Skip to Content

Term Sheet — Tuesday, April 14

Random Ramblings

Former Massachusetts Gov. Deval Patrick has joined Bain Capital as a managing director and head of a new investment platform focused on “social impact,” as Fortune was first to report last night.

Yes, the same Bain Capital that was founded by previous Massachusetts Gov. Mitt Romney, whose handpicked GOP successor was beaten handily by Democrat Patrick in 2006. The same Bain Capital that was treated like a dirty word by President Obama’s reelection campaign, for which Patrick played an important surrogate role. The same Bain Capital which, despite its many philanthropic endeavors, isn’t known for taking “social impact” into account when making private equity investments.

Patrick, however, is not to be worried about any of those appearances (and, for the record, he did defend Bain during the 2012 presidential race). Nor does he seem to have interest in a cabinet position in a possible Clinton White House, as he’ll soon be meeting with prospective investors, promising them that he’ll be with Bain for the foreseeable future.

Just before leaving office earlier this year, Patrick told Fortune that he expected to take on a “portfolio” of activities. The first piece of that portfolio appeared to be a “global ambassador” role with the group trying to bring the Olympics to Boston — Bain Capital managing director Steve Pagliuca co-chairs the Boston 2024 Olympics Finance Committee — for which he reportedly would be paid $7,500 per day. But Patrick is viewing the Bain opportunity as fulltime, and has no plans to accept other jobs. He’s even dropped the “paid” part of the Olympics gig, although will continue to attend some strategic meetings (unpaid) when requested by Boston 2024.

With Bain, the 58 year-old Patrick is expected to launch a brand new business line that will raise funds to invest in companies that will (in theory) deliver strong investment returns while also doing good. The sort of commercial propositions that are actually trying to help the people they touch, beyond just selling them something. One example could be a company that operates health clinics in low-income areas, or one that delivers nutritious meals to public schools.

Patrick will be charged with building a team, and then raising a fund that likely will have the flexibility to invest in a variety of asset classes (private equity, venture capital, mezzanine loans, real estate, etc.). No word yet on the fund target, or when solicitation will begin.

One thing Patrick doesn’t really have is a model to follow. There are several investment firms that operate under a social impact umbrella, but most of them are much more narrow in terms of investment focus (with a heavy emphasis toward early-stage venture capital). Patrick oversaw the creation of “social impact bonds” in Massachusetts, but those were relatively small with returns capped at around 5.33% (Bain’s target ROI will be substantially higher).

In other words, Patrick will be blazing his own trail. And, if it works out, someday we might have another former Massachusetts governor with Bain Capital on his resume, asking Americans to elect him president.

• Unicorn watch: Today’s top story is that cloud “container” company Docker has raised $85 million in Series E funding. The company isn’t talking valuation, but multiple sources tell me that the post-money mark brought the San Francisco-based company to the $1 billion threshold.

• Update: When Greenhill & Co. agreed earlier this year to acquire PE secondaries advisor Cogent Partners, we noted that Cogent co-founder Colin McGrady wouldn’t stick around post-close (which occurred on April 1, with a total value of around $108 million). Now comes word that McGrady has launched a new principal investment firm focused on GP restructurings. For more, please go here.

THE BIG DEAL

• Docker, a San Francisco-based cloud “container” company, has raised $95 million in Series D funding. Insight Venture Partners led the round, and was joined by Coatue Management, Goldman Sachs, Northern Trust and return backers Benchmark, Greylock Partners, Sequoia Capital, Trinity Ventures and AME Cloud Ventures. Read more.

VENTURE CAPITAL DEALS

• Illumio, a Sunnyvale, Calif.-based cyber security company, has raised $100 million in Series C funding. BlackRock and Accel Partners were joined by return backers like Formation 8, Andreessen Horowitz, and General Catalyst. Read more.

• LendingHome, a San Francisco-based online mortgage marketplace, has raised $70 million in Series C funding led by Renren Inc. The company has raised nearly $110 million to date, including earlier commitments from First Round Capital, Foundation Capital and Ribbit Capital. www.lendinghome.com

• Zomato, an India-based restaurant search and discovery service, has raised $50 million in Series E funding at what TechCrunch reports is a valuation of over $1 billion. Info Edge led the round, and was joined by fellow return backers Sequoia Capital and Vy Capital. In other Zomato news, the company has acquired payments platform MaplePOS. Read more.

