Billionaire Dan Gilbert’s independent sponsor eyes process to cash out original LPs; AE Industrial Fund II raises $1.36B; Palladium invests in Spice World
It’s Tuesday, Hubsters. I just saw a report that all 12 boys, and their coach, were rescued from a Thai cave. Just a nice way to start your day.
Now onto the news.
Venture investments continued on a record pace in 2018 with $57.5 billion invested across nearly 4,000 companies during the first half of this year, according to PitchBook. At this rate, VC investment is expected to meet or surpass 2017, the PitchBook-NVCA Venture Monitor said. Investments in late-stage companies and unicorns partially spurred the increase in value although deal sizes increased across all stages, the report said.
This year has been hot for VC with “more capital invested in a six-month timeframe than any time in recent memory,” PitchBook said. The first half saw 94 financings completed of at least $100 million, 42 unicorn financings (this includes Bird, the electric scooter company, reaching unicorn status in just 12 months) and the first close of the largest U.S. VC fund ever. Private equity firms are continuing to join large rounds with PEinvolved in 368 VC deals. Read Kaitlyn Bartley’s story here.
Deals: In truth, Hubsters, I’m not a gummy bear person, just give me the chocolate. Gummies, however, are big business. (One PE exec told me that cannabis-infused gummies have big growth potential.) Highlander Partners, a Dallas middle market firm, is solidifying its stance as a gummy giant with its buy of Queen City Candy, which makes candies such as gummy bears, neon worms, peach rings and gum drops. It already owns other gummy portfolio properties. See my story here
This just in. Palladium Partners is investing in Spice World, a provider of garlic and other spices. Read my brief here.
Separately, Monomoy Capital Partners has acquired Edsal Manufacturing Co. Financial terms weren’t announced. Edsal makes, sources and distributes branded and private label storage products for garages, tool sheds and basements. Monomoy made the investment from its third PE fund, which closed on $767 million in 2016.
Funds: AE Industrial Partners’ second fund raised $1.36 billion, surpassing its $1 billion target. Read our brief here.
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