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Term Sheet — Thursday, August 18

Random Ramblings

Jonathan Costello has quietly resigned as managing director and head of secondaries private equity for Morgan Stanley, even though he was leading a $1 billion-targeted fundraise for a GP restructuring fund. Word is that his next stop will involve moving from the buy-side to the sell-side, as a partner with Park Hill Group (the alternatives placement agency that spun out of Blackstone via the PJT Partners formation).

Costello’s role at Park Hill will, in part, be to fill the shoes left by the fired Andrew Casperson, whose own shoes soon will be prison-issued.

No word yet on what this means for the Morgan Stanley fundraising (which is said to have secured at least a couple hundred million in commitments), as neither Costello nor anyone else at the firm returned requests for comment (Park Hill also declined).

Costello joined Morgan Stanley Investment Management at the beginning of 2014, before which he led private equity secondaries at  Susquehanna International Group. Other stops during his 22-year career have included SSG Capital Advisors and Safeguard Scientifics.

• Speaking of secondary stuff: Gerald Cooper has stepped down as global co-head of secondary market advisory at UBS, as we first reported yesterday on the site. He had been a New York-based executive with the Swiss bank since 2004, and had helped lead its private equity secondaries banking group since 2013.

Cooper’s last day at UBS was this past Monday, although he remains listed on the firm’s website. There is no word on if Cooper will be replaced, or if fellow co-head Philip Tsai will assume full management of the group, which helps institutional investors find buyers for private equity assets.

Multiple sources say that Cooper’s next stop will be private markets advisory firm Campbell Lutyens, after a couple months of “garden leave.” He will remain based in New York, where London-based Campbell Lutyens is in the process of significantly expanding its team via both new hires and relocations. No comment from any of the relevant parties, natch.

• Capital calendar: Wal-Mart reported Q2 earnings this morning, but didn’t say too much about its pending Jet.com acquisition. Probably because Wal-Mart doesn’t actually have an analyst call where it responds to actual questions (it’s good to be the king, apparently).

One item worth noting, however, was that Wal-Mart plans to close on the deal “near the beginning of the fourth quarter of FY 2017.” For Wal-Mart, that quarter kicks off at the beginning of this November.

The reason that matters is that Jet held a first close on its giant Series B round on Nov. 24, 2015 (per a Fidelity report, which excludes roll-over from investors who came in via a prior bridge financing). A second close came in January. If Wal-Mart completes the deal, say, on November 10 — then all of those new Series B investors will be stuck paying ordinary income on their profits from the $3 billion cash sale, rather than capital gains (which require at least a year of hold-time for preferable rates).

• Email glitch: Mary Meeker is not leaving Kleiner Perkins, where she leads the firm’s digital growth practice (which just raised a large new fund). If that sounds obvious, then you weren’t following my Twitter account yesterday, which noted how emails to Meeker bounced back with a message saying that she was moving on “to embark on a new adventure.” Seems Meeker was simply on vacation and her emails were behind auto-forwarded to a former assistant who, indeed, has left KPCB.

• Hold up: You’re not following my Twitter account? Rectify that situation immediately. (please).

 

THE BIG DEAL

• Nutrinia Ltd., an Israeli developer of an oral formulation of insulin for intestinal malabsorption in preterm newborns and SBS in infants, has raised $30 million in Series D funding. TPG Biotech led the round, and was joined by HIG BioHealth Partners, WuXi Health Ventures and return backers like OrbiMed Advsors and Pontifax. www.nutrinia.com

VENTURE CAPITAL DEALS

• ID Experts, a Portland, Ore.-based provider of software and services for cyber breach and identity fraud protection, has raised $27.5 million in new VC funding. Peloton Equity and Trident Capital Cybersecurity co-led the round, and were joined by return backers BlueCross BlueShield Venture Partners and the Sandbox Advantage Fund. www.idexpertscorp.com

• Avelas Biosciences Inc., a San Diego-based developer of targeted cancer therapeutics, has raised $20 million in Series C funding. Pharmstandard International led the round, and was joined by Ervington Investments, Alexandria Venture Investments and return backers Avalon Ventures, Bregua Corp. and WuXi Healthcare Ventures. Read more.

• NextHealth, a Denver-based healthcare analytics platform aimed at reducing costs for insurers, has raised $8.5 million in Series A funding from Norwest Venture Partners. Read more.

