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Term Sheet — Wednesday, March 2

Random Ramblings

Some notes as we collectively recover from Super Tuesday hangover:

• Personnel scoop: TPG Capital has hired Jack Daly as its new head of industrials, which includes such sub-sectors as manufacturing, business services, distribution and transportation. Daly has spent the past 16 years with Goldman Sachs, most recently in its merchant banking unit as head of a group that focused on control investments in large industrial companies.

Daly, who was named a partner at Goldman Sachs in 2012, is expected to begin at TPG in a couple of months.

You might recall that TPG’s industrials group was run for years by Kevin Burns, who last year stepped back in order to serve as interim president and COO of yogurt maker Chobani (which in 2014 year received a $750 million loan with warrants from TPG). Burns is now full-time at Chobani, meaning that he is no longer employed at all by TPG. Interim TPG industrials head Nathan Wright will continue to work on the team.

• Driving toward the target: Last night wasn’t too kind to Ohio Gov. John Kasich, whose best showing in the Republican primaries were second-place finishes in Vermont and Massachusetts (both behind Trump). But things seem to be doing a bit better for Mark Kvamme, the venture capitalist who quit Sequoia Capital in 2011 to help lead economic development in Ohio for old pal Kasich.

Kvamme left public service two years later to form Drive Capital, a Midwestern-focused VC firm, with fellow Sequoia vet (and Ohio native) Chris Olsen. Drive closed its debut fund in early 2014 with $250 million, and a new regulatory filing shows that it already has secured more than $200 million for its follow-on vehicle (total target again is $250m). No comment on the fundraise from Drive, natch…

• Two more political notes: (1) My Fortune colleague Shawn Tully has a deep drive into Donald Trump’s finances, and believes that the GOP front-runner has significantly overstated his income. Primarily because Trump seems to have mixed up revenue and income. Read Shawn’s full piece by going here.

(2) In 2014 I wrote a piece about why American voters believe the overall economy was deteriorating, even though they simultaneously reported that their own financial situation wass improving. My working title was: “Why America’s Economy Will Always Suck.” The numbers are obviously dated, but my basic thesis remains intact ― as an fyi, ADP this morning reported 214k new private sector jobs in February ― and may help explain some appeal of both Trump and Sanders. Find it here.

• Survey Says: BDO USA recently surveyed 147 U.S. and Western European private equity fund managers about their 2016 expectations, and 42% of them reported plans to increase disclosures of fees charged to limited partners.

This is up from 39% who said the same one year earlier, which of course raises a question: Assuming that respondents were mostly the same, does this mean that 81% of PE firms are increasing fee disclosures to LPs? After all, why would a PE firm that increased disclosures in 2015 need to do so again in 2016? Unless it was holding something back in 2015? And, if so, why? You know, if such disclosure is deemed important…


• The Sports Authority, an Colorado-based sporting goods retailer owned by Leonard Green & Partners, this morning filed for Chapter 11 bankruptcy protection. The company also announced plans to shutter 140 stores.

Leonard Green purchased Sports Authority in 2006 for around $1.3 billion, which was partially financed via a $750 million loan package. Sports Authority last month missed a $20 million interest payment, which set the stage for this morning’s filing. Read more.


• Marcari, a Japanese P2P marketplace app, has raised around $75 million in Series D funding at a valuation north of $1 billion (making it Japan’s first “unicorn”). Mitsui & Co., Development Bank of Japan and Japan Co-Invest were joined by return backers Globis Capital Partners, World Innovation Lab and Global Brain. Read more.

• Blippar, a UK-based image-recognition platform for brands, has raised $54 million in Series D funding led by Malaysia’s state-run Khazanah Nasional Berhad. Returning shareholders include Qualcomm Ventures and Landsdowne Partners. Read more.

• Influitive, a Toronto-based advocate marketing startup, has raised $8.2 million in new Series B funding. The round total is now $38.7 million. Leaders Fund and Export Development Canada led the extension, and were joined by return backers Georgian Partners, Relay Ventures, BDC Capital IT Venture Fund and OurCrowd,

• WellDoc, a Baltimore-based maker of a diabetes management app, has raised $7.5 million in new Series B funding from Johnson & Johnson, as part of a broader strategic agreement. This brings the Series B round total to $29.5 million, including an earlier close led by Samsung Ventures.

• Eight (f.k.a. Luna), a New York-based maker of smart mattress covers, has raised $6 million in seed funding. Backers include Y Combinator, Yunqui Partners, Azure Capital, Cota Capital, Comcast Ventures, Vast Ventures, Stanford University and Galvanize Ventures.

• Appvance, a San Jose, Calif.-based unified enterprise software and application testing platform, has raised $5 million in VC funding led by Javelin Venture Partners.

• Bandar Foods, a Philadelphia-based maker of Indian-inspired snacks and condiments, has raised $2 million in seed funding from ACP, AccelFoods, Volta Global and Karl Ulrich.

