| | | | | Robinhood rakes in $2.4B more to weather trading chaos | |  | | More than 1 million users are said to have downloaded Robinhood's app on Friday. (Justin Sullivan/Getty Images) | | | Robinhood has added $2.4 billion to its war chest after raising $1 billion last week in a scramble to secure funds to withstand a trading craze in stocks like AMC Entertainment and GameStop. The online brokerage is also considering raising $1 billion in debt from banks to help with the trading volatility, Reuters reported.
The $3.4 billion amassed since last Thursday is more than the roughly $2.2 billion Robinhood had raised through last October, according to PitchBook data. Ribbit Capital led the new round, with participation from Iconiq Capital, Sequoia, Andreessen Horowitz, Index Ventures and NEA.
The stock trading company has been at the center of the ongoing Wall Street drama between retail investors and short-sellers, which has propelled the price of a number of stocks, and more recently, the price of silver.
The enormous capital infusion will likely help Robinhood deal with collateral requirements stemming from the recent trading surge, help support the influx of new accounts and remove trading restrictions that caused widespread outrage from users last week, The Wall Street Journal reported.
More than 1 million users downloaded the Robinhood app on Friday amid the trading frenzy, exceeding the number of downloads in all of December, Forbes reported. Robinhood's decision to restrict trading on certain hot stocks last week swiftly drew lawsuits that alleged market manipulation and breach of contract.
Related read: The seismic saga of GameStop and Robinhood | | | | | | | | | | Digital pharma upstarts face down threats, legacy rivals | |  | | (the_burtons/Getty Images) | | | A growing crop of venture-backed online-only pharmacy startups like NowRx, Ro and Medly are trying to crack the $300 billion-plus prescription drug industry. In a new research note, PitchBook analysts outline the risks and potential rewards awaiting these challengers, including:
- Online fraud is a looming threat that digital companies must tackle
- Central distribution hubs, walk-in patient services and aid for the uninsured are among the experiments in the fragmented e-pharmacy industry
- Consolidation outlook: Pharmacy incumbents are likely to acquire startups in this market
| | | | | | | | | | | | How is AI changing life sciences? | | The latest edition of Orrick's quarterly publications devoted to life sciences is now available, featuring a spotlight roundtable from key players at Roche, Valo Health, Intelligencia and Clover Health discussing how artificial intelligence and machine learning are going to impact the sector in coming years. In addition, analysis of market trends in venture investment based on PitchBook datasets breaks down key findings across financing metrics.
Read it now | | | | | | | | | | Theo Epstein joins Arctos Sports Partners | |  | | Former Chicago Cubs executive Theo Epstein is making the jump from baseball to private equity. (Jonathan Daniel/Getty Images) | | | Arctos Sports Partners, a private equity firm founded in 2019 to purchase passive stakes in professional sports franchises, has hired former pro baseball executive Theo Epstein as an executive-in-residence, as first reported by The Wall Street Journal.
It's the second recent instance of a famed executive leaving baseball to work with a private equity firm. Billy Beane of "Moneyball" fame is partnering with RedBird Capital Partners in the RedBall Acquisition SPAC, which is aiming to buy a stake in a pro sports franchise.
Epstein will reportedly advise Arctos' portfolio of teams on leadership, culture and other areas while also remaining in his current role as a consultant to MLB commissioner Rob Manfred. Epstein, 47, announced last November he was stepping down as president of baseball operations for the Chicago Cubs, concluding a nine-year run highlighted by a 2016 World Series. Before that, he won two championships as general manager of the Boston Red Sox.
Sportico reported in November that Arctos had brought in around $950 million for its debut fund, a vehicle that could raise as much as $1.8 billion, according to PE Hub. The fund is expected to buy minority stakes in professional sports teams across North America and Europe. Last week, Sportico reported that the NBA had voted to change its rules to allow private investment firms to own as much as a 20% stake in up to five different franchises, potentially opening up new targets for Arctos.
