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| A PE fundraising record could await in 2021 | |  | | (PM Images/Getty Images) | | | The private equity fundraising market experienced runaway growth during the past decade, with annual totals for capital raised climbing from less than $60 billion in 2010 to more than $316 billion in 2019. Fundraising figures are on track to take a slight step back during this strange pandemic year of 2020. But in 2021, they could bounce back with a vengeance.
Our private equity analysts expect the PE industry will set an all-time fundraising record next year, anticipating total capital raised will top $330 billion for the first time. That's just one of the forecasts they provide in our latest analyst note, which outlines a half-dozen predictions of what is to come for PE in 2021. Here are a few others: - At least 20 PE-backed companies will conduct reverse mergers with SPACs
- First-time fundraising in the US will be the strongest since the global financial crisis
- Carveout deal value will hit the highest level on record
| | | | | | | | | | Wish, Upstart expected to price IPOs | | Shopping app provider Wish and online lender Upstart are slated to price their IPOs later today, continuing a recent parade of tech stock market debuts.
Backed by DST Global, Founders Fund and Formation 8, Wish plans to raise around $1.1 billion in its initial public offering, selling 46 million shares. At the midpoint of its target price range of $22 to $24 per share, it would have a fully diluted valuation of more than $16 billion. In August 2019, Wish was valued at $11.2 billion after a funding round led by General Atlantic.
Upstart would have a fully diluted valuation of around $1.9 billion after raising around $252 million at the midpoint of its expected $20 to $22 per share price range. Its investors include Third Point Ventures, Khosla Ventures and Stone Ridge. The Bay Area-based company was worth $750 million after picking up $50 million in capital in April 2019, according to PitchBook data.
Expected IPOs before the end of the year from gaming company Roblox and buy-now, pay-later lender Affirm have reportedly been delayed. Roblox's change of timing was said to be influenced by the extreme first-day share price jumps experienced by DoorDash and Airbnb in their market debuts last week. | | | | | | | |
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| A message from SS&C Intralinks | | |
| Keep your reorg organized with these bankruptcy and restructuring checklists | | Restructuring or selling off a distressed asset is often the right move for a company. But following the right framework is vital, too—one that helps you successfully complete all the crucial steps, critical details and regulatory requirements in this high-speed, high-stakes process.
To help, Intralinks consulted with top industry experts to create comprehensive Bankruptcy and Restructuring Checklists for: - 363 Sales
- Chapter 11: Plan negotiations
- Chapter 11: Pre-filing preparation
- Chapter 11: Pre-packaged negotiations
Download these free checklists for your planning and execution roadmaps that will keep your reorg on track and successful. | | | | | | | |
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| UK's JD Sports agrees to buy Shoe Palace for $681M | |  | | Consumers stand in line to enter a Shoe Palace in Glendale, Arizona ( Christian Petersen/Getty images) | | | JD Sports has bought California-based Shoe Palace for $681 million as the London-listed leisurewear retailer looks to expand its US footprint.
This will be JD Sports' second US acquisition. The company entered the market in 2018 with the $560 million purchase of apparel company The Finish Line. JD Sports opened a new flagship store in New York's Times Square in October.
The company's other recent acquisitions include Livestock, a Canadian apparel company bought in July, and UK menswear company Pretty Green, which it bought for £400 million (around $535 million) in 2019. It is also looking to buy UK rival Footasylum, pending regulatory approval.
Last month, JD Sports saw its share price fall when it entered talks to acquire Debenhams after the UK department store filed for bankruptcy protection. It later dropped out. When it announced the Shoe Palace deal on Tuesday (Dec. 15), its share price was up by as much as 7% on the previous closing.
JD Sports will pay $325m in cash and issue a 20% stake in its US subsidiary, worth $356 million, to four brothers from the Mersho family that founded Shoe Palace in 1993. The brothers will continue to operate the company, which runs 167 stores across the US, half of which are in California. Shoe Palace generated $435 million in revenue and a pre-tax profit of $52 million in the year to Dec. 31, 2019. | | | | | | | | | | Germany to take stake in KKR-backed Hensoldt | |  | Hensoldt supplies sensor systems for jets and periscopes.
