Random Ramblings
A bunch of notes to kick off your Veterans Day:
• Lower reserves: Tim Day has left energy-focused private equity firm First Reserve, where he had served as a managing director and co-head of buyouts since 2011. His last day was October 31.
Day originally joined First Reserve in 2000 as a vice president, and shared the co-head of buyouts job with firm president Alex Krueger, who also has served as First Reserve’s co-CEO since this past June and is expected to keep leading private equity activities (First Reserve has a separate investment boss for infrastructure-related deals).
Last year, First Reserve closed its 13th flagship private equity fund with just $3.4 billion in capital commitments — well below its original $6 billion target (and its lowered $5 billion target). It had raised $9 billion for Fund XII back in 2009 (also below target), and has experienced a rash of recent departures. Day seems to be the most recent casualty of scaled-back ambitions, although he’ll continue to represent First Reserve on the boards of Diamond S, TNT Crane & Rigging and TPC Group.
• Speaking of unannounced departures: Faraaz Kamran has left Madison Capital Funding, where he was a managing director and head of healthcare leveraged finance. He had joined the firm in 2007 from Merrill Lynch, and becomes just the latest in a very long line of departures at Madison Capital Funding (some voluntary, some not), the mid-market lending subsidiary of New York Life Investment Management.
• Today in Theranos (come on, you know you missed it): Theranos and grocery store chain Safeway are in talks to terminate am agreement that would have put Theranos blood-testing clinics in more than 800 stores, according to a new WSJ story. The piece says that Safeway spent around $350 million to build the clinics, but that Theranos missed deadlines for blood-testing rollouts, and that several Safeway execs questioned Theranos test accuracy. It also mentions how Safeway invested "more than $10 million" in Theranos, and that it now is using the clinics for other wellness services. In a statement on its website, Theranos called the WSJ piece "inaccurate, misleading and defamatory."
Worth noting that there is no mention of Theranos in the IPO filings for Albertsons, the Cerberus-controlled company that acquired Safeway earlier this year (the IPO was recently put on hold).
• Speaking of unicorn troubles: New York AG Eric Schneiderman yesterday ordered both DraftKings and FanDuel to stop taking bets in his state, arguing that using the daily fantasy sports sites constitutes gambling. It does not sound like either company plans to simply roll over and leave New York (where FanDuel happens to be based, and where Boston-based DraftKings recently opened a larger office).
• Recommended reading: Interesting Re/Code report yesterday, suggesting that Dell's massive takeover deal for EMC "may face a big tax burden that could complicate or derail the deal entirely." It basically relates to the VMware tracking stock. Interested in your thoughts, tax attorney readers...
• Come again? Five weeks ago, I wrote about how the later-stage funding market for tech companies had changed. Such companies -- unicorn or not -- could still raise growth equity, but valuations had gotten tighter. My piece was based on conversations with lots of folks who do these deals for a living, but my lack of (backward-looking) deal data rendered my reporting illegitimate for many of Silicon Valley's data idolators.
But yesterday came an FT report that Fidelity had marked down the value of its Snapchat shares by 25%. This comes on top Fidelity and BlackRock marking down their Dropbox shares. And then there is the whole issue of Square, which may go public at a valuation lower than its last private price (depending on if you want to use market cap or fully-diluted value). Or, put another way, the firms driving these later-stage prices are now quantifying some of their newfound religion. It's still not a full accounting, but it does seem directional...
THE BIG DEAL
• Anheuser-Busch InBev (Brussels: ABI) has finalized its agreement to acquire SABMiller (LSE: SAB) for around $105 billion, creating the world's largest brewing company. As part of the deal, SABMiller would sell its 58% stake in MillerCoors to partner Molson Coors Inc. (NYSE: TAP) for $12 billion in cash. Read more at Fortune.
VENTURE CAPITAL DEALS
• Careem, a Dubai-based on-demand car service app focused on the MENA region, has raised $60 million in Series C funding. The Abraaj Group led the round, and was joined by Al Tayyar, STC Ventures, Beco Capital, Lumia Capital, Wamda Capital and Impulse (a subsidiary of the Kuwait Investment Authority). www.careem.com
• Fiverr Inc., an Israel-based operator of a global online marketplace for buying and selling services, has raised $60 million in Series D funding, according to Dow Jones. Square Peg Capital led the round, and was joined by return backers Bessemer Venture Partners, Accel and Qumra Capital.
• TigerText, a Santa Monica, Calif.-based provider of secure messaging startup for healthcare professionals, has raised $50 million in Series C funding. Norwest Venture Partners led the round, and was joined by Invus Group, Accolade Partners and return backers Shasta Ventures, OrbiMed, and Reed Elsevier. Read more at Fortune.
• Perfecto Mobile, a Boston-based provider of digital and mobile experiences for enterprises, has raised $35 million in Series E funding. Technology Crossover Ventures led the round, and was joined by return backers FTV Capital, Carmel Ventures, Globespan Capital Partners and Vertex Ventures. www.perfectomobile.com
• CircleUp, a San Francisco-based online investment platform for private companies, has raised $30 million in new VC funding. Collaborative Fund led the round, and was joined by such backers as Thomson Reuters, Stanford Management Co. and Nigel Morris (co-founder of Capital One). Read more at Fortune.
• Swrve, a San Francisco-based company that helps marketers understand how people use mobile apps, has raised $30 million in Series C funding. Evolution Media Partners led the round, and was joined by TPG Growth and Participant Media. In related news, Swrve has acquired Adaptivi.io, a provider of mobile data collection and interpretation solutions. Read more at Fortune.
• VideoAmp, a Santa Monica, Calif.-based “screen optimization platform for the TV and video ecosystem,” has raised $15 million in Series A funding led by RTL Group. www.videoamp.com
• AppDome, an Israeli mobile security solution, has raised $13 million in Series A funding. Menlo Ventures led the round, and was joined by return backers JVP and OurCrowd. Read more.
• Bango, a UK-based mobile payments startup that lets consumers charge app store purchases to their smartphone bills, has raised £11 million in new VC funding at a £49 million pre-money valuation. No investor information was disclosed. Read more.
• Contactually, a Washington, D.C.-based provider of CRM and contact management software, has raised $8 million in Series A funding. Backers include Grotech Ventures, Rally Ventures, Correlation Ventures, Point Nine Capital, 500 Startups, Bull City Venture Partners and Middleland Capital. www.contactually.com
• EventBoard, Salt Lake City-based provider of cloud-based meeting tools and analytics, has raised $6.5 million in Series A funding. Greycroft Partners led the round, and was joined by Origin Ventures and seed backer Zetta Venture Partners. www.everboard.io
• The Better Software Co., a Canadian provider of SaaS solutions for small businesses, has raised C$1.35 million in new VC funding. ff Venture Capital led the round, and was joined by Mistral Venture Partners. www.thebettersoftwarecompany.com
• Tripvisto, a Jakarta-based online tour and activity package provider, has raised $1 million in Series A funding led by Gobi Partners. www.tripvisto.com
PRIVATE EQUITY DEALS
• Bunker Hill Capital has sponsored a recapitalization of ImportLA Inc., a Baldwin Park, Calif.-based maker of tattoo furniture and supplies. No financial terms were disclosed. www.tatsoul.com
• Clavis Capital Partners has sponsored a recapitalization of Solair Group Inc., a Miami, Fla.-based provider of ground support equipment to aircraft. No financial terms were disclosed. www.claviscp.com
• Home Franchise Concepts, an Orange, Calif.-based home services franchisor whose brands include Budget Blinds and Tailored Living, has secured a “significant investment” from Trilantic North America. www.homefranchiseconcepts.com
• OpenGate Capital has agreed to acquire Bois & Matériaux, a French distributor of building materials, from Wolseley PLC (LSE: WOS). No financial terms were disclosed. www.wolseley.com
• Salt Creek Capital has sponsored a recapitalization of WorkWell Medical Group Inc., a Salinas, Calif.-based network of occupational medicine and urgent care specialists and facilities. No financial terms were disclosed. www.workwellmedical.us
IPOs
• Advanced Accelerator Applications SA, a French developer of molecular imaging and molecular therapy products, raised $75 million in its IPO. The company priced 4.7 million shares at $16 per share (middle of range). It will trade on the Nasdaq under ticker symbol AAAP, while Citigroup and Jefferies served as lead underwriters. Shareholders include HBM Healthcare Investments (9.4% pre-IPO stake).www.adacap.com
