| | | | | LeBron James' Red Sox deal points to private equity's future as a pro sports owner | |  | NBA superstar LeBron James was part of RedBird Capital's deal to purchase a minority stake in Fenway Sports Group.
(Meg Oliphant/Getty Images) | | | Professional sports leagues like the NBA and MLB have spent the past few years loosening ownership rules to allow private equity investments in individual franchises.
Now LeBron James and an upstart New York firm have done a deal that provides a glimpse into a future where private equity funds could become a feature of pro sports ownership in the US. - Earlier this week, RedBird Capital Partners agreed to acquire an 11% stake in Fenway Sports Group, which owns the Boston Red Sox and Premier League's Liverpool, in a deal that reportedly values Fenway Sports at around $7.3 billion.
- James, who's often spotted wearing a New York Yankees cap, will own a roughly 1% stake in Fenway Sports and, by extension, a piece of the Red Sox.
| | | | | | | | | | How LPs can expect the unexpected on capital calls | | For limited partners, managing capital calls is a crucial and ongoing challenge. Missing a capital call is the biggest risk for LPs when it comes to cash-flow management, and traditional metrics don't fully account for the variability.
PitchBook's new Capital Call at Risk framework, introduced in our latest analyst note, can help LPs better prepare for an unpredictable future. Key takeaways include: - The customizable CCaR metric estimates worst-case liquidity requirements and can be calculated for a single fund or a portfolio.
- CCaR leverages our cash-flow management framework and robust historic data to tailor its projections.
- Capital calls become more predictable as fund commitments are added to a portfolio, reducing shocks if actual liquidity requirements exceed the CCaR estimate.
| | | | | | | | | | Offerpad merges with SPAC led by ex-Zillow CEO | |  | | (Courtesy of Offerpad) | | | Tech-enabled real estate brokerages are having a moment. Offerpad, the operator of a platform for buying and selling homes, has become the latest such company to head to the public markets via a deal with Supernova Partners Acquisition Company, a SPAC headed by former Zillow CEO Spencer Rascoff. - The transaction values six-year-old Offerpad at about $3 billion and is expected to provide as much as $650 million in cash to the company, including a $200 million PIPE from BlackRock, Zimmer Partners and Taylor Morrison Home Corp., a national homebuilder.
- Offerpad had previously raised $485 million in equity and debt funding from investors like LL Funds and Citibank, and was valued at $600 million in 2019, according to PitchBook data.
- The company currently operates in over 900 US cities and expects to generate revenue of $1.4 billion in 2021.
- SoftBank-backed real estate company Compass filed for an IPO earlier this month and Opendoor went public through a SPAC at the end of last year.
| | | | | | | | | | Bill would require asset managers to reveal diversity data | | The nation's regulated asset management firms would be required to disclose their track record of allocating capital to Black and other minority investment managers, under new legislation proposed in Congress. - The bill comes as advocates for racial equity and inclusion in the capital markets are increasingly calling on large firms, pensions and other asset owners to address the lack of diversity in the market.
- The proposal by Reps. Maxine Waters (D-Calif.) and Joyce Beatty (D-Ohio) would require firms to give regulators details on their own internal diversity and inclusion practices, including data on the racial makeup of their boards, partners and suppliers.
- In a letter, Waters and Beatty requested such details from more than 30 of the largest US firms, including BlackRock, Vanguard and State Street.
- Reacting to the news, Robert Raben, an advocate for diversity in asset management, said in a statement, "Data enables us to have a clear picture of what's happening now, and what needs to be done going forward."
| | | | | | | | | | In 2019, a facial-recognition app was used to solve a child-exploitation case. While catching sexual abusers is a worthy cause, the ethics of Clearview AI remain in question. [The New York Times]
New surveys reveal how the COVID-19 pandemic has affected US adults' mental health, from sleep quality to substance use to depression. Is a "second pandemic" coming? [Psychology Today]
A pastry shop in Japan used a particular type of AI to distinguish a bear claw from a croissant. Turns out, the technology is capable of a lot more. [The New Yorker] | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 538 Deals | 1712 People | 538 Companies | 39 Funds | | | | | | | | | | | | | | | | | | | | 2009 Vintage Global Real Assets Funds | | | | | | | | | | | | | Amazon Launchpad unveils its first Innovation Awards in Europe | | Amazon Launchpad's first Innovation Awards will grant the top five pioneering startups a cash prize of €10,000 and free access to Amazon Launchpad for a year. On top of that, the startup that gets the most public votes will be crowned Startup of the Year and win an extra €90,000.
The event brings together an experienced panel of judges, including Jamie Siminoff, founder of smart home security firm Ring, as well as Andy Fishburn, Virgin StartUp managing director.
Applications for the awards opened on March 1 and will close on March 28.
Apply today | | | | | | | | | | | | Yotpo raises $230M at $1.4B valuation | | | Yotpo, the developer of an ecommerce marketing platform, has raised a $230 million Series F valuing the company at $1.4 billion. Led by Bessemer Venture Partners and Tiger Global, the new capital will allow the startup to double its product and R&D team. Yotpo has recorded over $100 million in annual recurring revenue and serves more than 30,000 customers. | | | | | | | | Cybersecurity rating startup collects $180M | | | SecurityScorecard, the developer of a cybersecurity rating system that helps companies identify their vulnerabilities, has closed a $180 million Series E. In 2019, it raised a $50 million Series D at a $410 million valuation, according to PitchBook data. Investors like T. Rowe Price, Kayne Anderson Rudnick, GV, Boldstart Ventures and Intel Capital took part in the new financing. The round brings SecurityScorecard's total funding to over $290 million. | | | | | | | | Blockchain security specialist Fireblocks lands $133M | | | Fireblocks, the developer of a blockchain security platform, has secured $133 million in Series C financing. Coatue, Ribbit Capital and Stripes led the round, with banks such as BNY Mellon and SVB also participating. The startup has raised a total of $179 million to date. | | | | | | | | Happify Health raises $73M | | | | | | | | | Aktis Oncology launches with $72M | | | Biotech startup Aktis Oncology has secured $72 million in Series A financing. The company was founded by and then spun out of MPM Capital, which also co-led the round with EcoR1 Capital and Vida Ventures. Based in Cambridge, Mass., the startup aims to develop new radiotherapies to treat tumors. | | | | | | | | General Catalyst leads round for grocery tech startup aiming to reduce food waste | | | General Catalyst has led a $41 million Series B for Shelf Engine, a provider of grocery supply-chain technology. Other investors like GGV Capital, Initialized Capital and Foundation Capital also took part in the funding round, which brings Shelf Engine's total private funding to $58 million. The Seattle-based company's tech helps businesses increase sales and reduce food waste by predicting the right amount of perishable goods to order. | | | | | | | | | | | | EQT to exit Desotec to Blackstone | | | Blackstone has agreed to buy environmental services provider Desotec from EQT, which acquired the Belgium-based company in 2017. Desotec provides mobile purification systems that have a range of industrial applications, including air emissions, wastewater and environmental remediation. The deal is expected to close in Q2. | | | | | | | | Golden Gate seals deal for Securly | | | | | | | | | Vista Equity stakes Arcos | | | Vista Equity Partners has acquired a majority stake in Arcos, a provider of resource management software for utility and critical infrastructure companies. The deal is expected to close in Q2. Arcos was previously backed by The Riverside Company, which first invested in the Ohio-based SaaS company in 2013. | | | | | | | | Altamont Capital picks up Wave assets | | | Altamont Capital has acquired the assets of Wave Electronics, a distributor of connected home, audio and video, and residential security products. The deal includes all nine of the company's current US locations. Headquartered in Houston, Wave was bought in 2018 by Kingswood Capital Management, which merged it with Avad to create the current entity. | | | | | | | | | | | | Fifth Wall launches another SPAC | | | Fifth Wall, a VC firm focused on investing in property tech, has launched its second blank-check company. Fifth Wall Acquisition Corp. II filed to raise $150 million in an initial public offering. The Los Angeles-based firm's first SPAC went public last month in a $345 million IPO. | | | | | | | | Next Caller gets snapped up by rival Pindrop | | | | | | | | | China's Tuya soars in US stock market debut | | | Shares in Tuya rose more than 19% in the Chinese software company's NYSE trading debut Thursday, closing the day at $25 each. The company raised $915.4 million in its IPO after it priced 43.6 million American depositary shares at $21 apiece. Tuya had raised funding from backers including NEA, Tencent and the Australia Future Fund. | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | Service Providers | | | | | | | | | | | | | |
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