partners (19.9% stake), Canaan Partners (18.9%), Bay City Capital (10.5%), Foundation Healthcare Partners (10.2%), RA Capital (9.6%), Alkermes Inc. 7%) and Wellington Management (6.5%). www.civitastherapeutics.com

• Apax Partners is considering an auction for Auto Trader Group Ltd., a UK-based online auto sales marketplace, according to Bloomberg. The company could be worth around £2 billion. Read more. 

• TowerBrook has agreed to sell Capquest, a British provider of credit solutions, to Arrow Global Group PLC (LSE: ARW) for £158 million. www.arrowglobal.net

OTHER DEALS

• 21st Century Fox (Nasdaq: FOXA) has held talks about acquiring cable movie channel Starz (Nasdaq: STRZ), according to the LA Times. Starz has a current market cap in excess of $3.1 billion. Read more. 

• Banco Santander (CATS: SAN) said that it is may merge its asset management business in a joint venture with Pioneer Global Asset Management, a subsidiary of Italty’s UniCredit (BIT: UCG). Read more. 

• ClearSlide, a San Francisco-based sales engagement platform, has acquired email management app SeedMail for an undisclosed amount. ClearSlide has raised around in VC funding, from firms like Greylock Partners, Bessemer Venture Partners, The Social+Capital Partnership and Felicis Ventures. www.clearslide.com

• Starbucks (Nasdaq: SBUX) has agreed to acquire the 61% stake it doesn’t already own in its Japanese operations, for around $913.5 million. Japan is the coffee chain’s second largest market, behind the U.S. Read more.

• Walgreen Co. (NYSE: WAG) has hired Bank of America to find buyers for a slight majority stake in its infusion services business, according to Reuters. The business could be valued at a total of around $1.5 billion. Read more.

FIRMS & FUNDS

• American Capital has closed its third lower mid-market private equity fund with $1.1 billion in capital commitments. Limited partners include Coller Capital, Goldman Sachs Asset Management and StepStone Group. www.AmericanCapital.com

• Glendon, the firm launched last year by former Barclays distressed debt investors, has secured $385 million for its $1 billion-targeted debut fund, according to a regulatory filing. Park Hill Group is serving as placement agent.

• Mizuho Financial Group Inc. (Tokyo: 8411) is seeking to sell around $1 billion worth of buyout fund stakes, according to Bloomberg. Evercore Partners is managing the process. Read more. 

MOVING IN, UP, ON & OUT

• Tom Mendoza, vice chairman of NetApp (Nasdaq: NTAP), has joined Carrick Capital Partners as a special advisor. www.carrickcapitalpartners.com

• Tom Marano, the former CEO of ResCap, has joined the management advisory board of TowerBrook Capital Partners. www.towerbrook.com

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