Axios Pro Rata: Speaker SPAC

Plus, Muilenburg flies again. | Tuesday, October 25, 2022

Open in app View in browser   Presented By Apollo   Axios Pro Rata By Dan Primack · Oct 25, 2022 🚨 The Axios BFD is tomorrow. Register for the livestream.     Top of the Morning Photo illustration: Sarah Grillo/Axios. Photo: Mateusz Wlodarczyk/NurPhoto via Getty Images   Paul Ryan entered the SPAC market in mid-2020, alongside a slew of other big names from the power corridors of politics, business and entertainment. The difference is that he's stuck around, while so many others ran for cover. Driving the news: Ryan this morning will help ring the New York Stock Exchange bell, as the SPAC he chairs completes its merger with portfolio assets of Grey Rock, a Dallas-based oil and gas private equity firm. History: Ryan's involvement ties back to his 2012 run for vice president, alongside Mitt Romney, prior to becoming Speaker of the House. The SPAC, called Executive Network Partnering Corp., was formed by Solamere Capital, a private equity firm co-founded by Romney, son Tagg, and two campaign advisors. Ryan would first join the SPAC, and several months later become a partner at Solamere. "Even prior to the SPAC market melting down, it felt there was a misalignment to how most SPACs were designed," Ryan tells me. "In a lot of them, the sponsors basically take economics on the day of the transaction and then walk away, which isn't a good alignment of interests... We wanted to do something more focused on long-term performance." He adds: "I still have same the same conviction that I did at the beginning, that there's a place in the world for SPACs, if the proper alignment is there, because they can help public investors get access to fast-growing private companies." Deal details: ENPC acquired a large portfolio of non-operated oil and gas assets from Grey Rock, located in five major U.S. basins. The resulting company will be called Granite Ridge Resources, and have a $1.2 billion enterprise value. Granite Ridge is led by Luke Brandenberg, a veteran energy investor who has spent time with Grey Rock, EnCap and Vortus Investment Advisors. Grey Rock will be majority shareholder following the merger, while Ryan and some other Solamere execs also will have equity stakes. Investors already have expressed some deep skepticism, with 95% redemptions of ENPC units. State of play: Ryan and Brandenberg argue that redemptions were driven by the same herd mentality that's hit other SPACs, with hedge funds (understandably) believing they can get the same assets cheaper post-merger. ENPC also got dinged by traders because oil has traded down since the deal was cut. "Obviously it would have been nice to stockpile cash to accelerate the strategy, but we'll still emerge without debt and it doesn't impact current cash-flow," Brandenberg says. Politics: Ryan doesn't believe that next month's elections will have much impact on Granite Ridge's fortunes: "Congress may be better attuned to American oil and gas production, but you're going to have the same administration and the same regulatory footprint." What to watch: If Ryan is proved right about interest alignment, and how Grey Rock and Solamere partners weigh that thesis against their liquidity goals.     The BFD Illustration: Sarah Grillo/Axios   Flair Airlines, a Canadian budget airline, is in talks to go public via New Vista Acquisition Corp. (Nasdaq: NVSA), a SPAC led by former Boeing CEO Dennis Muilenburg, per Bloomberg. Why it's the BFD: Muilenburg was fired as Boeing's CEO in 2019 for fostering a culture that prioritized profits over safety, having led the company during the 737 Max rollout. The bottom line: "Canada doesn't allow foreign investors to control airlines. Flair, which received financing from 777 Partners, was forced to overhaul its structure to lessen the influence of the Miami-based investment firm. Canada's transport agency ruled in June that Flair does meet domestic ownership requirements, allowing it to continue operating flights." — Gillian Tan & Liana Baker, Bloomberg     Venture Capital Deals • ConnexPay, a payments acceptance and issuance platform, raised $110m led by FTV Capital. www.connexpay.com • RapidSOS, a New York-based emergency response data platform, raised $75m in Series D funding. NightDragon led, and was joined by BAM Elevate, Insight Partners, Honeywell, M12, Axon, Citi, Highland Capital Partners, Playground Global, Forte Ventures, C5 Capital and Avanta Venture. https://axios.link/3SzwVcQ 🚑 Resolve Biosciences, a German molecular cartography startup, raised $71m in Series B funding. Patient Square Capital led, and was joined by EDBI, PS Capital, Alafi Capital and NRW.BANK. www.resolvebiosciences.com 🚑 Normunity, a West Haven, Conn.