PE HUB Wire Highlights, 5.16.18

(L-R) Eric Zinterhofer and Luisa Beltran and Jonathan Marino of peHUB. Photo by Marcus Kaiser for Buyouts Texas. Copyright: Thomson Reuters

CalSTRS targets another PE gun investment; Sponsors circle South Florida ENT as process kicks off; CPPIB, IVP invest $120 mln in Lulus

It’s Wednesday, Hubsters. Things have slowed down this week and I just realized that Memorial Day is fast approaching. Where is everyone going to?

Private equity has become more mainstream than alternative, said Hiromichi Mizuno, chief investment officer of Japan’s Government Pension Investment Fund, according to a story in Pension & Investments. Mizuno pointed out that fewer than 7,000 companies are listed in the U.S., compared with nearly 8,000 companies owned and operated by private equity. Mizuno, who made the comments at the CFA Institute’s annual conference in Hong Kong, said the rising profile of unlisted companies and the low correlations PE has with other major asset classes are reasons GPIF is “determined to go into private equity (in) a big way,” P&I said. GPIF has $1.5 trillion in total assets, by the way.

So, hubsters, do you feel more mainstream? When you mention you work at a PE firm, do people understand what that is? Email me at [email protected]

Earlier this week, I talked about the renaissance taking place in Detroit. Chris Rizik said he started Renaissance Venture Capital Fund 10 years ago to attract capital to startups in the region. Renaissance, a venture capital fund-of-funds in Ann Arbor, invests in VC funds around the country and helps them find opportunities in Michigan, Rizik said.

“More companies that are formed out of technology here (such as Univ of Michigan) are now staying rather than leaving,” Rizik said in an email. He pointed to IT, where companies like Duo Security, and in biotech, such as Millendo, are staying in the area. “We’re also seeing some other companies, particularly in the mobility space, moving all or a large portion of their operations here, as they realize that they need to be here to access the talent and the customers,” he said. Mobility gravitates toward Detroit while biotech tends to gather around Ann Arbor, he said.

Renaissance Venture closed its third pool on $81 million earlier this week. The firm has 39 Michigan companies in its portfolio, which have collectively raised $1.3 billion, Rizik said.

Earlier this week, I named several Detroit PE firms. Make sure to add O2 Investment Partners, of Bloomfield Hills, Michigan, to that list. O2 is a lower middle market PE firm investing in manufacturing, niche distribution, and select service and technology businesses.

This just inIVP and CPPIB have invested $120 million in Lulus, a digitally native apparel brand for women. HIG Growth Partners invested in Lulus back in 2014. See our brief here.


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