• SurgiQuest Inc., a Milford, Conn.-based maker of technologies for minimally-invasive surgery, has filed for a $75 million IPO. Piper Jaffray and Stifel are serving as lead underwriters. The company reports a $15 million net loss on $35 million in revenue for the first nine months of 2015. It has raised around in VC funding, from firms like CMEA Capital (27.9% pre-IPO stake), River Cities Capital (10.9%), Fletcher Spaght Ventures (10.5%), California Technology Ventures(10.5%) and Mosaix Ventures (6.5%). www.surgiquest.com
• Voyager Therapeutics, a Cambridge, Mass.-based developer of gene therapy solutions for fatal and debilitating CNS diseases, raised $70 million in its IPO. The company priced 5 million shares at $14 per share, compared to earlier plans to offer 4.69 million shares at between $15 and $17 per share. It has an initial market cap of around $360 million, and will trade on the Nasdaq under ticker symbol VYGR. Cowen & Co. and Piper Jaffray served as lead underwriters. Voyager Therapeutics had raised around $105 million in VC funding from Third Rock Ventures (52.6% pre-IPO stake), Aventis (11.2%), Fidelity (7.5%), Brookside Capital (5.6%), Partner Fund Management (5.2%), Wellington Management and Casdin Capital. www.voyagertherapeutics.com
EXITS
• Abcam PLC (AIM: ABC) has agreed to acquire AxioMx Inc., a Branford, Conn.-based developer of in vitro recombinant monoclonal antibody technology. The deal includes a $20 million upfront payment and upwards of $5 million in earn-outs. AxioMx had raised VC funding from Advantage Capital Partners, Connecticut Innovations, Elm Street Ventures and Vital Venture Capital. www.axiomxinc.com
OTHER DEALS
• IBM (NYSE: IBM) has completed its previously-announced acquisition of Meteorix LLC, a Boston-based provider of Workday implementation services, for an undisclosed amount. www.meteorix.com
• Tullett Prebon (LSE: TLBR) has agreed to acquire the global brokering business of ICAP PLC (LSE: IAP) in an all-stock transaction. Read more.
FIRMS & FUNDS
• Open Ocean Capital, a Finland-based early-stage VC firm, has closed its fourth fund with €100 million in capital commitments. It also announced the opening of a London office that will be led by new general partner Richard Muirhead. Read more.
• Ridgemont Equity Partners, a Charlotte, N.C.-based middle-market buyout and growth equity firm, has closed its second fund with $995 million in capital commitments. www.ridgemontep.com
MOVING IN, UP, ON & OUT
• Neel Kashkari, a former U.S. Treasury official who had a key role in the bank and auto industry bailouts, has been named the next president of the Minneapolis Federal Reserve Bank. He also has held roles at Goldman Sachs and Pimco, and ran unsuccessfully for California governor. Read more.
• Kristen Kosofsky has joined Hercules Technology Growth Capital as a Boston-based senior managing director in the firm’s life sciences group. She previously was a managing director with Horizon Technology Finance. www.htgc.com
• Megan Quinn has joined Spark Capital as a San Francisco-based general partner focused on growth equity investing. She previously was with Kleiner Perkins and, before that, held product roles at both Square and Google. www.sparkcapital.com
• Jordan Robinson has joined Orion Energy Partners, a credit-focused private equity firm, as head of investor relations. He previously led IR for Energy Capital Partners and, before that, ran business development at JC Flowers & Co. www.orionenergypartners.com
• Romero Rodrigues, co-founder of Brazilian ecommerce company Buscapé, has joined Redpoint e.ventures as a general partner. Read more.
• Jason Sklar has joined Shamrock Capital Advisors as a managing director. He previously was an executive director in J.P. Morgan’s entertainment industries group. www.shamrockcap.com
• Ann Watson has joined Cascadia Capital as chief operating officer. She previously was CFO with Moss Adams and chief HR officer at Russell Investments. www.cascadiacapital.com
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