July 12th, 2018

TD to buy Greystone, adding $27 billion at asset-management unit

Toronto-Dominion Bank agreed to acquire Greystone Capital Management in a push to become the largest Canadian money manager.

TD Bank signage

Bloomberg News

Greystone shareholders will receive cash and stock for a net purchase price of C$792 million ($603 million), according to a Tuesday statement. The purchase, if approved, would grow TD’s asset-management’s unit by C$36 billion in assets under management, making it the nation’s biggest, the bank said.

Amid growing consolidation in the money-management industry, the move would bring TD’s total to about C$393 billion under management. Greystone will take on the name TD Greystone Asset Management while continuing to operate out of Regina, Saskatchewan.

“Greystone’s high quality team will bring its strengths in fixed income, equities and real asset investing,” TD Asset Management Chief Executive Officer Bruce Cooper said in the statement.

Under the proposed deal, Greystone shareholders would receive 30 percent to 50 percent of the net purchase price in TD common shares, with the remainder in cash.

Bloomberg News

July 11th, 2018

M&A daily wrap: Oprah Winfrey, Centerbridge, True Food Kitchen, Thoma Bravo, Centrify, Exponent Exchange


Bloomberg News

Media mogul Oprah Winfrey has made an equity investment in True Food Kitchen, a portfolio company of Centerbridge Partners, and has joined the restaurant chain’s board of directors. “I love bringing people together over a good meal,” Winfrey said in a statement. “When I first dined at True Food Kitchen, I was so impressed with the team’s passion for healthy eating and, of course, the delicious food, that I knew I wanted to be part of the company’s future.” True Food’s menu “emphasizes wholesome, simple ingredients with thoughtful preparations to highlight the natural health benefits and flavors of each ingredient,” according to the company. Offerings include edamame dumplings, ancient grains with miso-glazed sweet potatoes and organic Tuscan kale salad. “When Ms. Winfrey and I first sat down to discuss her potential investment, I was impressed by her genuine passion for the intention behind True Food,” says Christine Barone, CEO of the restaurant chain. “My hope is that her passion and investment will continue to develop our growing brand to allow even more guests to experience a better way of eating.” Phoenix-based True Food operates 23 restaurants in 10 states. The company expects to double its store count in the next three years by focusing on the New York, New Jersey and North Carolina markets. Centerbridge is keeping a majority stake in True Food. Restaurants are scrambling to meet demands from diners who want cuisine they believe is healthy, responsibly-sourced and budget-friendly. Restaurants that meet those needs are attracting buyers. For example, Bain Capital Double Impact recently invested in vegan restaurant chain By Chloe.

Thoma Bravo is acquiring a majority stake in cybersecurity firm Centrify from venture capital backers, led by Mayfield, Accel Partners, Jackson Square Ventures and Index Ventures. Centrify manages cybersecurity risks by verifying users, validating their devices, and limiting their access and privileges. Compromised user identity is the leading type of cybersecurity attack, according to the 2018 Verizon Data Breach Investigations Report. “Having invested successfully several times in the identity market, we’ve known and watched Centrify as a leader for many years, and we absolutely share the company’s vision on where the market is headed,” says Thoma Bravo partner A.J. Rhode. Barclays and Sidley Austin are advising Centrify. Kirkland & Ellis is representing Thoma Bravo. Golub Capital is providing financing.

Exponent, a networking group for women dealmakers that launched in 2017, is gearing up for its first marquee event, called Exponent Exchange, on July 12. The keynote speaker is Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is now the CEO of Ellevest, an online investing website aimed at women. Additional speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Janet Cowell, CEO, Girls Who Invest; Mary Kathleen Flynn, editor-in-chief,Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); Natalia Oberti Noguera, founder and CEO, Pipeline Angels; Thu Do, chief product officer, Tastemakers Africa; and Adrianne Shapira, managing director, Eurazeo Brands. Underscoring enthusiasm for initiatives aimed at women, sponsors of the event include leading dealmaking companies, such as Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal news
Toronto-Dominion Bank is acquiring Greystone Capital Management in a push to become the largest Canadian money manager. Read the full story: TD to buy Greystone, adding $27 billion at asset-management unit.

TA Associates is investing in Compusoft, a provider of computer-aided design software to the kitchen and bathroom retail industries. The target’s systems include databases of graphic elements, pricing information and language translations from more than 2,800 digital manufacturer catalogs. Goodwin, Alvarez & Marsal and KMPG are advising TA. Kvale and ABG Sundal Collier are advising Compusoft.

The Riverside Co. has purchased a minority stake in Sreenvision from Abry Partners. Sreenvision offers on-screen theater advertising, in-lobby promotions and marketing programs to national, regional and local advertisers. Jones Day represented Riverside.

Industrial Opportunity Partners has merged portfolio companies Betty Machine Co. and GT Technologies Inc. Betty is a precision machining manufacturer of automotive parts, and GT is a supplier of gasoline and diesel engine parts.

Highview Capital has acquired food service distributor Good Source Solutions from Evergreen Pacific Partners. Good Source works with the education, non-profit, and healthcare sectors.

Conifex Timber Inc. has bought Suwannee Lumber Co. and Caddo River Forest from Blue Wolf Capital Partners.

People Moves
Zade Zalatimo has joined Houlihan Lokey Inc. (NYSE: HLI) as a managing director. Most recently with the Carlyle Group LP (Nasdaq: CG), Zalatimo is helping Houlihan’s advisory services in Dubai.

Hidehito Kanai has joined accounting firm SingerLewak as a partner in the assurance and advisory practice, based in the Torrance, California, office. Kanai previously worked in real estate and fund administrative businesses.

Featured content
Private equity firms are more active in the public sector than they were a couple of years ago, Brian Miller, the CFO of Tyler Technologies Inc. (NYSE: TYL), tells Mergers & Acquisitions. The company’s $150 million deal for data service company Socrata probably will not be the company’s last. Tyler has completed more than 40 acquisitions in the past decade. Read the full story: Tyler Technologies sticks with M&A strategy, despite PE competition.

Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here’s a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion‘s Rishi Jain and Anthony Horvat: 6 strategies to turn an underperformer into a “mudder.”

Huron Capital’s new Flex Equity Fund resonates with companies that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says partner Douglas Sutton in this video interview shot at ACG InterGrowth 2018. The Detroit firm won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

As the dominoes start to fall and momentum builds, timing will matter to investors in cannabis, writes Jeffrey Howard, managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, in a guest article. For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape, says Howard. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition. Read the full story: How to seize M&A opportunities in marijuana’s gray market.

Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.

July 11th, 2018

Groupon is reportedly seeking buyers

Groupon Inc. surged in premarket trading after a report that the discount-slinging website is actively seeking a buyer.


Bloomberg News

The merchandise and voucher vendor has approached several public companies in recent weeks to try to drum up interest in a sale, Recode reported on Saturday, citing two people it said were briefed on the effort and without identifying the companies involved.

Chicago-based Groupon’s shares rose as much as 12 percent before the start of regular trading in the U.S. The stock closed Friday at $4.36 in New York.

A sale would mark the end of a saga for investors who have seen Groupon shares fall more than 80 percent from the peak after their 2011 initial offering, including a 15 percent drop this so far this year. While Chief Executive Officer Rich Williams has been trying to marshal a turnaround since taking over in late 2015, investors have long expected an acquirer to swoop in and cited companies such as Alphabet Inc., Facebook Inc., Apple Inc. and Amazon.com Inc. as potential buyers.

As part of its turnaround efforts, Groupon is refocusing on key markets and introducing new services that are gaining traction with consumers. They include a streamlined mobile app and Groupon+, which lets users get cash back by linking their credit cards to their Groupon accounts. As of Friday, its stock-market value was about $2.46 billion.

Those initiatives haven’t yet resulted in sustained revenue gains. Analysts have said Groupon needs to demonstrate strong revenue growth to become a robust acquisition target. Meanwhile, it faces strong competition from other sites with ties to local merchants, such as Yelp. Two years ago, it acquired its closest competitor, LivingSocial.

Bloomberg News

July 10th, 2018

M&A daily wrap: Pillsbury, Smucker, Brynwood, Sportradar, CPPIB, TCV, EQT, Sallie Krawcheck


Bloomberg News

Brynwood Partners has agreed to acquire a portfolio of brands from the J.M. Smucker Co. (NYSE: SJM) for $375 million. The portfolio includes the exclusive U.S. rights to the well-known Pillsbury brand’s shelf-stable baking products, along with the Hungry Jack, White Lily, Jim Dandy and Martha White brands. The Pillsbury brand is a household name, in part due to the popularity of its advertising mascot, the giggling Poppin’ Fresh character, also known as the Pillsbury Doughboy. The Pillsbury brand license agreement is a royalty-free, perpetual agreement with General Mills Inc. (NYSE: GIS), encompassing all U.S. shelf-stable baking products, including flour, dry baking mixes and ready-to-spread frosting, in the retail channel. The transaction also includes the 650,000 square foot manufacturing facility in Toledo, Ohio, and is expected to close in the third quarter of 2018, subject to customary U.S. regulatory review. Smucker bought Pillsbury as part of its 2004 acquisition of International Multifoods Corp. “The deal added an array of so-called center-of-the-store brands, including muffin mixes and frostings, to its portfolio,” Bloomberg News points out. “More recently, the drive toward healthy-eating has drawn consumers to the perimeter of grocery stores in search of fresh produce and less processed foods. This shift in taste and habits has challenged U.S. consumer-packaged food companies and cut into growth for many large, well-known brands.” Smucker’s flour, baking ingredients, baking mixes and frosting businesses have lagged, together accounting for about 5 percent of revenue in fiscal 2017, down from about 10 percent in 2014, according to data compiled by Bloomberg. Brynwood, based in Greenwich, Connecticut, specializes in corporate carve-outs. “This is a hallmark deal for Brynwood Partners and marks the 52nd brand acquisition from the 19th corporate seller across our long history,” says Brynwood president Ian MacTaggart. Brynwood did not retain an investment bank but was advised by Holland & Knight LLP on legal matters.

The Canada Pension Plan Investment Board (CPPIB), through its subsidiary, CPP Investment Board Europe S.à r.l., and Silicon Valley-based growth equity firm TCV together are acquiring a minority stake in sports data provider Sportradar from private equity firm EQT and minority shareholders. The deal values the St. Gallen, Switzerland-based company at EUR 2.1 billion ($2.4 billion). Carsten Koerl, founder and CEO, is retaining his entire majority stake and will continue to drive its future development and growth. EQT is also reinvesting a portion of its sale proceeds into Sportradar. Additional existing shareholders include: basketball legend Michael Jordan; Ted Leonsis, owner of the National Hockey League’s Washington Capitals; Mark Cuban, owner of the National Basketball Association’s Dallas Mavericks; and venture capital firm Revolution Growth, founded by Leonsis and America Online co-founder Steve Case.

Exponent, a networking group for women dealmakers that launched in 2017, is gearing up for its first marquee event, called Exponent Exchange, on July 12. The keynote speaker is Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is now the CEO of Ellevest, an online investing website aimed at women. Additional speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Janet Cowell, CEO, Girls Who Invest; Mary Kathleen Flynn, editor-in-chief,Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); Natalia Oberti Noguera, founder and CEO, Pipeline Angels; Thu Do, chief product officer, Tastemakers Africa; and Adrianne Shapira, managing director, Eurazeo Brands. Underscoring enthusiasm for initiatives aimed at women, sponsors of the event include leading dealmaking companies, such as Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal news
AE Industrial Partners has closed its second private equity fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments. The fund will make control investments in technical manufacturing, distribution and supply chain management, MRO (maintenance, repair and overhaul), and industrial service-based businesses. “With our deep operating expertise and valuable relationships in these sectors, we are well positioned to uncover unique opportunities and create value for our investors,” says AEI managing partner Michael Greene. Eaton Partners served as AEI’s placement agent, and Kirkland & Ellis provided legal advice.

Palladium Equity Partners has invested in Spice World, a supplier of garlic and other flavorings under the Spice World brand. Deloitte Corporate Finance and Moore & Van Allen advised Spice World. Piper Jaffray (NYSE: PJC), Kirkland & Ellis and Simpson Thacher & Bartlett advised Palladium.

LLR Partners has sold IO Education to Insight Venture Partners-backed Illuminate Education. IO Education is a Software-as-a-Service provider of student data and professional management services. Harris Williams & Co. advised IO Education.

Core Industrial Partners-backed Prototek Sheetmetal Fabrication LLC has acquired Hayes Manufacturing Services, a manufacturer of of precision-machined plastic and metal parts. Winston & Strawn represented Core and Prototek. Monroe Capital provided financing.

Canon Inc. has bought BriefCam, a provider of video synopsis and deep learning services. The deal expands Canon’s offerings in network cameras, video management software and video content analysis software. Shea & Co. advised BriefCam.

Featured content
Private equity firms are more active in the public sector than they were a couple of years ago, Brian Miller, the CFO of Tyler Technologies Inc. (NYSE: TYL), tells Mergers & Acquisitions. The company’s $150 million deal for data service company Socrata probably will not be the company’s last. Tyler has completed more than 40 acquisitions in the past decade. Read the full story: Tyler Technologies sticks with M&A strategy, despite PE competition.

Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here’s a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion‘s Rishi Jain and Anthony Horvat: 6 strategies to turn an underperformer into a “mudder.”

Huron Capital’s new Flex Equity Fund resonates with companies that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says partner Douglas Sutton in this video interview shot at ACG InterGrowth 2018. The Detroit firm won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

As the dominoes start to fall and momentum builds, timing will matter to investors in cannabis, writes Jeffrey Howard, managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, in a guest article. For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape, says Howard. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition. Read the full story: How to seize M&A opportunities in marijuana’s gray market.

Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 10th, 2018

Despite PE competition, Tyler Technologies will stick with M&A strategy

“We want to acquire companies that will increase our competitive position," Tyler Technologies CFO Brian Miller.

“We want to acquire companies that will increase our competitive position,” Tyler Technologies CFO Brian Miller.

Photo credit: Tyler Technologies

“Private equity is more active in the public sector space from a couple of years ago,” says Brian Miller, the CFO of Tyler Technologies Inc. (NYSE: TYL).

The company’s $150 million deal for data service company Socrata probably will not be the company’s last. Tyler has completed over 40 acquisitions in the past decade, according to Miller.

The public sector software space is attractive to companies like Plano, Texas-based Tyler because government agencies typically hold on to old software systems longer than most companies and are slower to replace them.

Socrata, headquarted in Seattle, provides cloud-based data integration, visualization, analysis, and reporting services to state, local and federal government agencies to help them improve performance, increase accountability, gain better financial insights, and extend citizen engagement. “Anything in the public software space is of interest to us. Anything is fair game,” says Brian Miller. “We want to acquire companies that will increase our competitive position.”

In 2017, Veritas Capital paid $690 million for Harris Corp.’s (NYSE: HRS) government information technology division. The business offers communications, engineering, and IT services for intelligence, defense and federal civilians. In addition, the target supports NASA’s Space Communications Network and Deep Space Network programs. Veritas is a New York-based private equity firm investing primarily in companies that provide technology-enabled products and services to government and commercial clients. In that same year, H.I.G Capital bought NIC Inc., which provides data analytics, engineering and logistics, cybersecurity, and IT infrastructure optimization to U.S. defense, intelligence, health and civilian government agencies, for $283 million.

In May 2018, Tyler acquired cybersecurity company Sage Data Security. Portland, Maine-based Sage offers education and training, threat detection, technology testing, advisory services, and digital forensics. The company works with companies in the education and government sectors.

Tyler’s technology is aimed to automate and support mostly all processes in government, ranging from 911 dispatch to courts and jails, as well as permits and business licenses. The company serves more than 15,000 organizations.

In 2015, Tyler paid $670 million for Troy, Michigan-based New World Systems. a software maker for dispatch centers, paramedics, police officers, firefighters and other emergency personnel that help them reduce response times. New World’s other product is Logos, which is designed to assist government and public agencies with their financial matters.

“We don’t have any quotas on deals. We’re pretty disciplined,” Miller concludes.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 9th, 2018

M&A daily wrap: Madison Capital, Christopher Taylor, Groupon, Exponent Exchange, Sallie Krawcheck, Pipeline Angels


Photo credit: Madison Capital Funding

Christopher Taylor has stepped into the role of chief executive officer of Madison Capital Funding, a subsidiary of New York Life Insurance Co., effective July 1. The promotion from managing director was announced in January, as part of the lender’s long-term succession plan. Taylor joined Madison Capital in 2005, holding various positions in underwriting, portfolio management and distressed credit. In 2015, he ascended to the executive level, running the business development team and joining the investment committee and senior leadership team. Taylor has overseen growth in general industries, healthcare, insurance and financial services and led the firm’s expansion into software and technology in 2016. He also led the strategy in growing the firm’s third-party asset management business and focused on expanding the investor base in Asia, Europe and the Middle East. “As the firm moves into its next phase of growth, we are confident Chris brings the energy, knowledge and experience needed to capitalize on today’s strong industry fundamentals, and to continue to deliver strong outcomes for our clients,” said Yie-Hsin Hung, chief executive officer of New York Life Investment Management, in a statement. “In a highly competitive environment, private equity sponsors will increasingly need access to the in-depth industry expertise, decades of experience and solid financial backing that Madison Capital Funding is known for,” said Taylor. “I am fortunate to be surrounded by one of the most talented team of professionals in our industry who will work collaboratively to continue to drive our business forward for many years to come.” Taylor succeeded Hugh Wade as CEO. Wade, who co-founded the firm in 2001, is now serving as chairman until his upcoming retirement in December. Over the last five years, Madison Capital’s portfolio of assets under management has grown about 42 percent, standing at $9.5 billion at the end of the first quarter. In 2017, the firm did business with 17 new sponsors, bringing the total to 287. For more on the firm’s strategy, read our Q&A with Jennifer Cotton, Abundance of capital drives highly competitive loan process, says Madison Capital’s chief underwriter, and watch Investors from all over the globe are attracted to private debt, says Madison’s Sunil Mehta.

Exponent, a networking group for women dealmakers that launched in 2017, is gearing up for its first marquee event, called Exponent Exchange, on July 12. The keynote speaker is Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is now the CEO of Ellevest, an online investing website aimed at women. Additional speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Janet Cowell, CEO, Girls Who Invest; Mary Kathleen Flynn, editor-in-chief, Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); Natalia Oberti Noguera, founder and CEO, Pipeline Angels; Thu Do, chief product officer, Tastemakers Africa; and Adrianne Shapira, managing director, Eurazeo Brands. Underscoring enthusiasm for initiatives aimed at women, sponsors of the event include leading dealmaking companies, such as Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal news
Groupon Inc. (Nasdaq: GRPN) has approached several public companies recently, including Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL), Facebook Inc. (Nasdaq: FB) and Alphabet Inc. (Nasdaq: GOOGL), to drum up sale interest, according to Bloomberg News. Recode first reported the developments on July 7, citing two people it said were briefed on the effort and without identifying the companies involved.

Arlington Capital Partners-backed Cadence Aerospace has acquired Perfekta Inc., a provider of metal, aluminum and structural parts for the aerospace, defense and space industries. Houlihan Lokey Inc. (NYSE: HLI) advised Perfekta. SunTrust Robinson Humphrey advised Arlington and Cadence.

Highlander Partners has purchased Queen City Candy Inc., a producer of gummies, jellies and fruit snacks. “QCC’s capabilities extend beyond regular confection products, and we believe that we can capitalize on the industry trends and the uniqueness of the company’s assets while pursuing gummy vitamin and other confection and wellness strategies over the next few years,” says Highlander managing partner Jeff Hull.

Arsenal Capital Partners-backed Carolina Color Corp. has purchased Chroma Corp. The target is a color and additive concentrate business that serves the packaging and electronics sectors, among others.

Ardian is buying a majority stake in Corob SpA. Wise SGR is investing alongside Ardian. Corob supplies automated services that are used in the production and distribution of paints and coatings, inks and chemical substances.

For a roundup of recent M&A announcements, read: The weekly wrap: Perry Ellis, Hunter Douglas, Jennifer Convertibles and more.

For news of private equity firms marketing new funds, read: PE fundraising scorecard: Aterian, Beekman, Carlyle, Estancia, Riverside Partners.

People Moves
Mike Anderson has been named head of investor relations at CVC Credit Partners, the credit management business of CVC. Anderson was most recently the head of investor relations at Pemberton Asset Management.

Paul Tropp was hired by Ropes & Gray’s New York office as a partner. Previously with Freshfields Bruckhaus Deringer LLP, Tropp represents issuers and underwriters in initial and follow-on public offerings and selling shareholder deals. He also represents independent boards of directors and financial advisors in M&A.

Jane Greyf has joined Latham & Watkins as a partner. Most recently with Goodwin, Greyf represents private equity firms and their portfolio companies on M&A.

To see which firms are hiring and promoting, including Lovell Minnick Partners and LLR Partners, read: People moves: Joan Binstock, Lovell Minnick, Seth Friedman, Global Bankers Capital, Cary Burch, LLR.

Featured content
Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here’s a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion‘s Rishi Jain and Anthony Horvat: 6 strategies to turn an underperformer into a “mudder.”

Huron Capital’s new Flex Equity Fund resonates with companies that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says partner Douglas Sutton in this video interview shot at ACG InterGrowth 2018. The Detroit firm won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

As the dominoes start to fall and momentum builds, timing will matter to investors in cannabis, writes Jeffrey Howard, managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, in a guest article. For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape, says Howard. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition. Read the full story: How to seize M&A opportunities in marijuana’s gray market.

Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 7th, 2018

The weekly wrap: Perry Ellis, Hunter Douglas, Jennifer Convertibles and more M&A deals

