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Term Sheet — Tuesday, August 18

August 18, 2015, 2:10 PM UTC

Random Ramblings

Lots of deal news this morning, so just some quick notes to kick off your Tuesday...

 Deal details: Yesterday we noted how Altas Capital has partnered with Caisse de depot et placement du Quebec to acquire Capital Vision Services (d.b.a. MyEyeDr), a Vienna, Va.-based provider of management services to optometrists. No financial terms were disclosed, but a source has since said that the transaction value was approximately $800 million.

This is the third deal so far by Altas, which was formed three years ago by Andrew Sheiner, who previously had spent 17 years as a managing director with Canada-based Onex Corp.

The basic idea was to invest with much more flexibility than traditional private equity, by significantly expanding possible hold times. Altas also has created a unusual management fee structure, charging nothing on uncalled capital, the equivalent of 1% of each capital call (i.e. transactional equity) and an annual 1% fee on aggregate called capital. The market standard 20% carried interest stays in place.

Altas has not yet actually closed its debut fund -- which is why Sheiner won’t discuss any of this -- but I’m told that the firm’s three deals have involved around $1 billion of equity by initially utilizing a fundless sponsor/co-investment model.


 Value-added investor: Earlier this month, venture capitalist Jason Mendelson (partner with Foundry Group) performed the national anthem at Wrigley Field, before a game between the Chicago Cubs and SF Giants. And now we've got video, which you can see by going here.

The best part is probably that Jason went to the game with his wife, who wasn't aware he was going to sing until he appeared on the field. Instead, she thought he had just walked away to take a work call...

 Parental perks: Bloomberg reported last week that KKR has substantially increased its paid leave time for new parents (including those who adopt or use a surrogate). Paid leave for primary caregivers was extended from 12 weeks to 16 weeks, while non-primary caregivers were extended from one week to two weeks. It also launched a "transition support" program for those returning from leave.

Most interesting, however, was that it now will pay for parents to bring their new child and caregiver (whether that be the employee's partner or a nanny) on business trips. Kudos to KKR, and a sincere hope that others follow suit.

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 Petco, a San Diego-based pet supplies retailer, has filed for a $100 million IPO. It did not indicate on which stock exchange it plans to list, nor any underwriters (although earlier reports suggested that Goldman Sachs would be involved).

Petco reports $75 million of net income on nearly $4 billion in revenue for the fiscal year ending January 31, compared to $85 million in net income on $3.79 billion for the year-earlier period. It also had $191 million of cash and $2.27 billion of debt on its balance sheet.

The company is currently owned by private equity firms TPG Capital and Leonard Green & Partners, which paid $1.8 billion to take Petco private in 2006. Read more.


 Helix, a new consumer-focused genomics analytics platform, has been formed via a $100 million equity commitment from Illumina Inc. (Nasdaq: ILMN), Warburg Pincus and Sutter Hill Ventures.

 Buzzfeed confirmed earlier press reports that it has raised $200 million in equity funding from NBCUniversal. The media company previously raised around $100 million from firms like Andreessen Horowitz, NEA, RRE Ventures, Lerer Hippeau Ventures and Softbank Capital.

 Datameer, a San Mateo, Calif.-based big data analytics company built on Apache Hadoop, has raised $40 million in Series E funding. ST Telemedia led the round, and was joined by Top Tier Capital Partners, Kleiner Perkins Caulfield & Byers, Redpoint Ventures, Next World Capital and Software AG. Read more.

 Aviacode, a Salt Lake City-based provider of medical coding-related software and services, has raised $16 million in growth equity funding from Frontier Capital.

 Tiff’s Treats, an Austin, Texas-based warm cookie delivery company, has raised $16 million in Series C equity and debt funding from such backers as Capstar Partners and Lew Little.

 Roposo, an India-based discovery platform for fashion, has raised $15 million in new VC funding from existing backer Tiger Global.

 Revel Systems, a San Francisco-based company that sells an iPad point of sale register to merchants, has raised $13.5 million in new Series C funding from Roth Capital Partners. The round total is now $110 million, with the company valued in excess of $500 million. Read more.

