PE HUB Wire Highlights, 7.11.19


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

Vista Equity Endeavor Fund II raises $850 mln; Brian Allen leaves Soros for Bloomberg’s family office: Genstar puts Mercer on the block

It’s Thursday, Hubsters.

Who doesn’t have a growth fund? This morning, Signavio said it raised $177 million in a deal led by Apax Digital, the growth arm of Apax Partners. Apax Digital raised $1 billion in December 2017, Buyoutspreviously reported.

Last week, the Wall Street Journal reported that Permira recently closed a $1.7 billion debut growth vehicle that will take minority stakes in technology and tech-enabled businesses. Permira is known for its buyout and credit strategies. By far the buzziest entrant into growth is Blackstone Group, which is known for its buyout and real estate deals. BX has launched a growth platform led by noted fintech investor Jon Korngold. It’s not clear when or if Blackstone will raise a separate growth fund.

CVC is targeting $1.5 billion for its next growth fund, the WSJ reported in late 2018. Stone Point Partners, known for its buyout deals, appears to have growth, early stage and opportunistic platforms, according to its website.

It feels like everyone is looking to raise a growth pool. When someone mentions growth investing to me, I think General Atlantic (Korngold’s former firm) or Summit Partners. I understand that PE firms have so much money that they’re branching out into everything. I just wonder about the dangers of expansion just for expansion’s sake. What problems do so many growth funds create? Email me your thoughts at lbeltran@buyoutsinsider.com

Deals: It’s game on for Genstar Capital, which has put Mercer Advisors on the block, sources said. The long awaited sale — I reported in May that Genstar would sell Mercer sometimes this year — has Goldman Sachsadvising on the process. Find out how much Mercer is expected to fetch here.

Interestingly, Genstar launched a smaller process for Mercer a few months ago, I’m told. This process saw bidders including AquilineReverence and Crestview interested but the process did not result in a buyer. Now, Genstar is back.

CONTINUE READING

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