Target Acquirer Value ($millions) Synopsis Echelon Corp Adesto Technologies Corp 38.6 Adesto Technologies Corp definitively agreed to acquire the entire share capital of Echelon Corp, a San Jose-based manufacturer of computer peripheral equipment, for USD 8.5 in cash per share or a total of USD 38.609 mil. Metalogix Software Corp Quest Software Inc Quest Software Inc, a unit of Dell Inc, acquired Metalogix Software Corp, a Washington-based software publisher, from Permira Advisers LLP, owned by Permira Advisers Holdings Ltd. Ext Acquisitions Inc Windjammer Capital Investors LLC Windjammer Capital Investors LLC acquired Ext Acquisitions Inc, a San Mateo-based provider of financial investment services, via a leveraged buyout transaction. Flowroute Inc West Corp West Corp, a unit of Apollo Global Management LLC, agreed to acquire Flowroute Inc, a Seattle-based software publisher. Nbs-Calibrations Transcat Inc Transcat Inc acquired NBS Calibrations Inc, a Tempe-based provider of calibration services. Power Products Llc-Global Marine & Mobile Business Brunswick Corp 910.0 Brunswick Corp definitively agreed to pay USD 910 mil in cash to acquire the global marine & mobile business of Power Products Llc, a Menomonee Falls-based manufacturer of electronic components ultimately owned by Genstar Capital LLC. Boilerroom Equipment Inc Thermal Energy International Inc 2.6 Thermal Energy International Inc of Canada acquired the entire share capital of Boilerroom Equipment Inc, a firm that sells products for the commercial and industrial steam boiler industry, for USD 2.6 mil. The consideration consisted of USD 2.25 mil in cash and up to USD .35 mil in profit-related payments. Infield Digital LLC HS2 Solutions Inc HS2 Solutions Inc acquired Infield Digital LLC, a San Francisco-based provider of computer systems design services. Rake Inc Fusemachine Inc Fusemachine Inc acquired Rake Inc, a provider of custom computer programming services. Welltodo LLC Sensorrx Inc Sensorrx Inc acquired Welltodo LLC, a Prairie Village-based software publisher. Shooting Gallery Wines E & J Gallo Winery E & J Gallo Winery plans to acquire Shooting Gallery Wines, a winery. Digital Measures Watermark Watermark acquired Digital Measures, a software publisher. avectus LLC Cenero LLC Cenero LLC acquired avectus LLC, a Lebanon-based electrical contractor. Union Metrics Software Inc Trendkite Inc Trendkite Inc merged with Union Metrics Software Inc, a San Francisco-based software publisher. Blueknight Energy Partners LP-Asphalt Terminals(3) Ergon Asphalt & Emulsions Inc 90.0 Ergon Asphalt & Emulsions Inc, a unit of Ergon Inc, agreed to acquire 3 asphalt terminals of Blueknight Energy Partners LP, an Oklahoma City-based provider of pipeline transportation services of crude oil, for an estimated USD 90 mil. In Market Automotive LLC Crediready LLC Crediready LLC acquired In Market Automotive LLC, a Fullerton-based provider of nondepository credit intermediation services. Conway Plazaorlandoflorida New Market Properties LLC New Market Properties LLC, a unit of Preferred Apartment Communities Inc, acquired the Conway Plaza in Orlando. SmartAnalyst Inc UDG Healthcare PLC 24.0 Ireland’s UDG Healthcare PLC acquired SmartAnalyst Inc, a New York City-based provider of data processing and hosting services, for USD 24 mil. The consideration consisted of USD 18 mil in cash and up to USD 6 mil in profit-related payments. Concurrently, UDG acquired Create Group Nyc LLC. Casteel Heating & Cooling Inc Knight Air Conditioning & Heating Co Knight Air Conditioning & Heating Co merged with Casteel Heating & Cooling Inc, a Marietta-based provider of heating, ventilation & air conditioning (HVAC), electrical, or plumbing repairs or installations services, from Horizon Services Inc, ultimately owned by Sun Capital Partners Inc. RadiSys Corp Reliance Industries Ltd 68.1 Reliance Industries Ltd of India definitively agreed to acquire the entire share capital of RadiSys Corp, a Hillsboro-based manufacturer of computer peripheral equipment, for USD 1.72 in cash per share or a total of USD 68.129 mil. SBE Entertainment Group LLC Accor SA 125.0 Accor SA of France signed a letter of intent to acquire a 50% stake in SBE Entertainment Group LLC, a Los Angeles-based owner and operator of management and development firms, from Cain International for USD 125 mil. Mediaring.Com Inc Keshav Manglam Impex Pvt Ltd Keshav Manglam Impex Pvt Ltd (KMI) of India agreed to acquire the entire share capital of Mediaring.Com Inc, a Fremont-based telecommunications reseller, from S i2i Ltd for a nominal consideration of USD 1. Concurrently, KMI agreed to acquire a 60% stake in Peremex SDN BHD, Delteq Systems (M) SDN BHD, and Centia Pte Ltd. KMI was also granted an option to acquire the remaining 40% stake it does not already own in Premex, Delteq and Centia. Western Utility Contractors Inc Hylan Datacom & Electrical LLC Hylan Datacom & Electrical LLC acquired Western Utility Contractors Inc, a University Park-based electrical contractor, from Tetra Tech Inc. Concurrently, Hylan acquired Tetra Tech Utility Construction. Tetra Tech Utility Construction Hylan Datacom & Electrical LLC Hylan Datacom & Electrical LLC acquired Tetra Tech Utility Construction, which provides infrastructure construction services for utilities in the US and Canada, from Tetra Tech Inc. Concurrently, Hylan acquired Western Utility. Zeekee Inc Bell Media LLC Bell Media LLC acquired Zeekee Inc, a Birmingham-based advertising agency. Grand Canyon University Inc Gazelle University 853.1 Gazelle University acquired Grand Canyon University Inc, a Phoenix-based provider of educational support services, from Grand Canyon Education Inc for about USD 853.1 mil. NXT Capital LLC ORIX USA Corp ORIX USA Corp, a unit of ORIX Corp, definitively agreed to acquire NXT Capital LLC, a Chicago-based provider of sales financing services. AXM Pharma Inc AS Industries Cameroon AS Industries Cameroon of Cameroon agreed to acquire the entire share capital of AXM Pharma Inc, a Las Vegas-based manufacturer of pharmaceutical preparations, via a stock swap reverse takeover transaction. Upon completion, the merged entity will be known as Aaron Sparks Industries Inc. Atco Rubber Products Inc Mueller Industries Inc 162.8 Mueller Industries Inc acquired Atco Rubber Products Inc, a Fort Worth-based manufacturer of plastics pipes and pipe fittings, for an estimated USD 162.8 mil. Focus Four LLC Mood Media Corp Mood Media Corp, a unit of Mood Media Corp SPV, acquired Focus Four LLC, a Pelham-based display advertising agency, from Driehaus Private Equity LLC. Perry Ellis International Inc Randa Accessories Leather Goods LLC 444.3 Randa Accessories Leather Goods LLC offered to acquire Perry Ellis International Inc, a Miami-based apparel cutting and sewing contractor, for USD 28 in cash per share or a total of USD 444.276 mil in cash via an unsolicited offer. Originally, an investor group comprising George Feldenkreis and Fortress Investment Group LLC definitively agreed to acquire the remaining 89.196% stake or 14.174 mil common shares it does not already own in Perry. The board’s special committee reaffirmed its recommendation that shareholders vote for the Feldenkreis proposal. Gordian Group Inc Fortive Corp 775.0 Fortive Corp definitively agreed to acquire Gordian Group Inc, a Greenville-based provider of management consulting services, from Warburg Pincus LLC for an estimated USD 775 mil in cash. Edison Nation LLC Xspand Products Lab Inc 8.5 Xspand Products Lab Inc agreed to acquire the entire share capital of Edison Nation LLC, a Charlotte-based provider of marketing consulting services, for USD 8.542 mil via a stock swap transaction. The consideration was to consist of USD 0.85 mil in cash and the assumption of an undisclosed amount in liabilities and issuance of 0.99 mil common shares valued at USD 7.692 mil. The shares were valued at closing stock price of USD 7.77 on 29 June 2018, the last full trading day prior to the announcement. MWA Intelligence Inc Konica Minolta Business Solutions USA Inc Konica Minolta Business Solutions USA Inc, a unit of Konica Minolta Inc, acquired MWA Intelligence Inc, a Scottsdale-based software publisher. Health Special Risk Inc Brown & Brown Inc Brown & Brown Inc acquired Health Special Risk Inc, a Carrollton-based insurance agency. Motor Home Specialist LP RV Retailer LLC RV Retailer LLC acquired Motor Home Specialist LP, an Alvarado-based recreational vehicle dealer. Mustang Energy Services Inc Blue Wolf Capital Partners LLC Blue Wolf Capital Partners LLC acquired an undisclosed majority stake in Mustang Energy Services Inc, a Fort Worth-based provider of support services for oil and gas operations, via a leveraged buyout transaction. Bakercorp International Holdings Inc United Rentals Inc 715.0 United Rentals Inc agreed to acquire the entire share capital of Bakercorp International Holdings Inc, a New York-based provider of support services for oil and gas operations, for USD 715 mil. Shore Premier Finance Home BancShares Inc 402.7 Home BancShares Inc acquired Shore Premier Finance, an Elizabeth City-based provider of consumer lending services, from Union Bank & Trust Co, ultimately owned by Union Bankshares Corp, for USD 402.7 mil. The consideration consisted of USD 384.5 mil in cash and 1.25 mil Home common shares valued at USD 28.2 mil. The shares were valued based on Home’s closing stock price of USD 22.56 on 29 June 2018, the last full trading day prior to the announcement. Aquesta Insurance Services Inc NFP Corp NFP Corp, a unit of Madison Dearborn Partners LLC, acquired Aquesta Insurance Services Inc, a Cornelius-based insurance agency, from Aquesta Financial Holdings. Seventh Wave Laboratories LLC Bioanalytical Systems Inc Bioanalytical Systems Inc agreed to acquire Seventh Wave Laboratories LLC, a Maryland Heights-based testing laboratory. The Learning Experience Holding Corp Golden Gate Capital Inc Golden Gate Capital Inc acquired The Learning Experience Holding Corp, a Deerfield Beach-based school operator, via a leveraged buyout transaction. Symply Inc Global Distribution Group Global Distribution Group of the UK acquired Symply Inc, a Torrance-based manufacturer of computer storage devices. Precision X-Ray Inc DRMC X-RAY Inc DRMC X-RAY Inc acquired the entire share capital of Precision X-Ray Inc, a North Branford-based diagnostic imaging center operator. Tc Technology SSP Innovations LLC SSP Innovations LLC acquired TC Technology, a provider of computer systems design services. Bateman Community Living Elior Group SA Elior Group SA of France planned to acquire Bateman Community Living, a firm that offers catering and management services. Applied Defense Solutions Inc L3 Technologies Inc 50.0 L3 Technologies Inc acquired Applied Defense Solutions Inc, a Columbia-based software publisher, for an estimated USD 50 mil. Pink Adventure Tours Herschend Family Entertainment Corp Herschend Family Entertainment Corp acquired Pink Adventure Tours, a Sedona-based tour operator. Promident LLC Young Innovations Inc Young Innovations Inc, a unit of The Jordan Co LP, acquired Promident LLC, a Valley Cottage-based wholesaler of medical equipment and supplies. Noupe Jotform Inc Jotform Inc acquired Noupe, an internet portal operator. StudyBlue Inc Chegg Inc 20.8 Chegg Inc acquired StudyBlue Inc, a San Francisco-based internet portal operator, for an estimated USD 20.8 mil in cash. 128-bed French Hospital,Los Angeles,CA Investor Group 17.0 An investor group, comprising Apollo Medical Holdings Inc’s unit Network Medical Management Inc and Allied Physicians of California IPA acquired a 50% stake in Pacific Alliance Medical Center, a 128-bed hospital in Los Angeles from La Societe Francaise De Bienfaisance Mutuelle De Los Angeles (better known as the French Society) for USD 17 mil. Acxiom Corp-Acxiom Marketing Solutions Business Interpublic Group Of Cos Inc 2,300.0 Interpublic Group of Cos Inc definitively agreed to acquire Acxiom Marketing Solutions business (AMS) of Acxiom Corp (Acxiom), a Conway-based provider of data processing and hosting services, for USD 2.3 bil in cash. Originally, in February 2018, Acxiom announced that it was seeking a buyer for AMS, with Interpublic and Dentsu Corp named as potential bidders. Kremsa Digital Pastilla Institute Pastilla Institute acquired Kremsa Digital, an advertising agency. SPX Corp-Heat Transfer Business Godrej & Boyce Manufacturing Co Ltd Godrej & Boyce Manufacturing Co Ltd of India acquired heat transfer business of SPX Corp, a Charlotte-based manufacturer of metal forming machine tools. PLI Card Marketing Solutions Platinum Equity LLC Platinum Equity LLC acquired PLI Card Marketing Solutions, a North Las Vegas-based provider of commercial gravure printing services, via a leveraged buyout transaction. Huen Electric Inc MYR Group Inc 47.1 MYR Group Inc, a unit of ArcLight Capital Partners LLC, acquired Huen Electric Inc, a Broadview-based electrical contractor, for USD 47.1 mil. The transaction included Huen Electric New Jersey Inc and Huen New York Inc. Insurance Associates Inc Marsh & McLennan Agency LLC Marsh & McLennan Agency LLC, a unit of Marsh Inc, acquired Insurance Associates Inc, a Rockville-based insurance agency. Koma Kulshan Project,Seattle,WA Atlantic Power Corp 11.8 Atlantic Power Corp plans to acquire the remaining 50% stake it does not already own in Koma Kulshan Project, a Seattle-based hydroelectric power generation facility operator, for USD 11.8 mil. Landscape Express Inc SiteOne Landscape Supply Inc SiteOne Landscape Supply Inc acquired Landscape Express Inc, a Boston-based provider of landscaping services. Create Group Nyc LLC UDG Healthcare PLC 58.4 Ireland’s UDG Healthcare PLC acquired Create Group Nyc LLC, a New York City-based advertising agency, for USD 58.4 mil. The consideration consisted of USD 17 mil and up to USD 41.4 mil in profit-related payments. Concurrently, UDG acquired SmartAnalyst Inc. Midtronics Inc-Stationary Power Division Franklin Electric Co Inc Franklin Electric Co Inc acquired the stationary power division of Midtronics Inc, a Willowbrook-based manufacturer of battery and charging products. Quartz Media LLC Uzabase Inc 75.0 Uzabase Inc of Japan plans to acquire Quartz Media LLC, a New York-based internet portal operator, from Atlantic Media for USD 75 mil. The consideration will consist of USD 50 mil cash and USD 25 mil common shares. Motivate Lyft Inc Lyft Inc, a unit of Enterprise Holdings LLC, acquired Motivate, a Brooklyn-based firm that designs, deploys, and manages bicycle sharing systems. Cathay Industries Asia Pacific Ltd-High-Purity Iron Oxides Business Sun Chemical Corp Sun Chemical Corp, a unit of Sun Chemical Group Cooperatief UA, acquired the high-purity iron oxides business of Cathay Industries Asia Pacific Ltd, a Kowloon-based manufacturer of organic chemicals. Intrepid Aviation Group Holding LLC-US management unit Amedeo Capital Ltd Ireland’s Amedeo Capital Ltd plans to acquire the US management unit of Intrepid Aviation Group Holding LLC, a Stamford-based provider of commercial transportation equipment rental and leasing services. Concurrently, Amedeo plans to acquire an undisclosed minority stake in Intrepid. Concurrently, Amedeo plans to acquire an undisclosed minority stake in Intrepid. Midwest Holding Inc Vespoint LLC Vespoint LLC acquired an undisclosed majority stake in Midwest Holding Inc, a Lincoln-based provider of life insurance services. Retail Value Inc Shareholders DDR Corp completed the spin off Retail Value Inc, a Beachwood-based lessor of real estate property. Efficient Drivetrains Inc Cummins Inc Cummins Inc plans to acquire Efficient Drivetrains Inc, a Milpitas-based manufacturer of hybrid and fully-electric power solutions for commercial markets. Juniper Pharmaceuticals Inc Catalent Inc 139.7 Catalent Inc definitively agreed to acquire the entire share capital of Juniper Pharmaceuticals Inc, a Boston-based manufacturer of pharmaceutical preparations, for USD 11.50 in cash per share, or a total of USD 139.666 mil via tender offer. The offer was conditional upon at least a majority of the shares being tendered. Right Choice Insurance Agency Inc Hub International Ltd Hub International Ltd, a unit of Hellman & Friedman LLC, acquired Right Choice Insurance Agency Inc, a Warren-based insurance agency. Predictive Synergistic Systems Predictive Index LLC Predictive Index LLC acquired Predictive Synergistic Systems, a Cranberry Township-based provider of management consulting services. Klein Agency Inc Marsh & McLennan Agency LLC Marsh & McLennan Agency LLC, a unit of Marsh Inc, acquired Klein Agency Inc, a Saint Paul-based insurance agency. Exterior Wood Inc Taiga Building Products Ltd 42.0 Canada’s Taiga Building Products Ltd, a unit of Avarga Ltd, agreed to acquire Exterior Wood Inc, a Washougal-based provider of wood preservation services, for an estimated USD 42 mil. Intac Actuarial Services Inc Ascensus Inc Ascensus Inc, jointly owned by Genstar Capital LLC and Aquiline Capital Partners LLC, agreed to acquire Intac Actuarial Services Inc, a Ridgewood-based provider of human resources and executive search consulting services. Lauren Manufacturing LLC Cooper-Standard Holdings Inc Cooper-Standard Holdings Inc agreed to acquire Lauren Manufacturing LLC, a New Philadelphia-based manufacturer of molded and extruded polymer solutions, from Lauren International Ltd. The transaction will include Lauren Plastics. WH Acquisitions Inc Berwind Corp Berwind Corp acquired WH Acquisitions Inc, an intermediator. Drysdales Inc-Certain Assets Boot Barn Holdings Inc Boot Barn Holdings Inc, a unit of Freeman Spogli & Co, acquired certain assets of Drysdales Inc, a Tulsa-based owner and operator of cowboy apparel retail stores. Hunter Douglas NV-North American Ceilings Business Cie de Saint-Gobain SA Cie de Saint-Gobain SA of France agreed to acquire the North American ceilings business of Hunter Douglas NV, a Rotterdam-based manufacturer and wholesaler of window coverings and sheets including aluminum blinds, venetian blinds and honeycomb shades. Sierra Pictures LLC Entertainment One Ltd Entertainment One Ltd of Canada acquired the remaining stake it did not already own in Sierra Pictures LLC, a Beverly Hills-based producer of motion pictures and videos. Affinion Group Holdings Inc-Affinion Insurance Solutions Division Mill Point Capital Partners LP Mill Point Capital Partners LP, a unit of Millstein & Co LP, definitively agreed to acquire the insurance business of Affinion Group Holdings Inc, a Stamford-based provider of marketing consulting services, via a leveraged buyout transaction. Door Systems Assa Abloy AB Assa Abloy AB of Sweden acquired Door Systems, a Naperville-based building equipment contractor. SchoolCity Inc Illuminate Education Inc Illuminate Education Inc, a unit of Insight Venture Partners LLC, merged with SchoolCity Inc, a Santa Clara-based software publisher, via a five-way merger. Concurrently, Illuminate merged with IO Education LLC, Alpine Achievement Systems Inc, and Key Data Systems LP. Alpine Achievement Systems Inc Illuminate Education Inc Illuminate Education Inc, a unit of Insight Venture Partners LLC, merged with Alpine Achievement Systems Inc, a Centennial-based provider of educational support services, via a five-way merger. Concurrently, Illuminate merged with IO Education LLC, SchoolCity Inc, and Key Data Systems LP. Key Data Systems LP Illuminate Education Inc Illuminate Education Inc, a unit of Insight Venture Partners LLC, merged with Key Data Systems LP, a Lake Elsinore-based provider of educational support services, via a five-way merger. Concurrently, Illuminate merged with IO Education LLC, SchoolCity Inc, and Alpine Achievement Systems Inc. IO Education LLC Illuminate Education Inc Illuminate Education Inc, a unit of Insight Venture Partners LLC, merged with IO Education LLC, an Atlanta-based provider of instruction services, via a five-way merger. Concurrently, Illuminate merged with SchoolCity Inc, Alpine Achievement Systems Inc, and Key Data Systems LP. Jennifer Convertibles Inc Morris Holdings Ltd 35.0 Morris Holdings Ltd of Hong Kong, a unit of Morris Capital Ltd, definitively agreed to acquire the entire share capital of Jennifer Convertibles Inc, a Woodbury-based manufacturer of non-upholstered wood household furniture, for USD 35 mil in cash. Hacked SecureSet Academy SecureSet Academy acquired Hacked, a trade school operator. Global Allied Pharmaceuticals Pvt Ltd California Software Co Ltd California Software Co Ltd of India (California Software), a unit of Kemoil Ltd, planned to acquire an undisclosed majority stake in Global Allied Pharmaceuticals Pvt Ltd, an Orlando-based provider of biotechnology research and development services. Concurrently, California Software planned to acquire clinical data management, monitoring & conducting hardware & software assets of Hysynth Biotechnologies Pvt Ltd, and a majority stake in PSL Softech Pvt Ltd. The Rock Creek Group LP Investor Group An investor group plans to acquire an undisclosed majority stake in The Rock Creek Group LP, a Washington-based hedge fund. Vstar Entertainment Group LLC Cirque Du Soleil Cirque Du Soleil of Canada acquired Vstar Entertainment Group LLC, a Shoreview-based event promoter. Muller Toyota World Auto Group Inc World Auto Group Inc acquired Muller Toyota, a Clinton-based new car dealer. Criterion Inc Boston Scientific Corp 202.0 Boston Scientific Corp definitively agreed to acquire the remaining 65% stake it does not already own in Criterion Inc, a provider of ambulatory health care services, for USD 202 mil. PR VEIN Marque Media Inc Marque Media Inc plans to acquire PR VEIN, a Dallas-based public relations agency. Landair Inc Covenant Transportation Group Inc 83.0 Covenant Transportation Group Inc acquired the entire share capital of Landair Inc, a Greeneville-based provider of logistics consulting services, for an estimated USD 83 mil in cash. Brooks & Barber Tree Management SavATree LLC SavATree LLC, a unit of CI Capital Partners LLC, acquired Brooks & Barber Tree Management, a Bedminster-based provider of landscaping services. Greenhat Minerals Holdings Ltd United Lithium Corp United Lithium Corp of Canada plans to acquire Greenhat Minerals Holdings Ltd, a nonmetallic mineral mine operator. IOG Gonzales 1835 LLC-Certain Producing Properties,Eagle Ford,TX Summit Discovery Resources II LLC Sumitomo Corporation’s unit Summit Discovery Resources II LLC has reached an agreement with IOG Gonzales 1835 LLC, an entity managed by IOG Capital, Covington Equity Investments LLC and 1836 Resources, to acquire certain oil-producing Eagle Ford properties in South Texas. The asset is set across 624 acres in Karnes County, Texas, known by many as the core of the Eagle Ford shale play, where there is an abundance of production history. Peak production for the asset is estimated at 3,000 barrels of oil equivalent per day. InvestorJunkie.com XLMedia PLC 5.8 XLMedia PLC of Jersey plans to acquire InvestorJunkie.com, a Garden City Park-based internet portal operator, for USD 5.8 mil in cash. Selmet Inc Consolidated Precision Products Corp Consolidated Precision Products Corp definitively agreed to acquire Selmet Inc, an Albany-based nonferrous die-casting foundry operator, from Blue Point Capital Partners LP. Xplore Technologies Corp Zebra Technologies Corp-wireless LAN business Zebra Technologies Corp-wireless LAN business, a unit of Zebra Technologies Corp, plans to acquire the entire share capital of Xplore Technologies Corp, an Austin-based manufacturer of electronic computers, for about USD 90 mil. U.S. M&A deals announced June 29 to July 5, 2018  Source: Thomson Reuters
July 7th, 2018

