Greetings from the home office, where I’ll be for a few more hours before heading down to New York for a day of in-house meetings (in lieu of condolence cards, please send scoop). Some notes to kick off your Monday:
• LP temperature: Limited partners are split on the concept of longer-term private equity funds, according to a new “Barometer” survey conducted by Coller Capital. Of the 113 respondents, 52% said that such vehicles (defined as fund lives intended to exceed 10 years) are a “potentially valuable option for LPs,” while the other 48% found the concept to be “not a good fit for PE.”
Some other interesting tidbits from the Coller survey:
- LPs report that North American buyout funds have been their strongest performers, with annual net returns of over 16%. European buyouts came in second, followed by Asia-Pacific buyouts. The worst performer was European venture capital, followed by funds-of-funds.
- Over 80 of LPs have been offered “early bird discounts” on private equity funds, with over 60% accepting at least one (19% have accepted multiple discounts).
- Two-fifths of LPs are under-committed to private equity, compared to their allocations. This is particularly true among European LPs, who report 49% underexposure compared to 11% overexposure.
- Despite the fall in gas prices, around one-third of LPs (and 47% of North American LPs) expect to back oil & gas private equity funds over the next three years.
- Some good news for debut funds: 37% of LPs say that commitments to debut funds exceeded expectations, while another 54% said they met expectations.
- Just over half of North American and Asia-Pacific LPs think current PE fee levels are acceptable, but the number sinks tojust 30% for European LPs.
• New fund alert: Tribeca Venture Partners is raising its second fund with a $100 million target and $125 million hard cap. And, apparently for the sake of my confusion, it’s officially called Tribeca Venture Partners III (seems the legacy portfolio of co-founding partner Brian Hirsch – then helping to lead Greenhill SAVP – is technically considered the first Tribeca fund, even though it really isn’t).
Anyway, same strategy of backing early-stage tech startups in the NYC area. I’m also hearing that the group has held a $50 million dry close. No comment from Hirsch, et al (natch).
• Update: The California State Teachers’ Retirement System announced that it has divested its stake in Remington Outdoors, the Cerberus Capital Management portfolio company whose products include the weapon used in the 2012 Sandy Hook massacre.
• Missed one: In last Friday’s discussions of VC-backed exits (or the lack thereof), I missed one big trade sale from 2015: EMC agreeing last month to acquire enterprise cloud company Virtustream for $1.2 billion. Virtustream had raised around $100 million in VC funding from QuestMark Capital, Intel Capital, Columbia Capital, Noro-Moseley Partners, SAP and TDF. Apologies for the oversight.
THE BIG DEAL
• General Electric (NYSE: GE) is nearing a deal to sell its middle-market lending unit — GE Antares — to Canada Pension Plan Investment Board, according to multiple reports. Other bidders reportedly have included Apollo Global Management, Ares Management, Blackstone Group and KKR. Read more.
VENTURE CAPITAL DEALS
• Delivery Hero, a German food delivery service backed by Rocket Internet, has raised $110 million in new funding from “public markets investors in the U.S.” at a $3.1 billion valuation. www.deliveryhero.com
• Spero Therapeutics LLC, a Cambridge, Mass.-based developer of therapies to treat bacterial infections, has raised $30 million in Series A funding. Lundbeckfond Ventures led the round, and was joined by Merck Research Ventures, The Kraft Group and return backers Atlas Venture, SR One and Partners Innovation Fund. www.sperotherapeutics.com
• Jimdo, a Germany-based “do it yourself” website builder, has raised €25 million in minority equity funding from Spectrum Equity. The company also has offices in San Francisco and Tokyo. www.jimdo.com
• Menlo Security, a Menlo Park, Calif.-based cybersecurity startup focused on battling malware, has raised $25 million in Series B funding. Sutter Hill Ventures led the round, and was joined by return backers General Catalyst, Osage University Partners and Engineering Capital. Read more.
• TaskUs, a San Francisco-based startup that provides outsourcing services to other startups, has raised $15 million in new equity funding from Navegar (Philippines). Read more.
• Luxury Retreats, a Montreal-based online marketplace for renting luxury properties, has raised $11 million in Series B funding led by iNovia Captial. Read more.
• Vinli Inc., a Dallas-based connected car platform, has raised $6.5 million in Series A funding. Samsung Venture Investment Corp. led the round, and was joined by Cox Automotive, Continental and The Westly Group. www.vin.li
• Springbot, an Atlanta-based ecommerce marketing platform for small to mid-sized online businesses, has raised $6 million in new VC funding. TTV Capital led the round, and was joined by Silicon Valley Bank and return backer TechOperators. www.springbot.com
• Qwinix Technologies Inc., a Greenwood Village, Colo.-based provider of web and mobile app development solutions, has raised an undisclosed amount of VC funding from AMG National Corp. www.qwinixtech.com
PRIVATE EQUITY DEALS
• 3G Capital is considering a takeover bid for spirits maker Diageo PLC (LSE: DGE), according to Bloomberg. The news sent Diageo shares up nearly 9%, giving it a market cap of around $73 billion. Read more.
