| | | | | Alphabet's M&A activity declines as US files antitrust suit | |  | | (Spencer Platt/Getty Images) | | | Alphabet's buying spree has slowed down in recent years. And that could be just the beginning of a chill in the company's ambitions, now that US government regulators have filed suit against its biggest unit, Google.
In 2015, Alphabet closed 24 deals, but that figure has dropped to just five so far in 2020, according to PitchBook data: | | | | | | | | | | Breaking down Blackstone's $14.6B BioMed Realty bet | |  | | (Eskay Lim/Getty Images) | | | Last week, Blackstone announced a $14.6 billion recapitalization of BioMed Realty, a real estate investment trust that owns 11.3 million square feet of life sciences real estate spread across several industry hubs. After less than five years of ownership, Blackstone will log a $6.5 billion profit on the move, marking the third most profitable deal in the firm's history.
Our latest analyst note examines every angle of this massive transaction, one that illustrates several key trends currently playing out in both private and public markets: - The move is the latest sign of momentum for GP-led secondaries deals, allowing fund LPs to maintain exposure or cash out
- PE and VC investment in life sciences has grown in 2020 against the backdrop of the pandemic
- The deal demonstrates how Blackstone's thematic strategy in real estate has differed from that of fellow market leader Brookfield
| | | | | | | | | | | | Cross-border M&A helps prop up robust life sciences dealmaking | | The life sciences industry is one of the several that have benefited in many ways from the onslaught of the COVID-19 pandemic. However, not every segment within the space has boomed—many have seen supply chains disrupted even as others like telehealth have seen record surges in demand.
DFIN's latest market report identifies the key trends defining dealmaking within the space, from how the pandemic may have helped spur consolidation to the resiliency of transactional volume. In addition, the report features insights from DFIN executives as to the new hurdles life sciences dealmakers are navigating in the current environment.
Read it now | | | | | | | | | | SPAC backers' bid to spread craze to UK faces hurdles | |  | | The London Stock Exchange is reportedly exploring ways to attract SPACs to the UK. (Chris J Ratcliffe/Getty Images) | | | While the US has logged more than $37 billion in SPAC IPOs so far in 2020, the UK has yet to see just one such deal. UK investors face several obstacles, including the lingering sting of unsuccessful blank-check deals in the London market years ago.
The London Stock Exchange is believed to be looking for ways to attract SPAC interest to the UK, but investors may shy away from the risk if the country doesn't revamp its model soon: | | | | | | | | | | Despite pandemic uncertainty, VC deal value is ticking up in 2020 | | On the whole, venture dealmaking in the US remained surprisingly steady during the first six months of the coronavirus crisis: In both the second quarter and the third quarter of 2020, VC deal value was higher than in any quarter from 2019.
But the pandemic has still been reshaping the venture landscape in many ways, both big and small.
The Q3 2020 PitchBook-NVCA Venture Monitor, sponsored by Silicon Valley Bank and Certent, deploys all our latest data to paint a picture of how the VC scene has shifted during the spring and summer. The report, which now includes new league tables ranking the industry's most active players, examines a boom in the life sciences sector, fundraising challenges for founders from underrepresented backgrounds, and a number of other key trends, including: - Public listings from Snowflake, Palantir, Asana and more helped drive VC exit value to its second-highest quarter ever
- VCs have raised $56.6 billion for new funds through Q3, already topping 2019's full-year total
- Significant long-term changes in consumer and business behavior could lay the groundwork for future unicorns
| | | | | | | | | | Apollo investigates Black's Epstein ties, report says | | | Apollo Global Management's board has launched an independent investigation of CEO Leon Black's business dealings with Jeffrey Epstein, The Wall Street Journal reported. A committee of the private equity giant's independent board members hired the law firm of Dechert LLP on Tuesday, at Black's request, the WSJ reported. The investigation comes after revelations that Black paid Epstein millions of dollars in the years after Epstein was convicted of soliciting prostitution from a teenage girl. | | | | | | | | | | Didi Chuxing eyes blockbuster Hong Kong IPO | | Didi Chuxing could pursue an IPO in Hong Kong by the middle of next year, after initially targeting a US listing, according to Reuters. The offering could value the Beijing-based ridehailing company at more than $60 billion.
