Tech-focused Dragoneer files $600m SPAC, Blackstone’s HealthEdge acquires The Burgess Group, Fundamental targets $1bn for fourth municipal-focused fund

Deal and fundraising activity continues during these dog days of summer: Blackstone's HealthEdge buys The Burgess Group and Fundamental seeks $1 billion for a new fund.

Happy Monday!

Hope you had a nice weekend. We’re in the throes of deep summer, and you’d expect things to be a bit slow with the heat. But this is a different world, eh?

Deal: Blackstone’s HealthEdge Software acquired The Burgess Group as it works to automate the full transactional system for health plans, writes Sarah on PE Hub.

The add-on comes about five months after Blackstone took a majority stake in HealthEdge, which commanded an about $730 million valuation. Blackstone used more than $600 million in equity in the deal, Sarah writes. HealthEdge was the first healthcare deal done by Blackstone’s growth group.

Read Sarah’s story here.

SPAC madness: Dragoneer Investment Group, formed by ex-PE execs, joined the race to raise a SPAC, filing for a $600 million pool that will seek to raise money from public investors, according to an SEC filing.

The Dragoneer team pursues opportunities in software, internet, media, consumer/retail, healthcare IT and financial services/fintech. The ultimate target of the SPAC will likely be in one of those sectors, according to a filing with the SEC.

Dragoneer was formed in 2012 by Marc Stad and Pat Robertson. Stad worked at TPG and Robertson worked at Hall Capital Partners, Goldman Sachs and Kirkland & Ellis. As of Dec. 31, 2019, Dragoneer managed about $8.6 billion in assets, according to the firm’s Form ADV. (The firm had more than $10 billion in assets as of June 30, 2020, according to the S-1 filing).

“Given the extreme market volatility we have recently witnessed, these uncertainties and operational complexities are particularly challenging at this time, and could persist for an extended period. We also think that because of COVID-19, there are attractive businesses that may have additional capital needs over the next few years, which could further increase the pipeline of potential opportunities,” according to Dragoneer’s SPAC filing.

Top Scoops
Berkshire Partners agreed to acquire CrossFit in partnership with CrossFit gym owner Eric Roza. Read the news brief here on PE Hub.

Have a great day! Hit me up as always with tips n’ gossip, feedback or just to chat at, on Twitter or find me on LinkedIn.