• Carsome, a Malaysia-based marketplace that matches car buyers and sellers, has raised $2 million in Series A funding. IdeaRiverRun led the round, and was joined by 500 Startups and IMG Investment Partners.

• Jobbatical, an Estonia-based global tech jobs marketplace, has raised $2 million in VC funding. Union Square Ventures led the round, and was joined by LocalGlobe and return backer Smartcap. Read more.

• MedyMatch Technology, an Israeli developer of AI solutions for the medical imaging market, has raised $2 million in seed funding from Genesis Capital and Exigent Alternative Capital.


• Apollo Global Management, The Blackstone Group and Madison Dearborn each have reached the final round of bidding for a group of assets being sold by beverage can makers Ball Corp. (NYSE: BLL) and Rexam PLC (LSE: REX) ― to facilitate the former’s purchase of the latter ―  according to Reuters. The final deal could be worth between $3 billion and $4 billion, with Irish packaging conglomerate Ardagh Group also reported to be preparing a bid. Read more.

• Duke Street Capital has led an acquisition of Medi-Globe, a German maker of medical devices focused on gastroenterology and flexible endoscopy. Other members of the purchasing group included DB Private Equity, Atnahs Capital, Brederode and Harwood Capital. Sellers included venture firm GUB Wagniskapital. No financial terms were disclosed, but eFinancial News put the price tag at between €100 million and €150 million. Read more.

• eSolutions Inc., an Olathe, Kansas-based provider of healthcare technology and analytics solutions, has acquired ClaimRemedi, a Santa Rosa, Calif.-based provider of billing systems and clearinghouse services for the healthcare industry. No financial terms were disclosed. eSolutions is backed by Francisco Partners.

• Quantros Inc., a Milpitas, Calif.-based provider of enterprise safety risk management solutions to the healthcare industry, has acquired Comparion Medical Analytics, a Greenville, S.C.-based healthcare information services company. No financial terms were disclosed. Quantros is backed by Francisco Partners and Ascension Partners.

• Searchlight Capital Partners has acquired a majority equity stake in 160over90, a branding and creative services agency with offices in Philadelphia, Newport Beach, Calif. And Gainesville, Florida. No financial terms were disclosed.


• Ratos AB has retained banks ABG Sundal Collier and SEB to advise it on a flotation or sale of ArcusGruppen, a Norwegian wine and spirits retailer that had around $286 million in 2015 revenue, according to Reuters. Read more.


• Actis has sold its minority equity stake in Chinese budget hotel chain Plateno Hotel Group (f.k.a. 7 Days Inn) to Shanghai JinJiang International Hotels Development at an overall enterprise value of around $1.53 billion.

• Actis has agreed to sell Emerging Markets Payments, a South Africa-based provider of electronic payment services in Africa and the Middle East, to Network International for an undisclosed amount.

• Centre Lane Partners has agreed to sell New York-based publisher Perseus Books Group to Hachette Book Group for an undisclosed amount. Greenhill & Co. managed the process.

• EQT Partners is seeking a buyer for Atos Medical AB, a Sweden-based maker of medical devices to treat ear, nose and throat conditions, according to the WSJ. A deal could be valued at around €1 billion. Read more.


• Ant Financial, the financial affiliate of Alibaba Group (NYSE: BABA), is in talks to invest in Chinese business magazine publisher Caixin Media, according to Bloomberg. Alibaba previously agreed to purchase the South China Morning Post newspaper. Read more.

• SABMiller (LSE: SAB) has agreed to sell its 49% stake in Snow, the world’s best-selling beer, to existing majority shareholder China Resources Beer for around $1.6 billion. The divestiture is aimed at helping SABMiller gain approval for its takeover by Anheuser-Busch InBev. Read more.


• WL Ross & Co. is raising its sixth flagship fund, according to a regulatory filing. No target was listed.


• H.I.G. Capital has promoted both John Von Bargen and Todd Ofenloch to managing directors in its U.S. leveraged buyout group.

• Benjamin Lehrer has joined New York-based financial consultancy Accordian Partners as a Houston-based partner. He previously founded First Water Advisors and, before that, spent time on the private equity team at Fortress Investment Group.

• Brennan Libbey has joined Livingstone as a Los Angeles-based partner, and head of the investment bank’s U.S. business services and West Coast teams. He previously led the business and tech services group at UBS.

• Tom Schramkowski has joined Seyfarth Shaw LLP as an Atlanta-based partner in the law firm’s corporate practice. He previously was a corporate partner focused on M&A with Troutman Sanders LLP.

• Trinity Ventures has promoted Matthew Goldstein to principal. He joined the firm in 2013 as an associate.

• Archie Yaffe has joined GI Partners as its first operating principal, with a focus on supporting portfolio companies. He previously was a principal with Lee Equity Partners.

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