Greetings from a rainy New York City, where a big sign across from my hotel declares that it’s REIT Week. Can’t wait to see the parade… Some very quick notes before I’m sequestered in a conference room:
• Not done yet: Today’s big deal is that General Electric has agreed to sell its mid-market lending business — GE Antares — for $12 billion to the Canada Pension Plan Investment Board. If that $12 billion figure sounds a bit light, that’s because around 40% of Antares assets are housed in a joint venture with Ares Management that is not included in the purchase price. Also not included is a much smaller joint venture with Lone Star Funds.
The Ares/Antares joint venture is a senior secured loan program that is structured with Ares having the right of partner transfer refusal. That means Ares now will enter negotiations with CPPIB to see if the two sides can work together — a source says that direct talks didn’t open until the formal sale agreement was signed last night — and, if not, the most likely outcome would be that the program gets wound down. Same goes for the Lone Star joint venture. In both cases, GE will continue to operate the programs until the sale to CPPIB closes sometime in Q3.
• Shrinkage: CalPERS is getting a lot of attention for announcing that it plans to cut its number of external fund managers from 212 to around 100. This reduction includes private equity, although it’s worth noting that CalPERS — once the PE industry’s 800 lb gorilla — has been reducing GP relationships de facto for years. First by abandoning venture capital, and later by making fee demands that caused many longtime partners to walk away. In other words, I think there is less here than meets the eye.
• Unplugged: Nazar Massouh has quietly stepped down as a principal with Energy Capital Partners, where he led an $805 million mezzanine fund raised just two years ago. No word yet on a replacement.
I first called Jordan Robinson, who joined ECP as head of investor relations in 2013 (formerly with JC Flowers), but it seems he’s gone too. Fellow IR pro Paul Parshley did not return requests for comment. As for Massouh, a (secondhand) source suggests that he is planning to launch a new fund that will follow a similar strategy (albeit with more modest capital expectations).
THE BIG DEAL
• General Electric (NYSE: GE) confirmed that it has agreed to sell its middle-market lending unit — GE Antares — to the Canada Pension Plan Investment Board for approximately $12 billion. www.geantares.com
VENTURE CAPITAL DEALS
• Outset Medical, a San Jose, Calif.-based provider of a hemodialysis system for kidney patients, has raised $51 million in new private equity and debt funding. Fidelity led the round, and was joined by Partner Fund Management, Perceptive Advisors, CRG and return backers Warburg Pincus and The Vertical Group. The company also secured $40 million in debt financing from CRG. www.outsetmedical.com
• Applied Solar Technologies India, a Delhi-based solar power company, has raised $40 million in new VC funding. Australia’s Future Fund Management Agency led the round, and was joined by return backers Bessemer Venture Partners, Capricorn Investment Group and International Finance Corp. Read more.
• NeoChord, an Eden Prairie, Minn.-based developer of minimally-invasive devices for mitral valve repair, has raised $20 million in Series C funding. Deerfield Management led the round, and was joined by Baird Capital and return backers Hopen Life Science Ventures, CHV Capital, TGAP Ventures, and Heron Capital. www.neochord.com
• Talkdesk, a Mountain View, Calif.–based provider of cloud-based call center software, has raised $15 million in Series A funding. DFJ led the round, and was joined by Storm Ventures. www.talkdesk.com
• Brandtone, an Ireland-based mobile marketing company focused on developing and emerging markets, has raised around €18.5 million in debt and equity financing. Ares Capital Corp. led the round with a €12 million investment, and was joined by return backers Unilever, Syngenta, Verlinvest and Vision Private Equity. www.brandtone.com
• Swiggy, an on-demand restaurant delivery service in India, has raised $16.5 million in Series B funding. Norwest Venture Partners led the round, and was joined by return backers Accel Partners and SAIF Partners. Read more.