The decision would notch another significant win for Hong Kong's stock exchange. Didi's rival Dida Chuxing reportedly filed for a Hong Kong IPO last week and will seek to raise up to $600 million. Jack Ma's Ant Group got approval for a public listing in Hong Kong and is planning a concurrent offering in Shanghai.
Didi started to turn a profit in the second quarter of this year and could pursue another round of private financing before the IPO, Reuters reported. Founded in 2012, Didi has raised about $23 billion in debt and equity from investors including SoftBank, Toyota, Tencent, Alibaba and Foxconn, according to PitchBook data. It was reportedly valued at $56 billion in 2018. | | | | | | | | | | Before his abrupt departure, Calpers chief investment officer Ben Meng was overseeing a new embrace of private equity. It's a shift that his successor—whoever that successor may be—will likely continue. [The New York Times]
GardaWorld has spent this year in pursuit of a deal to buy UK-based rival G4S. But a new investigation indicates the company may have issues to solve much closer to home. [Tampa Bay Times]
A growing group of retail bankruptcies are leaving wide swathes of commercial real estate unoccupied. It's a mounting crisis that could soon start creating much broader economic impacts. [Politico] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 365 Deals | 1532 People | 417 Companies | 13 Funds | | | | | | | | | | | | | | | | | | | | 2017 Vintage Global Secondaries Funds | | | | | | | | | | | | | PitchBook Webinar: The resilience of US VC in Q3 | | Major trends from before the COVID-19 pandemic are continuing in VC, including further proliferation of mega-deals, increasing late-stage activity and a flourishing exit environment. On track for a nearly record-breaking quarter in terms of exit value, public debuts from big names like Snowflake, Palantir, Asana and Unity have brought liquidity to investors.
Join industry experts from Silicon Valley Bank, Certent, NVCA and PitchBook on Oct. 29 for a panel discussion about the development of the current market environment and other trends highlighted in the Q3 2020 PitchBook-NVCA Venture Monitor.
Register today | | | | | | | | | | | | | | | | | | | | | Handshake has raised an $80 million Series D led by GGV Capital, with participation from EQT Ventures, Kleiner Perkins, Lightspeed and Spark Capital. The funding values the San Francisco-based company at $700 million, according to PitchBook data. Handshake is the developer of a recruitment platform designed to connect college students and higher education institutions with prospective employers. | | | | | | | | Sequoia leads $50M round for Retool | | | Retool, the San Francisco-based creator of an interface that allows software engineers to build custom business applications, has raised a $50 million Series B led by Sequoia. Founders of companies including Stripe, Gusto and Plaid also participated in the funding, which values Retool at $925 million, according to Bloomberg. Founded in 2017, the startup counts NBC, Allbirds and Brex among its customers. | | | | | | | | 4iQ picks up $30M Series C | | | 4iQ, a developer of cyber-intelligence software designed to help businesses identify and manage digital risk, has raised $30 million in a round co-led by ForgePoint Capital and Benhamou Global Ventures. Founded in 2016, the Los Altos, Calif.-based company was valued at nearly $58 million in 2018, according to PitchBook data. 4iQ has also added former Waterline Data executive Kailash Ambwani as its CEO. | | | | | | | | TV network Venn lands $26M | | | Venn, a gaming and entertainment live-broadcast network, has closed a $26 million Series A co-led by existing backer Bitkraft and new investor Nexstar Media Group. The Los Angeles-based company has hired former MTV production head Jeff Jacobs to oversee growth and expansion and also lead content and business operations. Venn recently expanded its content streaming distribution to The Roku Channel. | | | | | | | | | | | | CapVest to take over Datasite | | | London-based CapVest has agreed to acquire Datasite, a Minneapolis-based provider of software for dealmakers specializing in mergers and acquisitions. Operating across 13 countries, the company grew its revenue roughly 30% by helping service almost 10,000 deals in 2019. | | | | | | | | Great Hill backs financial services add-on | | | Versapay, which offers order-to-cash services for middle-market and enterprise businesses, has purchased Solupay, an Ohio-based provider of payments services for suppliers and merchants. Toronto-based Versapay has been a portfolio company of Great Hill Partners since this February. | | | | | | | | OTPP to lead $360M investment in Princeton Digital | | | | | | | | | Summit devotes $56M to LearnUpon | | | Summit