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Term Sheet — Tuesday, August 4

Random Ramblings

DST Global, the venture capital and growth equity firm led by Yuri Milner, has raised $1.7 billion for its fifth fund, according to a filing with the SEC.

It is unclear if this represents a final close, or if DST is still soliciting new capital.

Milner is a Moscow-based tech entrepreneur who first made a name for himself in Silicon Valley by leading a 2009 investment in Facebook that valued the social network at $10 billion (at least 20% higher than anyone else would bid).

He subsequently invested in U.S. tech companies as Zynga, Groupon, Twitter and Airbnb, before turning his attentions toward Chinese and Indian companies like Alibaba Group, Xiaomi and Flipkart. Other portfolio companies include Spotify and Slack.

DST does not generally discuss its fundraising efforts, but SEC filings suggest that its third and fourth general funds had an aggregate gross asset value of around $2.87 billion through the end of March. The group also has dozens of other investment vehicles, including many that focus on China.

Milner did not return a request for comment.

• Big benchmarks: Cambridge Associates this morning released its latest U.S. private equity and venture capital benchmarks, and found that one-year U.S. venture capital fund returns beat both private equity fund returns and public equities. This is data through the end of 2014, with VC hitting 21.5%, compared to 11.2% for private equity and 13.7% for the S&P 500. VC also topped private equity and public equities for Q4 2014 (with PE barely hitting positive territory at 0.8%).

The S&P 500 beat both VC and PE for 3-year returns (20.4% vs. 18% and 15.6%, respectively), but both VC and PE beat the S&P 500 for both 5-year and 10-year returns.

• More data: On the other hand, new research from USF School of Management professor Mark Cannice suggests that venture capitalists aren’t too sanguine about the future. His latest quarterly Silicon Valley Venture Capitalist Confidence Index, Cannice hit a two-year low (3.73 out of 5), which was down from 3.81 last quarter and matched the Index’s 11-year average.

• Deal scoop: Weld North has sold New York-based juice and sandwich chain Organic Avenue to turnaround firm Vested Capital Partners for what I’m told was virtually nothing. Moreover, Organic Avenue CEO Anthony Tomaro — who was CFO until being promoted at the end of 2014 — is no longer with the company.

• Update: Yesterday we cited a TechCrunch report that Yahoo was paying upwards of $60 million for online fashion community Polyvore. But it seems that number was very low, with a subsequent Bloomberg report putting the figure closer to $230 million (including employee retention payments). A source close to the situation tells me that Bloomberg‘s math was much better.

THE BIG DEAL

• Mevion Medical Systems, a Littleton, Mass.-based provider of proton therapy systems, has raised $200 million in new equity funding. HOPU Investments and YuanMing Capital co-led the round, and were joined by return backers Caxton Alternative Management L.P., ProQuest Investments, Venrock and CHL Medical Partners.

Mevion and its lead investors also will form a joint venture to make, sell and service proton therapy systems for the Chinese market. Financing terms for the JV are still being worked out, with new capital expected on top of the $200 million.

Mevion yesterday withdrew registration for a $69 million IPO, with CEO Joe Jachinowski saying the IPO decision was based on the new financing. He declined to discuss valuation, but a source familiar with the situation says it did not bring Mevion into the unicorn club. www.mevion.com

VENTURE CAPITAL DEALS

• IQMS, a Paso Robles, Calif.-based provider of manufacturer ERP software and MES solutions, has raised $40 million in growth equity funding from Technology Crossover Ventures and Banneker Partners. www.iqms.com

• Duetto, a San Francisco-based provider of hotel profit optimization software, has raised $30 million in new VC funding. Icon Ventures led the round, and was joined by Spectrum 28 and return backers Accel Partners, Battery Ventures, Altimeter Capital, Leland Pillsbury and Marc Benioff. www.duetto.com

• Seriously, a mobile entertainment startup known for its Best Friends game series, has raised $18 million in Series A funding. Northzone Ventures led the round, and was joined by Kora Investment Partners and return backers Upfront Ventures, Sunstone Capital and Daher Capital. The company previously raised $10 million.  www.seriously.com

• Panorama Education, a Boston-based startup that helps K-12 schools improve via data analysis and feedback surveys, has raised $12 million in Series A funding. Spark Capital and Owl Ventures co-led the round, and were joined by return backer Google Ventures, Y Combinator and Startup:Education. Read more.

