PE HUB Wire Highlights, 4.15.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Catalent to buy Paragon Bioservices Inc for $1.2 bln; LPs try to get used to rise of subscription lines of credit; Revelstoke’s Crossroads sale heads to first round

Happy Tax Day, Hubsters. It seems like many, including me, are getting a much smaller return this year, if any. At least we had the premiere of “Game of Thrones” last night. Who else is wondering what Arya’s new weapon will be used for?

One private equity firm is set to win big off Tiger Woods’s historic comeback yesterday. Adidas struggled to find a buyer for TaylorMade golf clubs in 2016 when it put the unit up for sale, CNBC said. The process labored until 2017 when KPS Capital Partnersswooped in with a $425 million buy of TaylorMade. Woods used TaylorMade golf clubs yesterday during his Masters win, CNBC said. Hubsters, anyone use these clubs?

I’ve often wondered why so few PE firms use quant trading to make money, but now it looks like that may change. Quant funds are coming to private equity, the Financial Times is reportingTwo Sigma, which relaunched as Sightway Capital, attracted $500 million in funding from Massachusetts Pension Reserves Investment Trust, the story said. AQR is exploring how to break into the industry, which may include buying stakes of existing PE funds that are traded between wealthy investors to create a cheaper, more diversified and better-performing portfolio, the story said. Hubsters, do you think quants will finally come to private equity? If so, why? If not, why not? Email me at lbeltran@buyoutsinsider.com

Cory Booker, the former mayor of Newark who is currently a U.S. senator, is running for president. Booker fashions himself as a progressive but received money from individuals working in industries and lobbying firms whose interests run counter to many progressives’ most cherished policy goals, In These Times is reporting. Booker rejected corporate PAC money in February 2018, but his current top contributors were individuals from firms like Goldman SachsMorgan StanleyPrudential Financial and Apollo Global Management, the story said.

DealsCatalent Inc is buying Paragon Bioservices Inc for $1.2 billion. The deal calls for Catalent to issue $650 million of convertible preferred stock to Leonard Green & Partners LP. Paragon Bioservices produces biopharmaceuticals and vaccines. Paragon investors include NewSpring Capital and Camden PartnersSee our brief here.

News from Buyouts/VCJ: Chris has a column on how LPs are getting used to the rise of subscription lines of credit. See his story here.

CONTINUE READING

SUBSCRIBE to get the Wire in your inbox every morning. It’s free.

Take your pick!

  • Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
  • VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.