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FinanceTerm Sheet

Term Sheet — Wednesday, March 4

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
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March 4, 2015, 10:05 AM ET

Random Ramblings

Andy Hunt and Jeremiah Daly have stepped down as partners with Highland Capital Partners, in order to launch their own venture growth firm, according to a letter sent yesterday to Highland LPs.

Hunt is a New York-based co-founder and director with eyeglass upstart Warby Parker, and joined HCP back in 2011. He currently serves on the board of Scopely, and has been involved with such HCP portfolio companies as Gemvara, Harry’s and SessionM. Daly joined HCP’s Boston-area office in early 2012 as a principal, after having spent three years with Accel Partners. He was promoted to partner the following year, and serves on the board of Malwarebytes.

The pair actually has a bit more shared history than just working together at HCP. My understanding is that Daly (while still with Accel) offered up the first term sheet to Warby Parker. But he lost out to an offer that came with a lower valuation but also less dilution (i.e., less cash). No word yet on what Hunt and Daly plan to name their new firm.

In other HCP news, longtime chief financial officer Kathy Barry is expected to transition into an advisory role this May, while director of finance Jessica Pelletier will be promoted to senior vice president of finance.

• That's settled: Former CIA director David Petraeus has reached a plea agreement with federal prosecutors, related to the alleged sharing of classified information with his former mistress.

Under terms of the deal, Petraeus admitted to one count of unauthorized removal and retention of classified materials. It theoretically could result in the decorated U.S. Army veteran spending up to one year in prison, but it will not affect his current job as chairman of the KKR Global Institute, a unit of Kohlberg Kravis Roberts & Co. that studies “macroeconomic trends and government policies to assess their implications on the firm’s investments.”

In a statement, KKR said: “Since joining the firm in 2013, David Petraeus has made valuable contributions to KKR, and his work has benefited our investors. We look forward to working with him as he continues to add value as Chairman of the KKR Global Institute.”

• Recommended reading: Matthew Goldstein has an interesting piece in the NYT today about how several large private equity firms are “providing financing indirectly to hundreds of real estate funds buying single-family homes, something that until recently was not widely available.” This greenfield opportunity comes on the heels of these same firms – particularly The Blackstone Group – buying up large swaths of residential properties on their own. Read more.

• Unicorn quiz time: In the past 24 hours, both Farfetch and NextDoor have joined the ranks of startups valued at $1 billion or more. Can you name the startup that hit the $1 billion valuation mark within the past 6 months that already is in talks to raise another large round of funding? Hint: West Coast-based.

• Abdicated responsibility: We haven't discussed the Pao vs. KPCB case much in this space so far this week. Apologies. But I am paying attention -- or trying to from a few thousand miles away -- and will likely devote most of tomorrow's column to it. If you have been paying attention and have some thoughts, please send them over.

THE BIG DEAL

• FarFetch, a London-based online marketplace that helps independent boutiques sell their luxury wares, this morning announced that it has raised $86 million in new venture capital funding at a valuation of around $1 billion.

DST Global led the round, and was joined by return backers Condé Nast International and Vitruvian Partners. The company previously raised over $100 million from firms like Advent Venture Partners and Index Ventures (neither of which participated this time, as the deal became a bit too large and rich).

To read a Q&A about Farfetch with Index partner Danny Rimer, please go here.

VENTURE CAPITAL DEALS

• Cheyipai, a Chinese online marketplace for used cars, has raised $110 million in Series D funding. Renren Inc. led the round, and was joined by return backers Sequoia Capital, Matrix China, Morningside Ventures and CITIC Capital. Hina Group served as placement agent. www.cheyipai.com

• NextDoor Inc., a neighborhood-based social network, has raised $110 million at around a $1.1 billion valuation, according to the NY Times. Backers include Insight Venture Partners and Redpoint Ventures. Read more.

• WorldStores, a UK-based online retailer of home and garden products, has raised £25 million in new VC funding. Goldman Sachs led the round, and was joined by return backers Advent Venture Partners, Balderton Capital and Serena Capital. www.worldstores.co.uk

• Macrolide Pharmaceuticals, a Newton, Mass.-based developer of antibiotics, has raised $22 million in Series A funding. Backers include Novartis Venture Fund, Gurnet Point Capital, Roche Ventures and SROne. www.macrolidepharma.com

• Luxe, a San Francisco-based on-demand parking service, has raised $20 million in Series A funding. Venrock led the round, and was joined by Redpoint Ventures. www.luxevalet.com

• Tempered Networks Inc., a Seattle-based provider of connectivity for critical infrastructure and information, has raised $15 million in Series A funding. Ignition Partners led the round, and was joined by IDG Ventures. www.temperednetworks.com

• Alation, a Redwood City, Calif.-based provider of intra-organizational data complexity and accessibility solutions, has raised $9 million in Series A funding. Costanoa Venture Capital and Data Collective co-led the round, and were joined by Andreessen Horowitz, Bloomberg Beta and General Catalyst Partners. www.alation.com

• Vascular Pharmaceuticals Inc., a Chapel Hill, N.C.-based developer of drugs to treat kidney damage caused by diabetes, has raised $9 million in new Series A funding (the round total is now $25m). Lumira Capital led the tranche, and was joined by return backers Intersouth Partners and MPM Capital. www.vascularpharma.com

