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TCV runs strip sale on group of assets out of older funds, Clearlake agrees to buy Quest Software from Francisco

The sale is of 13 “relatively mature” assets out of older funds with total net asset value of around $1 billion; the deal values Quest at $5.4 billion including debt.

Happy Monday!

Hope you had a fun and relaxing holiday weekend!

A few deals came through over the past few days — big one this morning:

Clearlake Capital agrees to acquire cybersecurity software provider Quest Software from Francisco Partners. The deal values Quest at $5.4 billion including debt, Wall Street Journal reported. As part of the deal, Patrick Nichols, Quest’s CEO, will continue to lead the company long with the existing management team.

Francisco, along with Elliott Management, created Quest through their acquisition of Dell Software Group in 2016. At the time, Quest was led by chairman and CEO Jeff Hawn, former CEO of Vertafore. Read more here on PE Hub.

Clearlake and Francisco are part of the tech-focused buyout wave in private equity that is both pushing M&A volume and attracting billions of dollars in fundraising. Tech deals accounted for one in every three deals done in the first six month of the year, according to analysis from Bain & Co.

“All things technology writ large are penetrating the buyout space more than ever before. For huge buyout deals that have a tech component to them… these force GPs to ask themselves, ‘what is my technology strategy, how am I going to incorporate thinking about tech in my investments and how I add value to portfolio companies?’ – because that’s where the PE industry is going,” Hugh MacArthur, global head of PE at Bain & Co., told PEI earlier this year

Strip: Technology Crossover Ventures is running a sale of a strip of 13 “relatively mature” assets out of older funds with total net asset value of around $1 billion, three sources told Buyouts.

Strip sales have historically not represented a huge slice of secondary volume compared to continuation fund deals and traditional LP portfolio sales. However, some sources believe strip sale activity, especially for venture and growth managers, will pick up as buyers seek diversification away from the concentrated bets they made earlier this year on big single-asset continuation fund deals. Read more here on Buyouts.

That’s it for me! Have a great Monday. Hit me up with tips n’ gossip, feedback or book recs at or over on LinkedIn.