 Platform9, a Sunnyvale, Calif.-based provider of private cloud management solutions, has raised $10 million in Series B funding. Menlo Ventures led the round, and was joined by return backer Redpoint Ventures. Read more.

 Peach, a Seattle-based food delivery service for office workers, has raised $8 million in new VC funding from Madrona Venture Group and Vulcan Capital. Read more.

 Evolve BioSystems Inc., a Davis, Calif.-based startup focused on dysbiosis in the human infant microbiome that can result from pre-term birth, has raised $9 million in Series A funding. Horizons Ventures led the round, and was joined by seed backers like Tate & Lyle Vetures.

 Filament, a Reno, Nev.-based developer of decentralized Internet-of-things infrastructure, has raised $5 million in Series A funding. Bullpen Capital led the round, and was joined by Verizon Ventures, Crosslink Capital, Samsung Ventures, Digital Currency Group, Haystack, Working Lab Capital and Techstars. Read more.

 Tracksmith, a Boston-based running apparel brand, has raised $4.1 million in Series A funding led by Pentland Brands.

 Marvel, a UK-based sketching platform that helps users developer mobile app prototypes, has raised $2 million in new seed funding. Index Ventures and Connect Ventures were joined by existing backers like ustwo, Roberto Bonazinga and Richard Fearn. Read more.

 HyperVerge, a deep learning startup with offices in India and Palo Also, has raised $1 million in seed funding from NEA, Milliways Ventures and Naya Ventures.


 Apax Partners has agreed to acquire a control stake in FullBeauty Brands, a New York-based direct-to-consumer company U.S. plus-size apparel market.

 Blackford Capital has acquired Dickinson Press, a Grand Rapids, Mich.-based book manufacturer and printing services provider. No financial terms were disclosed.

 Monadnock Resources LLC, a new Dallas-based platform that will acquire and develop oil and natural gas assets in North America, has secured a $100 million equity commitment from Kayne Anderson Energy Funds and members of company management. Monadnock will initially focus on the Permian Basin, and is led by CEO Matt Gentry.

 Plusgrade, a New York-based provider of revenue solutions to the travel industry, has raised an undisclosed amount of private equity funding from TA Associates.

 Proxibid, an Omaha, Neb.-based online marketplace for high-value items like classic cars and industrial machinery, has raised an undisclosed amount of growth equity funding from Primus Capital.

 SVR Tracking LLC (dba Positioning Universal, a San Diego-based mobile asset management company, has raised an undisclosed amount of new VC funding led by ET Capital Partners.



 Aclaris Therapeutics Inc., a Malvern, Penn.-based developer of dermatological therapeutics, has filed for an $86.25 million IPO. It plans to trade on the Nasdaq under ticker symbol ACRS, with Jefferies and Citigroup serving as lead underwriters. The pre-revenue company has raised $31.5 million in VC funding from Vivo Ventures (31.2% pre-IPO stake), Fidelity Biosciences (28.5%) and Sofinova Ventures (12%).

 Regenexbio Inc., a Rockville, Md.-based gene therapy company, has filed for a $100 million IPO. Morgan Stanley, BofA Merrill Lynch and Piper Jaffray are serving as co-lead underwriters. The company has raised over $100 million in VC funding, including a $70.5 million in Series D round earlier this year. Shareholders include Venrock (9.5% pre-IPO stake), Brookside Capital (9.2%), Deerfield Management (6.1%), Fidelity (5.7%), GlaxoSmithKline (5.7%), Vivo Capital, Janus Capital Management, Jennison Associates, Perceptive Advisors, QVT Financial, Tourbillon Global Ventures, Sectoral Asset Management, Cormorant Asset Management, Foresite Capital Management and RTW Investments.

 SiteOne Landscape Supply Inc. (f.k.a. John Deere Landscapes), a Roswell, Ga.-based wholesale distributor of landscape supplies in the U.S., has filed for a $100 million IPO. It plans to trade under ticker symbol SITE, with Deutsche Bank serving as lead underwriter. The company reports $23.4 million of net income on $707 million in revenue for the six months ending June 28, 2015. Owners include Clayton Dubilier & Rice and Deere & Co.

 Surgery Partners Inc., a Nashville, Tenn.-based surgical facilities operator backed by H.I.G. Capital, has filed for a $431.25 million IPO. It plans to trade on the Nasdaq under ticker symbol SGRY, with BofA Merrill Lynch, Goldman Sachs and Jefferies serving as lead underwriters. The company reports $23 million of net income on $457 million in revenue for the first six months of 2015, compared to $9 million of net income on $147 million in revenue for the year-earlier period.

 SynCardia Systems Inc., a Tucson, Ariz.-based developer of an artificial heart, has filed for a $40 million IPO. It plans to trade on the Nasdaq under ticker symbol AHT, with Roth Capital Partners serving as underwriter. The company reports an $18.6 million net loss on $8.7 million in revenue for the first six months of 2015. Shareholders include Athyrium Capital Management, SWK Holdings, Highway 12 Ventures and Delta Electronics Capital.


 Freudenberg Medical has acquired a 75% stake in Hemoteq AG, a German provider of surface coating technologies and related services for medical devices, from Earlybird Venture Capital and Pinova Capital. No financial terms were disclosed.

 GTCR has completed its previously-announced sale of Cord Blood Registry, a San Bruno, Calif.-based cord blood stem cell bank, to AMAG Pharmaceuticals Inc. (Nasdaq: AMAG) for $700 million.

 The Jordan Company and Nautic Partners have agreed to sell Precision Engineered Products Holdings Inc., an Attleboro, Mass.-based manufacturer of highly-engineered precision solutions used in such industries as medical and aerospace, to NN Inc. (Nasdaq: NNBR). No financial terms were disclosed.

 Pentair PLC (NYSE: PNR) has agreed to acquire ERICO Global Co., a Solon, Ohio-based maker of precision-engineered metal products, for $1.8 billion in cash (including repayment of ERICO debt). Sellers include Joshua Partners. The deal values ERICO at around 12x projected 2015 EBITDA. Read more.

 Turner Broadcasting System has acquired a majority stake in iStreamPlanet, a Las Vegas-based provider of large-scale live event streaming. No financial terms were disclosed. iStreamPlanet had raised VC funding from QuestMark Partners, Intel Capital, Interxion Holdings and Juniper Networks.

 Welsh, Carson, Anderson & Stowe and Hyde Park Holdings have agreed to sell Ozburn-Hessey Logistics LLC, a Brentwood, Tenn.-based contract shipping company, to France's Geodis SA for a reported $800 million. Read more.


 BB&T Corp. (NYSE: BBT) has agreed to acquire National Penn Bancshares Inc. (Nasdaq: NPBC) for approximately $1.8 billion in cash and stock.

 Brookfield Infrastructure Partners (NYSE: BIP) has agreed to acquire Australian rail and port operator Asciano for A$8.9 billion in cash and stock. Read more.

 DS Healthcare Group Inc. (Nasdaq: DSKX) has agreed to acquire WR Group Inc., a Scottsdale, Ariz.-based distributor of skin care and other personal care and wellness products, for $42.25 million (including $30m upfront).

 Strategic Hotels & Resorts (NYSE: BEE), a Chicago-based luxury hotel operator, said that it is exploring strategic alternatives, including a possible sale. The company’s current market cap is around $3.9 billion. Read more.


 Citigroup (NYSE: C) has agreed to sell its Alternative Investor Services business, including hedge fund and private equity fund services, to SS&C Technologies Holdings Inc. (Nasdaq: SSNC). No financial terms were disclosed.

 OMERS Ventures has closed its second fund with $260 million in capital commitments. Limited partners are the OMERS pension plan, BMO Financial Group and Cisco Investments.


 Selim Day has joined Lowenstein Sandler LLP as a New York-based partner in its tech practice. He previously was a partner with Wilson Sonsini Goodrich & Rosati.

 Amr Helal has joined Duet-CI Capital to lead a $300 million Egypt-focused private equity fund. He previously was a managing director with Abraaj Group.

 Robert Kaplan was named head of the Dallas Federal Reserve. He is the former head of investment banking at Goldman Sachs who has spent the past nine years teaching at Harvard Business School. Read more.

 Melissa Rotter Grant has joined Lexington Partners as an associate in the firm’s investor relations group. She previously was with Stepstone Group.

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