• YouMail, an Irvine, Calif.-based provider of cloud- based telecom services for consumers and small businesses, has raised $5.5 million in Series B funding. Backers include Vantage Point Capital Partners, the Crunch Fund, Wavemaker Ventures and Tech Coast Angels. www.youmail.com

• PeachWorks (f.k.a. WhatToManage), a Southfield, Mich.-based provider of cloud-based restaurant management solutions, has raised $4 million in Series A funding. Allos Ventures led the round, and was joined by Huron River Ventures, Arsenal Venture Partners and Invest Detroit. www.peachworks.com

• Rescour, an Atlanta-based automation solutions for commercial real estate research, has raised $1.3 million in seed funding. Launch Fund and TechSquare Labs co-led the round, and were joined by Mosley Ventures, Nonami Investments and individual angels. www.rescour.com

• Refinery29, a fashion and lifestyle site for young women, is close to raising up to $50 million in new VC funding that would value the company at around $240 million, Fortune has learned. Read more.

PRIVATE EQUITY DEALS

• The Caisse de dépôt et placement du Québec and Hermes Infrastructure have agreed to acquire a 40% stake in rail service Eurostar from the British government for £585 million. Read more.

• Hellman & Friedman and Fortress Investment Group are working on a joint bid for Italian bank services provider of ICBPI, according to Reuters. Another offer could come from a consortium that includes Advent International and Clessidra. A sale could be valued at nearly $2.7 billion. Read more.

• iModules Software, a Leawood, Kansas-based provider of SaaS constituent engagement management solutions for educational institutions, has acquired OrgSync Inc., a Dallas–based online provider of student community management solutions for higher education. No financial terms were disclosed. iModules is a portfolio company of Leeds Equity Partners. www.imodules.com

• Macquarie Group has agreed to acquire 90 aircraft from Ireland-based aircraft lessor AWAS Aviation Capital Ltd. for around $4 billion. AWAS is a portfolio company of Terra Firma Capital Partners and Canada Pension Plan Investment Board. Read more.

IPOs

• Opgen Inc., a Gaithersburg, Md.-based company that uses “molecular testing and bioinformatics to assist healthcare providers to combat multi-drug-resistant bacterial infections,” has filed for a $37 million IPO. It plans to trade on the Nasdaq under ticker symbol OPGN, with Maxim Group serving as sole underwriter. Shareholders include Versant Ventures (28.3% pre-IPO stake), Harris & Harris Group (14.6%), CHL Medical Partners (5.3%) and Mason Wells (4.7%). www.opgen.com

EXITS

• Arlington Capital Partners has hired Morgan Stanley and Houlihan Lokey to find a buyer for Novetta Solutions LLC, a McLean, Va.-based provider of software and IT services to the U.S. intelligence community, according to Reuters. A deal could be worth more than $650 million (including debt). Read more.

• CVC Capital Partners is selling half of its 15% stake in Spanish infrastructure company Abertis (CATS: ABE), in a deal that should generate over $1.1 billion. www.cvc.com

• EQT Partners is considering a sale of Singapore-based high-end food importer and distributor Classic Fine Foods, according to the WSJ. The company could be worth around $300 million. Read more.

• Summit Partners has sold Multifonds, a Luxembourg–based provider of fund administration software, to Temenos Group AG (SIX: TEMN) for €235 million in cash. www.multifonds.com

• Uber has agreed to acquire DeCarta, a San Jose, Calif.-based provider of mapping technology that was founded in 1996. No financial terms were disclosed. DeCarta has raised over $55 million in VC funding from Mobius Venture Capital, Norwest Venture Partners and Cardinal Venture Capital. Read more.

OTHER DEALS

• Bob Evans (Nasdaq: BOBE) said that it will not sell of spin off its foods unit, despite pressure to do so from activist investor Sandell Asset Management (which holds around a 7% stake in Bob Evans). The company added that it has hired J.P. Morgan to explore strategic alternatives for its real estate. Read more.

• Box (NYSE: BOX) has agreed to acquire Subspace, a Berkeley–based company that helps employees securely collaborate and access data from any device. No financial terms were disclosed for what appears to be an aqui-hire (Subspace itself is shutting down next month). www.box.com

• Docker, a San Francisco-based open-source engine for lightweight app deployment, has acquired SocketPlane, a Sunnyvale, Calif.–based software-defined networking startup. No financial terms were disclosed. Docker investors include Sequoia Capital, Benchmark, Greylock Partners, Insight Ventures, Trinity Ventures and Jerry Yang. www.docker.com

• Royal KPN NV is once again seeking to sell its an mobile phone unit, according to Bloomberg. The deal could be valued at upwards of €1 billion, with J.P. Morgan managing the process. Read more.

• Spreadfast Inc., an Austin, Texas-based social relationship platform for enterprise brands, has raised $24 million in debt financing from Silver Lake Waterman. The company’s VC backers include Lead Edge Capital, Austin Ventures, InterWest Partners and OpenView Partners. www.spredfast.com

FIRMS & FUNDS

• ASEAN Industrial Growth Fund has been launched as a middle-market private equity fund focused on Southeast Asia. Its sponsors are Mitsubishi Corp., CIMB Group and the Development Bank of Japan. Read more.

Share today's Term Sheet:
http://fortune.com/2015/03/04/term-sheet-wednesday-march-4

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By Dan Primack
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