• VUV Analytics Inc., an Austin, Texas-based developer of vacuum ultraviolet absorption spectroscopy, has raised $6.5 million in Series B funding. New Science Ventures led the round, and was joined by S3 Ventures. www.vuvanalytics.com

• DriveTribe, a London-based digital media platform focused on “motoring and adventure,” has raised $5.5 million in Series A funding. Breyer Capital led the round and was joined by Atomico and individual angels. www.drivetribe.com

• Happify, a New York-based provider of emotional wellbeing and mental health software, has raised $5 million in VC funding from Marketplace Fund II and Hills Capital. www.happifyhealth.com

• ZeroCater, a San Francisco-based corporate catering startup, has raised $4.1 million in new VC funding from Romulus Capital and Struck Capital. The deal was done at a valuation north of $100 million. www.zerocater.com

• Netlify, a startup for building, deploying and hosting static sites or apps that is integrated with GitHub, has raised $2.1 million in VC funding from Bloomberg Beta and Tank Hill Ventures. Read more.

• Instavest, a social investing platform, has raised $1.7 million in seed funding from backers like Y Combinator and Cherubic Ventures. Read more.

PRIVATE EQUITY DEALS

• ARCOS, a SaaS platform for utility repair crews, has acquired SAMsix, a provider of mobile damage assessment software and crew location services for utilities. No financial terms were disclosed. ARCOS is owned by The Riverside Company. www.riversidecompany.com

• Genoa, a Tukwila, Wash.-based portfolio company of Advent International, has acquired the Behavioral Health and Residential Care Services division of Advanced Care, including 13 pharmacies in Michigan. No financial terms were disclosed for the deal, which is expected to close next month. www.genoa-qol.com

• Institutional Shareholder Services, a portfolio company of Vestar Capital Partners, has acquired iiWisdom, a San Francisco-based provider of interactive governance solutions for companies and their institutional investors. Sellers include Schooner Capital. Read more. www.iiwisdom.com

IPOs

• Aritzia LP, a Canadian women’s fashion retailer backed by private equity firm Berkshire Partners, has filed for an IPO on the Toronto Stock Exchange.  CIBC, BofA Merrill Lynch Canada and TD Securities are serving as underwriters. Read more.

EXITS

• Enlightenment Capital has sold Vistronix, a Reston, Va.-based provider of national security systems and services to intelligence, federal civilian and defense agencies, to a wholly-owned subsidiary of Arctic Slope Regional Corp. No financial terms were disclosed. www.asrc.com

• Golden Gate Capital has agreed to sell Phillips-Medisize Corp., a Hudson, Wis.-based provider of outsourced design and manufacturing services for the medical industry, to Molex LLC, an interconnect solutions manufacturer owned by Koch Industries. No financial terms were disclosed. www.phillipsmedisize.com

• Golden Gate Capital is exploring sale options for Clover Technologies, a Hoffman Estates, Ill.-based collector and recycler of cellphones and empty printer cartridges, according to Reuters. A deal could value Clover at around $1.5 billion, with Morgan Stanley running the process. Read more.

OTHER DEALS

• American Apparel, a Los Angeles-based teen clothing retailer that emerged from Chapter 11 bankruptcy six months ago, has hired Houlihan Lokey to explore a sale, according to Reuters. Read more.

• Daetwyler Holding of Switzerland said that it will not raise its £792 million bid for Premier Farnell PLC (NYSE: PFL), a British maker of the Raspberry Pi mini-computer, making it likely that Avnet (NYSE: AVT) will win the deal. Read more.

• Gannett Co. (NYSE: GCI) has sweetened its existing (and rejected) $15 per share takeover offer for Tronc Inc., publisher of the Los Angeles Times and Chicago Tribune, according to the WSJ. Read more.

• Merck & Co. (NYSE: MRK) has submitted an indication of interest in buying Medivation (Nasdaq: MDVN), a San Francisco-based cancer drug company currently valued at $11 billion, according to Reuters. Medivation said earlier this summer that it is open to a possible acquisition, after having previously rejected a $9.3 billion bid from Sanofi (which remains one of five drug companies, including Merck, to have expressed interest this time around). Read more.

• Uber has acquired Otto, a developer of self-driving technologies for trucks, according to Bloomberg. No financial terms were disclosed. Read more.

 

• United Bankshares Inc. (Nasdaq: UBSI) is in talks to buy rival commercial and consumer lender Cardinal Financial Corp. (Nasdaq: CFNL) in an all-stock transaction, according to Reuters. Cardinal has a current market cap of around $884 million. Read more.

FIRMS & FUNDS

• Goldman Sachs Alternative Investments has acquired a minority stake in the management company of Connecticut-based private equity firm Littlejohn & Co. No financial terms were disclosed. www.littlejohnllc.com

MOVING IN, ON & UP

• Mauro Rossi has joined Perella Weinberg Partners as a managing director in its advisory business. He also will be a member of the firm’s financial institutions group. He previously was with Morgan Stanley as an executive director focused on M&A in the insurance industry. www.pwpartners.com

Kassie Taylor has joined THL Credit Advisors as a director focused on business development, product development and marketing. She previously was with Graycliff Partners. www.thlcredit.com

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