Some notes to kick off your Wednesday:
• The morning after: As expected, it was a good election night for the handful of former private equity and venture capital investors on the ballot. And a bad election night for industry critics like certain public employees unions that were hoping to extract their pound of flesh.
Bruce Rauner (ex-GTCR) ousted sitting Illinois governor Pat Quinn, Gina Raimondo (ex-Point Judith Capital) becomes the first female governor of Rhode Island and Charlie Baker (ex-General Catalyst) won for Massachusetts governor (although one of the losers in that race was independent candidate — and Saturn Partners founder — Jeff McCormick). The only notable loser was Mike McFadden of Lazard Middle Markets, who got beat by sitting Sen. Al Franken in Minnesota. We also saw tight reelection victories for a pair of long-ago VCs: Michigan Gov. Rick Snyder and Sen. Mark Warner in Virginia (or so we think, as that has not been officially called).
• Speaking of Baker’s win, I guess it’s now ‘safe’ for New Jersey officials to release the results of the pay-to-play investigation…
• Recommended reading: Kara Swisher has written a punchy profile for Vanity Fair on Uber co-founder and CEO Travis Kalanick, which includes an anecdote about how Kalanick tried to kneecap rival Lyft’s most recent funding round:
“We knew that Lyft was going to raise a ton of money,” says Kalanick. “And we are going [to their investors], ‘Just so you know, we’re going to be fund-raising after this, so before you decide whether you want to invest in them, just make sure you know that we are going to be fund-raising immediately after.’ ” Read the full piece by going here.
• Capital source: Sovereign wealth funds now account for 13% of all LP capital into private equity, according to PE marketplace and research group Palico. That’s up from just 5% in 2010, and barely trails the 14% of capital that came so far this year from U.S. public pension funds (a total that has fallen be around 50% since 2010).
• Speaking on public pension LPs: There was renewed discussion this week about PE fund term confidentiality, following a WSJ story about how KKR threatened Iowa public pension with an end to future fund allocations if it disclosed certain fee data. This came shortly after a defense of such confidentiality by Steve Judge, president of trade group PEGCC, over at peHUB. I plan on delving deeper into all of this today, but here are my initial takeaways:
- If a public pension enters into a confidentiality agreement, it is bound to honor it. Therefore, the redacted docs that Iowa’s pension ultimately offered WSJ were apropriate.
- A public pension shouldn’t sign such agreements in the first place, at least not for top-line information like the types and amounts of fees paid. KKR’s threat strikes me as hollow, particularly if public pensions stand united on this matter.
- All of this harkens back to my argument earlier this year for standardized LPAs but, in the interim, it is silly to argue (as Judge did) that these LPAs contain all sorts of investment strategy trade secrets that could seriously harm a private equity firm. Remember, a bunch of older KKR LPAs did leak earlier this year, and they contained little more about investment strategy than could be found on its website.
• Sponsorship Drive: We’re beginning to speak with potential Term Sheet sponsors for 2015. So if you’d like to share your message with this missive’s masses, please send an email to firstname.lastname@example.org
THE BIG DEAL
• Apax Partners, Bain Capital and CVC Capital Partners are working together on a €7 billion bid for the Portuguese assets of Brazilian telecom company Oi SA, according to Bloomberg. Altice SA (Amsterdam: ATC) also is in the running with a similarly-priced bid. Read more.
VENTURE CAPITAL DEALS
• Blued, a Chinese gay dating app, has raised $30 million in Series B funding led by DCM. www.blued.cn
• Gigya, a Mountain View, Calif.-based provider of social infrastructure for business, has raised $35 million in new VC funding. Intel Capital led the round, and was joined by Common Fund Capital, Vintage Investment Partners and return backers Adobe, Advance Publications, Benchmark, DAG Ventures, Greenspring Associates and Mayfield Fund. The company has now raised a total of $105 million. www.gigya.com
• Gravitant, an Austin, Texas-based provider of enterprise cloud brokerage and management software, has raised $25 million in Series B funding. Cielo Private Equity led the round, and was joined by S3 Ventures. www.gravitant.com
• FilmTrack, a Studio City, Calif.-based provider of rights and content management SaaS solutions for the film and television industries, has raised $10 million in Series B funding led by Insight Venture Partners and SurveyMonkey CEO Dave Goldberg. In related news, FilmTrack has acquired music licensing software platform Dashbox, which Goldberg co-founded (he will join the FIlmTrack board of directors). No financial terms for the acquisition were disclosed. www.filmtrack.net
• MeowChat, a social discovery and messaging app, has raised $8 million in VC funding, according to VentureWire. www.meow.me
• Prelert, a Framingham, Mass.-based anomaly detection company, has raised $7.5 million in new VC funding. Intel Capital led the round, and was joined by return backers Fairhaven Capital and Sierra Ventures. www.prelert.com
• MediaRadar, a New York-based developer of a competitive intelligence platform for digital and magazine advertising sales executives, has raised $6.7 million in new VC funding. Backers include Bain Capital Ventures, Mousse Partners and Founder Collective. www.mediaradar.com
• Wanderu, a Boston-based meta-search engine for bus and train tickets, has raised $5.6 million in Series A funding. Metamorphic Ventures led the round, and was joined by Alta Ventures, 500 Startups, Barbara Corcoran Venture Partners, John Balen, Brad Feld and Craig Lentzsch (former CEO of Greyhound). www.wanderu.com
• ZergNet, a New York-based provider of content discovery and monetization tools for publishers, has raised $3.2 million in Series A funding. Backers include Greycroft Partners, Bertelsmann Digital Media Investments, Lerer Hippeau Ventures and Mark Cuban. www.zergnet.com
