Hello from Florida, Tech Take Readers!
This is Milana, writing you from Delray Beach, where I’ve escaped the city for a quick visit with my grandparents. Restaurants are open for indoor and outdoor dining, while retailers have their doors wide open. It seems no one (besides me) is wearing a mask. The “new normal” looks a lot like the old normal here. This is encouraging, as long as we as a society can manage to do both: go out and stay safe.
Mid-market Push: Goldman Sachs is continuing its efforts to capture a bigger piece of mid-market private equity, this time, on the lending front.
David Sommer, previously a managing director within Goldman’s leveraged finance group, was promoted to lead the Middle Market Lending Group, I learned this week.
Sommer will report to Will Bousquette, global head of Goldman’s Cross Markets Group (CMG), and David Friedland, America’s head of CMG. Goldman established the Cross Markets Group in 2019 to provide M&A advice to middle-market companies with enterprise values of $500 million to $2 billion.
I sat down last fall with the division’s Friedland and Pete Lyon to delve into the firm’s growing middle market strategy.
In his new role, Sommer will advise both PE clients and their portfolio companies – which make up about 60 percent of the CMG business – as well as corporations with enterprise values up to $2 billion.
“It really was all about bringing back that M&A and lending expertise to the small- to mid-cap client base in a focused and targeted way, so we can convince people that they are getting awesome dedicated professionals who are their number one priority,” Friedland told me.
For more detail on the strategy shift, check out my full story.
It appears deal activity is starting to pick up, including sell-side processes and sponsor-driven activity. Goldman’s mid-market group is in multiple discussions with clients that are looking at M&A opportunities, Sommer said.
Have you seen any sell-side processes I should put on my radar? Reach me at email@example.com.
Trends: It’s never too soon to look at tech trends that have accelerated during quarantine. Some of those are e-commerce, AI, cloud migration and e-learning, according to a new report by UBS.
Such trends are driven by global digital transformation, propelled by rising Internet penetration and exponential growth in data, according to the bank’s report, titled The Future of Tech Economy.
Be it in EdTech or cybersecurity, tech investors should seek avenues to capitalize on the economy’s structural changes, according to UBS. Read more here on PE Hub.
Speaking of trends, I’m working on a deep dive examining tech investing after covid-19. If you have any thoughts to share on this topic, please send me a note at firstname.lastname@example.org.
National Association of Investment Companies selected five funds-of-funds managers to raise capital as part of a program to launch growth investment pools to back diverse managers and companies.
NAIC selected Barings Alternative Investments, GCM Grosvenor, Muller & Monroe Asset Management, Neuberger Berman Private Equity and Rock Creek Group for the program, called NAIC Minority Growth Equity Funds Initiative. The organization, a trade association for minority- and women-owned investment managers, launched the program in October 2019. It received a $1.4 million grant from the Department of Commerce to kick off the search for investment managers.
Lee Equity Partners acquired and combined urological care providers Integrated Medical Professionals and The Urology Group to form Solaris Health, writes Sarah Pringle on PE Hub. The combined group has more than 150 providers across more than 60 sites in New York, Ohio, Kentucky and Indiana in a segment of healthcare largely overlooked by private equity.
That’s it! Stay healthy and happy and reach out with thoughts at email@example.com.