• Riffsy, a San Francisco-based maker of a “GIF keyboard” for iOS, has raised $10 million in Series A funding. Menlo Ventures led the round, and was joined by Cowboy Ventures, Signia Venture Partners and return backer Redpoint Ventures. www.riffsy.com

PRIVATE EQUITY DEALS

• Atlantic Street Capital has acquired The Sandwich Shop Holdings Co., a franchisee of Jimmy John’s Gourmet Sandwich Restaurants in the greater Chicago area. No financial terms were disclosed. TSSHC owns and operates 23 units. www.atlanticstreetcapital.com

• CCRM, a Colorado-based network of fertility treatment services providers, has raised an undisclosed amount of growth equity funding from TA Associates. www.ccrmivf.com

• Confie Seguros, a personal insurance company focused on Hispanic consumers, has acquired the businesses of three insurance brokerages. They are: Insurance King Auto Agency (Dallas), Schunke Insurance Agency (West Seneca, NY) and  (near Buffalo) and Reynolds & Reynolds Agency (Bellport, NY). No financial terms were disclosed. Confie Seguros is a portfolio company of ABRY Partners. www.confieseguros.com

• Gauge Capital has led a recapitalization of Wireless Vision Holdings LLC, a Bloomfield Hills, Mich.-based operator of over 200 T-Mobile retail stores. www.wirelessvision.com

• J.F. Lehman & Co. has acquired a majority stake in Ravn Air Group, a provider of regional air transportation and logistics services in Alaska. W Capital Partners also participated alongside the company’s founding Hajdukovich family. No financial terms were disclosed. www.flyravn.com

• J.W. Childs Associates has acquired a majority stake in Shoe Sensation, a Jeffersonville, Ind.-based family footwear retailer, from Palisade Capital Management and Consumer Growth Partners. No financial terms were disclosed. www.shoesensation.com

• Magna International Inc. (TSX: MG) has sold Bestop Inc., a Louisville, Colo.-based manufacturer of soft tops and fabric accessories for Jeep vehicles, to a new joint venture between Magna and private equity firm Kinderhook Industries. No financial terms were disclosed. The JV will focus on the Jeep aftermarket. www.magna.com

• New Heritage Capital has acquired PRN Ambulance, a provider of inter-facility medical transport services in the Los Angeles area. No financial terms were disclosed. www.prnambulance.com

• Shamrock Capital Advisors has acquired Recorded Books, a Price Frederick, Md.-based publisher of audiobooks, from Wasserstein & Co. for an undisclosed amount. www.recordedbooks.com

• Shamrock Capital Advisors has acquired a majority stake in Consilio, a Washington, D.C.-based provider of e-discovery and document review services, from Symphony Technology Group. No financial terms were disclosed. www.consilio.com

• Vestar Capital Partners has acquired a majority equity stake in Veritas Collaborative LLC, a Durham, N.C.-based specialty hospital system for the treatment of eating disorders. No financial terms were disclosed. www.veritascollaborative.com

• Western Window Systems, a Phoenix-based door and window manufacturer, has raised an undisclosed amount of private equity funding from PWP Growth Equity. www.westernwindowsystems.com

IPOs

• Houlihan Lokey Inc., a Los Angeles-based boutique investment bank, has set its IPO terms to around 13.1 million shares being offered at between $22 and $24 per share.  It would have a fully diluted market cap of around $1.5 billion, were it to price in the middle of its range. The company plans to trade on the NYSE under ticker symbol HLI, with BofA Merrill Lynch and Goldman Sachs serving as lead underwriters. Houlihan Lokey  reports $80 million of net income on nearly $681 million in revenue for 2014, compared to $61 million in net income on $592 million in revenue for 2013. Shareholders include ORIX USA. www.hl.com