(Andreas Tentz/Getty Images) | | | The German government has agreed to buy a 25.1% stake in defense supplier Hensoldt from KKR for €464 million (about $564 million), Reuters reported.
The acquisition is meant to deter any foreign takeover of the group. Countries across Europe have been tightening rules to protect domestic companies that may be more vulnerable due to the COVID-19 crisis.
In June, Germany's parliament reportedly approved a new law enabling the government to intervene at a lower equity threshold to block acquisitions from non-EU countries in cases where the deal could present a security threat. Last month, the UK proposed new legislation to allow the government to retroactively stop pending acquisitions, as well as impose conditions and restrictions on certain deals.
Hensoldt supplies sensor systems for jets and periscopes. The company went public in September at €12 per share, giving it an enterprise value of €2.3 billion. KKR retained an approximately 63% stake in Hensoldt following the listing. | | | | | | | | | | The hills are alive with the sound of SPACs making bets on clean energy. [The Wall Street Journal]
In some ways, after the pandemic, the world may never be the same. And after a sprint to a vaccine unlike any other in history, neither will the world of medical research. [The Atlantic]
Why the streaming wars could finally come to an end in 2021. [Wired] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 380 Deals | 1504 People | 409 Companies | 24 Funds | | | | | | |
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| 2006 Vintage Global Funds-of-Funds | | | | | | |
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| PitchBook Webinar: A closer look at cash flow management solutions | | Join us Dec. 17 for a conversation around cash flow management solutions—a topic that can be challenging even for the most sophisticated investors. During the discussion, PitchBook analysts will examine: - The mechanics of PitchBook's cash flow models
- How the models leverage PitchBook data
- Common questions our clients have about the models
Register to secure your spot | | | | | | | |
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| | | | | | | | | Truera collects $12M Series A | | | Truera has raised $12 million in a round led by Wing VC. The company is the developer of a model intelligence platform designed to help data scientists manage machine learning projects. Existing investors Conversion Capital and Greylock Partners also took part in the funding. | | | | | | | | | Remilk has raised $11.3 million in a round led by Fresh.Fund, with participation from investors including OurCrowd, CPT Capital and ProVeg. The Tel Aviv-based company is developing alternative dairy products including cheese, yogurt and cream via microbial fermentation. Remilk plans to use the funding to expand production and distribution operations. | | | | | |
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| Vista to purchase Pluralsight for $3.5B | | | Vista Equity Partners has agreed to acquire Pluralsight, a Utah-based provider of workforce development software for IT professionals, for $20.26 per share in an all-cash deal valued at around $3.5 billion. The purchase price marked a 25% premium to the company's average close price 30 days prior to the announcement. | | | | | | | | EQT offers $2.1B for Recipharm | | | EQT has offered to acquire pharmaceutical company Recipharm for around $2.1 billion, or 220 kronor (about $26) per share. The Stockholm-based business provides contract development and manufacturing services for a range of pharmaceutical companies. Its stock jumped about 22% Monday following the news. | | | | | | | | Montagu to pay $533M for edtech business | | | | | | | | | Alorica lands funding from Apollo | | | Apollo Global Management has refinanced Alorica, a California-based software company focused on customer experience, through a $750 million investment of preferred equity and debt. The investment comes from Apollo's Hybrid Value platform, which pursues strategic minority deals with both public and private companies. Alorica will use the capital in part to fund its global expansion, new products and other growth initiatives. | | | | | | | | McLaren fuels up with MSP Sports backing | | | MSP Sports Capital has made an investment in McLaren Racing, valuing the auto racing team at £560 million (about $746 million). UK-based McLaren was founded in 1963; its teams compete in both Formula One, where it