Deal flow seems steady as the PE Hub crew is busy sifting through a lot of tips currently. Seems that, despite uncertainty around Q2 performance marks, sellers are choosing to put their goods on the market and see what transpires.
Interesting too are the numbers around first-half fundraising. The pace of fundraising basically matched that of 2019, which was the record year for PE fundraising. We’ll talk about that a bit further down.
First, check this out:
Cancer Treatment of America is on the block, with a small group of buyout funds and some not-for-profit healthcare orgs vying for control, writes Sarah Pringle today on PE Hub. Around six parties moved forward in the process’s second round, she writes.
Find the particulars here on PE Hub, and also look for Sarah’s usual deep analysis in the Healthcare Wire later today.
Similar dealmaking includes KKR-backed cancer care company GenesisCare, which recently closed its acquisition of 21st Century Oncology. That deal commanded an enterprise value close to $1.1 billion, PE Hub wrote in December.
First-timer: We have a first-time fund out there testing the wilds of the pandemic fundraising market. Crosspoint Capital Partners, formed by the former CEO of Symantec and Blue Coat Systems Greg Clark, is in market raising its debut fund. Crosspoint Capital invests in cybersecurity, data privacy and infrastructure software, according to its Form ADV. Park Hill Group is working as placement agent on the fundraising.
Crosspoint Capital’s leadership group includes managing partners Steve Luczo, Matt MacKenzie, John Mumford and Hugh Thompson. All the executives come from corporate America, as opposed to other private equity firms or banks. Clark does have PE experience as he worked as an operating partner with Thoma Bravo from 2012 to 2015.
Fundraising, meanwhile, seemed to keep pace with last year’s numbers through the first half, but that doesn’t tell the full story. Private equity raised about $161.9 billion in the first half, compared to $165.2 billion in the first-half of 2019, according to the research team here at PEI.
Much of what has been raised so far this year are funds that had been in market prior to the pandemic. Since then, the pace of new launches slowed, sources have told me in recent interviews. The results of that slowdown will become apparent in future tallies.
What are you seeing with fundraising? How are things going? Reach me with thoughts at firstname.lastname@example.org.
Some portfolio companies have dealt with the coronavirus pandemic by shifting operations to directly address needs for PPE and masks. Karishma Vanjani on PE Hub compiled a database of companies that have contributed to the fight. One such company is Edison Partners-backed Suuchi, a fashion-tech business that has been in the business of supply-chain management software tailored to retailers.
Suuchi built a new revenue stream by turning to its partner network of factories for new manufacturing needs, Vanjani writes. Read it here and let us know about other companies that have shifted to take on coronavirus at email@example.com.
Lot of successions this week: Levine Leichtman announced a leadership change this week, New Mountain’s founder sold of a piece of his ownership stake in the firm in a GP stake sale. Now comes news that ARC Financial’s long-time principal Brian Boulanger was named chief executive as Lauchlan Currie steps into a co-chairman role. Read it here on Buyouts.
Have a great day! Reach me with your thoughts, tips, gossip, whatever at firstname.lastname@example.org, on Twitter or find me on LinkedIn.