PE fundraising scorecard: Aterian, Beekman, Carlyle, Estancia, Riverside Partners

Name of Issuer Date of First Sale Total Offering Amount Carlyle Buyout VII Access Fund, L.P. 6/28/18 Indefinite Carlyle Buyout VII Access Fund (Offshore), L.P. 6/28/18 Indefinite Norland Permaconn Holdings, LP 6/15/18 Indefinite LIME ROCK PARTNERS IV AF, L.P. 6/20/18 $1,913,311,579 SLP Zephyr Investors, L.P. First Sale Yet to Occur Indefinite Upshot Real Estate Fund II, LP First Sale Yet to Occur $25,000,000 EquityZen Growth Technology Fund LLC – Series 232 6/28/18 $306,167 EquityZen Growth Technology Fund LLC – Series 227 7/2/18 $2,100,000 Mid Europa Fund V LP First Sale Yet to Occur Indefinite Private Advisors Small Co Private Equity Fund VIII-Cayman LP 6/29/18 Indefinite Acumen Latin America Early Growth Fund LP First Sale Yet to Occur Indefinite CZ Knightrider II Ltd 7/1/18 Indefinite Oaktree Middle-Market Direct Lending Fund (Parallel), L.P. First Sale Yet to Occur Indefinite Oaktree Middle-Market Direct Lending Unlevered Fund (Parallel), L.P. First Sale Yet to Occur Indefinite OAKTREE MIDDLE-MARKET DIRECT LENDING UNLEVERED FEEDER (CAD), L.P. First Sale Yet to Occur Indefinite OAKTREE MIDDLE-MARKET DIRECT LENDING FEEDER (CAD), L.P. First Sale Yet to Occur Indefinite Riverside Fund VI-A, L.P. First Sale Yet to Occur $600,000,000 Square Mile Credit Partners II-A LP 6/26/18 Indefinite Falcon Structured Equity Partners, LP First Sale Yet to Occur $600,000,000 Falcon Structured Equity Partners (Luxembourg) SCSp First Sale Yet to Occur $125,000,000 Ephemeris Energy Capital Partners, LP First Sale Yet to Occur $5,000,000 Contrarian Opportunity Fund II, L.P. First Sale Yet to Occur Indefinite Contrarian Opportunity Fund II Offshore, L.P. First Sale Yet to Occur Indefinite Carlyle Partners VII – EU, S.C.Sp. First Sale Yet to Occur Indefinite CHIPS Special Opportunity Fund, L.P. 6/15/18 $65,000,000 Accolade Partners B, L.P. 6/22/18 $10,410,000 Pacific Private Credit Fund II L.P. 6/26/18 $220,900,005 Beekman Investment Partners IV-A, LP 6/15/18 $425,000,000 H2D3V4 TEB, LLC 6/15/18 $9,369 ESTANCIA CAPITAL PARTNERS FUND II, L.P. First Sale Yet to Occur $300,000,000 ESTANCIA CAPITAL PARTNERS FUND II-A, L.P. First Sale Yet to Occur $300,000,000 SPONSOR BACKED CREDIT FEEDER, L.P. 6/25/18 Indefinite MSS Holdco, LLC 5/31/18 $4,385,000 EMR Capital Co-Investment III, LP First Sale Yet to Occur $65,000,000 Platinum Equity Titan Co-Investors Offshore (Cayman), L.P. First Sale Yet to Occur $200,000,000 ATERIAN INVESTMENT PARTNERS III-A, LP First Sale Yet to Occur Indefinite BC European Capital X – Hulk Co-Investment (1) LP First Sale Yet to Occur Indefinite BC European Capital X – Hulk Co-Investment (2) LP First Sale Yet to Occur Indefinite ATERIAN INVESTMENT PARTNERS III, LP First Sale Yet to Occur Indefinite  Source: SEC Filings
July 6th, 2018

M&A daily wrap: Perry Ellis, Randa Accessories, George Feldenkreis, Exponent Exchange, Sallie Krawcheck, summer reading

Shoppers enter an Original Penguin clothing store, operated by Perry Ellis International, at the Lincoln Road Mall in Miami Beach, Florida.

Shoppers enter an Original Penguin clothing store, operated by Perry Ellis International, at the Lincoln Road Mall in Miami Beach, Florida.

Bloomberg News

Despite a higher offer from Randa Accessories, the board of directors special commitee of Perry Ellis International Inc. (Nasdaq: PERY) has reaffirmed its intention to recommend that shareholders vote for the $437 million take-private deal proposed by company founder George Feldenkreis, who is the largest shareholder. The Feldenkreis deal will be financed through a senior secured asset-backed revolving loan facility underwritten by Wells Fargo Bank NA, a $282 million multi-tranche term financing facility provided by Fortress Credit Advisors LLC and equity provided by the Feldenkreis family, according to a June 16 statement from Perry Ellis. The special committee noted in a July 5 statement that Randa’s bid is “substantially similar” to the bid it made during the strategic review process. The committee outlined the factors considered in reaching its decision: “In arriving at its determination, the special committee considered, in relation to a 1.8 percent potential price increase from Randa’s unsolicited proposal, among other things, that: the proposal is highly-conditional, non-binding and insufficient in terms of value and certainty of the provided debt financing commitments, as well as the lack of evidence of sufficient cash equity on hand; the additional timing to enter into and complete a potential transaction with Randa; the inclusion of an unprecedented 3 percent fee payable by the company to Randa if shareholders vote down the transaction, compared to no such penalty if shareholders vote down the Feldenkreis merger; and a number of other terms affecting shareholder value or certainty are inferior, including termination fees, additional risks to closing, and the lack of appraisal rights for shareholders. Based on the totality of the circumstances considered in comparison to the potential for a slight price improvement, the special committee concluded that re-engaging with Randa at the price offered was not in the best interest of shareholders.” PJ Solmon is serving as financial advisor to the special committee. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Akerman LLP are serving as the committee’s legal counsel, and Innisfree M&A Inc. is serving as the Perry Ellis’ proxy solicitor.

Exponent, a networking group for female dealmakers that launched in 2017, is gearing up for its first marquee event, called Exponent Exchange,on July 12. The keynote speaker is Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch WealthManagement and the Citi Private Bank, and is now the CEO of Ellevest, an online investing website aimed at women. Other speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Mary Kathleen Flynn, editor-in-chief, Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); and Cheraé Robinson, founder, Tastemakers Africa. Underscoring enthusiasm for initiatives aimed at women, sponsors of the event include leading dealmaking companies, such as Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandezand Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.

Deal news
For a roundup of recent M&A announcements, read: The weekly wrap: Perry Ellis, Hunter Douglas, Jennifer Convertibles and more.

For news of private equity firms marketing new funds, read: PE fundraising scorecard: Aterian, Beekman, Carlyle, Estancia, Riverside Partners.

Featured content
Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here’s a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion’s Rishi Jain and Anthony Horvat : Stuck in the mud: how to speed up an underperforming PE portfolio company.

Huron Capital’s new Flex Equity Fund resonates with companies that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says partner Douglas Sutton in this video interview shot at ACG InterGrowth 2018. The Detroit firm won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

As the dominoes start to fall and momentum builds, timing will matter to investors in cannabis, writes Jeffrey Howard, managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, in a guest article. For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape, says Howard. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition. Read the full story: How to seize M&A opportunities in marijuana’s gray market.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 6th, 2018

How to seize M&A opportunities in marijuana’s gray market


Adobe Stock

The conventional wisdom on Wall Street is that it’s impossible to time the market. Venture capitalists, however, know all too well that when investing in either startup companies or nascent industries, timing is everything. Nowhere is this more true, today, than in the emerging cannabis market.

To investors in the still developing cannabis industry, many believe the market is just now approaching its own inflection point, as it transitions from a black to gray market, characterized by a more attractive risk profile and outsized growth potential. The sticking point is that as a Schedule I drug illegal under federal law, cannabis still presents imposing obstacles for traditional investors, ranging from capital markets that remain inaccessible to uncertainty over bankruptcy proceedings. Yet, ironically, it’s these very same obstacles that make the opportunity so appealing to investors willing to operate in an indefinite gray area to create an ecosystem for a market expected to reach $75 billion in size by 2030.

For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition.

Capturing the Momentum
In many ways, 2018 has already proven to be monumental year as the number of states that have approved and legalized at least some form of cannabis continues to reach critical mass. In addition to the nine states and Washington, DC, that have approved or introduced recreational usage, 37 other states allow for medicinal or low-THC applications. Not to be overlooked, particularly among investors, Canada on June 19th passed Bill C-45, otherwise known as The Cannabis Act, legalizing recreational marijuana for a go-live date set for October 17th. This marks the first G7 nation and the second country in the world to enact full legalization.

Still, the ongoing political debate can invoke bouts of agita. The Justice Department’s rescission of the Cole memo in the first week of January, for instance, floated the possibility that federal prosecutors could target existing operators in compliance with state laws. Since then, however, President Trump pledged he would support a legislative solution offering certainty for jurisdictions that have legalized recreational use. Senate Minority Leader Chuck Schumer, [in May], also co-sponsored legislation that would decriminalize cannabis at the federal level. Even John Boehner, the former Speaker of the House, made an about face when he joined the board of cultivation and dispensary operator Acreage Holdings, saying on Twitter that his thinking around cannabis “has evolved.” He went on to note that that “de-scheduling” the drug would facilitate further research and potentially provide an alternative to opioids for chronic pain.

In many ways Boehner’s change of heart reflects the evolving perception among the larger population, particularly as awareness around marijuana’s medical applications grows. In fact, seniors represent one of the fastest growing consumer demographics. According to the 2018 BDS Analytics study of “Public Attitudes and Actions Toward Cannabis in the U.S.,” more than half of adults over the age of 50 living in states with medical or recreational pot have either consumed cannabis over the past six months or would consider doing so in the future. And eight out of every 10 adults over the age of 50 believe there should “some form of legal marijuana.”

The Growing Investment Case
Even as all the pieces are in place for the cannabis industry to take off – save for one major “federal” component – timing will indeed matter for investors. In fact, it already has, particularly among smaller entrepreneurs and investors that “touch the plant,” such as farms, dispensaries and other suppliers.

Consider the early impact of state legalization on the cost of recreational cannabis. When marijuana was first approved for recreational use in Washington in 2014, it sold for as much $35 a gram. Today, as larger-scale operators have moved into the market, the price has fallen by nearly 70%. This has tipped the scales in favor of the largest growers with the most resources.

This market bifurcation was a topic of discussion during the May earnings call of Scotts MiracleGro, whose Hawthorne Gardening subsidiary has been actively building out its hydroponics business. After a disappointing quarter, in which the company announced restructuring charges, CEO Jim Hagedorn cited California’s struggle to transition from a loosely regulated market for medical marijuana to a larger, “but strictly regulated,” recreational market. “The combination of the slow approval process and the excess inventory is likely to result in fewer players once everything shakes out,” Hagedorn told analysts. He added, “The survivors are likely to be only those with deep enough pockets to get through this tough but temporary disruption.”

This, of course, brings to mind the maxim among VCs that “too early is often indistinguishable from being wrong.” But it also speaks to where the opportunity often resides. For most VCs, the point of entry is typically in backing the ancillary services that will help build out the ecosystem. This was the approach of Tiger Global, the New York-based firm that previously scored homeruns investing in Facebook and LinkedIn. In April, it invested in a Series A round to back Green Bits, a developer of compliance software.

Other VC investments, however, have targeted everything from biotech companies specializing in tissue-culture propagation to “pot tech” startups that offer technology-enabled applications around business services unique to cannabis operators. Of course, opportunities also exist in helping more traditional operators scale their operations. In fact, Salveo Capital, in July, took part in a Series A round, backing Flow Kana, a sustainable sungrown cannabis provider that produces small-batch, boutique strains of cannabis out of California’s Mendocino County and Southern Humboldt regions.

The rush to build out the ecosystem has been accelerated as large corporate investors move into the market. Beer and spirits giant Constellation Brands acquired a nearly 10% stake in Canopy Growth Corp., a TSX-listed producer of medicinal and recreational pot, while Novartis’ Sandoz International unit, in March, inked a collaboration deal with Tilray, a federally licensed producer of medical cannabis in Canada. Even ScottsMiracleGro, which has encountered some early turbulence, remains unswayed. The company acquired Sunlight Supply in April for $450 million. Market watchers also took note of Alliance One International’s string of recent deals for Island Garden Inc., Goldleaf Pharm Inc. and a minority stake in Criticality, giving the tobacco company instant exposure to the medical cannabis production market in Canada (Island and Goldleaf) and hemp cultivation in the U.S (Criticality).The corporate interest only underscores the opportunity for venture capital investors to develop and scale innovative businesses to serve this growing market. It also speaks to why timing is so important. If venture capital can absorb some of risks of operating in a gray market, investors can position themselves for a tailwind that could drive the space for years to come, whether the market opportunity resides in Canada and select U.S. states or, eventually, all of North America.


Jeffrey Howard

Jeffrey Howard

Jeffrey Howard is a managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector.

July 5th, 2018

M&A daily wrap: record-breaking first half, Arsenal, IGM Resins, Astorg, Salveo Capital, cannabis


Photo credit: IGM Resins

Worldwide M&A activity totaled $2.5 trillion of announced deals in the first half of 2018, an increase of 61 percent compared with the first half of 2017, making it the strongest first half in deal value since records began in 1980, according to Thomson Reuters. The second quarter of 2018 marks the sixth quarter to surpass $1 trillion in announced deals since 2015. Mega deals account for 50 percent of the total value, with transactions greater than $5 billion totalling $1.3 trillion, more than three times the levels seen in the same period in the previous year. The sectors that showed the most activity were: energy and power; media and healthcare. Not all the data told a positive story, however. In one sign of potential weakness, the number of announced deals dropped 10 percent, the lowest first-half volume since 2015.

Deal news
Arsenal Capital Partners, a New York private equity firm that invests in middle-market specialty industrials and healthcare business services companies, has completed the sale of IGM Resins, a manufacturer of materials used in ultraviolet coatings and inks, based in Waalwijk, the Netherlands, to Astorg, a private equity firm headquartered in Luxembourg, for undisclosed terms. IGM serves a diverse set of high-growth end-markets, including inks used in food packaging, electronics, optical coatings and adhesives. In 2012, Arsenal partnered with IGM founder John Huiberts to recapitalize the company and invest in its growth strategy. “We are proud of the transformation of IGM from a specialty chemicals distribution company to a leading global UV-cure technology provider,” said Sal Gagliardo, Arsenal industry and operations partner. “During our partnership with the management team, we completed four strategic acquisitions and executed an aggressive organic growth strategy. Through these initiatives, the company has become the leading global producer of photoinitiators with the most comprehensive breadth of technologies serving high growth UV cure applications.” Moelis & Co. acted as exclusive financial advisor, and Jones Day acted as legal advisor to Arsenal and IGM. Houlihan Lokey and Emendo Capital acted as financial advisors, and Paul Hastings LLP and Dechert LLP acted as legal advisors to Astorg.

In private equity fundraising news, Thoma Bravo is raising $11.5 billion for its flagship Thoma Bravo Fund XIII, significantly more than the firm’s previous flagship fund, which closed at $7.6 billion in 2016. For more, see our weekly column, PE fundraising scorecard: Clearview Capital and Thoma Bravo.

For more recent deal announcements, including acquisitions made by AT&T Inc. (NYSE: T) and Conagra Brands Inc. (NYSE: CAG), read The weekly wrap: AT&T, Conagra, Twitter.

Featured content
As the dominoes start to fall and momentum builds, timing will matter to investors in cannabis, writes Jeffrey Howard, managing partner at Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, in a guest article. For most, the question isn’t whether the federal government legalizes cannabis, it’s how much longer investors will be able to capitalize on this undefined future to influence and profit from how the ecosystem ultimately takes shape, says Howard. If the M&A market can serve as a leading indicator, the runway for investors is already becoming shorter as strategic buyers represent, both, a threat and opportunity. In fact, major players within Big Alcohol, Big Tobacco and Big Pharma have each made inroads in the space, which proves out the investment thesis, but will surely beckon added competition. Read the full story: How to seize M&A opportunities in marijuana’s gray market.

Huron Capital’s new Flex Equity Fund resonates with companies that “need a partner to help them grow, or to provide some liquidity, but don’t want to give up a controlling interest,” says partner Douglas Sutton in this video interview shot at ACG InterGrowth 2018. The Detroit firm won Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Seller of the Year. Watch the video: Huron’s Flex Equity resonates with owners who don’t want to give up control.

Exponent, a networking group for female dealmakers that launched in 2017, is gearing up for its first marquee event, called Exponent Exchange, on July 12. The keynote speaker is Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is now the CEO of Ellevest, an online investing website aimed at women. Other speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Mary Kathleen Flynn, editor-in-chief, Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); and Cheraé Robinson, founder, Tastemakers Africa. Underscoring enthusiasm for initiatives aimed at women, sponsors of the event include leading dealmaking companies, such as Apollo, Baird, BDO, Merrill Corp. and Moelis. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Summer reading list: From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 5th, 2018

Think bank M&A has heated up? Think again

There has been a bit of a push and pull to bank M&A this year.

The year’s four biggest acquisitions, each at or above $1 billion in deal value, have been announced since early May, giving the impression that the overall pace of consolidation has accelerated.

Recently passed legislation that raised the threshold for becoming a systemically important financial institution has also raised expectations for bigger deals.

Still, a closer look reveals that bank M&A at midyear has yet to fully take off.

The 105 bank mergers announced through June 15 is off almost 8% from a year earlier and is the lowest since 2013, according to data compiled by Keefe, Bruyette & Woods and S&P Global Market Intelligence. The aggregate value of those deals is down 14% from a year earlier.


While there are bankers interested in pursuing acquisitions, most are biding their time to find deals that fit a broader strategy rather than ones that only build scale, industry experts said.

“In strategic planning sessions, the mood of directors and CEOs is, ‘Yes, we would look at opportunities, but we aren’t pursuing it as [merely] a growth strategy,’ ” said Trent Fleming of Trent Fleming Consulting. “They’re more interested in solid, sustainable growth.”

There are several reasons for banks, especially smaller ones, to stick around and pursue organic growth. A rising rate environment could provide a lift for banks that can navigate pricing for deposits and loans.

Community banks also secured some legislative relief in areas such as qualified mortgages, exam schedules, call reports and reciprocal deposits. And there is pending legislation that would reduce the reporting burden for suspicious activity reports.

Such changes “will directly impact community banks,” Fleming said.

It could also be tougher for smaller banks to find buyers, particularly as midsize banks get to a size where it makes sense to pursue bigger transactions, said Jonathan Hightower, a lawyer at Bryan Cave Leighton Paisner.

Most large-scale M&A in recent months has been in urban markets with large populations and a shrinking number of banks that would provide a buyer with meaningful scale, industry experts said. That will create challenges for banks in rural markets that are looking to cash out.

“The ongoing struggle of rural markets … makes M&A comparatively more difficult for those banks,” Hightower said. “In short, for small community banks, there are fewer interested buyers and fewer coveted targets.”

That being said, there are still reasons to believe that more banks will become sellers between now and the end of the year.

Premiums are rising. The average seller has fetched 181% of its tangible equity this year, an improvement from 167% through the first half of 2017, according to KBW and S&P Global.

Banks often switch from staying independent to selling when they draw the interest of a buyer willing and able to pay a healthy premium. More of those buyers are making moves.

There is also a sense that regulatory changes may encourage regional banks to again consider acquisitions. Fifth Third Bancorp’s deal to buy MB Financial in Chicago for nearly $5 billion last month spurred hope that more regionals and even larger players would return to M&A.

“There has been a true dearth of larger deals,” said H. Rodgin Cohen, senior chairman at Sullivan & Cromwell. “It is starting from a low floor, so there will be an increase.”

Conventional wisdom had been that banks needed to jump, not crawl, over key regulatory thresholds, including the old $50 billion-asset mark for SIFI status. And that usually meant landing a significant transaction.

An increase in the SIFI threshold could allow smaller regional banks to complete transactions without worrying about triggering additional regulatory scrutiny.

Regulatory reform “should enhance deal activity” for banks that were reluctant to surpass $50 billion in assets because of higher compliance and regulatory costs, said Kevin Reevey, an analyst at D.A. Davidson. Those banks now have “more runway to do deals.”

That seems to be the case with a couple of deals announced since June 15.

Management at BOK Financial in Tulsa, Okla., said that the higher SIFI threshold allows them to look at larger deals. The $33 billion-asset company recently agreed to buy the $3.8 billion-asset CoBiz Financial in Denver.

The $44 billion-asset People’s United Bancorp in Bridgeport, Conn., just agreed to buy the $3 billion-asset First Connecticut Bancorp for $544 million. During a call discussing the transaction, People’s United executives indicated that they could pursue other similarly sized transactions before closing First Connecticut.

During a call to discuss the deal, John Barnes, the president and CEO of People’s United, expressed confidence that he could complete the acquisition by the end of the year because the regulatory environment had eased up.

To be sure, there are few institutions the size of BOK Financial and People’s United that can scoop up large community banks. Many regionals are performing well on their own; banks with $15 billion to $250 billion of assets have a median efficiency ratio of about 58%, according to Charles Crowley, a managing director at Boenning & Scattergood. The median return on tangible common equity for those banks in the past 12 months has hovered around 12%, he added.

Those numbers “will be improving as the year goes on with lower tax rates,” Crowley said. “As you look at the list, there are not many lackluster performers. Therefore, there aren’t a lot of banks that should necessarily think they need to team up.”

The regulatory environment is still expected to spark deals.

Many banks had already spent millions of dollars upgrading technology and hiring staff to prepare for stress tests that are no longer mandatory. Those banks could still look for acquisitions that reduce overhead and, over time, create new ways to increase revenue.

While many regulations were eased, the cap on interchange fees that kicks in when bank hit $10 billion in assets remains. The cap has led several banks to pursue deals with cost cuts to offset an expected loss in revenue. It has also contributed to the decision by some banks, including Capital Bank Financial in Charlotte, N.C., and National Penn Bancshares in Boyertown, Pa., to find buyers.

The $9.6 billion-asset Independent Bank Group in McKinney, Texas, is one of the banks that had spent years preparing for heightened oversight. Many of these investments will be helpful in other areas, like preparing for the new CECL, or current expected credit losses, accounting standard. It recently announced an agreement to purchase of Guaranty Bancorp in Denver.

While stress testing would cost Independent $1 million annually, the Durbin amendment’s cap on interchange fees will erase nearly $5 million in annual revenue, Chairman and CEO David Brooks said in a recent interview.

“Just for us, Durbin will cost us five times that of the DFAST modeling,” Brooks said, referring to the Dodd-Frank Act stress test. “Durbin is a bigger driver of strategy.”

Jackie Stewart

Jackie Stewart covers community banks and mergers and acquisitions for American Banker.

July 4th, 2018

Why did bank M&A cool off in Pennsylvania?

Pennsylvania’s lukewarm bank M&A activity is poised to heat up.

In many ways, the state would be a logical market for accelerated consolidation. Pennsylvania is home to 154 banks, and many of those have potential succession issues and heightened regulatory costs.

Still, activity has stalled in recent years.

Only 19 banks in Pennsylvania have agreed to sell themselves since the end of 2015, according to data from Keefe, Bruyette & Woods and S&P Global Market Intelligence. Bank M&A activity trails behind a number of less-populated states including Georgia, Illinois, Missouri, Tennessee and Wisconsin.

While Pennsylvania is home to Philadelphia and Pittsburgh, there is a growing belief that consolidation will hinge on sellers in rural markets, particularly as rising interest rates push acquirers to pursue institutions with low-cost deposits.

“Pennsylvania is overbanked,” said T. Alexander Spratt, president and CEO of consulting firm Ardmore Banking Advisors. “There are targets. I would not be surprised if people are talking, but these talks just haven’t matured yet.”


The M&A market in Pennsylvania has been hot in the past. Fourteen banks were bought in the state in 2015.

Several developments could explain the drop-off in activity, including a need by previous buyers to press pause to integrate their acquisitions.

Buyers may also be more motivated to pursue organic growth in recently acquired Pennsylvania markets, said Frank Schiraldi, an analyst at Sandler O’Neill who just returned from visiting banks around Philadelphia.

Many banks were eager to poach business from BB&T in Winston-Salem, N.C., when it bought Susquehanna Bancshares in 2015 and National Penn Bancshares a year later. BB&T, which has been sidelined from bank acquisitions due to regulatory actions tied to anti-money- laundering compliance, was recently freed from most of those orders.

“When you talk to banks, the No. 1 priority is to grow organically,” Schiraldi said. “It is probably more that than trying to digest something.”

Philadelphia, meanwhile, lacks some of the stronger economic and demographic attributes behind deals in cities such as Atlanta, Chicago and Denver. While the city’s population is growing after decades of decline, it is increasing at a much slower rate than other markets. Its median household income of roughly $41,000 is about 28% below the national median.

Another snag could be pricing. There is still a likelihood that sellers in the Keystone State want higher premiums before agreeing to sell, industry experts said.

In the past 18 months, the average seller in Pennsylvania has received a premium equal to 165% of its tangible equity, based on data from S&P Global. That compares to 172% nationally and more than 195% in Colorado and Georgia.

“Sellers might have an inflated idea of their franchise,” Spratt said. “Every time there’s a high-priced deal, other banks value themselves equally or higher.”

There are signs that M&A could rev up in Pennsylvania.

Scale could be a factor; more than two-thirds of the banks in the state have less than $1 billion in assets, according to data from the Federal Deposit Insurance Corp. As a result, more banks could look at deals as a quick way to get bigger.

Succession vacuums could also lead to bank sales.

“Some may not have succession of management,” said Bob Kafafian, CEO of the consulting firm Kafafian Group. “When they run out of gas, they look for partners.”

Pennsylvania has few urban centers beyond Philadelphia and Pittsburgh, which can further complicate succession planning. It is often challenging to convince a qualified candidate to move to a rural market, said Alan Kaplan, CEO of the executive search firm Kaplan Partners.

A need for cheap core deposits could also spur M&A. In general, banks in rural areas have more limited lending opportunities and lower-cost deposits. That could motivate a rural bank to sell, particularly if it received an offer from a urban-focused bank that needs to reduce its funding costs.

“There will always be a desire to get into higher-growth markets, but banks won’t be able to support growth without a strong deposit base,” said Richard Quad, head of financial institutions at Griffin Financial Group in Reading, Pa. “Some of the markets in the central part of the state may end up being more valuable and sought after.”

Obtaining low-cost deposits has been a goal of Mid Penn Bancorp in Millersburg, Pa., an active acquirer that had bought two banks since 2015. The $1.4 billion-asset company also has a pending deal for First Priority Financial that is expected to close in the third quarter.

Scottdale Bank & Trust, which Mid Penn bought earlier this year, had $3 in deposits for every $1 in loans on its books. First Priority also presents Mid Penn with more lending opportunities, said Rory Ritrievi, the company’s president and CEO.

A perfect storm of conditions, including higher regulatory expenses, prompted more Pennsylvania banks to sell a few years ago, Ritrievi said, adding that he believes this could happen once again.

“The regulatory relief is good — but not a windfall,” Ritrievi said.

“The economy is strong but not infallible,” Ritrievi added. “Succession planning is weak, at best, in the community bank space. I think all of those [factors] that stimulated deals in 2014 and 2015 might do so again.”

Jackie Stewart

Jackie Stewart covers community banks and mergers and acquisitions for American Banker.

July 4th, 2018

M&A daily wrap: P.F. Chang’s Bistro, Centerbridge, Sallie Krawcheck, Ellevest, Exponent Exchange


P.F. Chang’s

Centerbridge Partners has hired Bank of America Merrill Lynch and Barclays to seek buyers for restaurant chain P.F. Chang’s Bistro. “Given the positive performance of P.F. Chang’s Bistro and having received multiple unsolicited indications of interest, this is an exciting time to explore a sale,” says Steve Silver, global co-head of private equity at Centerbridge. The PE firm bought P.F. Chang’s in 2012 for $1.1 billion and recently separated the main brand and Pei Wei Asian Diner into two businesses. P.F. Chang’s owns and franchises more than 300 Asian restaurants globally. Its menu features items such as wok-fired filet mignon and miso glazed salmon. “We have enjoyed a very positive partnership with Centerbridge and are excited to tell prospective buyers about the company’s heritage, its attractive positioning in full-service Asian dining, the operational strengths of the business that we have built during Centerbridge’s ownership and its exciting growth prospects,” says P.F. Chang’s CEO Michael Osanloo. Americans come from all over the world, and they want food that reflects their diversity, and that is attracting buyers to ethnic-themed restaurants. For more on restaurant M&A trends, read: What’s attracting hungry buyers to restaurants? Here are 7 trends.

Venture capital funds globally continued their strong run of performance over recent years in the first quarter of 2018, with a near-record return of 1.45x, according to data from eFront. The figure is a slight drop from 1.49 times in the fourth quarter. U.S. Note: VC funds typically underperform their long-term average, partly due to the skewing effect of the “golden years” in the 1990’s, according to the report.

Exponent, a networking group for female dealmakers that launched in 2017, is gearing up for its first marquee Exponent Exchange event on July 12. The event is designed to bring “the best people and the best content together,” explains co-founder Nanette Heide, a partner at law firm Duane Morris. Exponent Exchange features keynote speaker Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is the current CEO of Ellevest, an online investing platform aimed at women. Other scheduled speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Mary Kathleen Flynn, editor-in-chief, Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); and Cheraé Robinson, founder, Tastemakers Africa. The organizers have succeeded in attracting an impressive group of sponsors for the event, including Apollo, Baird, BDO, Merrill Corp. and Moelis, underscoring increased interest in initiatives aimed at women dealmakers. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal news
Marketing agency Interpublic Group (NYSE: IPG) is buying Acxiom Marketing Solutions from Acxiom Corp. for $2.3 billion. The acquisition will combine Interpublic’s IPG’s media, creative, marketing services and analytics services with the target’s data management. Willkie Farr & Gallagher LLP is representing Interpublic. Citi (NYSE: C) and J.P. Morgan (NYSE: JPM) are providing financing.

Pharmaceutical delivery company Catalent Inc. is buying Juniper Pharmaceuticals Inc. (Nasdaq: JNP) for about $140 million. Rothschild, Chestnut Securities, and Goodwin are advising Juniper.

EQT is purchasing open source infrastructure software company Suse from Micro Focus for $2.5 billion. Arma Partners is advising EQT.

Transportation management company Logistyx Technologies has acquired technology provider Transparix. The deal is part of the buyer’s strategy to expand its global Software-as-a-Service and on-premise parcel transportation management software offerings.

People moves
Asif Ahmad has been named CEO at Ward Capital Partners-backed Dimensional Dental. Ahmad was most recently the CEO of healthcare technology company Anthelio Healthcare.

Nathan Seiler has been named managing partner at Ballard Spahr‘s Boulder, Colorado, office. Seiler focuses on M&A in the software and information technology, life sciences, telecommunications and renewable energy sectors.

Featured content
Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer. It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Here’s a step-by-step guide to getting a stuck-in-the-mudder into racing shape, written by Accordion’s Rishi Jain and Anthony Horvat : Stuck in the mud: how to speed up an underperforming PE portfolio company.

Consolidation has become a driving force for M&A among car dealerships, with autonomous vehicles, ride-sharing and other influences contributing as well. An estimated 1,080 car dealerships were sold to 612 buyers between 2014 and 2017, reports Kerrigan Advisors, an Irvine, California, sell-side advisor to auto dealers. We asked Stephen Dietrich, a Denver-based Holland & Knight attorney with an auto dealer M&A practice, for his thoughts on trends in the sector and what middle-market private equity firms should consider when looking at potential deals for car dealerships. Read the full story: Car dealerships sell, as self-driving vehicles shake up auto industry.

Check out our slideshow on auto-related deals: Car parts makers fuel M&A, as industry readies for self-driving vehicles. Morgan Stanley (NYSE: MS) and Cravath, Swaine & Moore LLP are advising Brunswick.

Today’s portfolio companies choose private equity funds “based on not just who’s going to pay them the most money, but who’s going to be more involved in helping them get to that next step, helping them to execute the strategy,” says BDO USA’s Bob Pearlman in this video interview shot at ACG InterGrowth 2018. Watch the full video: PE firms take a more strategic approach to portfolio companies than in the past.

“Clamoring to be the loudest person in the room” is not the way to bring more women into the middle market, says Suzie Doran of SingerLewak, in this video interview shot at ACG InterGrowth 2018. Doran serves as president of ACG Los Angeles, which recently took the Women of ACG Los Angeles on a private viewing of the 100th Anniversary Exhibition of King Tut at the California Science Center. “We’re about making connections and being able to take those connections to the next level.” Watch the full video: No “clamoring to be the loudest person in the room” at women dealmaker events.

Peter Van Raalte, co-founder of Corinthian Capital, and Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions, were featured speakers at the ACG NY Industrial Conference at the New York Athletic Club. The conference is part of the ACG Northeast Industry Tour, sponsored by ACG New York, ACG Boston and ACG Philadelphia. View our slideshow: Manufacturing M&A: high prices but plenty of opportunities.

From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ summer reading list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.

Read full coverage of Mergers & Acquisitions’ 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.

July 3rd, 2018

How to speed up an underperforming private equity portfolio company

Rishi Jain

Rishi Jain

Justify recently joined the elite group of Triple Crown winners. But, as anyone who’s ever bet the ponies knows, they can’t all be Justifys. Sometimes you get a winner and sometimes, for reasons that aren’t quite clear to anyone, you get an underperformer.

It’s a concept with which most fund sponsors may be intimately familiar. You bet on the investment because you foresee its potential and understand the path it needs to take in order to achieve it. Sometimes you get a mudder – an investment that thrives under institutional ownership, meeting, if not exceeding, expectations. And sometimes you get a stuck-in-the-mudder – a portfolio company whose progression has stalled or gone sideways.

But, don’t shoot the horse just yet. The first step is to acknowledge its existence in your portfolio. The second step is to understand the many parties that have a stake in its success: yes, the fund sponsor, but also the management team and the lenders. And, the third step is to diagnose the problem and rehabilitate the investment.

Recognizing the Problem
In its broadest definition, a ‘stuck-in-the-mudder’ is a portfolio company where there is significant underperformance relative to expectations (specifically cash or Ebitda) and there are enough performance surprises to suggest management is not fully in control of the business.

That said, every investment is unique and no catchall definition will ever be comprehensive enough to capture the complex tapestry of characteristics that, when combined, lead to underperformance. And so, aside from the most obvious indicators of trouble (negative Ebitda coupled with a lack of liquidity), there are subtler markers that can (and should) flag where an investment might be stuck in muddy terrain. They tend to come in three varieties:

1. The financial markers: Here we see a lack of financial predictability, coupled with frequent budgeting and forecasting errors or missed targets. Margins may lag behind expectations. Capital investments may not be producing the expected efficiencies. The biggest flag, of course, is that cash generated by the company is not meeting expectations, particularly as related to the debt structure. The company is not throwing off sufficient Ebitda or cash to satisfy its stakeholders, and is, potentially, running the risk of covenant default. Or, maybe the company hasn’t yet run out of cash, but liquidity trends are a concern with no clear line-of-sight solution available.

2. The management markers: Here we see issues with management’s closeness to the business, often in the form of a significant disconnect between what management said would happen and what the actual, tangible results are. As is often the case in this scenario, the team lacks an acute understanding of the drivers contributing to underperformance. Sometimes that lack of understanding can be traced back to plans that are not tracked and/or lack measurable KPIs. And sometimes, it’s not a lack of understanding as much as it is a lack of acknowledgement of underperformance. But, management markers can also manifest in important non-financial flags. Product quality concerns, customer service issues, and employee unrest are all signs of underperformance attributable to underperforming management.

3. The market standing markers: Here we speak of underperformance relative to industry or market competition. Market markers are particularly problematic when the investment is based on a platform purchase with subsequent add-ons. If the outcome of serial acquisition has not been greater than the sum of its parts, that could suggest a ‘stuck’ scenario in which capital was mis-deployed or integration plans were poorly executed.

Rehabbing the Problem
So, your horse is stuck. The question becomes: how do you correct to get in racing shape?

The easy answer is that you have to find and release the trapped cash and Ebitda potential in the company – unlock the promise first noted during diligence and initial investment. The more difficult part is finding an effective way to do that. Here we suggest six potential strategies:

1. Must be the money: Start with the cash flow. Where does it come from? Where does it go? Building a detailed liquidity forecast is critical for all businesses and particularly critical to getting to the root of underperformance. A 13-week cash flow can be useful even absent significant liquidity problems (and should be mandated where those liquidity issues exist). Once you understand where the money is coming from and where it’s going, you will have enhanced visibility into the economics of the business.