has won 20 world championships, and the Indycar series. MSP, which invests solely in the professional sports ecosystem, was joined on the deal by co-investors The Najafi Companies and UBS O'Connor. | | | | | | | | Blackstone closes post-hack deal with FireEye | | | Blackstone has completed its previously announced $400 million investment in FireEye, a publicly traded cybersecurity company based in Milpitas, Calif. The close of the deal came just days after FireEye announced it had been hacked by a foreign nation, with media outlets pegging Russia as the likely culprit. Shares of the company closed last week down about 10%. | | | | | | | | Liberty Hall acquires Comply365 in SBO | | | | | | |
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| Roblox acquires Loom.ai ahead of delayed IPO | | | Gaming company Roblox has acquired Loom.ai, a startup that specializes in making virtual avatars. The purchase follows a Wall Street Journal report that Roblox will delay its IPO until 2021 amid concerns over share pricing. Loom.ai's existing investors include Samsung Venture Investment, Dentsu Ventures and DHVC, while Roblox raised venture funding at a $4 billion valuation earlier this year. | | | | | | | | PTC to pay $715M for Arena Solutions | | | Arena Solutions has agreed to be acquired by fellow SaaS company PTC for $715 million in cash. Based in Foster City, Calif., Arena makes software for product development. The company received growth funding from JMI Equity in 2017. | | | | | | | | Carlyle mulls spinout of Nouryon industrial unit | | | The Carlyle Group is speaking with advisers about a potential sale or IPO for the industrial unit of Nouryon, a specialty chemicals company backed by the firm, Bloomberg reported. The business could reportedly be worth more than $3 billion. Carlyle acquired Amsterdam-based Nouryon in 2018 from AkzoNobel in a buyout worth €10 billion (about $12.1 billion). | | | | | | | | Reddit buys TikTok rival, Dubsmash | | | Reddit has acquired Dubsmash, which offers a short-form video app that competes with TikTok. Dubsmash will operate as a separate entity under Reddit, but its video creation tools will be integrated into Reddit's platform. In 2016, New York-based Dubsmash was valued at €44.1 million (about $53.6 million), according to a PitchBook estimate; its investors include Index Ventures, Eniac Ventures and Lowercase Capital. | | | | | |
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| TTV raises $127M for fifth fund | | | Atlanta-based TTV Capital has closed its fifth fund on $127 million to invest in tech startups. The vehicle has backed fintech startup Koho, behavioral analytics company Neuro-ID and TaxBit, which makes cryptocurrency tax software. | | | | | | | |
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| Wall Street reacts to AstraZeneca's $39B deal | | | Shares in AstraZeneca closed Monday down nearly 8%, a sign of investor unease about the pharmaceutical giant's recently announced deal to acquire Alexion Pharmaceuticals for $39 billion. The implied price of $175 per share represents a 45% premium to Alexion's closing share price Friday. AstraZeneca specializes in areas including oncology, cardiovascular care and respiratory diseases, while Alexion is known for its immunology drugs. | | | | | | | | Huntington, TCF line up banking merger | | | Huntington Bancshares has agreed to acquire TCF Financial, the parent of TCF Bank, in an all-stock deal that reportedly values TCF at about $6 billion. The deal will create a regional bank with dual headquarters in Detroit and Columbus, Ohio, and approximately $168 billion in assets. It will also expand the size of Huntington's market, adding Colorado, Minnesota, South Dakota and Wisconsin to its banking footprint. | | | | | |
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"Reflecting the sudden change in economic circumstances caused by the pandemic in Q1 2020, returns for all strategies were well below longer-term averages. VC fared the best, posting a 9.5% return for the year through March 31, 2020. While we do not put much weight on quarterly returns in private markets, the Q2 preliminary data we have collected thus far show that a number of strategies saw something of a rebound as dealmakers became more accustomed to working from home and closing deals remotely."
Source: PitchBook's Global Fund Performance Report (as of Q1 2020 with preliminary Q2 2020 data) | | | | | |
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