• Kash Corp., a San Francisco-based mobile payments startup and YCombinator alum, has raised $2 million in seed funding from undisclosed backers. www.withkash.com
• Reno Sub-Systems, a Canadian developer of sub-systems used to control process systems made by OEMs, has raised an undisclosed amount of first-round VC funding from backers like Intel Capital and Innovacorp. www.renosubsystems.com
PRIVATE EQUITY DEALS
• 3i Group has agreed to acquire Q Holding, a Twinsburg, Ohio-based global manufacturer of rubber and silicone components, for approximately $160 million. www.3i.com
• The Abraaj Group has offered to buy 100% of listed Egyptian bakery company Bisco Misr for approximately $119 million. The offer represents a slight discount to Bisco Misr’s closing price on Sunday, and Abraaj has said that it would be willing to take as little as a 51% stake. www.abraaj.com
• Bridge Growth Partners has agreed to acquire CRGT Inc., a Reston, Va.–based provider of custom software development and data analytics to federal government agencies, from Veritas Capital. No financial terms were disclosed. www.crgt.com
• The Carlyle Group has acquired Dealogic, a UK-based provider of capital markets data, analytics and services, for approximately $700 million. Co-investors are Euromoney Institutional Investor and Randall Winn (co-founder and former CEO of Capital IQ). www.dealogic.com
• Investcorp has agreed to acquire Dainese, an Italian retailer focused on products for the motorcycle and related markets, at an enterprise value of €130 million. www.dainese.com
• FFL has acquired Icynene Group Ltd., a Canadian maker and distributor of spray polyurethane foam insulation products. No financial terms were disclosed. Sellers include Advent International, North Sky Capital and Element Partners. www.icynene.com
• Leonard Green & Partners has agreed to acquire Packers Sanitation Services Inc., a Kieler, Wis.–based contract food sanitation company, from Harvest Partners for nearly $1 billion, according to Reuters. Read more.
• RealPage (Nasdaq: RP), a Carrollton, Texas-based provider of rental property management software for landlords, has rejected a takeover offer from Vista Equity Partners, according to the FT. The $25 per share bid would have valued RealPage at nearly $2 billion, and represented almost a 50% premium to the company’s stock price prior to the first reports of possible buyout interest. Read more.
• TPG Capital has completed its previously-announced A$1.22 billion acquisition of DTZ, the property arm of Australian engineering group UGL Ltd. (ASX: UGL). www.ugllimited.com
• Inotek Pharmaceuticals Corp., a Lexington, Mass.-based provider of products for the treatment of glaucoma, has filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker symbol ITEK, with Cowen & Co. and Piper Jaffray serving as lead underwriters. Shareholders in the pre-IPO company include Devon Park Bioventures (25.7% pre-IPO stake), Rho Ventures (20.4%), Care Capital (17.8%), MedImmune Ventures (16%) and Pitango Venture Capital (11.6%). www.inotekcorp.com
• Navios Maritime Midstream Partners LP, a crude tanker operator formed by Navios Maritime (NYSE: NM), has set its IPO terms to 8.1 million units being offered at between $19 and $21 per unit. It plans to trade on the NYSE under ticker symbol NAP, with BofA Merrill Lynch listed as left lead underwriter. www.navios.com
• Terryville Mineral & Royalty Partners LP, a Houston, Texas-based limited partnership formed by Memorial Resource (Nasdaq: MRD) to own and acquire North American natural gas, NGL and oil properties, has filed for a $150 million IPO. It plans to trade on the Nasdaq under ticker symbol TRVL, with Barclays serving as sole underwriter. www.memorialrd.com
• The Blackstone Group has hired Goldman Sachs to advise on a sale process for Apria Healthcare Group, a Lake Forest, Calif.-based provider of home respiratory services and medical equipment, according to peHUB. The company generated $60.34 million in Q3 EBITDA. Read more.
• Fuse Powered, a Toronto-based mobile digital game publisher, has acquired Corona Labs, a Palo Alto, Calif.-based maker of a mobile app development platform. No financial terms were disclosed. Fuse Powered has raised C$2 million in seed funding from BlackBerry Partners Fund and NFQ Ventures, while Corona Labs raised around $3 million from Merus Capital and Western Technology Investment. www.fusepowered.com
• Warburg Pincus has hired Morgan Stanley to find a buyer for GT Nexus, an Oakland-based cloud business network and execution platform for global trade and supply chain management, according to the WSJ. The deal could be worth more than $800 million. Read more.
• Zipmark, a New York-based digital check payment platform, has agreed to acquire WorkingPoint, a San Francisco–based provider of accounting and billing. Zipmark has raised more than $3 million in VC funding from firms like Contour Venture Partners, High Peaks Venture Partners, NYC Seed, Polaris Partners and Village Ventures. WorkingPoint backers include Integral Capital Partners and CMEA Capital. www.zipmark.com
• Lindsay Corp. (NYSE: LNN) has agreed to acquire Elecsys Corp. (Nasdaq: ESYS), an Olathe, Kansas–based provider of machine-to-machine communication technology solutions, for approximately $70.5 million, or $17.50 per share in cash. www.elecsyscorp.com
FIRMS & FUNDS
• Iron Point Partners has closed its third private equity real estate fund with $750 million in capital commitments. Atlantic-Pacific Capital served as placement agent. www.ironpointpartners.com
• Macquarie Capital has formed Macquarie Development Corp., a new platform to invest equity in pre-construction infrastructure development projects in Latin America. It is being launched in partnership with China Communication Construction Co. and Banco Modal. No financial terms were disclosed. www.macquarie.com
MOVING IN, UP, ON & OUT
• No personnel news this morning…
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