Axios Pro Rata: It's over

Plus, private debt's deal moment. | Friday, October 28, 2022

Open in app View in browser   Presented By Apollo   Axios Pro Rata By Dan Primack · Oct 28, 2022     Top of the Morning Photo illustration: Megan Robinson/Axios. Photo: Britta Pedersen-Pool/Getty Images   It's finally over. Elon Musk owns Twitter, after seven months, two lawsuits and one poop emoji. Why it matters (for everyone): Twitter remains the global public square, despite its aging audience. When politicians or other power brokers want to share information or opinions, they usually do so via Twitter. Its rules will now be set by a single individual, who also happens to be the world's richest man and one of its most idiosyncratic. Why it matters (for dealmakers): It's a $44 billion reminder that signed contracts are binding, and of the risks of rushing toward the dotted line. Why it matters (for Elon critics): You looked silly. First lamenting that he was gonna buy it, and then reveling in his inability to walk away. Why it matters (for Elon fanboys): You looked even sillier. Not only for the same thing in reverse, but for believing that the lawsuits would lay bare Twitter's conspiratorial soul. Why it matters (for me): I grew tired of writing about this deal well after most of you got tired of reading about it. But now I feel your pain. Why it matters (for Elon): He now must figure out how to make Twitter worth more than $44 billion, a price that everyone agrees is too high in October 2022, so that he can eventually find a buyer or take it public without taking more financial or reputational hits. It's a very tall task. But not necessarily an impossible one, particularly if the broader markets someday rebound and Elon manages to evolve Twitter into a WeChat-style app that incorporates other services like fintech and commerce. The bottom line: There are still details we don't know, such as how the financing hole was filled and who will join Twitter in key roles, but the big question has been answered. Let's talk about it: Join me and some Axios colleagues this morning at 10am ET on Twitter Spaces.     The BFD Illustration: Shoshana Gordon/Axios   Nuveen Investments of Chicago agreed to buy Arcmont Asset Management, a London-based direct lender with $21 billion in committed capital. Why it's the BFD: The private credit boom is extending to acquisitions of private credit managers, with this deal coming just days after General Atlantic agreed to buy Iron Park Capital Partners. Nuveen was early to the game, having acquired U.S. private lender Churchill Asset Management in 2015. The bottom line: Nuveen reportedly is paying around $1 billion for Arcmont, which will be housed with Churchill under a new entity called Nuveen Private Capital. The deal is expected to close in the first half of 2023, with sellers including Dyal Capital Partners.     Venture Capital Deals • OpenWeb, an Israel-based community engagement platform, raised $170m in Series F funding at a $1.5b valuation led by Georgian. www.openweb.com • Versa Networks, a San Jose, Calif.-based network security provider, raised $120m in combined equity and debt financing. BlackRock led the equity, while SVB provided the debt. https://axios.link/3NiOU6r • CloudPay, a payroll software provider, raised $50m co-led by Runway Growth Capital and Olayan Group. www.cloudpay.com 🚑 Neocis, a Miami, Fla.-based developer of robot-assisted dental implant surgery tech, raised $40m. CareCapital led, and was joined by Intuitive Ventures. www.neocis.com 🚑 Cresilon, a Brooklyn-based developer of hemostatic medical device technologies, raised $25m in Series A-4 funding led by Paulson Investment Co. www.cresilon.com 🚑 RightMove Health, a New York-based virtual physical therapy company, raised $21m in Series A funding co-led by Hospital for Special Surgery and Flare Capital. https://axios.link/3gCr2hR • Fox Robotics, an Austin, Texas-based autonomous forklift maker, raised $20m. BMW iVentures led, and was joined by Zebra Technologies, Japan Airlines, Translink Innovation Fund, Foothill Ventures and insiders Menlo Ventures, ENIAC Ventures and SignalFire. www.foxroboticscom • Cinchy, a Toronto-based data management platform, raised US$14.5m in Series B funding led by Forgepoint Capital. www.cinchy.com • Allstacks, a work productivity tools startup with offices in Austin and Raleigh, raised $12.3m from Companyon Ventures, Atlassian Ventures and CreativeCo. https://axios.link/3Ns1zUZ • ForeVR, an LA-based VR gaming startup, raised $10m in Series A funding. Lobby Capital led, and was joined by Bessemer Venture Partners and Galaxy Interactive. https://axios.link/3gNvTx1 • Onward, a Santa Monica, Calif.