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Term Sheet — Friday, December 5

Random Ramblings

Uber yesterday announced that it has raised $1.2 billion in new funding from institutional investors. This is separate from the Goldman Sachs placement of convertible notes to its private banking clients. Some related notes:

1. According to a Delaware filing, Uber has authorized up to $1.8 billion in this financing. Word is that a second close is expected within the next couple of weeks.

2. At a $40 billion valuation, Uber is now “worth” more than 72% of Fortune 500 companies. Full breakdown here.

3. About that Goldman deal: I’m told that it is not being priced to the $40 billion mark. Instead, the notes will convert at a 30% discount to Uber’s eventual IPO price. As for how much Uber is trying to raise from Goldman Sachs, the official ask seems to be between $500 million and $1 billion, but don’t be surprised if it goes higher.

4. WSJ is reporting that investors in the institutional round include sovereign wealth fund Qatar Investment Authority, hedge funds Lone Pine Capital and Valiant Capital Partners and venture capital firm New Enterprise Associates. That last one is a bit confounding, since it seems impossible for NEA to get a venture-type return on Uber, even if it goes public at $100 billion. Looks more like what Andreessen Horowitz modeled on its participation in the Skype buyout (which served as a nice ROI base for A16Z to build on), but I’m not sure that’s what NEA LPs are expecting out of that particular fund.

• Update: Back in June we mentioned how mid-market lender Monroe Capital had fired managing director Warren Woo for “serious violations of company policies relating to confidentiality and appropriate use of information systems.” The accusations were related to Woo’s plans to launch his own firm, called (appropriately enough) Breakaway Capital.

Yesterday Monroe dropped the suit, after reaching a settlement with Woo. In a statement, Monroe CEO Ted Koenig said: “Upon further investigation, it is clear that Mr. Woo’s actions were not improper. We are pleased to have reached a mutually satisfactory settlement agreement with Mr. Woo.  Mr. Woo will remain a limited partner in Monroe Capital Partners Fund, LP and will remain economically aligned with Monroe going forward as a result of his retained financial interest in the fund’s general partner.”

• Deal data: Worldwide M&A activity now totals $3.2 trillion, up 48% over year-to-date 2013, according to Thomson Reuters. Within that is $512.6 billion of private equity activity, which is up 45%. The figure for U.S. M&A is $1.45 billion (up 58%) and $231 billion for U.S. private equity (up 22%).

• Have a great weekend. Go Pats!

THE BIG DEAL

• Bain Capital and Pacific Equity Partners have partnered on an A$870 million takeover offer for Australian mining services company Bradken Ltd. (ASX: BKN), which said that the bid came “at a low point in the mining cycle.” Read more.

VENTURE CAPITAL DEALS

• Zonoff, a Malvern, Penn.-based creator of a connected home platform, has raised $31.8 million in Series B funding. Return backers include Grotech Ventures and Valhalla Partners. www.zonoff.com

• EnosiX, a Cincinnati-based provider of SAP data mobilization solutions, has raised $4.25 million in Series A funding led by Allos Ventures, according to VentureWire. www.enosix.com

• CareLuLu, a Centreville, Va.-based online marketplace that connects parents with child care and preschool programs, has raised $1.7 million in seed funding. Khosla Ventures led the round,  and was joined by Crunchfund, The Startup Factory and 500 Startups. www.carelulu.com

• Edison DC Systems, a Milwaukee-based developer of power conversion systems for datacenters, has raised $1.3 million in Series A funding led by Energy Foundry. www.edisondcs.com

PRIVATE EQUITY DEALS

• Bain Capital is sponsoring a new cruise ship venture of Richard Branson’s Virgin Group. Read more.

• The Diplomat Group, an Annapolis, Md.-based provider of international logistics and aviation transportation services for governmental and non-governmental organizations, has raised an undisclosed amount of private equity funding from Enlightenment Capital. www.thediplomatgroup.com

• H.I.G. Capital has acquired a portfolio of 122 predominantly grocery store-anchored retail assets in Finland for more than €100 million. www.higcapital.com

• KKR has acquired a “significant minority stake” in Arbor Pharmaceuticals, an Atlanta-based pediatric drug developer. No financial terms were disclosed. Arbor previously raised funding from Signet Healthcare Partners, JW Asset Management and ARCH Healthcare Fund. www.arborpharma.com

• Montagu Private Equity has acquired Open GI, a UK-based provider of insurance industry software. No financial terms were disclosed, except that Ares Management and GE Capital provided a £187 million financing package to support the transaction. www.opengi.co.uk

• Permira has acquired Teraco, a South African developer of vendor neutral data centers. No financial terms were disclosed for the deal, which is Permira’s first in Africa. www.teraco.co.za

• SpeedConnect LLC, a Frankenmuth, Mich.-based wireless Internet service provider, has secured $18 million in new funding. NewSpring Mezzanine led the round, and was joined by a subsidiary of Kemper Corporation (NYSE: KMPR) and existing shareholders. Proceeds will be used to acquire Arizona-based wireless ISP CommSpeed LLC. www.speedconnect.com

IPOs

• Nine companies are expected to price IPOs next week, including LendingClub, Hortonworks and New Relic. Read more.

 

EXITS

• Summit Partners has sold Solid State Equipment Holdings LLC, a Houston-based maker of single wafer wet processing and cleaning equipment, to Veeco Instruments Inc. (Nasdaq: VECO) for approximately $150 million. www.ssecusa.com

• TA Associates has hired Citigroup to find a buyer for TwinMed, a Santa Fe Springs, Calif.-based medical supply distributor to nursing homes, according to peHUB. Read more.

OTHER DEALS

• Canadian regulators have approved Burger King’s (NYSE: BKW) proposed $11.1 billion purchase of Tim Horton’s (TSX: THI). Read more.

• GlaxoSmithKline has abandoned a plan to sell of a portfolio of older drugs marketed in North America and Europe, after not receiving what it considered to be adequate offer. Lazard had been managing the process, which was expected to generate around $3 billion. Read more.

• Keurig Green Mountain (Nasdaq: GMCR) has agreed to acquire the 85% stake it didn’t already own in drink system maker Bevyz, according to the WSJ. The deal is valued at around $220 million, with sellers including PepsiCo. Read more.

• Microsoft (Nasdaq: MSFT) has sold its 17.6% stake in the Nook digital book and device business back to Barnes & Noble (NYSE: BKS). Read more.

• Searchlight Capital Partners has invested $75 million into Alaskan telecom company General Communication Inc. (Nasdaq: GNCMA), structured as an unsecured subordinated note with attached share appreciation rights. Searchlight partner Eric Zinterhofer will joined the General Communication board of directors. www.gci.com

• Spain’s ‘bad bank’ (known as Sareb) has picked Apollo Global Management, Cerberus Capital Management and TPG Capital to market and sell around €41 billion of property assets on its behalf. Read more.

FIRMS & FUNDS

• Bozano Investimentos, a Brazilian investment firm, has raised around $309 million for a new private equity fund focused on the education sector. Read more.

• The Carlyle Group has closed a new $512 million U.S. collateralized loan obligation fund, the firm’s fifth such fund to be raised in 2014. www.carlyle.com 

 

MOVING IN, UP, ON & OUT

• Willie Houston has joined Satori Capital as chief financial officer. He previously was senior director of financial operations at TPG Capital. www.satoricapital.com

• Kurt von Emster has joined healthcare-focused investment firm Abingworth as a Silicon Valley-based partner. He previously co-founded VenBio and, before that, was a partner with MPM Capital. www.abingworth.com

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