Calypso goes to Thoma Bravo, Why H&F, Warburg-backed Edelman is staying private, Growthy healthcare assets ready IPOs

Thoma Bravo buys Calypso Technology and CD&R’s Agilon Health files to raise up to $100 million for its IPO.

Morning!

Thoma Bravo has prevailed in the hotly contested sale process for Calypso Technology, a cloud-enabled provider of cross-asset, front-to-back solutions for financial markets with over 35,000 users in 60-plus countries. The sellers are growth equity investor Summit Partners and European buyout shop Bridgepoint, the latter which owns PE Hub parent company PEI Media. Read our brief on the deal.

Tech scoopster Milana Vinn is on Spring Break this week, but she wrote in early March that 10 PE shops and a few strategics were expected to bid for the capital markets technology business in the auction’s first round. At the time, sources predicted the business could trade hands for some $2.5 billion.

Have any idea where value landed? Write to me here.

Against the grain: Believe it or not, not everyone wants to join the hot public markets right now even if they appear to be “public ready”.

An interesting deal in the financial services world was announced last week, with Warburg Pincus taking a piece of Hellman & Friedman’s Edelman Financial Engines in a $7.3 billion recapitalization. That’s up from a $4.5 billion combined value in 2018 – when H&F took Financial Engines private and merged it with Edelman Financial services.

The registered investment advisor giant is already proving a winning investment for H&F, with the deal valuing its initial 2015 investment at more than 2x and 2018 investment at more than 4x, a source familiar with the matter told PE Hub.

Although the company could likely attain a much higher public valuation today if it wanted, IPO and SPAC market dynamics aren’t tempting Edelman Chief Larry Raffone: “It’s not what you can go out with; it’s what you can sustain. I want to make sure our growth rates are where I want them to be and I want to spend more money and invest,” Raffone told PE Hub.

“Despite all the SPACs all over us, the bankers telling us about these big multiples – what you really want to be is through your investment cycle and have this exit velocity.”

Raffone also spoke to the advantages of remaining a large private company. Read them here in my full report on PE Hub.

Health-tech IPO boom: As one mature, scale company opts out of the public market craze, the flurry of younger, growthy healthcare assets heading to the public markets continues.

On Friday, CD&R’s Agilon Health filed to raise up to $100 million in its IPO. PE Hub first wrote in summer 2019 that an IPO was being considered for Agilon, a healthcare technology company focused on supporting physicians’ shift away from fixed fees to a pay-for-performance model in the Medicare market.

Agilon’s roots date to October 2016, when New York’s CD&R formed the company together with Ronald Williams, an operating adviser to the fund and a former Aetna executive.

Elsewhere, Warburg Pincus- and General Atlantic-backed Alignment Health said late last week it expects to price its shares between $17 and $19 a piece – implying an initial valuation could exceed $3.5 billion on the high end. Alignment is a risk-bearing managed-care provider focused on the Medicare Advantage market.

Founded in 2013, Warburg in 2017 injected $115 million into Alignment, joining GA as an investor. PE Hub wrote in September that Alignment Health was anticipated to weigh an IPO in 2021.

What are your thoughts on all the growthy healthcare assets going public, and are what other hot businesses have limited private market days?

As always, write to me up at springle@buyoutsinsider.com with any tips, comments or just to say hello!