Sycamore expected to buy 55 pct of Victoria’s Secret, H.I.G. acquires Vernacare, ex-Credit Suisse fundraisers launch placement shop

Sycamore inks a deal to acquire a controlling stake in retailer Victoria's Secret and say hello to a new placement agency.

Good morning!

Big deal breaking this morning is that Sycamore Partners is expected to buy a 55 percent stake of struggling Victoria’s Secret in a take-private transaction, according to the Wall Street Journal. L Brands would continue to own a 45 percent interest.

Leslie Wexner, a billionaire who has run the company for more than 50 years, would step down as chief executive officer and chairman. Wexner has come under scrutiny for his past association with Jeffrey Epstein, a convicted sex offender who was charged with sex trafficking last year and died in prison.
Sycamore is investing from its third fund, Sycamore Partners III, on $4.75 billion. The firm has invested in various retail and consumer brands, including Pure Fishing, Staples, The Limited, Belk, Coldwater Creek, Talbots and Hot Topic.

Read more here.

Up: Here’s a new firm we’ve been tracking. Sky Island Capital, launched by Jack Waterstreet, former CIO and partner at mid-market shop Insight Equity, made a majority investment in Polished Metals, a polisher and supplier of architectural and ornamental metals. Polished Metals will serve as a platform for Sky Island’s investment in industrial metal processing. Sky Island plans to grow the investment organically and through future add-ons.

Check it out here on PE Hub.

Sky Island was expected to launch its first fund last year, targeting $250 million. Waterstreet formed Sky Island in 2018 after he left Insight Equity. He formed the firm alongside Partners Pat Murley and Will Dobbs.

Murley, responsible for overseeing the operations of Sky Island’s portfolio companies, is chairman and chief executive at Material Sciences Corp, which Sky Island invested in last year. Murley worked with several PE-backed companies including those with Aurora Capital, Insight Equity and Peak Rock Capital.
Dobbs formerly was a partner at LongWater Opportunities, and previously worked with Waterstreet at Insight Equity as a vice president. Read more about Sky Island here.

This is a reminder …

That we’re always looking for tips on new firm formation. We have a huge archive of emerging managers and first-time funds here. Hit me up if you’ve heard of some interesting new shops or executives who are starting their own firms. I’m at cwitkowsky@buyoutsinsider.com

Top Scoops
A new player has entered the hyper-competitive private equity fundraising game: Aviditi Advisors. The firm was formed by two veteran fundraisers from Credit Suisse. Check it out here on Buyouts.

H.I.G. Capital acquired U.K.-based Vernacare, which makes infection control systems. The business employs more than 250 people across its U.K. headquarters in Chorley, a manufacturing plant in Bolton and a Canadian site in Toronto. Read more.

Have a great day! Reach me with tips n’ feedback, gossip, Drama or whatever at cwitkowsky@buyoutsinsider.com, on Twitter or find me on LinkedIn.