Partners has invested $56 million in LearnUpon, a Dublin-based provider of cloud-based learning management software. Summit principal Antony Clavel will join the company's board of directors. | | | | | | | | Mainsail partners with PlanHub | | | Mainsail Partners has made a $41 million growth investment in PlanHub, the creator of a cloud-based project-bidding platform for the construction industry. The Florida-based company has also hired Cameron Darby as its chief growth officer; Darby is on the board of Aspire Software, another Mainsail portfolio company. | | | | | | | | Ardian strikes deal with H2 Pharma | | | Ardian has agreed to acquire a minority stake in H2 Pharma, a French manufacturer of generic drugs. The deal marks Ardian Growth Fund's first investment in the healthcare industry. | | | | | | | | | | | | Ousted WeWork CEO gets only part of $185M consulting fee | | | Former WeWork CEO Adam Neumann only received part of a $185 million fee tied to his exit package, according to Bloomberg. The fee was reportedly linked to a noncompete agreement for Neumann, with some of the payment dependent on the completion of a transaction to buy WeWork stock from Neumann and other shareholders. At a Wall Street Journal technology conference on Monday, WeWork executive chairman and SoftBank executive Marcelo Claure said the arrangement with Neumann was no longer in place, according to reports. | | | | | | | | | | | | Root seeks up to $604M in IPO | | | Root, which operates an online car insurance platform, is looking to raise up to $604 million in its upcoming IPO. The Columbus, Ohio-based company is offering 22 million shares at an expected price range of $22 to $25 apiece, with an existing shareholder planning to sell 2.2 million shares. Dragoneer Investment Group and Silver Lake have also agreed to buy up to $500 million worth of shares in private placements. | | | | | | | | Riverstone-backed SPAC raises $200M | | | A special-purpose acquisition company backed by Riverstone has raised $200 million in a public offering on the Nasdaq, a reduction from the $300 million the SPAC initially planned to raise when it first filed for the listing last month. Called Decarbonization Plus Acquisition Corporation, the vehicle will pursue a reverse merger with a company focused on decarbonization in sectors such as energy, agriculture and transportation. | | | | | | | | TA Associates weighs ThinkProject exit | | | TA Associates has hired Arma Partners to sell construction software company ThinkProject in a deal that could value the German company at around €700 million (about $828 million), according to Reuters. Private equity firms including Cinven, KKR, Permira and TPG Capital could reportedly show interest. TA has backed the company since 2017. | | | | | | | | | | | | India's SAIF Partners rebrands, raises $400M | | | SAIF Partners has closed its seventh early-stage fund on $400 million and changed its name to Elevation Capital. The 18-year-old venture firm maintains a strong presence in its home nation of India, with previous investments in food delivery company Swiggy, edtech platform operator Unacademy and payments giant Paytm. | | | | | | | | Healthcare investor hopes for $300M | | | Ascend Partners, a healthcare-focused firm based in New York, has set a $300 million target for its debut private equity fund, according to an SEC filing. Ascend was founded last year and is led by managing partners In Seon Hwang, former global head of the healthcare group at Warburg Pincus, and Richard Park, founder and former CEO of CityMD. | | | | | | | | | | Intel lines up $9B divestiture to SK Hynix | | | South Korean semiconductor supplier SK Hynix has agreed to pay Intel $9 billion to acquire the chipmaking giant's NAND flash memory and storage unit. For Intel, the deal marks a move away from a business line that has been beset in recent years by falling prices, according to The Wall Street Journal. Still, the NAND unit generated $2.8 billion in revenue for the six months ended June 27. The deal calls for a $7 billion initial payment and a later payment of $2 billion that may not occur until 2025. | | | | | | | | Pioneer to take over Parsley in $7.6B deal | | | Pioneer Natural Resources has agreed to acquire all outstanding shares of fellow Texas-based shale producer Parsley Energy for $4.5 billion in stock, valuing Parsley at $7.6 billion when including the company's debt. Pioneer is led by CEO Scott Sheffield, while his son, Bryan Sheffield, is the founder of Parsley. Both companies are active in the Permian Basin, and Parsley also has significant assets in the Delaware Basin and Midland Basin. | | | | | | | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | Service Providers | | | | | | | | | | | | | | | |
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