Related read: RedBird Capital teams with Billy Beane on sports SPAC | | | | | | | | | | On the podcast: How evolving mindsets and innovation are building a better supply chain | | This week on "In Visible Capital," we talk about the state of the supply chain amid the pandemic, the latest logistics technologies and more. Ironspring managing partner Ty Findley, FLEXE CEO Karl Siebrecht and Playground Global founder Bruce Leak join host Lee Gibbs and PitchBook emerging tech analyst Asad Hussain to discuss: - The challenges of improving flexibility and efficiency in a space that's only beginning to adopt modern tech
- The logistics industry's response to severe disruptions in the early days of COVID-19
- How startups are building more resilience across the supply chain
Subscribe to "In Visible Capital" wherever you get your podcasts, and look for new episodes every Tuesday. | | | | | | | | | | A profile of Frank Slootman, the CEO-for-hire who helped guide Snowflake through a year for the ages in 2020. [Forbes]
There are a lot of different kinds of friendships. And they've all been affected by the widespread social isolation of the pandemic. [The Atlantic]
Philadelphia picked a 22-year-old graduate student with no background in healthcare to help lead its vaccination race. Three weeks later, hype had turned to scandal. [NPR] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 357 Deals | 1285 People | 397 Companies | 18 Funds | | | | | | | | | | | | | | | | | | | | 2016 Vintage Global Buyout Funds | | | | | | | | | | | | | Patient Square adds founding partners | | | Healthcare investor Patient Square Capital has brought on Alex Albert and Neel Varshney as founding partners. Albert was most recently a partner and co-head of the healthcare private equity group at Ares Management, while Varshney joins from KKR, where he was a managing director focused on healthcare. The managing partner of Patient Square is Jim Momtazee, who previously spent more than two decades at KKR. | | | | | | | | JMI announces new managing general partner, series of promotions | | | | | | | | | | | Databricks hits $28B valuation with new round | | | | | | | | | UiPath valued at $35B with new funding | | | | | | | | | Weights and Biases banks $45M | | | Weights and Biases has raised a $45 million Series B led by Insight Partners. The San Francisco-based company is the provider of an experiment tracking platform for users of machine learning models and operations. The company has more than 70,000 users across over 200 enterprises and institutions, including Open AI and Toyota Research. George Mathew, managing director at Insight Partners, has joined the company's board. | | | | | | | | Spanish EV charging startup lands new funding | | | Wallbox has raised €33 million (around $40 million) in a round co-led by Cathay Innovation and Wind Ventures. The Barcelona-based company, which develops chargers for electric and hybrid vehicles, recently launched a smart home EV charger in North America. Existing investors including Iberdrola and Seaya Ventures also participated in the funding. | | | | | | | | | Cellino has raised $16 million in a round co-led by The Engine and Khosla Ventures. Based in the Boston area, the company is developing cell-based regenerative therapies via automation of stem cell production. Humboldt Fund and 8VC also participated in the funding. | | | | | | | | | | ILG forgoes IPO with $1.6B Blackstone deal | | | | | | | | | Vitruvian Partners to back IT company Expereo | | | Vitruvian Partners has agreed to buy a majority stake in Amsterdam-based IT company Expereo from Apax Partners. The deal will value Expereo at €750 million (about $905 million), Dutch newspaper FD reported. Apax will retain a minority stake in the company, which it first backed in 2018. Expereo provides internet network and cloud connectivity services to over 190 countries. | | | | | | | | PE shops to take over DuPont's cleantech unit | | | | | | | | | GTCR forms Corza Medical through acquisitions | | | | | | | | | Charlesbank secures dental platform in SBO | | | | | | | | | CVC Capital nears $300M volleyball deal | | | CVC Capital Partners is nearing a deal to acquire a $300 million stake in the commercial rights arm of the International Volleyball Federation, Sky News reported. The deal with volleyball's governing body is expected to include the formation of a new entity, Volleyball World, which will target commercial partnerships with leagues around the world. The deal would continue a string of sports investments made by CVC, including past deals