Franklin Resources to buy Legg Mason in $4.5bn deal, Nautic-backed ExactCare seeks buyer, Align Capital closes Fund II on $450m

Nautic explores selling ExactCare Pharmacy and thoughts on Michael Bloomberg's presidential candidacy and how his financial reform plans could affect private equity.

Hello!

So Mike Milken got a pardon. What do you think, did he deserve it? What about his former pal, Ivan Boesky, should he get one too? Reach me at cwitkowsky@buyoutsinsider.com with thoughts.

Big deal: Nautic Partners, a secretive firm out of Rhode Island, is exploring the sale of ExactCare Pharmacy, writes Sarah Pringle over on PE Hub. The company produces $30 million to $40 million of EBITDA, she writes.

Nautic recapitalized ExactCare in March 2016, through Nautic Partners VII, which closed on $530 million in 2014. Nautic closed its most recent Fund IX on $1.5 billion last year. The company provides at-home delivery of medications, coordination of care, electronic reminders and other tools to simplify patients’ daily medication routines, Sarah writes.

Check it out here.

Stake sale: Comvest Partners sold a minority stake in the management company to Affiliated Managers Group. The GP will use proceeds from the sale to invest in future funds, the firm said in a statement. Comvest senior partners will continue to own a majority of the equity in the firm after the deal.

Comvest, formed in 2000, manages about $3.7 billion, focusing on private equity and credit. Comvest closed its fifth fund on $893 million in 2015, and its fourth credit fund on $836 million in 2018. Read it here.

Bloomy: So which Mike Bloomberg would we be getting as president? The guy who thought Dodd-Frank regulations were stupid, or a man of the people closer in principle to Elizabeth Warren than Donald Trump?

Bloomberg released his financial reform plans, which lean further toward the left than perhaps many Wall Streeters expected. He focuses in on restructuring the Volcker rule, part of the 2010 Dodd-Frank financial reform act that limits banks’ ability to trade off their own balance sheets. Volcker also limited banks’ ability to raise in-house private equity funds, or be investors in outside PE funds, which greatly reduced banks’ presence as major investors in the asset class.

Bloomberg plans on introducing a 0.1 percent tax on all financial transactions and imposing limits on high speed trading. As well, he wants to establish a corporate crime group within the Department of Justice.

His platform also includes plans to reinvigorate the Consumer Financial Protection Board, which has been gradually gutted by President Trump, expanding its scope to auto lending and credit reporting. He said he’ll eliminate exorbitant overdraft fees, curb abusive debt collection and rein in predatory lending practices.

What all this means for private equity is anyone’s guess, but the way it’s heading, I wouldn’t be surprised to see carried interest reform emerge as part of his platform. Bloomberg said if he wins the presidency, he would sell his company, but not to a foreign-based buyer or a private equity firm. Why not? I put some questions to the campaign yesterday and will report back with any response.

Meanwhile, look for Bloomberg tonight in his first Democratic debate in Nevada. He’ll be catching flack from all sides based on some of his big-mouth proclamations in the past. Maybe he should adopt the Trump method of never apologizing for anything, ever.

Top Scoops
Riverside Co. spinout Align Capital completed fundraising on its second lower mid-market fund on $450 million, writes Kirk Falconer on Buyouts. Read it here.

Franklin Resources agreed to buy Baltimore-based investment management firm Legg Mason for $50 per share, or $4.5 billion. Trian Fund Management, which owns about 4 million shares or 4.5 percent of the outstanding stock of Legg Mason, entered a voting agreement to support the sale. Check it out here.

Have a great day! Reach me with tips n’ feedback, gossip, Drama or whatever at cwitkowsky@buyoutsinsider.com, on Twitter or find me on LinkedIn.