Hope your week went as well as possible.
Got a few things brewing on our end here in the Metuchen bureau:
Newbies Raising: Something my colleague Kirk Falconer and I noticed over the past few weeks … there appears to be a solid amount of first-timers and emerging managers raising, and in fact launching, funds in the downturn.
My assumption was that we wouldn’t see newbies coming to market until after we’re through the coronavirus downturn. Anecdotally I heard that only the most in-demand firms with long track records would be able to attract capital in this market.
To some extent that’s true — the big names that have been in the market have been able to raise without too much problem. Firms like Francisco Partners, Silver Lake, Thoma Bravo and Ares Management wracked up LP capital through the lockdown.
But, new managers like American Pacific Group, Guidepost Growth Equity, Rubicon Technology Partners and Cohere Capital also have raised money from LPs. These funds were out before the downturn and had capital and momentum heading. They were able to hit their targets even as much fundraising ground to a halt.
New first-timers out now include Twist Capital, formed by ex-Guggenheim and Blackstone executive Sean Madnani, Long Arc Capital, led by former Goldman Sachs executive Gaurav Bhandari and Knox Lane, led by TPG Growth alumni John Bailey and Shamik Patel. These funds will face the true test of the downturn as they try and attract capital from nervous LPs.
“It really does remain to be seen what happens with the fundraising market … we’ve been really busy,” said an LP I spoke to recently, who said it’s not surprising that emerging managers are raising in the downturn.
Kirk and I are exploring this issue in a longer article, so if you have some thoughts on first-timers and emerging managers raising in the downturn, hit me up at firstname.lastname@example.org.
Christiaan van der Kem, a partner in secondaries at Switzerland-based investment manager Unigestion, is leaving the firm, a spokesperson confirmed for Buyouts. Van der Kem is leaving for a new opportunity, the spokesperson said, but it’s not clear where he’s headed.
Unigestion has tapped Principal David Swanson to take over U.S. secondaries from Van der Kem. Check out my story here.
NovaQuest Capital Management put Clinical Ink back on the block after holding off when the coronavirus hit, writes Sarah Pringle on PE Hub. Clinical Ink improves the clinical trail process with eClinical services and tools, Sarah writes. Read her story here on PE Hub.
Have a great weekend! Hit me up as always with tips n’ gossip, feedback or just to chat at email@example.com, on Twitter or find me on LinkedIn.