Good morning, Hubskis, welcome back.
Hope you had a nice break. What did you do?
Another company on the block in the midst of the pandemic — Central Logic, which provides software to improve the management of patient transfers, is nearing a sale to a private equity firm, writes Sarah Pringle on PE Hub.
The transaction is being advised by Ziegler, a boutique healthcare investment bank. The majority recap is expected to value the Utah-based company north of $100 million.
This particular deal was launched before the economy turned down in the health crisis, Sarah writes. Unlike other processes that delayed as the economy locked down, Central Logic moved forward despite all the economic turmoil. Read Sarah’s story on PE Hub.
Big Haul: Last week we got news that Spectrum Equity closed its ninth fund on its $1.5 billion hard cap. Spectrum was one of the rare firms to basically have launched just before the downturn, and so had to raise much of its capital in the economic turmoil.
Spectrum is interesting in that it commands huge demand from limited partners, but sticks to its relatively conservative fund size.
Now we have word that Searchlight Capital Partners, another popular name with LPs, has collected around $3 billion for its third fund. This puts the fund above target and seemingly on the way to its $3.25 billion hard cap. Read the news brief here on PE Hub.
Searchlight has been in market for over a year, having launched around last March. It made a Form D filing last week, but it’s not clear if that means the fund has held a final close.
Searchlight’s second fund closed on $1.9 billion in 2015 and it raised its debut fund on $860 million in 2012.
Only a handful of GPs are able to raise through the pandemic, as LPs turn inward and only commit to their most trusted relationships. This means most LPs are not forming new relationships, in part because they can’t travel to do on-site assessments of managers they haven’t previously known. Nor are they committing to first-time funds or even newer managers.
Going forward, the market is expected to split into those firms that can fairly easily command LP capital, and those that will have to get very creative to raise money.
What are you seeing in terms of fundraising? Hit me up at firstname.lastname@example.org.
Texas A&M hired Michael Pia, former managing director from Teacher Retirement System of Texas, as its chief investment officer, writes Teddy Grant on Buyouts. Pia had worked as the managing director of Strategic Partnerships and Research for Texas Teachers. Read more here on Buyouts.
Waterland Private Equity acquired Integrated Medhealth Communication, a healthcare communication consultancy. The transaction, led by Wouter Roduner and Dominic Graham, is Waterland’s sixth platform deal by the UK team since the firm opened a UK office in 2017. Read the news brief here.
That’s it! Have a great Monday! 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.