Silver Lake-backed ServiceMax agrees to merge with SPAC, THL’s Megan Preiner talks investing in crowded healthcare market

Silver Lake-backed ServiceMax agrees to merge with SPAC.

Happy Friday!

This is Chris, on the Wire today for Sarah. How was your week?

SPAC: Here’s a big, complicated SPAC deal for your Friday morn!
Silver Lake-backed ServiceMax agreed to a merger with Pathfinder Acquisition Corp, sponsored by HGGC and Industry Ventures. The SPAC deal values ServiceMax, which provides field service management software, at about $1.4 billion.

The deal will deliver ServiceMax about $335 million in proceeds. Simultaneously with the SPAC announcement, ServiceMax also said it agreed to acquire Liquidframeworks from Luminate Capital Partners for $145 million. Liquidframeworks provides field service management operations services for the energy sector.

ServiceMax investors Silver Lake, Salesforce Ventures and GE will retain their full equity ownership in the company. Read more here on PE Hub.

And: Another one! CORE Industrial Partners-backed Fathom Digital Manufacturing Corp agreed to merge with a SPAC sponsored by HPS Investment Partners in a deal valued at about $1.5 billion. The transaction will be funded through a combination of Altimar Acquisition’s cash in trust and an $80 million fully committed common stock PIPE at $10.00 per share. Read more here on PE Hub.

Lending: The specter of subscription lines of credit lending was a sticking point in opposition to CalPERS plans to build an in-house private lending program.

CalPERS wants to become a private lender on its own terms, rather than get its exposure through external managers. But to accomplish this, it needs exemptions to state open records rules to keep certain borrower information confidential.

A bill that would exempt the information died in a Senate committee this week. Part of the opposition to the bill focused on claims that CalPERS’ plans for the private credit program included the system making capital call loans.

A CalPERS spokesperson told me the system hadn’t yet decided whether subscription lines of credit would be part of the program. A representative of the Retired Public Employees Association, a major opponent of the bill, said capital call lending was much different than the vision of the program that had previously been presented.

CalPERS believes the program will save the system an estimated $150 million over five years by avoiding paying fees to external managers. Read more here on Buyouts.

That’s it for me! Have a great weekend. Hit me up with feedback, tips n’ gossip, or whatever at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

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