with Formula One Group, Premier Rugby and the Pro14 rugby competition. | | | | | | | | WCAS agrees to put $250M into gene therapy platform | | | | | | | | | | | EV battery maker inks $3B SPAC deal | | | Microvast, a manufacturer of batteries for commercial and specialty vehicles, has agreed to merge with blank-check company Tuscan Holdings Corp. A deal would value the combined company at $3 billion and provide it with up to $822 million in cash. Founded in 2006 and based near Houston, Microvast has raised prior funding from backers including Ashmore Group, CDH Investments and CITIC Securities. Tuscan Holdings Corp. raised $240 million in its Nasdaq debut in 2019. | | | | | | | | Advent's Cobham set for $2.8B divestiture | | | Power management company Eaton has agreed to pay $2.83 billion to acquire Cobham Mission Systems from Cobham, a UK-based portfolio company of Advent International. The mission systems unit manufactures air-to-air refueling systems and environmental systems for military aircraft. Advent acquired Cobham, which specializes in aviation technology, early last year for £4 billion (about $5.5 billion). | | | | | | | | Wheels Up to merge with SPAC in $2.1B deal | | | | | | | | | Otonomo to go public in $1.4B SPAC deal | | | Otonomo, the provider of a car data platform, has agreed to go public via a merger with SPAC Software Acquisition Group Inc. II. The deal values the startup at $1.4 billion. Otonomo collects data from a network of over 40 million vehicles worldwide to aid emergency services, traffic management and more. It has raised capital from investors such as Bessemer Venture Partners, Dell and Hearst. | | | | | | | | TPG-backed tech SPAC finds a target | | | Nerdy, the operator of an online learning platform, has agreed to go public by merging with TPG Pace Tech Opportunities, a special-purpose acquisition company sponsored by TPG Capital. The SPAC raised $450 million in its IPO last October. | | | | | | | | | | Japanese firm raises $772M buyout fund | | | T Capital Partners has closed its sixth fund focused on mid-cap buyouts in Japan with commitments of 81 billion yen (about $772 million). Formerly known as Tokio Marine Capital, the Japanese firm was founded in 1991 but has only been independent since 2019, when it spun out from Tokio Marine & Nichido Fire Insurance. | | | | | | | | Teamworthy Ventures eyes $125M for Fund III | | | Teamworthy Ventures has set a target of $125 million for its third flagship fund, according to an SEC filing. The New York-based firm makes seed, early-stage and growth investments in sectors such as consumer and enterprise software, edtech and ecommerce, with a portfolio that includes Bark, ClassPass and Ibotta. | | | | | | | | | | Sequoia China, Illumina team on incubator | | | Sequoia China and Illumina have joined forces to launch an incubator for genomics startups. The companies chosen for the incubator's bi-annual cycles will receive investment and business guidance from Sequoia China and access to Illumina's sequencing systems, reagents and genomics knowledge. | | | | | | | | W.K. Kellogg names Carlos Rangel new CIO | | | W.K. Kellogg Foundation has selected Carlos Rangel as its chief investment officer. Rangel, who joined the Battle Creek, Mich.-based foundation as a portfolio manager, was most recently head of Kellogg's project that aims to expand racial equity in the business. Rangel succeeds Joel Wittenberg, who is retiring after 11 years in the role. | | | | | | | | | | Exxon, Chevron previously mulled mega-merger | | | The CEOs of ExxonMobil and Chevron discussed a potential combination last year after the onset of the pandemic, The Wall Street Journal reported. The two companies have a combined market cap of around $350 billion, meaning such a deal could very well be the largest corporation merger of all time. Talks are no longer ongoing but could be revived in the future, the report said. | | | | | | | | | "In terms of fundraising, direct lending was the hardest hit sub-strategy of private debt in 2020. These funds rely predominantly on private equity sponsors for their own deal flow, and institutional interest in new vehicles dwindled amid the slowdown in buyouts in Q2 and Q3. Potential investors also pivoted to other sub-strategies that tend to do well in bear markets, such as distressed debt and special situations funds."
Source: PitchBook's 2020 Annual Global Private Debt Report | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | Limited Partners | | | | | | | | | | | | | |
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