2. Know thy customer: Because, they’re not all created equal. It is critical to assess who the customers are and their relative importance to the business. Which customers are helping profitability, and are there some who are not? In tangible terms, implementing a detailed SKU profitability analysis of customers and products can illuminate quite a bit about where the business is making money and where the business may be trading dollars (or worse). With this enhanced visibility, higher value customers can then be catered to, while lower value customers may ultimately prove a hindrance to profitability. (And yes, you’re allowed to fire them in such cases). Target the ‘low-profit’ portion of the product portfolio for improvement. Linking this knowledge to the sales function can generate significant performance improvement quickly.

3. Let the sunshine In: Often hidden costs develop across an organization related to the creation and deployment of products and services. Product margins are meaningful measures but, in many companies, those margins do not account for the totality of product costs. Implementing a zero-based budgeting process can help uncover those hidden costs. Matching those costs to their related functions will then help establish the effectiveness of those costs on behalf of the customer.

4. The big spender scenario: Know it. Avoid it. Conduct a deep-dive spending analysis to determine how revenue is related to expenses. In too many companies, particularly in underperforming ones, the spend on SG&A activities is misaligned to revenues. Identify, analyze and track spending trends to find where resources are not being applied to quality revenue-producing activities. If needed, cut them out, scale them back, or redeploy to more value producing activity.

5. Who’s the boss? Too often, that answer is not clear. Companies undergoing change need well-communicated lines of organizational responsibility coupled with strategic leadership. When the model is either not clear, or simply not adhered to, it can create confusion that makes progress hard to measure and almost impossible to track. Establishing a proactive, timely communication process matched with visibility tools to identify priorities and review progress of action plans, can help achieve improved performance cadence.

6. Define success: What are we trying to do? What does the transition from ‘stuck’ to ‘success’ look like? Course corrections come complete with a huge list of ‘to dos.’ Businesses that successfully undergo change understand the difference between the want to dos and the need to dos. To effectively change the trajectory of an underperforming business, management should prioritize the need list and build tactical programs around it. For example, if the goal is Q1 profitability, how do we achieve that across organization and by department? How many new sales leads do we need to convert? How much inventory do we need to think about buying? How does the weekly invoicing plan compare to the operations plan? This requires a granular understanding of the business – the sum of the learnings from the list above. If, after all the aforementioned analysis, the root causes of underperformance are clearly understood, then implementing corrective initiatives will also require changes in measurement methods. Building and tracking the right KPI measurement tools to monitor those initiatives is critical.

Now, not every investment will return Triple Crown payoff. But, for the sake of all investment stakeholders, fund sponsors must quickly recognize and rehab an investment that’s gotten stuck in the mud. It can be done quite successfully. But doing so will take both an honest assessment of the situation and people, coupled with a willingness to take some of the meaningful steps (outlined above) required to change the trajectory of an underperforming business.

And off to the races we go…

Anthony Horvat

Anthony Horvat


Rishi Jain

Rishi Jain

Rishi Jain is a managing director and head of Western region with Accordion.

July 3rd, 2018

Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange


Bloomberg News

The number of resources designed for women dealmakers is growing rapidly. Among the recent initiatives are a new funding program aimed at female-led companies and a new networking group for women dealmakers.

Exponent, which launched at the end of 2017, was co-founded by a wide array of women executives who work on deals, including: Marilyn Adler, senior managing director, Medley; Bonnie Harland, director, Pouschine Cook Capital Management; Nanette Heide, partner, Duane Morris; Michelle Van Hellemont, managing director, Accordion Partners; and Amy Weisman, director of business development, Sterling Investment Partners.

The New York group is gearing up for its first marquee Exponent Exchange event on July 12. The event is designed to bring “the best people and the best content together,” explains Heide. Exponent Exchange features keynote speaker Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is the current CEO of Ellevest, an online investing platform aimed at women. Other scheduled speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Mergers & Acquisitions editor-in-chief Mary Kathleen Flynn; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); and Cheraé Robinson, founder, Tastemakers Africa.

The organizers have succeeded in attracting an impressive group of sponsors for Exponent Exchange, including Apollo, Baird, BDO, Merrill Corp. and Moelis.
Another development earlier this summer that underscores increasing interest in initiatives aimed at women dealmakers was Goldman Sachs’ June announcement of a new program aimed to funding female-led companies. Launch With GS is investing $500 million of the firm’s and clients’ capital in private, late-stage, women-founded, women-owned or women-led companies.

“I’ve worked my whole career in an industry dominated by men,” writes Stephanie Cohen, chief strategy officer, Goldman Sachs, in a blog post. “As an investment banker for close to 20 years, my presence in board rooms was often an anomaly. Certain aspects of that experience were actually helpful: for one thing, people usually remembered what I had to say. But serving as the by-default ‘female perspective’ in many meetings has its drawbacks – and not only for women. The global economy is propelled by innovation, creativity and the sharing of diverse perspectives. Effectively shutting out half the population from conversations at the highest levels of business is holding everyone back. Changing that dynamic is going to take time, and it’s going to take a concerted effort by all organizations to foster environments that allow talent to thrive, regardless of race, ethnicity, gender, disability, sexual orientation or age.”


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.

July 2nd, 2018

M&A daily wrap: Sallie Krawcheck, Ellevest, Exponent Exchange, United Rentals, Fortive, Golden Gate


Ellevest

Exponent, a new networking group for female dealmakers, which launched at the end of 2017, is gearing up for its first marquee Exponent Exchange event on July 12. The event is designed to bring “the best people and the best content together,” explains co-founder Nanette Heide, a partner at law firm Duane Morris. Exponent Exchange features keynote speaker Sallie Krawcheck, who previously served as CEO of several banks, including Merrill Lynch Wealth Management and the Citi Private Bank, and is the current CEO of Ellevest, an online investing platform aimed at women. Other scheduled speakers include: Lisa Bernstein, global head of human capital, Apollo Global Management LLC (NYSE: APO); Sarah Bradley, partner, Kainos Capital; Mary Kathleen Flynn, the editor-in-chief of Mergers & Acquisitions; Jennifer Lu, executive director, Moelis & Co. (NYSE: MC); and Cheraé Robinson, founder, Tastemakers Africa. The organizers have succeeded in attracting an impressive group of sponsors for the event, including Apollo, Baird, BDO, Merrill Corp. and Moelis, underscoring increased interest in initiatives aimed at women dealmakers. Read the full story: Entrepreneurs Sallie Krawcheck, Cheraé Robinson to speak at Exponent Exchange.

Deal news
Equipment rental company United Rentals Inc. (NYSE: URI) is acquiring BakerCorp International Holdings Inc. for $715 million. BakerCorp provides tank, pump and filtration rental services to industrial and construction companies. Centerview Partners and Sullivan Cromwell are advising United Rentals. Morgan Stanley (NYSE: MS) and Fried Frank are advising BakerCorp.

Industrial technology company Fortive Corp. (NYSE: FTV) is buying construction software provider Gordian from Warburg Pincus for $775 million. Gordian offers data, finance and workflow management to contractors and facility managers. Credit Suisse and WilmerHale are advising Fortive.

Golden Gate Capital has bought the Learning Experience, a franchise operator of education academies for children between six weeks and six years old. Ropes & Gray and Nob Hill Law Group advised Golden Gate. Harris Williams, Goodwin Procter and Greenberg Traurig advised the Learning Experience.

Men’s accessories company Randa Accessories has made an offer to acquire Perry Ellis International Inc. (Nasdaq: PERY) for $444 million. The bid is higher than the $437 million deal that Perry Ellis agreed to with founder George Feldenkreis. Willkie Farr & Gallagher LLP is representing Randa.

Salveo Capital, an alternative investment firm specializing in the legalized cannabis sector, has acquired a minority equity interest in Flow Kana, which partners with “independent farmers who cultivate under full sun, sustainably, in small batches,” according to a statement from the investment firm.

For deal more deal announcements, including acquisitions made by AT&T Inc. (NYSE: T) and Conagra Brands Inc. (NYSE: CAG), read The weekly wrap: AT&T, Conagra, Twitter.

To see which private equity firms are raising funds, including Thoma Bravo, read PE fundraising scorecard: Clearview Capital and Thoma Bravo.

People Moves
Former Lazard International chairperson and former UBS global M&A head Ken Costa has joined LJ Partnership as a partner. In addition, Ali Bouzarif, the former head of investment execution at the Qatar Investment Authority has joined LJ as a partner. Costa is based in London and is serving as the firm’s co-chairperson. Bouzarif is based in New York. LJ is a private wealth and real estate partnership and is expanding into M&A and private equity. Family office Dilmun has acquired a 40 percent stake in LJ, and the latter will rebrand to Alvarium Investments in 2019.

Christine Kaniak has joined Orrick’s Munich office as a partner. Previously with Kirkland & Ellis, Kaniak focuses on financing in private equity and M&A.

Karen Lee was hired by Kirkland & Ellis‘ Palo Alto office as a partner. Most recently with Skadden Arps Slate Meagher & Flom, Lee concentrates on tax matters related to private equity and M&A.

Featured content
Consolidation has become a driving force for M&A among car dealerships, with autonomous vehicles, ride-sharing and other influences contributing as well. An estimated 1,080 car dealerships were sold to 612 buyers between 2014 and 2017, reports Kerrigan Advisors, an Irvine, California, sell-side advisor to auto dealers. We asked Stephen Dietrich, a Denver-based Holland & Knight attorney with an auto dealer M&A practice, for his thoughts on trends in the sector and what middle-market private equity firms should consider when looking at potential deals for car dealerships. Read the full story: Car dealerships sell, as self-driving vehicles shake up auto industry.

Check out our slideshow on auto-related deals: Car parts makers fuel M&A, as industry readies for self-driving vehicles. Morgan Stanley (NYSE: MS) and Cravath, Swaine & Moore LLP are advising Brunswick.

Today’s portfolio companies choose private equity funds “based on not just who’s going to pay them the most money, but who’s going to be more involved in helping them get to that next step, helping them to execute the strategy,” says BDO USA’s Bob Pearlman in this video interview shot at ACG InterGrowth 2018. Watch the full video: PE firms take a more strategic approach to portfolio companies than in the past.

“Clamoring to be the loudest person in the room” is not the way to bring more women into the middle market, says Suzie Doran of SingerLewak, in this video interview shot at ACG InterGrowth 2018. Doran serves as president of ACG Los Angeles, which recently took the Women of ACG Los Angeles on a private viewing of the 100th Anniversary Exhibition of King Tut at the California Science Center. “We’re about making connections and being able to take those connections to the next level.” Watch the full video: No “clamoring to be the loudest person in the room” at women dealmaker events.

Peter Van Raalte, co-founder of Corinthian Capital, and Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions, were featured speakers at the ACG NY Industrial Conference at the New York Athletic Club. The conference is part of the ACG Northeast Industry Tour, sponsored by ACG New York, ACG Boston and ACG Philadelphia. View our slideshow: Manufacturing M&A: high prices but plenty of opportunities.

From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’ Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ summer reading list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.

Read full coverage of Mergers & Acquisitions’ 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.

July 2nd, 2018

GE sheds more assets, sells gas engine unit to Advent


Bloomberg News

General Electric Co. agreed to sell its industrial gas-engine business to Advent International for $3.25 billion, bolstering CEO John Flannery’s plan to shed assets and reshape the beleaguered manufacturer.

The private-equity firm will acquire GE’s Jenbacher and Waukesha engine brands and manufacturing sites in Austria, the U.S. and Canada, the companies said in a statement. The deal is expected to close in the fourth quarter.

The sale of Distributed Power furthers Flannery’s pledge to narrow GE’s focus as he seeks to stem one of the deepest slides in the company’s 126-year history. The CEO, who’s also revamping the leadership and cutting costs, agreed last month to unload GE’s locomotive division as part of an effort to sell $20 billion of assets.

The transaction “checks the box on another divestiture,” Deane Dray, an analyst with RBC Capital Markets, said in a note. “Distributed Power was operated mostly as a stand-alone business within the GE Power portfolio, so we do not foresee any significant dis-synergies or complications with separating it in a sale.”

Distributed Power, part of the GE division that also builds gas turbines and electrical equipment, produces heavy-duty engines that generate power and heat for industrial facilities. The business, which has about 3,000 employees, posted sales of $1.3 billion last year.

The on-site turbines also are used on college campuses as a way to keep buildings running when the grid goes dark. Increasingly, small gas turbines are seen as the backbone of microgrids that are reshaping the way communities get power because they can back up supplies from solar panels or battery systems.

“We like the space because we see a couple of megatrends, namely decentralization, decarbonization and gas replacing diesel,’’ Advent managing partner Ranjan Sen said in an interview. While the buyout firm will explore additional acquisition opportunities to expand Distributed Power, the primary focus will be “to invest in product portfolio, distribution, digitalization and facilitate a fast transformation to a standalone business.’’

GE has owned Jenbacher, named for the Austrian town Jenbach, since 2003. Seven years later, the company added Waukesha, which takes its name from a city in Wisconsin, through the acquisition of Dresser.

Advent targets companies with the potential for operational and strategic improvement. The Boston-based firm, which recently invested in smartphone-parts maker Laird Plc and Walmart Inc.’s Brazilian unit, is focused on a handful of markets, including industrial, retail and financial services.

The sale process drew interest from strategic and financial bidders, including Cummins Inc. and KKR & Co., Bloomberg previously reported.

Flannery, who succeeded Jeffrey Immelt at the top of GE last year, is selling extraneous businesses such as lighting while reshaping the company around key markets, including aviation and healthcare. He’s also weighing bigger changes, including possibly breaking GE into separate businesses.

GE, also based in Boston, agreed in May to an $11.1 billion deal to merge its century-old locomotive manufacturing business with Wabtec Corp. That came after GE in April sold a piece of its health-care unit for $1.05 billion.

Investors are keeping a close eye on GE’s portfolio changes in the hope that the proceeds can provide a buffer as the company grapples with debt and cash-flow challenges. GE has said it anticipates proceeds of $5 billion to $10 billion from asset sales this year, depending on the timing of deal closings.

Bloomberg News

July 1st, 2018

M&A daily wrap: Energizer, Nu Finish, Stryker, BDO USA, Bob Pearlman, auto industry disruptions

The acquisition of Nu Finish compliments Energizer's Eagle One car polish brand

The acquisition of Nu Finish compliments Energizer’s Eagle One car polish brand

Photo credit: Bloomberg News

Battery maker Energizer Holdings Inc. (NYSE: ENR) has agreed to buy the Nu Finish Car Polish and Nu Finish Scratch Doctor auto care brands from consumer products company Reed-Union. “Adding the strength of the Nu Finish and Scratch Doctor brands to our existing Lexol and Eagle One products expands our auto appearance portfolio and continues our strategy of building our auto care business, both organically and through acquisitions,” says Energizer CEO Alan Hoskins. In addition to its Energizer battery brand, Energizer has an auto care division that consists of car fresheners and polishes that includes the brands: Refresh Your Car!, California Scents, Driven, Bahama & Co., Lexol and Eagle One. Today’s auto industry is rife with change, including the advent of self-driving cars and the popularity of ride-sharing. The disruption is fueling consolidation from all angles. M&A involving traditional services, repair, maintenance and third-party parts is booming. View our slideshow: Car parts makers fuel M&A, as industry readies for self-driving vehicles. The changes are also prompting many car dealerships to sell. Read our Q&A with Holland & Knight’s Stephen Dietrich: Car dealerships sell, as self-driving vehicles shake up auto industry. Sawaya Partners LLC is advising Energizer.

Today’s portfolio companies choose private equity funds “based on not just who’s going to pay them the most money, but who’s going to be more involved in helping them get to that next step, helping them to execute the strategy,” says BDO USA’s Bob Pearlman in this video interview shot at ACG InterGrowth 2018. Watch the full video: PE firms take a more strategic approach to portfolio companies than in the past.

Deal news
Stryker Corp. (NYSE: SYK) is buying Swiss medical device company SafeAir AG. The target makes a disposable pencil that has a smoke evacuation function that connects with a smoke evacuator to help pull smoke out. “The acquisition of SafeAir AG is highly complementary to the Surgical business of Stryker’s Instruments division, and strengthens our smoke evacuation portfolio in both the U.S. and Europe,” says Stryker group president Timothy Scannell. Stryker earned Mergers & Acquisitions’ M&A Mid-Market Award for 2017 Strategic Buyer of the Year for its $700 million purchase of surgical imaging technology provider Novadaq.

EQT has acquired Zemax Software Holdings from Arlington Capital Partners. Zemax is a provider of optical and illumination design software. Spurrier Capital Partners and Sheppard Mullin advised Zemax. Shea & Co. and Kirkland & Ellis advised EQT. Ares Capital and Caryle Global Credit provided financing.

AE Industrial-backed BHI Energy has bought D&D Power, an electrical contractor that offers distribution, transmission and storm restoration services.

Cresset Capital Management has launched Cresset Family Office. Ascent Private Capital Management founder Michael Cole will lead the family office as CEO. Cresset Capital was formed by Sterling Capital co-founder Eric Becker and former Willis Stein & Partners CEO Avy Stein.

TowerBrook Capital Partners has raised two funds, TowerBrook V and TowerBrook Structured Opportunities, at a combined $5.3 billion. “The success of the fundraise is a direct reflection of our investors’ confidence in TowerBrook’s distinctive investment strategy and its disciplined deployment over the past 18 years,” says TowerBrook Co-CEO Ramez Sousou.

There has been a bit of a push and pull to bank M&A this year. Recently passed legislation that raised the threshold for becoming a systemically important financial institution has also raised expectations for bigger deals, such as Fifth Third Bancorp. buying MB Financial. Still, a closer look reveals that bank M&A at midyear has yet to fully take off. Read the full story: Think bank M&A has heated up? Think again.

A year after being named chief executive officer, John Flannery took the boldest steps yet to revamp the sinking corporate titan, unveiling plans to pull GE out of the healthcare and oil markets. By slimming GE down and reorienting it around power, renewable energy and aviation, Flannery hopes to breathe new life into the 126-year-old company. Read the full story from Bloomberg News: GE exiting health, oil, as CEO shrinks a one time titan to save it.

People Moves
Chune Loong Lum was hired by law firm Ropes & Gray as a counsel in Hong King. Most recently with Skadden, Arps, Slate, Meagher & Flom, Lum represents Asia and China-focused fund sponsors in the formation, structuring and operation of private equity funds.

Anthony Carbone has joined law firm Morrison & Foerster as a a partner. Previously with Willkie Farr & Gallagher, Carbone focuses on tax matters related to M&A.

Featured content
Tech-enabled service businesses, including those that use the Software-as-a-Service, approach provide “a very sticky customer base,” says Crutchfield Capital’s J.B. Dollison, who serves as chair of the ACG Global board, in this video shot at ACG InterGrowth 2018. “Those fundamentals are very attractive in the market, and some of those businesses are selling for Titanic multiples.” Watch the full video: SaaS businesses are selling for “Titanic multiples,” says Crutchfield’s J.B. Dollison.

“Clamoring to be the loudest person in the room” is not the way to bring more women into the middle market, says Suzie Doran of SingerLewak, in this video interview shot at ACG InterGrowth 2018. Doran serves as president of ACG Los Angeles, which recently took the Women of ACG Los Angeles on a private viewing of the 100th Anniversary Exhibition of King Tut at the California Science Center. “We’re about making connections and being able to take those connections to the next level.” Watch the full video: No “clamoring to be the loudest person in the room” at women dealmaker events.

More than 2,000 dealmakers from 1,100 companies, representing 16 countries, headed to sunny San Diego for three days of networking at ACG InterGrowth 2018. Jeff Immelt, who served as CEO and chairman of General Electric Co. (NYSE: GE) from 2001 to 2017, was the keynote speaker. Check out our slideshow: InterGrowth 2018 in pictures.

Peter Van Raalte, co-founder of Corinthian Capital, and Mary Kathleen Flynn, editor-in-chief of Mergers & Acquisitions, were featured speakers at the ACG NY Industrial Conference at the New York Athletic Club. The conference is part of the ACG Northeast Industry Tour, sponsored by ACG New York, ACG Boston and ACG Philadelphia. View our slideshow: Manufacturing M&A: high prices but plenty of opportunities.

From stories of star athletes Arnold Palmer, Keith Hernandez and Tiger Woods to advice from entrepreneurs Bridgewater AssociatesRay Dalio, KPCB’s John Doerr, Nike’s Phil Knight and Brava Investments’Nathalie Molina Niño, plus strategies to help business leaders in general, and female dealmakers in particular, the 15 books on Mergers & Acquisitions’ summer reading list entertain, instruct and inspire. Check out our listicle: Dealmaker’s guide to summer reading: 15 new books.

Read full coverage of Mergers & Acquisitions’ 11th annual M&A Mid-Market Award winners: Campbell Soup, Huron Capital, Idera CEO Randy Jacops, LLR Partners, McGuireWoods, Stryker, Twin Brook and William Blair.


Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Managing Editor of Mergers & Acquisitions. He covers all aspects of middle-market deamaking, with a focus on strategic buyers and the consumer and retail sectors, and writes The Buyside column.


Mary Kathleen Flynn

Mary Kathleen Flynn

Mary Kathleen Flynn joined SourceMedia in 2011, serving as the Editor-in-Chief of Mergers & Acquisitions. MK oversees the brand’s content on all media platforms, including website, e-newsletters, video, slideshows, podcasts and print.

July 1st, 2018

PE fundraising scorecard: Clearview Capital and Thoma Bravo

Bow Street Special Opportunities Fund XVI Cayman, Ltd. 6/15/2018 Indefinite Grand Parkway Capital Fund I L.P. 11/6/2008 Indefinite European Opportunistic Property Fund IV Feeder LP 6/25/2018 $29,048,825 TPG Partners VIII, L.P. First Sale Yet to Occur Indefinite TPG Healthcare Partners, L.P. First Sale Yet to Occur Indefinite AEP Feeder Fund VII, LLC First Sale Yet to Occur Indefinite ArcLight Energy Partners Fund VII, L.P. First Sale Yet to Occur Indefinite EquityZen Growth Technology Fund LLC – Series 254 6/26/2018 $145,017 EquityZen Growth Technology Fund LLC – Series 257 6/25/2018 $233,707 Carlyle Europe Realty Feeder Fund, S.C.Sp. First Sale Yet to Occur Indefinite MVP LS Fund XXXIX LLC First Sale Yet to Occur $2,000,000 JWL Acquisition Partners II, L.P. 6/27/2018 $11,000,000 Clearview Capital Mezzanine Co-Investors LP First Sale Yet to Occur Indefinite Clearview Capital Mezzanine Fund I LP First Sale Yet to Occur $100,000,000 Clearview Capital Mezzanine I-A LP First Sale Yet to Occur $100,000,000 Clearview Capital Co-Investors IV LP First Sale Yet to Occur Indefinite Clearview Capital Fund IV LP First Sale Yet to Occur $550,000,000 Clearview Capital IV-A LP First Sale Yet to Occur $550,000,000 AACP Korea Buyout Investors III, L.P. 6/15/2018 Indefinite Carlyle Fourmi Co-Investment Ltd First Sale Yet to Occur Indefinite One Tower Ascend Debenture, LLC 6/14/2018 $4,000,000 InvOpps IV US, L.P. First Sale Yet to Occur Indefinite InvOpps IV Investors, L.P. First Sale Yet to Occur Indefinite Pennybacker Credit I, LP 6/15/2018 $49,500,000 Altair Healthcare Royalties Fund, LLC 6/8/2018 Indefinite EquityZen Growth Technology Fund LLC – Series 224 6/21/2018 $288,340 EquityZen Growth Technology Fund LLC – Series 252 6/21/2018 $704,010 EquityZen Growth Technology Fund LLC – Series 187 6/26/2018 $163,838 EquityZen Growth Technology Fund LLC – Series 260 6/26/2018 $563,598 EquityZen Growth Technology Fund LLC – Series 261 6/25/2018 $150,000 EquityZen Growth Technology Fund LLC – Series 263 6/21/2018 $347,000 EquityZen Growth Technology Fund LLC – Series 264 6/20/2018 $143,501 EquityZen Growth Technology Fund LLC – Series 269 6/26/2018 $1,200,738 Carlyle Private Equity Access Fund IV (Parallel), L.P. 6/15/2018 $49,386,000 DCM Ridesharing, as a Series of DCM Private Equity Partners, LLC 6/25/2018 $6,900,000 Thoma Bravo Fund XIII-P LP First Sale Yet to Occur $11,500,000,000 Thoma Bravo Fund XIII-A LP First Sale Yet to Occur $11,500,000,000 Thoma Bravo Fund XIII LP First Sale Yet to Occur $11,500,000,000 Tishman Speyer Brazil Club, L.P. First Sale Yet to Occur Indefinite TRC Income Fund II LLC First Sale Yet to Occur Indefinite GSO Energy Select Opportunities Fund II LP First Sale Yet to Occur Indefinite GSO Energy Select Opportunities Feeder Fund II LP First Sale Yet to Occur Indefinite GSO Energy Select Opportunities Fund II EEA SCSp First Sale Yet to Occur Indefinite GSO Energy Select Opportunities Fund II EEA Feeder SCSp First Sale Yet to Occur Indefinite RL Co-Investor Aggregator LP First Sale Yet to Occur Indefinite Geller Multi-Vintage III, LLC 6/18/2018 Indefinite Geller Multi-Vintage Real Estate I, LLC 6/18/2018 Indefinite BBR Absolute Return Long Duration II, LP First Sale Yet to Occur Indefinite Ares Senior Direct Lending Fund (Cayman) B, L.P. First Sale Yet to Occur Indefinite Ares Senior Direct Lending Fund (Delaware), L.P. First Sale Yet to Occur Indefinite Larson Capital Fund V LLC 6/15/2017 Indefinite EIG Energy Fund XVII (Cayman), L.P. First Sale Yet to Occur Indefinite Monarch Co-Investment, L.P. First Sale Yet to Occur Indefinite Gallus Capital Debt Fund I, L.P. 6/20/2018 Indefinite EIG Nova Co-Investment, L.P. First Sale Yet to Occur Indefinite EIG Nova Co-Investment-B, L.P. First Sale Yet to Occur Indefinite GSP OL Fund, L.P. 6/8/2018 $15,392,227 Upper90 Fund, LP First Sale Yet to Occur $75,000,000 Webster Capital II-A, L.P. 6/10/2018 $151,000,000 Buttonwood Beacon QP Fund LLC Series W-1 6/22/2018 Indefinite Buttonwood Beacon Fund LLC Series W-1 6/22/2018 Indefinite CapVest Equity Partners IV (Feeder) SCSP First Sale Yet to Occur Indefinite CapVest Equity Partners IV SCSP First Sale Yet to Occur Indefinite G Squared Opportunities Fund IV LLC, Series D-6 6/8/2018 $500,000,000 G Squared Opportunities Fund IV LLC, Series D-5 6/15/2018 $500,000,000 Balmoral Special Situations Fund III LP First Sale Yet to Occur $150,000,000 Searchlight Capital II MLN Co-Invest Partners, L.P. 6/8/2018 Indefinite SFM Opportunities VI, LP 11/21/2017 $70,000,000 aMoon 2 Fund Limited Partnership First Sale Yet to Occur Indefinite Actis Long Life Infrastructure LP First Sale Yet to Occur Indefinite FEG Private Opportunities Fund IV, LP 5/15/2018 Indefinite MVP LS Fund LXII LLC First Sale Yet to Occur $2,000,000 MVP LS Fund LXIII LLC First Sale Yet to Occur $2,000,000 Private Equity Regulation D Filings (New Notices) June 22 to June 28, 2018 Source: SEC Filings