• Arcadia Data, a Campbell, Calif.–based provider of a visual analytics and business intelligence platform for big data, has raised $11.5 million in Series A funding. Mayfield led the round, and was joined by Blumberg Capital and Intel Capital. www.arcadiadata.com
• Rancher Labs, a Cupertino, Calif.-based startup that aims to make running Docker containers more manageable, has raised $10 million in Series A funding from Mayfield and Nexus Venture Partners. Read more.
• Adents, a Paris-based provider of product unit identification and traceability software, has raised €8.5 million in new VC funding. Backer include NAXICAP Partners, CapHorn Invest and Omnes Capital. www.adents.com
• JethroData, an Israeli provider of SQL-on-Hadoop solutions, has raised $8.1 million in Series B funding. Square Peg Capital led the round, and was joined by return backer Pitango Venture Capital. www.jethrodata.com
• Colabo, a San Mateo, Calif.-based automated sales engagement platform, has raised $7 million in Series A funding. Marker LLC led the round, and was joined by Kaedan Capital and return backers like Paul Maritz, Raghu Raghuram, Ray Rothrock and The Hive. www.colabo.com
PRIVATE EQUITY DEALS
• Apache Corp. (NYSE: APA) completed the previously-announced $2.1 billion sale of its Australian exploration and production subsidiary (Apache Energy Ltd.) to Macquarie Capital Group and Brookfield Asset Management. www.apachecorp.com
• Cerberus Capital Management has agreed to acquire a package of around 4,200 U.S. homes from BLT Homes, according to Bloomberg. Read more.
• Neptune Oil and Gas has been launched as an acquisition platform that will buy upwards of $5 billion of large-scale oil and gas companies and assets in the North Sea, North Africa and Southeast Asia. It will be led by former Centrica CEO Sam Laidlaw, with backing from The Carlyle Group and CVC Capital Partners. Read more.
• Pamplona Capital Management has made a “significant investment” in Spreemo, a Hoboken, N.J.–based platform that connects employers and their insurers with healthcare providers. Reuters reports that Pamplona’s position will be around 50%. Read more.
• Prime Risk Partners, an Alpharetta, Ga.-based property and casualty insurance company owned by Thomas H. Lee Partners, has acquired Cook Maran and Associates, an independent insurance agency with five offices in New York and New Jersey. No financial terms were disclosed. www.primeriskpartners.com
• PropertyGuru Group, a Singapore-based online property portal, has raised S$175 million (US$129m) in private equity funding from TPG Capital, Square Peg Capital and Emtek Group. www.PropertyGuru.com.sg
• Salt Creek Capital has acquired Rock Ridge Stone Inc., a Montrose, Penn.-based manufacturer of thermal bluestone for the building products industry. No financial terms were disclosed. As part of the deal, Salt Creek Capital executive partner Augie DeLuca will become Rock Ridge’s new CEO. www.saltcreekcap.com
• Tech Air, a Danbury, Conn.-based portfolio company of CI Capital Partners, has acquired Geneva Gas & Supply Inc., a Los Angeles-based distributor in the industrial gas and welding supply industry. No financial terms were disclosed. www.techair.com
• Tonka Bay Equity Partners and Goldner Hawn Johnson & Morrison have acquired Quest Events, a provider of drapery rentals for special events. No financial terms were disclosed. www.tonkabayequity.com
• Capio, a Swedish healthcare provider owned by Apax Partners and Nordic Capital, is prepping a Stockholm IPO that could give the company a market cap of $825 million, according to Reuters. Read more.
• Cinven has picked JPMorgan, Deutsche Bank and Commerzbank to lead an IPO for German truck and trailer parts maker Jost Group, according to Reuters. The listing could come this fall. Read more.
• Fogo de Chao, a Dallas-based Brazilian steakhouse chain operator owned by Thomas H. Lee Partners, has set its IPO terms to 4.41 million shares being offered at between $16 and $18 per share. It would have an initial market cap of approximately $463 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol FOGO, with Jefferies and J.P. Morgan serving as co-lead underwriters. It reports $17.2 million in net income on $262 million in revenue for fiscal 2014. www.fogodechao.com
• Patheon, a Dutch provider of outsourced contract drug manufacturing solutions, has filed for a $100 million IPO (likely a placeholder for offering that Renaissance Capital estimates could raise $700m). The company used to trade on the TSX before being acquired by JLL Partners and DSM (Amsterdam: DSM) for $1.4 billion in 2013. It has not yet listed its new exchange. J.P. Morgan will lead the offering. www.patheon.com
• Univar Inc., a Redmond, Wash.-based distributor of chemistry and related services, has set its IPO terms to 20 million shares being offered at between $20 and $22 per share. It would have an initial market cap of approximately $2.9 billion, were it to price in the middle of its range. The company plans to trade under ticker symbol UNVR, with Deutsche Bank, Goldman Sachs and BofA Merrill Lynch serving as lead underwriters. Univar previously filed for an IPO in June 2010, but withdrew the offering after Clayton Dubilier & Rice acquired a 42.5% stake in the company. Other backers include CVC Capital Partners, Parcom, Apollo Global Management, Highbridge Capital Management and Norwest Equity Partners. www.univar.com
• Sun Capital Partners has sold its investment in the subsidiaries of VPS Convenience Store Group (“VPS” or the “Company”), an operator of 161 convenience stores in four Midwest states, to GPM Investments. No financial terms were disclosed. Sun previously sold 263 Southeastern VPS stores to GPM in 2013. www.suncappart.com
• Synopsys Inc. (Nasdaq: SNPS) has agreed to acquire Atrenta Inc., a San Jose, Calif.–based provider of SoC realization solutions for the semiconductor and consumer electronics industries. No financial terms were disclosed. Atrenta has raised over $30 million in VC funding from firms like Investor Growth Capital, Hercules Technology Growth Capital, Samsung Ventures, TL Ventures and Venrock. www.atrenta.com
• Qatar Investment Authority has agreed to acquire a 19.9% stake in HK Electric Investments & HK Electric Investments Ltd., a Hong Kong-based utility owned by billionaire Li Ka-shing, for around $1.2 billion. Read more.
FIRMS & FUNDS
• Clarus Ventures has closed its third life sciences-focused VC fund with $500 million in capital commitments. www.clarusventures.com
• The Oregon Public Employees Retirement Fund has cut its target private equity allocation from 20% to 17.5%, with the difference being redirected toward hedge funds. The system currently has around $70 billion in assets under management.
MOVING IN, UP, ON & OUT
• Nishant Bakaya has joined Evercore as a managing director in the firm’s private capital advisory business. He previously was a principal with Akara Partners. www.evercore.com
• Nadia Damouni has turned to the dark side joined PR firm Edelman as a senior VP in its financial communications and special situations practice. She previously was an M&A reporter with Reuters. www.edelman.com
• Tim Devane has joined NextView Ventures as a New York-based principal. He previously was an entrepreneur-in-residence with Red Sea Ventures and, before that, was COO of Epic Magazine. www.nextviewventures.com
• Todd Edebohls has joined ZocDoc as vice president of business development. He previously was CEO of Inside Jobs (acquired by Chegg), and before that spent time at both D.E. Shaw and Amazon. www.zocdoc.com
• Luis Hanemann has joined e.ventures as a Berlin-based partner. He previously was chief marketing officer at Rocket Internet. www.eventures.vc
• Jay McNeil and Nick Honigman have joined Square 1 Bank as a managing director and vice president, respective. Both will be based out of Square 1 Bank’s new offices in St. Louis Park, Minnesota, and previously worked at Silicon Valley Bank. www.square1bank.com
• Wynnchurch Capital has promoted Chris O’Brien and Ian Kirson to partner. O’Brien joined the mid-market private equity firm in 2000, and sits on the boards of SafeWorks, Webex, Pro-Fab, Humanetics, Wolverine, U.S. Manufacturing and U.S. Pipe. Kirson joined in 2004, and serves on the boards of SafeWorks, Highway Technologies, Henniges, Senco, JAC Products, Northstar Aerospace, IronForm and U.S. Manufacturing. www.wynnchurch.com
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