-based developer of cancer immunotherapies, raised $65m in Series A funding. Canaan Partners led, and was joined by Sanofi Ventures, Taiho Ventures and Osage University Partners. www.normunity.com • Celestia, a Liechtenstein-based blockchain scaling startup, raised $55m. Bain Capital Crypto and Polychain Capital co-led, and were joined by Spartan Group, FTX Ventures and Jump Crypto. https://axios.link/3CUt4RU • Merge, an SF-based API integration service, raised $55m in Series B funding. Accel led, and was joined by insiders NEA and Addition. https://axios.link/3zctlPk • The Coterie, a Palo Alto Calif.-based liquidity and estate planning firm for startup founders, raised $40m. Andreessen Horowitz led, and was joined by Initialized Capital, Pear VC and Gradient Ventures. • Finexio, an Orlando, Fla.-based accounts payable payments-as-a-service startup, raised $35m in Series B funding at a $100m pre-money valuation from JPMorgan, National Bank Holdings and insider Mendon Venture Partners. www.finexio.com • Axelera AI, a Dutch AI chipmaker, raised $27m in Series A funding from Imec.expand and Belgium's Federal Holding & Investment Co. https://axios.link/3D5TosD • WeTravel, an SF-based business management and payments platform for multi-day travel businesses, raised $27m in Series B funding. Left Lane Capital led, and was joined by insiders Swift Ventures and Base10. www.wetravel.com 🚑 Seqera Labs, a Spanish provider of life sciences-focused data orchestration and workflow software, raised $21.7m in Series A funding. Addition led, and was joined by Talis Capital, Speedinvest, BoxOne Ventures and Amino Collective. www.seqera.io • Fermyon, a Longmont, Colo.-based provider of tools for cloud app developers, raised $20m in Series A funding. Insight Partners led, and was joined by Amplify Partners and individual angels. https://axios.link/3TujjRK • Heura, a Barcelona-based alt proteins maker, raised €20m from Unovis Capital and individuals like Ricky Rubio and David Broncano. https://axios.link/3Tzgr65 • Nitricity, an SF-based organic nitrogen production startup, raised $20m in Series A funding. Khosla Ventures and Fine Structure Ventures co-led, and were joined by Energy Impact Partners, Lowercarbon Capital and MCJ Collective. https://axios.link/3N2EiIE • PreVeil, a Boston-based provider of encrypted email and file collaboration solutions, raised $20m in Series C funding led by PSG. www.preveil.com • Limit, a Walnut, Calif.-based digital insurance wholesale broker for the cyber market, raised $14.5m in Series A funding. IA Capital Group led, and was joined by American Family Ventures, Indicator Fund and Material V. www.limit.com 🚑 Limber Health, a Washington, D.C.-based hybrid MSK startup, raised $11m in Series A funding. Blue Venture Fund led, and was joined by Glenview Capital. www.limberhealth.com • Ask-AI, an Israeli enterprise data search startup, raised $9m in seed funding co-led by Vertex Ventures and State of Mind Ventures. www.ask-ai.com 🚀 Apex Space, an LA-based satellite bus manufacturing startup, raised $7.5m in seed funding led by Andreessen Horowitz. https://axios.link/3snOpyx • Arnica, an Atlanta-based software supply chain security startup, raised $7m in seed funding co-led by Joule Ventures and First Rays Venture Partners. www.arnica.io 🚑 Mindful Care, a West Hempstead, N.Y.-based behavioral health care startup, raised $7m in Series B funding. Sopris Capital led, and was joined by the University of Chicago, Caruso Foundation and Venkon Group. www.mindful.care • Gearflow, a Chicago-based parts marketplace for heavy equipment owners, raised $5.5m led by Brick & Mortar Ventures. www.gearflow.com • Ciro, an SF-based SMB prospecting platform, raised $3.8m in seed funding. CRV led, and was joined by YC and SV Angel. www.ciro.io 🚑 Elion, a Menlo Park, Calif.-based digital health technology marketplace, raised $3.3m in seed funding co-led by NEA and Max Ventures, per Axios Pro. https://axios.link/3FaUrtS • LuckyTruck, a Cincinnati-based retail platform for the trucking insurance market, raised $2.4m in seed extension funding led by Candid Insurance Investors. https://axios.link/3TxxgOC • K12 Techno Services, an Indian school operator, is in talks to raise over $50m from Sequoia Capital India, per TechCrunch. https://axios.link/3N5h9p7 • PhonePe, an Indian digital payments firm backed by Walmart, is in talks to raise $450m to $500m at a $12b valuation led by General Atlantic, per MoneyControl. https://axios.link/3CZ1Byx     A message from Apollo How Apollo invests in tomorrow, today     Apollo's capital is helping solve complex problems by: Securing retirement for millions of families. Building and financing stronger businesses. Driving a more sustainable future for our communities See how we invest across sectors.     