• JeldWen Holding Inc., a Klamath Falls, Ore.-based residential door and window manufacturer, is prepping an IPO that could value the company at around $4 billion, according to the WSJ. Underwriters would include Barclays and Credit Suisse. Jeld-Wen was acquired for $871 million by Onex Partners in 2011. Read more.

• Petco Animal Supplies has hired Goldman Sachs to lead either an IPO or sale that could value the San Diego-based pet supplies retailer at between $4 billion and $5 billion, according to Reuters. Other IPO underwriters would include BofA Merrill Lynch and J.P. Morgan. Petco was taken private in 2006 for $1.5 billion by a private equity consortium led by TPG Capital and Leonard Green & Partners. Read more.

EXITS

• Advance/Newhouse has acquired 1010data Inc., a New York-based provider of a big data discovery and sharing platform, for $500 million. 1010Data had raised $35 million in a 2010 funding round led by Norwest Venture Partners. www.1010data.com

OTHER DEALS

• Cintas Corp. (Nasdaq: CTAS) has acquired ZEE Medical, an Irvine, Calif.-based provider of van-delivered first aid and safety services, from McKesson Corp. (NYSE: MCK) for approximately $130 million. www.zeemedical.com

• Premier Inc. (Nasdaq: PINC) has agreed to acquire CECity Inc., a Homestead, Penn.-based provider of cloud-based healthcare improvement solutions, for $400 million. www.cecity.com

• Shire PLC (Nasdaq: SHPG) has offered to acquire Deerfield, Ill.-based biotech company Baxalta (NYSE: BXLT) for $45.23 billion in stock, or $45.23 per share (36% premium over yesterday’s closing price). www.shire.com

FIRMS & FUNDS

• EQT Partners has closed its seventh general private equity fund, with a primary focus on Northern Europe, at its hard cap of €6.75 billion. www.eqt.se

• QIC, an Australian alternative investment firm, has held a first close on its new global infrastructure private equity fund with more than A$1 billion in capital commitments. It is targeting at least $2 billion for its final close. www.qic.com

MOVING IN, UP, ON & OUT

• Carlos Cardoso has joined Irving Place Capital as a senior advisor, with a focus on manufacturing and distribution opportunities in the industrial sector. He is the former chairman and CEO of Kennametal Inc. (NYSE: KMT). www.irvingplacecapital.com

• Michael Evans has joined Alibaba Group (NYSE: BABA) as president. He had spent nearly 25 years with Goldman Sachs before leaving late last year, and has been on the Alibaba board since the company’s IPO last fall. www.alibaba.com

• Thalius Hecksher has joined fund administrator Trident Fund Services as global director. He previously was global managing director of business development for Apex Fund Services Ltd. www.tridentfundservices.com

• JMI Equity has promoted Kathy Fields to general partner, and said that she also will continue in her role as general counsel. www.jmi.com

• Chris McGarry has joined Ropes & Gray LLP as a London-based partner in the firm’s finance practice, with a focus on collateralized loan obligations. He previously was with Weil, Gotshal & Manges. www.ropesgray.com

• Richard Peacock has agreed to join BofA Merrill Lynch as a New York-based managing director in its M&A practice, with a focus on the consumer and retail industries, according to the NY Times. He previously was with Goldman Sachs, and will formally join BofA in October. Read more.

• David Tayeh has joined Investcorp as head of its corporate investment business in North America. He previously was a partner with CVC Capital Partners. www.investcorp.com

• Tom Hayes, a former trader with UBS, has been sentenced to 14 years in jail after becoming the first person to be convicted over the rigging of the global benchmark interest rate LIBOR. Read more.

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