Francisco Partners buys IBM’s Watson Health data and analytics biz; new PE firms BayPine, Lone View Capital focus on tech

Blackstone Credit launches a sustainable resources platform.

Happy Friday, Hubsters. MK Flynn here, with today’s Wire.

Healthcare tech. There’s big news from Francisco Partners this morning. The tech-focused private equity firm that specializes in carveouts is buying the healthcare data and analytics assets from IBM that are currently part of the Watson Health business. The assets acquired by Francisco Partners include extensive and diverse data sets and products, including Health Insights, MarketScan, Clinical Development, Social Program Management, Micromedex, and imaging software offerings.

“Today’s agreement with Francisco Partners is a clear next step as IBM becomes even more focused on our platform-based hybrid cloud and AI strategy,” said Tom Rosamilia, senior vice president, IBM Software. “IBM remains committed to Watson, our broader AI business, and to the clients and partners we support in healthcare IT. Through this transaction, Francisco Partners acquires data and analytics assets that will benefit from the enhanced investment and expertise of a healthcare industry focused portfolio.” FP has deep experience in healthcare tech. The firm backs companies that are leveraging technology to provide innovative products and solutions to the healthcare ecosystem including patients, providers, payers, pharma, life sciences and governments. FP’s current and past investments in the sector include Availity, eSolutions, Capsule, GoodRx, Landmark, QGenda, Trellis, and Zocdoc.

The tech wave rolls on, with Intel this morning unveiling plans to spend more than $20 billion in the construction of two new leading-edge chip factories in Ohio, siting surging demand for advanced semiconductors. In private equity, it’s enterprise software and tech-enabled services that are spawning a new generation of private equity firms.

BayPine, a hot new tech fund led by David Roux (a co-founder of Silver Lake) and Anjan Mukherjee (a former senior managing director of Blackstone), has secured more than $1.5 billion for a debut buyout, writes Buyouts’ Kirk Falconer. The amount raised by BayPine Capital Partners Fund I and a sidecar vehicle was disclosed in Form D documents recently filed by the Boston PE firm.

Rishi Chandna, former managing director at Golden Gate who oversaw the firm’s investments in tech, is gearing up to raise the debut fund for his new firm, Lone View Capital, sources told Buyouts. Lone View is expected to target around $500 million, but could try for closer to $1 billion depending on LP reception, according to sources, writes Chris Witkowsky.

Tech PE fundraising rose to dizzying heights in 2021. Some 474 North American funds collected an all-time high of $227 billion, up 14 percent from the prior peak of $200 billion raised in 2020, according to Buyouts data.

Energy transition. Blackstone today announced the launch of Blackstone Credit’s Sustainable Resources Platform, which is focused on investing in and lending to renewable energy companies. “Blackstone Credit’s unmatched scale is being unleashed to support companies that are driving the energy transition,” said Dwight Scott, global head of Blackstone Credit, in a press release. The financing platform will build on the $15 billion that Blackstone has committed since 2019 in investments “consistent with the broader energy transition.” The vehicle will invest across the credit spectrum in investment grade credit, non-investment grade credit, preferred and convertible securities. And it will focus on a broad range of sectors, including residential solar and home efficiency; renewable electricity generation and storage; products, services, technologies and natural resources that enable the energy transition; decarbonized transportation; sustainability linked loans; green financings that fund environmental projects; and other energy infrastructure investments.

Vista Equity Partners’ Endeavor Fund is on a roll, announcing two deals in two days. Today, the fund said it has made a $150 million in OfficeSpace Software, which develops cloud-based software aimed at helping manage workspaces, manage desk and room booking and maintain social distancing. Demand for the company’s products is rising as hybrid work models become the norm. OfficeSpace’s previous backer Resurgens Technology will remain a “significant” investor in the company.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at Go here for all the rules and regs!

Weekend reading. Check out PE Hub’s Q&A series with high-profile private equity pros, including: Pam Hendrickson, vice chairman of The Riverside Company, who was recently elected chair of the American Investment Council; Trevor Clark, founder and managing partner of Twin Brook Capital Partners; David Grain, founder and CEO of Grain Management; and Beatrice Mitchell, co-founder and managing director of Sperry, Mitchell & Co.

Have a great weekend,