Private Equity Deals • Atos (Paris: ATO) confirmed that it's been approached by "several players" for its IT outsourcing business, following a French media report that Apollo Global Management and Cerberus Capital Management were circling. https://axios.link/3Sz0Jqh ⚡ CDPQ invested around $135m in Shizen Energy, a Japanese renewable energy developer. https://axios.link/3D8QweB ⚡ Energy Spectrum Capital invested $200m in Nightpeak Energy, an Oakland, Calif.-based developer of low-carbon, dispatchable energy projects. www.nightpeakenergy.com 🚑 EQT Foundation invested in Vara, a German AI platform for breast cancer screening. https://axios.link/3SwHU71 • Journey, a New York-based web3 design firm backed by Growth Catalyst Partners, acquired Devhouse Agency, a Dallas-based gaming design studio. https://axios.link/3f03enL • Silveredge, an acquisition platform of Godspeed Capital, acquired Counter Threat Solutions, a Reston, Va.-based provider of source and counterintelligence analysis. www.silveredge-gs.com • Stride Consumer Partners acquired a minority stake in cosmetics brand Patrick Ta Beauty. www.patrickta.com     SPAC Stuff • European Lithium, Europe's first lithium mine operator, agreed to go public at an implied $972m valuation via Sizzle Acquisition Corp. (Nasdaq: SZZL). https://axios.link/3spxv2z • Risee Entertainment and Reliance Entertainment Studios, both Indian production houses, agreed to go public via International Media Acquisition Corp. (Nasdaq: IMAQ). https://axios.link/3SxUQJO     Liquidity Events ⚡ Brookfield Business Partners again is seeking a buyer for British biofuels provider Greenergy, which could fetch around £1.2b, per Bloomberg. https://axios.link/3SxcDB2     More M&A • Bit2Me, a Spanish crypto trading platform backed by firms like Telefónica, acquired Dekalabs, a crypto-focused software development studio. https://axios.link/3D1f6xN • Frasers Group increased its Hugo Boss (ETR: BOSS) equity stake to 4.3%. https://axios.link/3slXeJ8 ☕ Nestlé (Swiss: NESN) agreed to acquire Seattle's Best Coffee, which sells in grocery stores and hospitality establishments, from Starbucks (Nasdaq: SBUX). https://axios.link/3f11IBS • Visier, a Canadian a workforce analytics company valued at more than US$1b, acquired the assets of Boostrs, a Paris-based skills mapping engine. www.visier.com     Fundraising ⚡ Antin Infrastructure Partners is raising €1.2b for a clean energy infrastructure tech fund. https://axios.link/3TVOsNQ • Bain Capital raised more than $2b for its second tech opportunities fund, which is above target but not yet a final close, per Bloomberg. https://axios.link/3SxIRMr • BlackRock held a $4.5b first close for its fourth infrastructure private equity fund, which is targeting a total of $7.5b. www.blackrock.com • GrowthCurve Capital, a private equity firm founded in 2020 by Sumit Rajpal (ex-Goldman Sachs), raised $1.1b for its debut fund. https://axios.link/3Fe4sq1 • Nordic Capital raised €9b for its 11th flagship fund. https://axios.link/3D2oH7z • Trinity Hunt Partners, a Dallas-based PE firm, raised $618m for a continuation fund that will acquire Fund V portfolio companies Argano and Improving. www.trinityhunt.com     It's Personnel • Tony Fratto joined Goldman Sachs as a partner and global head of corporate communications. He previously co-founded Hamilton Place Strategies, and was deputy White House press sec under President George W. Bush. www.gs.com 🚑 Rainer Hepberger joined Houlihan Lokey as a managing director focused on European health care. He previously was with William Blair. www.hl.com • Alison Killilea joined SVB Capital as a managing partner and head of secondary investments. She previously was a partner with W Capital Partners. www.svb.com//svb-capital • Yael Tzur joined TrueBridge Capital Partners as a partner. She previously was with BAML. https://axios.link/3TzRaZA     Final Numbers Source: S&P Global Market Intelligence. Data through 10/12/22. The good news for private equity is that its share of terminated M&A deals declined in the third quarter, per S&P Global Market Intelligence. The bad news is that its share has been higher in each quarter of 2022 than in its corresponding 2021 quarter.     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.   ✔️ Thanks for reading Axios Pro Rata, and to copy editors Mickey Meece and Bryan McBournie! Please ask your friends, colleagues and pilots 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: