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FinanceTerm Sheet

Term Sheet — Tuesday, February 17

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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February 17, 2015, 9:52 AM ET
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Random Ramblings

Stephen Murray appears to be out as president and CEO of CCMP Capital, the New York-based private equity firm that raised $3.6 billion for its latest fund just five months ago. He had been just one of two CCMP executives listed on SEC filings for that fund -- chairman Greg Brenneman was the other -- and one of five control persons listed on CCMP's most recent Form ADV.

No word yet on why Murray left or where he might be going. He was removed from the firm's website within the past 10 days.

Murray had been with CCMP since 1999, at which time it was known as Chase Capital Partners (later becoming JPMorgan Partners, before spinning out independently in 2006). As of last check, his board seats included Crestcom International, Infogroup Inc., Jetro JMDH Holdings, LHP Hospital Group, Octagon Credit Investors, Ollie’s Bargain Outlet and Strongwood Insurance Holdings.

CCMP has not yet returned requests for comment, including on what happens to those board seats or who might succeed Murray as CEO.

• Deal data: The Biotechnology Industry Organization (BIO) has released a lengthy white paper on the past decade of VC funding for the biotech sector. Its headline finding is that venture funding for biotech R&D fell by 21% between the five-year period before the financial crisis (2004-2008) and the subsequent five years (2009-2013). Not terribly surprising to anyone who has watched biotech VC firms fall by the wayside, or as generalist firms have marginalized their life sciences practices.

More interesting, however, is where the big funding cuts are coming. Namely, in areas of the largest medical need. For example, funding for novel drug R&D in diabetes fell by 81% between those five-year periods. Psych fell by 56%. Gastrointestinal by 49%, respiratory by 41% and cardiovascular by 33%. On the flip side, funding for rare diseases increased.

• Quiz Time: Can you name the "unicorn" that currently has an investor trying to sell a significant secondary position at around a 30% discount to the company's most recent valuation? Hint: Even at the discount, this company still would be worth a lot more than $1 billion.

• #GetLiquid: Our sold-out Boston Liquidity Event takes place in one week from tonight and, so far, the forecast doesn't call for snow. Keeping my fingers crossed and my knuckles knocking on wood.

Big thanks to our event sponsors: Citizens Commercial Banking, .406 Ventures, FKA (firm formerly known as Atlas Venture), DraftKings, Murray Devine and Choate Hall & Stewart.

THE BIG DEAL

• The Carlyle Group has acquired a control stake in PrimeSport Holdings Inc., an Atlanta-based sports travel and events management company, from Clearlake Capital (which will retain a minority position). No financial terms were disclosed. Co-investors with Carlyle include Moorad Sports Partners and RSE Ventures. www.primesport.com

VENTURE CAPITAL DEALS

• Moda Operandi, a New York-based “straight from the runway” online luxury retailer, has raised $60 million in Series E funding. Fidelity Investments led the round, and was joined by return backers NEA and Advanced Publications Inc. Other existing shareholders include New Atlantic Ventures, LVMH and RRE Ventures. www.modaoperandi.com

• Laguna Pharmaceuticals (f.k.a. ChanRx), a La Jolla, Calif.-based developer of a treatment for atrial fibrillation and atrial flutter, has raised $30 million in Series B funding. Versant Ventures and Frazier Healthcare co-led the round, and were joined by BioMed Ventures and return backer Sante Ventures. www.lagunarx.com

• Carmudi, a Rocket Internet-backed online car classifieds site focused on emerging markets, has raised $25 million in second-round funding. Investors include Asia Pacific Internet Group, Holtzbrink Ventures and Tengelmann Ventures. Read more.

• Unchained Labs, a Pleasanton, Calif.-based life science tools startup, has raised $25 million in Series A funding. The round was co-led by Novo Ventures, Canaan Partners and TPG Biotech. www.unchainedlabs.com

• WeTransfer, a Dutch cloud file-sharing company, has raised $25 million in VC funding from Highland Capital Partners Europe. This is the company’s first round of outside funding since being founded in 2009. Read more.

• Invuity, a San Francuisco-based developer of medical devices to improve visualization in minimally-invasive surgeries, has raised $20 million in new VC funding. Wellington Management Co. led the round, and was joined by return backers HealthCare Royalty Partners, Valence Life Sciences, InterWest Partners and Kleiner Perkins Caufield & Byers. www.invuity.com

• Applicaster, an Israel-based provider of cross-screen TV apps, has raised $10.5 million in Series B funding. Pitango Venture Capital led the round, and was joined by return backer 83North. www.applicaster.com

• News In Shorts, an Indian news digest app, has raised $4 million in Series A funding led by Tiger Global. Read more.

• RoboCV, a Moscow-based developer of vehicle autopilot vehicle, has raised $3 million in Series A funding. Backers include I2BF Global Ventures, VTB Capital, LETA Capital, Columbus Nova and Almaz Capital. www.robocv.com

• Enterprise Therapeutics Ltd., a UK-based developer of drugs to treat respiratory diseases, has raised £1.6 million in Series A funding from Epidarex Capital. www.enterprisetherapeutics.com

• Luxury Garage Sale, a Chicago-based designer consignment business, has raised $1.5 million in seed funding. Chicago Ventures led the round, and was joined by Trunk Club CEO Brian Spaly. www.luxurygaragesale.com

PRIVATE EQUITY DEALS

• Actis and Mainstream Renewable Power are launching Lekela Power, a pan-African renewable energy generation platform. Read more.

• Altamont Capital Partners has acquired Cotton Patch Café LLC, a “scratch-made” Southern food restaurant concept with 45 locations in Texas, Oklahoma and New Mexico. No financial terms were disclosed. www.cottonpatch.com

• Ardian said that it has submitted a binding bid to acquire a majority stake in Siaci Sant Honore, a French provider of insurance broking and employee benefits services, from Edmond de Rothschild, Jardine Lloyd Thompson and Paris Orléans. No financial terms were disclosed for the deal, which would result in Edmond de Rothschild retaining a 20% equity position. www.s2hgroup.com

• EQT Partners and ProSiebenSat.1 are the final two bidders for German online travel agent Unister Travel, according to Reuters. A sale could be worth up to €900 million. Read more.

• Industrial Opportunity Partners has acquired Monroe Truck Equipment Inc., a Monroe, Wis.-based provider and installer of specialized truck equipment for the municipal and commercial markets. No financial terms were disclosed. www.monroetruck.com

• Lakewood Capital has acquired Vacuum Systems International Inc., a Cleveland–based provider of commercial vacuum cleaners and steaming equipment remanufacturing and fleet rotational programs. No financial terms were disclosed. www.lakewoodcap.com

• Warburg Pincus has acquired Nirvana Development, an Indonesian developer and operator of shopping malls. The deal includes an initial investment of $125 million, plus an option to invest an additional $75 million in the future. www.warburgpincus.com

IPOs

• UTAC Holdings Ltd., a Singapore-based chip assembly and testing services company owned by TPG Capital and Affinity Equity Partners, is prepping a $400 million U.S. IPO, according to Dow Jones. The offering would be led by BofA Merrill Lynch, Citigroup and Credit Suisse. The private equity firms previously tried to take UTAC public in 2011. www.utacgroup.com

• ViewRay Inc., a Cleveland-based developer of radiation therapy technology for the treatment of cancer, has filed for a $69 million IPO. It plans to trade on the Nasdaq under ticker symbol VRAY, with Cowen & Co. and Stifel serving as lead underwriters. The company reports a $24 million net loss on $5.9 million in revenue for the first nine months of 2014. Shareholders include Aisling Capital (21.33% pre-IPO stake), Fidelity Biosciences (21.33%), OrbiMed Advisors (21.33%), Kearny Venture Partners (12.19%) and Siemens Venture Capital. www.viewray.com

EXITS

• Boot Barn Holdings (NYSE: BOOT) has filed for a secondary public offering of 4.5 million shares, which would be worth $417 million at Friday’s closing price. Sellers are expected to include private equity firm Freeman Spogli & Co., which currently holds a 69% ownership position. www.bootbarn.com

• Fairfax Financial (TSX: FFH) has agreed to acquire UK specialty insurer Brit PLC (LSE: BRIT) for approximately $1.88 billion, or 305 pence per share (11.2% premium to Monday’s closing price). Sellers would include Apollo Global Management (40% stake) and CVC Capital Partners (34% stake). Read more.

• HgCapital has hired Lazard to find a buyer for German nursing home operator Casa Reha for upwards of €300 million, according to Reuters. Read more.

• Infosys (NYSE: INFY) has agreed to acquire Panaya Inc., a Menlo Park, Calif.–based provider of automation technology for large-scale enterprise software management, for approximately $200 million in cash. Panaya had raised around $59 million in VC funding since 2006, from firms like Benchmark, Battery Ventures, Hasso Plattner Ventures, Gemini Israel Ventures and Israel Growth Partners. www.panaya.com

• Permira has completed its previously-announced sale of Japanese agricultural chemical company ArystaLifeScience Ltd. to Platform Specialty Products Corp. (NYSE: PAH) for around $3.51 billion (including $2.91b in cash and a $600m preferred note). www.arystalifescience.com

• Rockwood Private Equity said that it plans to sell Tsebo Outsourcing Group Ltd., a South African provider of facilities management and infrastructure services, by year-end. Read more.

OTHER DEALS

• Caxiabank (CATS: CABK) has offered to acquire the 55.9% of listed Portuguese bank BPI that it does not already own. The deal values BPI at 1.94 billion, with an offer of 1.329 per share (56% premium to Monday’s closing price). Read more.

• Deutsche Wohnen (XTRA: DWNI), a German real estate company, is prepping a €1 billion takeover offer for Austrian real estate company Conwert Immobilien (WBAG: CWI). Read more.

• SNS Reaal, a Dutch government-owned financial services company, has agreed to sell insurance unit Vivat Verzekeringen to China’s Anbang Insurance Group for €150 million. Read more.

• Zillow (Nasdaq: Z) has completed its $3.5 billion acquisition of rival online real estate platform Trulia. www.zillow.com

FIRMS & FUNDS

• AlixPartners has agreed to acquire Zolfo Cooper, a UK-based corporate restructuring advisor, for just under £65 million. Read more.

• Finistere Ventures, a San Diego-based VC firm, is raising up to $200 million for its second fund, according to a regulatory filing. So far it already has closed on $37.5 million in capital commitments. www.finistereventures.com

• Montagu Private Equity has begun raising its fifth fund with a €2.5 billion target, according to Private Equity International. This would be the same size as the UK-based private equity firm’s fourth fund, with Quest Fund Placement serving as placement agent. www.montagu.com

 

MOVING IN, UP, ON & OUT

• Anthony DeChellis, former CEO of Americas private banking at Credit Suisse, has joined equity crowdfunding platform OurCrowd as CEO. www.ourcrowd.com

• First Reserve, an energy-focused private equity firm, has named Alex Krueger as president and co-CEO. William Macaulay will remain as firm chairman, and now serve as co-CEO alongside Krueger (who joined the firm 16 years ago). www.firstreserve.com

• Hilary Grove has stepped down as a partner with private equity firm ABRY Partners. No word yet on her future plans. She had been with ABRY since 1999. www.abry.com

• Mike Youlden and Tim Robson both have stepped down as principals with British buyout firm Doughty Hanson, as first reported by Dow Jones. No word yet on their future plans. The firm’s head of French operations, Yann Duchesne, also reportedly has signaled his intentions to leave. Read more.

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