-based finance app for co-parents, raised $9.7m in Series A funding. TTV Capital led, and was joined by Lerer Hippeau, Citi Ventures, Correlation Ventures and Gingerbread Capital. https://axios.link/3DDdb3S 🚑 Gabbi, a Portland, Ore.-based risk assessment and care navigation startup, raised $4.4m. Bread and Butter Ventures led, and was joined by Female Founders Fund, WR Hambrecht, Phoenix Rising, Claridge Ventures Advisors VC, Coyote Ventures and Gaingels. www.gabbi.com • Martian, a New York-based web3 wallet, raised $3m. Race Capital led, and was joined by FTX Ventures, Superscrypt, Jump Capital and Aptos. https://axios.link/3zhPBY3     A message from Apollo Building and financing stronger businesses     Apollo's private equity platform invests across sectors, industries and geographies. What you need to know: The strategy is led by a global team of experts who focus on innovation at every turn and seek to deliver value to build stronger companies. Get more details.     Private Equity Deals ⚡ Copia Power, a Carlyle-backed developer of renewable power generation and storage projects, merged with Birch Infrastructure's renewable energy business. www.copiapower.com • Stonepeak invested another $570m into CoreSite, a data center subsidiary of American Tower Corp. (NYSE: AMT) in which StonePeak now holds a 36% stake. https://axios.link/3sEYjMe • Thoma Bravo and Sunstone Partners agreed to buy UserTesting (NYSE: USER), an SF-based customer insights platform, for $1.3b in cash ($7.50 per share, 94% premium to Wednesday's closing price). The plan is to merge UserTesting with UserZoom, a customer research firm that Thoma Bravo bought last year. https://axios.link/3TKnHMy     Liquidity Events • Google (Nasdaq: GOOG) acquired Alter, an AI avatar startup for around $100m, per TechCrunch. Alter had been seeded by Twitter, Play Ventures and Roosh Ventures. https://axios.link/3TKJFyM • Grupo Bimbo of Mexico acquired St Pierre Groupe, a British brioche baker that had raised VC funding from BGF. https://axios.link/3TLY2mq • KKR completed its $950m sale of Minnesota Rubber and Plastics, a Minneapolis-based provider of elastomer and thermoplastic solutions, to Trelleborg Group (STO: TREL). www.mnrubber.com     More M&A • Comcast (Nasdaq: CMCSA) is considering a sale of German pay TV business Sky Deutschland, per Bloomberg. https://axios.link/3U34wNx • Rogers Communications (TSE: RCI) is heading to court over its C$20b takeover bid for Shaw Communications (TSE: SJR), after failing to come to a final agreement with Canadian antitrust regulators. https://axios.link/3sDnoXP     Fundraising • Collide Capital, a VC firm focused on "undernetworked talent," raised $66m for its debut fund. www.collidecap.com     It's Personnel 🚑 Brian Berkin joined Grant Avenue Capital as a managing director. He previously was a partner with Tailwind Capital. www.grantave.com • Palisa Kelley joined HarbourView Equity Partners as a managing director and head of legal and business affairs. She previously was with Selverne Kelley Bradford. https://axios.link/3NcRuLj • Mark Kvamme is transitioning into a partner emeritus role at Drive Capital, the Columbus, Ohio-based VC firm he co-founded in 2013 with fellow Sequoia Capital vet Chris Olsen (who'll take on Kvamme's responsibilities). https://axios.link/3Ndzocb • Greg Ruiz joined Jasper Ridge Partners as a partner in its private equity group. He previously led private equity at CalPERS. www.jasperridge.com     Final Numbers Source: Axios Visuals     A message from Apollo Expanding opportunity through supplier diversity     Apollo aims to expand opportunity by growing direct and indirect spending with diverse suppliers across its private equity portfolio. The strategy: Apollo is targeting 20% year-over-year growth in diverse spend with a goal of achieving more than $1 billion in spend by 2024. See more.   ✔️ Thanks for reading Axios Pro Rata, and to copy editors Mickey Meece and Bryan McBournie! Please ask your friends, colleagues and Twitter power users to sign up. Why stop here? Let's go Pro. Learn more about Axios Pro corporate subscriptions, and why hundreds of companies read Pro newsletters every day.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: