PE HUB Wire Highlights, 10.3.19


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

TA seeks up to $1 bln to double down on strong performers; Leach exits Aquiline; Apax responds to Sen. Warren’s prison probe

Earlier this week, Senator Elizabeth Warren and Representatives Alexandria Ocasio-Cortez and Mark Pocan sent letters to five private equity firms asking for information about their stakes in prison services companies. Warren et al. in the letters said private prisons and companies, that provide support to correctional facilities, have for decades been raking in “billions of dollars at the expense of incarcerated individuals, their families and taxpayers.” Letters were sent to BlueMountain Capital ManagementH.I.G. CapitalAmerican SecuritiesApax Partners and Platinum Equity.

Apax, which owns Attenti, claims that its investment isn’t like the others. Apax acquired Attenti in October 2017. The company provides people-monitoring technologies — like ankle-tracking bracelets — that help correctional and law enforcement agencies monitor “offenders,” according to the Attenti website.

The PE firm plans to respond directly to Senator Warren and Representatives Pocan and Ocasio-Cortez, a spokesman said. Apax provided the following statement:

“Apax Partners believes it has been incorrectly identified by Senator Warren and Representatives Pocan and Ocasio-Cortez as the Apax Funds do not own companies that provide prison or correctional facility support services. The Apax Funds do have an investment in Attenti, a company that provides state and local law enforcement agencies with electronic monitoring solutions which are an alternative to incarceration, helping to improve offender rehabilitation and chances of employment, while keeping communities safe.”

It’s hard for me to keep my emotions out of this, Hubsters. But I can say this. I have a family member that is facing some legal charges. The ankle tracking monitor allowed her to wait out her time at home until her court date. She even attended a family funeral. (We had a devil of a time trying to camouflage the bulky ankle bracelet.) But is Attenti different from the other companies that Warren is complaining about? Send your thoughts to me at lbeltran@buyoutsinsider.com.

Departures: It’s hard when good people leave. I was a little shocked to learn that Scott Leach has exited Aquiline Capital Partners after more than five years. Anyone know why he left? Read my story here.

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