PE HUB Wire Highlights, 1.30.19

Why healthcare sponsors are pivoting to orthopedics; John Hopkins endowment shopped a PE portfolio in ’18; Kainos lawsuit feedback

I woke this morning thankful that I’m not in Chicago. For all my Midwest readers out there, or anyone braving the cold, stay warm. Remember to layer but not too tightly. And keep moving.

Banks may be embracing mobile banking but they remain trigger shy about taking part in fintech M&A, a report from CB Insights says. Banks gobbled up just 20 fintechs last year, according to “2019 Fintech Trends to Watch.” Regulatory barriers along with legacy tech infrastructure are some of the problems stopping banks from buying, the report said. Goldman Sachs was the most active last year, with its $100 million buy ofClarity Money emerging as its biggest deal.

There were 25 fintech unicorns in 2018, valued at $75.9 billion. But only three —AdyenGreenSky and Funding Circle – ended up going public. CB Insights said record fintech rounds will likely continue delaying IPOs. See the report here.

Since we’re talking about IPOs, Reuters is reporting that Pinterest has hired Goldman Sachs and JP Morgan to lead its public offering, which is expected later this year. The Pinterest IPO could raise around $1.5 billion, the story said.

Suing your partners: Some people were shocked by Sarah Bradley‘s lawsuit against her Kainos co-founders. Bradley, a Kainos partner, sued the PE firm and three principals claiming they tricked her into giving up her 25 percent stake in the firm’s investment manager, Kainos Capital. The lawsuit comes as Kainos is expected to begin fundraising for its third pool, which has a $1.5 billion target. It’s not clear if Bradley will be taking part.

Here are some of your responses:

Ted: “Who would ever trust the guys who apparently swindled their own partner in this way to ever manage institutional money again as fiduciaries? They sure got a lot a ‘splainin’ to do.”

Steve: “Bradley should not have signed [the] document in blind faith, she should have consulted a legal counsel before signing the papers.

“Long time ago I read in my law course that a contract without a consideration is null and void. I am assuming that at the time of signing the papers she did not [get] anything in return. if that is the case, then there are solid grounds for winning the current case.”


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