Thomas H. Lee puts Alfresco Software on the block, Goldman one of several anchors in $1.1bn Riverstone single-asset process, Blackstone-backed HealthEdge buys Burgess

How tech investors view opportunities post-COVID will diverge from sponsors pre-pandemic, says Stifel.

Happy Wednesday, Dear Tech Take Readers!

How tech investors assess opportunities post-covid is set to differ from sponsors’ pre-covid lens, bankers at Stifel Technology Group said at the Mid-Year Review Webinar on Tuesday.

Sponsors will seek quality and be less forgiving of companies that don’t show a straight path to profitability, said Patrick Seely, co-head of the Global Technology Group at Stifel.

“There is greater enthusiasm for taking on businesses that have mature business models, with predictability of revenue and profitability,” Seely said. “In those markets where there is flight to quality businesses, prices will continue to be very strong.”

The global quarantine will become a new benchmark in time – just like the Global Financial Crisis in 2008 — for assessing the resilience of business models, the bankers said.

“With Q2 just closing, we’ve seen a lot of private equity firms and strategics waiting to see how you’ve performed in a full quarter through covid,” said Bryan Dow, a managing director at Stifel’s Electronics, Applied & Industrial Technology team.

“The change coming out of covid is that people will really be focused on what you did during this time period, what actions were taken, and, once again, how you’ve proven your resilience.”

On the Block: Today I have a few new tech processes to put on your radar.

Thomas H. Lee kicked off a sales process for Alfresco Software, a provider of process automation technology, sources told me.
Jefferies is advising on the process. For more on the company and its expected valuation, read my story here on PE Hub.

Another live process to watch: This one is getting a lot of attention … Vista Equity’s Granicus.

Granicus, based in Denver, Colorado, provides cloud-based software tools and digital engagement services for the public sector.

William Blair is advising the company on its sale process, which is well into its second round. For more detail, make sure to check out my story.

Top Scoops
Riverstone Holdings is nearing completion of a process that moves portfolio company Enviva Holdings out of an older fund and into a continuation vehicle. Goldman Sachs is one of the anchor investors in the deal, which will total around $1.1 billion including equity for future investments. Read Chris’s story here on Buyouts.

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