 Movidius, a San Mateo, Calif.-based maker of computational image-processor chips and software, has raised $40 million in new VC funding. Summit Bridge Capital, a joint venture between Atlantic Bridge Capital and WestSummit Capital, led the round. It was joined by Arch Venture Partners, Sunny Optical Technology Group and return backers AIB Seed Capital Fund, Capital-E, DFJ Esprit and Robert Bosch Venture Capital. www.movidius.com

• Adallom, a cloud access security broker with offices in Israel and Palo Alto, has raised $30 million in new VC funding. Hewlett Packard Ventures and Rembrandt Venture Partners were joined by return backers Sequoia Capital and Index Ventures. www.adallom.com

• Duo Security Inc., a Menlo Park, Calif.-based provider of cloud-based cybersecurity solutions, has raised $30 million in Series C funding. Redpoint Ventures led the round, and was joined by return backers Benchmark, Google Ventures, Radar Partners and True Ventures. Read more.

• Planet Labs, a San Francisco-based satellite company, has raised $23 million in new Series C funding from the International Finance Corp. The round total is now $118 million, including an earlier close led by Data Collective. www.planet.com

• Arcadia Healthcare Solutions, a Burlington, Mass.-based provider of electronic health record data aggregation and analytics solutions, has raised $13 million in growth equity funding from Peloton Equity and Zaffre Investment. www.arcadiasolutions.com

• Eaze, a San Francisco-based medical marijuana on-demand delivery app, has raised $10 million in Series A funding. DCM Ventures led the round, and was joined by Fresh VC, 500 Startups and Snoop Dogg’s Casa Verde Capital. www.eazeup.com

• Onbone Ltd., a Finland-based developer of medical casting material, has raised €10 million in new VC funding. MVM Life Science Partners led the round, and was joined by Finnish Industry Investment and return backer Inveni Capital. www.onbone.com

• NPM, an Oakland, Calif.-based Javascript package manager, has raised $8 million in Series A funding. Bessemer Venture Partners led the round, and was joined by seed backer True Ventures. Read more.

• Tonara, an Israeli interactive sheet music app, has raised $5 million in VC funding. Baidu led the round, and was joined by return backer Carmel Ventures. Read more.

• Wrap Media LLC, a San Francisco-based storytelling mobile user interface and interaction platform, has raised $3.5 million in Series A funding co-led by FF Angel and Raine Ventureswww.wrap.co

• Leviticus Cardio, an Israeli medical device maker focused on “wireless energy transfer for LVAD patients,” has raised over $1.5 million in VC funding from undisclosed investors. www.leviticus-cardio.com

• Frenzoo, a San Francisco-based developer of 3D lifestyle games for women and girls, has raised $1 million in new seed funding from Fresco Capital, K5 Ventures and Anshe Chung Ltd. www.frenzoo.com

• Esperas Pharma Inc., a Montreal-based oncology drug startup (with an early focus on triple negative breast cancer), has raised an undisclosed amount of first-round funding from TVM Life Science Ventures and Fonds de solidarité FTQ. www.tvm-capital.com

• WorldViz, a Santsa Barbara, Calif.-based provider of interactive visualization and simulation solutions for the enterprise, has raised an undisclosed amount of Series A funding from Intel Capital. www.worldviz.com

• Picsart, a mobile photo editing app, is in talks to raise $15 million in new VC funding at a $250 million valuation, according to Fortune’s Leena Rao. Existing shareholder Sequoia Capital is expected to participate. Read more.

PRIVATE EQUITY DEALS

• Acorn Growth Cos. has acquired Aerospheres (UK) Ltd., a UK-based chemical and composite repair supplier to the commercial airline and MRO markets. No financial terms were disclosed. www.aerospheres.com

• AE Industrial Partners has acquired Kellstrom Commercial Aerospace Inc., a Miramar, Fla.-based provider of aftermarket spare parts and repair services for the commercial and defense aerospace industries, from Inverness Management. No financial terms were disclosed. www.kellstrommaterials.com

• EnergySolutions LLC, a Salt Lake City-based portfolio company of Energy Capital Partners, has acquired MHF Services, a Wexford, Penn.-based provider of hazardous, radioactive and nonhazardous materials transportation from Relativity Capital. No financial terms were disclosed. www.energysolutions.com

• Gridiron Capital has acquired Dent Wizard International, a St. Louis-based automotive reconditioning company, from H.I.G. Capital. No financial terms were disclosed. www.dentwizard.com

• LendKey, a P2P lending platform with offices in New York and Cincinnati, announced that it has secured a financing commitment from MidCap Financial that would be used to purchase up to $1 billion of student consolidation loans originated on the LendKey platform. Potential further participation in the loans would be provided by funds affiliated with Apollo Global Management, which manages MidCap. www.lendkey.com

IPOs

• Aduro Biotech Inc., a Berkley, Calif.-based immuno-oncology company, has increased its IPO terms to 7 million shares being offered at $17 per share. It previously planned to offer 5 million shares at between $14 and $16 per share. The company plans to trade on the Nasdaq under ticker symbol ADRO, with BofA Merrill Lynch and Leerink Partners serving as lead underwriters. It reports a $17 million net loss for 2014 on around $13 million in revenue, and has raised over $140 million in VC funding from firms like Morningside Ventures (37.8% pre-IPO stake), Fidelity Investments (7.9%), Johnson & Johnson Development Corp. (6.6%), OrbiMed Advisors, Janus Capital Management, Franklin Advisers, Jennison Associates, Foresite Capital Management and Clough Capital Partners. www.aduro.com

EXITS

 Builders FirstSource Inc. (Nasdaq: BLDR) has agreed to acquire rival residential building products company ProBuild Holdings Inc. from Devonshire Investors for approximately $1.63 billion (including debt) in cash. Read more.

• GE Energy Financial Services and Alinda Capital Partners are seeking a buyer for SourceGas LLC, a Lakewood, Colo.-based natural gas utility, according to the WSJ. The deal could be valued at more than $1.5 billion (including debt). Read more.

OTHER DEALS

 Heineken has agreed to acquire listed Slovenian brewery Pivovarna Lasko for around $237 million. Losing bidders reportedly included CVC Capital Partners and Mid Europa Partners. Read more.

• Ivanhoé Cambridge, the real estate unit of Caisse de dépôt et placement du Québec, is partnering with The Blackstone Group to acquire a 25% stake in Sydney’s ANZ Bank Centre for A$240 million. Read more.

• Japan Tobacco Inc. (Tokyo: 2914) is seeking a buyer for its beverage vending-machine business, according to Bloomberg. The deal could be valued at around $830 million, with both private equity firms and Asahi Group Holdings expected to have interest. Read more.

• Lendio, a South Jordan, Utah-based small business lending marketplace, has acquired Business Bounce, a New York-based business financing facilitator. No financial terms were disclosed. Lendio has raised over $33 million in VC funding from Napier Park’s Financial Partners Group, Blumberg Capital, North Hill Ventures, Pivot Investment Partners and return backers Tribeca Venture Partners, Runa Capital and Highway 12 Ventures. www.lendio.com

• Nokia (Helsinki: NOK1V) confirmed that it is in talks to acquire Alcatel-Lucent (Paris: ALU), which has a market cap of around €11 billion. Read more.

FIRMS & FUNDS

• MAB Capital Management, a Chicago-based investment group led by Marc Bushala, has raised $50 million for a fund that will make equity investments of $3 million and $10 million in early-stage beverage businesses. www.mabcap.com

• Norwest Equity Partners has closed its tenth fund with $1.6 billion in capital commitments from founding LP Wells Fargo, and also raised $800 million for its fourth mezzanine fund. NEP also announced several personnel changes: Brian Allingham has been promoted from principal to administrative partner; Jack Dempsey has been named senior VP of strategy (he’s advised the firms since 2011, and is an 18-year McKinsey & Co. vet); and former KKR investor Sean Stevens has joined as an investment partner.  www.nep.com

MOVING IN, UP, ON & OUT

• Scott Cutler, former head of listings for the New York Stock Exchange, has joined StubHub (a unit of eBay) as president. www.stubhub.com

• Nils Erdmann, former head of investor relations for Twitter, has joined fundraising and advisory firm Battery East Group as a partner. www.batteryeast.com

• J.P. Morgan Chase has named Emilio Saracho has been named a vice chairman of JP Morgan Chase, according to the NY Times. He previously was deputy CEO for EMEA investment banking, a role that now will be filled by Vis Raghavan. Read more.

• Gregory Sieczkiewicz has joined MPM Capital as a managing director and chief counsel for intellectual property. He previously was VP of intellectual property for Flagship Ventures. www.mpmcapital.com

• Luis Téllez, former chairman and CEO of The Mexican Stock Exchange, has joined KKR as a senior advisor. www.kkr.com

Share today’s Term Sheet:
http://fortune.com/2015/04/14/term-sheet-tuesday-april-14