• Apollo Global Management has agreed to acquire Verallia, the glass packaging business of listed French conglomerate Saint-Gobain. The deal is valued at around $3.27 billion. Read more.
• Channel Control Merchants, an “extreme value” retailer of secondary market inventories, has raised an undisclosed amount of private equity funding from KKR. The company operates under three brands: Dirt Cheap, Treasure Hunt and Dirt Cheap Building Supplies. www.kkr.com
• Clayton Dubilier & Rice has agreed to acquire UK fuel station operator Motor Fuel Group from Patron Capital for around £500 million (including debt), according to the FT. Read more.
• J.C. Flowers & Co. has agreed to acquire AmeriLife Group, a Clearwater, Fla.–based distributor of insurance products for the senior market, from Reservoir Capital Group and Black Diamond Capital Partners. No financial terms were disclosed. www.amerilife.com
• Lightyear Capital has acquired a majority equity stake in Wealth Enhancement Group, a Plymouth, Minn.–based wealth management firm, from Norwest Equity Partners. No financial terms were disclosed. www.wealthenhancement.com
• Tritium Partners has acquired a majority stake in RoadOne IntermodaLogistics, a Randolph, Mass.–based provider of intermodal transportation solutions for domestic and international shippers, for an undisclosed amount. www.roadone.com
• Six companies are scheduled to price U.S. IPOs this week: Axovant Sciences, Biotie Therapies, Invuity, Peoples Utah Bancorp., Principal Solar and Wingstop. Read more.
• MindBody Inc., a San Luis Obispo, Calif.-based online wellness marketplace, has set its IPO terms to 7.15 million shares being offered at between $13 and $15 per share. It would have an initial market cap of around $448 million, were it to price in the middle of its range. The company plans to trade under ticker symbol MB, with Morgan Stanley, Credit Suisse and UBS serving as lead underwriters. MindBody reports a $24.6 million net loss on around $70 million in revenue for 2014, compared to a $16 million net loss on $49 million in revenue for 2013. Shareholders include Bessemer Venture Partners (20.3% pre-IPO stake), Catalyst Investors (15.5%), J.P. Morgan Digital Growth Fund (10.1%), Institutional Venture Partners (10%) and W Capital Partners (8.9%). www.mindbody.com
• Dan Doctoroff, former CEO of Bloomberg LP, has offered to acquire outdoor advertising company Titan Outdoor from Welsh, Carson, Anderson & Stowe, according to Reuters. The deal could be valued north of $150 million (including debt). Read more.
• Iron Mountain (NYSE: IRM), a Boston-based information storage company, has again increased its offer for Australian rival Recall Holdings (ASX: REC). The revised bid is around $2.6 billion (including debt). Read more.
• Monsanto (NYSE: MON) reiterated its unsolicited $45 billion for Swiss agribusiness Syngenta AG (Swiss: SYN). Syngenta rejected the offer last month, but Monsanto is now sweetening the deal with a $2 billion breakup fee if the merger fails to garner regulatory approval. Read more.
• Shire PLC (LSE: SHP) has made an informal approach about buying Actelion (SWX: ATLN), a Swiss maker of lung disease drugs, according to The Sunday Times. A deal could be worth around $19 billion. Read more.
• Stifel Financial Corp. (NYSE: SF) has agreed to acquire the U.S. wealth and investment management business of Barclays, which currently manages around $56 billion in total client assets. www.stifel.com
• Swedish Orphan Biovitrum (Oslo: SOBI), a Swedish maker of medicines for rare diseases, said that it has ended talks about a possible sale of the company. Earlier reports suggested that Pfizer Inc. (NYSE: PFE) had made a bid for the company when its market cap was around $3.35 billion. Read more.
FIRMS & FUNDS
• Inverness Graham, a Philadelphia–based private equity firm focused on tech-enabled businesses, has closed its third fund with $283 million in capital commitments. www.invernessgraham.com
• True Green Capital Management, an investment firm focused on distributed power generation (with a current focus on distributed commercial photovoltaic solar) has closed its second fund with $113 million in capital commitments. www.truegreencapital.com
MOVING IN, UP, ON & OUT
• Peter Freire has been named the next executive director of the Institutional Limited Partners Association, with Kathy Jeramaz-Larson stepping down after an eight-year run. Freire is a former managing director with the World Economic Forum who previously spent more than a decade with the Corporate Executive Board. www.ilpa.org
• Anshu Jain and Jürgen Fitschen have stepped down as co-CEOs of Deutsche Bank. Jain’s resignation becomes effective later this month, while Fitschen will stay on board for another year. Jain will be replaced by John Cryan. Read more.
• Luke O’Keefe has joined First Reserve as a member of the firm’s energy infrastructure team. He previously was VP of technical risk with GE’s energy financial services group. www.firstreserve.com
• Ivan Presant and Joseph Cosentino has joined law firm Greenberg Traurig LLP as shareholders in its M&A and private equity practices. Both previously were with Clifford Chance. www.gtlaw.com
• Olivier Streichenberger has joined European VC firm Truffle Capital as its listed securities manager. He previously was head of corporate finance sales and syndication for the French unit of Dexia Group. www.truffle.com
Share today’s Term Sheet: