Leonard Green closes buy of Packers Holdings

Leonard Green & Partners has completed its buy of Packers Holdings from Harvest Partners. Financial terms weren’t announced. Kieler, Wis.-based Packers provides sanitation for more than 450 food processing plants every day. Harris Williams & Co. and Moelis & Co. provided financial advice to Packers. Morgan Stanley Senior Funding, General Electric Capital Corp. and Crescent Mezzanine provided financing. PRESS RELEASE Kieler, WI – December 3, 2014 – Packers Holdings, LLC (“PSSI” or the “Company”) announced today the completion of a recapitalization of the Company by Harvest Partners, LP (“Harvest”), a New York-based private equity firm, and Leonard Green & Partners, L.P. (“Leonard Green”), a Los Angeles-based private equity firm, in partnership with the Company’s management team. Terms of the transaction were not disclosed. PSSI is North America’s largest and only nationwide provider of critical outsourced cleaning and sanitation services to the food processing industry. Formed in 1972, PSSI services approximately 470 plants across the U.S. and Canada. Customers rely on the Company’s approximately 15,000 employees to perform nondiscretionary cleaning and sanitation services required to operate plants, as well as to manage compliance with ever increasing food safety standards. PSSI proactively works with its customers to improve plant cleanliness, adhere to rigorous food preparation regulations, optimize plant performance, minimize downtime and improve safety standards. The management team of PSSI, including CEO Jeff Kaiser and President Dale Kaiser, will continue to lead the Company. “PSSI is the clear leader in its market, combining an accomplished management team, an exceptional track record and significant opportunities for continued growth,” said John Danhakl, Managing Partner at Leonard Green. “We are excited to partner with Jeff and Dale Kaiser and Harvest in supporting the next phase of the Company’s growth.” “PSSI provides a mission-critical service to its customers in the attractive food processing market,” said Jay Wilkins, Managing Director at Harvest. “Outsourcing cleaning and sanitation to reliable, highly-specialized third parties will continue as regulators and the public increasingly focus on the safety of the nation’s food supply and demand the highest standards.” Steve Eisenstein, Senior Managing Director at Harvest, added, “PSSI is well-positioned to benefit from these favorable market tailwinds. We look forward to partnering with Leonard Green and continuing our partnership with management as they build upon PSSI’s history of 25 consecutive years of uninterrupted growth.” “With the growth opportunities ahead in our business, this is an opportunity to take the next step forward and further our position as the market leader in outsourced services to the food processing industry,” said Jeff Kaiser, CEO at PSSI. “We look forward to working with our new partners at Leonard Green and furthering our relationship with Harvest as we continue to provide exceptional service and value to our customers.” Harris Williams & Co. and Moelis & Company, LLC acted as financial advisors to PSSI. Committed debt financing for the transaction was provided by Morgan Stanley Senior Funding, Inc., General Electric Capital Corporation and Crescent Mezzanine. White & Case LLP acted as legal advisor to Harvest. Latham & Watkins LLP acted as legal advisor to Leonard Green. About PSSI
PSSI, headquartered in Kieler, WI, is North America’s largest and only nationwide provider of mission-critical outsourced cleaning and sanitation services to the growing food processing industry. Through its highly trained workforce, PSSI provides cleaning and sanitation services that allow for the efficient and safe daily operation of food processing facilities. PSSI has been the market leader in North America for nearly 40 years and has established long-term relationships with the nation’s leading food processors across approximately 470 served locations. These customers rely on the Company’s base of nearly 15,000 employees to perform nondiscretionary cleaning and sanitation services, as well as to manage compliance with ever increasing food safety standards. About Leonard Green
Leonard Green is one of the nation’s preeminent private equity firms with over $15 billion of private equity capital raised since inception. Founded in 1989, the firm has invested in 71 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Based in Los Angeles, CA, Leonard Green invests in established companies that are leaders in their markets. For more information, please visit www.leonardgreen.com. About Harvest Partners
Founded in 1981, Harvest Partners, LP is a leading New York-based private equity investment firm pursuing management buyouts and recapitalizations of middle market companies in North America. Harvest focuses on acquiring profitable companies in the industrial and energy services, manufacturing and distribution, consumer and business services, and healthcare services sectors. This strategy leverages Harvest’s 30 plus years of experience in financing organic and acquisition-oriented growth companies. For more information, please visit www.harvestpartners.com.

TA Associates puts TwinMed on the block

TA Associates has put another company, TwinMed, up for sale, three sources said. Citigroup is advising on the deal, one of the sources said. It’s unclear how much TwinMed will fetch. The Santa Fe Springs, Calif.-based company is a medical supply distributor to nursing homes and alternate site markets. The company produced $278.6 million revenue in 2011, the Los Angeles Business Journal said. TA Associates, a growth private equity firm, acquired TwinMed in 2007. The firm paid $62.5 million, according to an SEC filing from that time. The investment came from TA’s 10th fund, which raised $3.5 billion in 2009. TwinMed is the latest company TA has put on the block. The Boston-based PE firm is also selling its stake in DNCA Finance, a French asset manager. Last week, TA said it was selling its holding in Dealer Tire, a distributor of replacement tires and parts for automotive OEMs, to Lindsay Goldberg. News of the sales comes as TA is expected to begin fundraising soon for its 12th private equity fund. In 2009, TA closed its 11th PE fund at $4 billion. TA X LP is producing a 5.25 percent IRR since inception as of March 31 while Fund XI is generating a 17.07 percent IRR since inception, according to performance data from the California State Teachers’ Retirement System. Executives for TA and Citigroup declined to comment. TwinMed could not be reached for comment. Photo courtesy of Shutterstock

KKR invests in Sundrop Farms

KKR has provided growth capital to Sundrop Farms Holdings Ltd. Financial terms weren’t disclosed. Sundrop Farms, of Australia, grows high-value crops using seawater and sunlight. KKR’s investment comes from its Asian Fund III. PRESS RELEASE PORT AUGUSTA & SYDNEY, Australia–(BUSINESS WIRE)– Sundrop Farms Holdings Limited (“Sundrop Farms” or the “Company”), a pioneering arid climate agribusiness, announced today that global investment firm KKR has provided growth capital to the Company and its wholly owned subsidiary Sundrop Farms Pty. Limited (“Sundrop Farms Australia”). The funding will be used to significantly expand Sundrop Farms’ glasshouse facility in South Australia and underpin its international development. Sundrop Farms grows its crops in state-of-the-art glasshouses using a unique proprietary technology developed to address the water and food security issues typical to arid regions. The “Sundrop System” uses concentrated solar power to create the heat, electricity, and desalinated water needed to feed and power Sundrop’s growing operations. Philipp Saumweber, Sundrop Farms CEO, said, “We grow food where land is too arid for farming, fresh water is in short supply and domestic food security is a concern. Farming with typical agricultural inputs would be unsustainable in these regions, so Sundrop uses renewable energy to heat, power and water its crops. Sundrop is the world’s first commercially and environmentally sustainable arid climate agriculture business, and this significant investment is at the heart of our growth strategy.” KKR’s investment allows Sundrop Farms to scale its existing operations in Port Augusta, South Australia, by financing a 20-hectare greenhouse facility which will produce more than 15,000 tons of vegetables annually for markets across Australia. Sundrop and KKR intend to develop a hub of agricultural innovation for arid climates in Port Augusta which will allow for further development in countries with similar environmental conditions. Further to those goals, KKR’s investment in Sundrop Farms will also support its plans to expand into the Middle East, North America and other supply-constrained markets around the world. “Sundrop Farms provides a unique and innovative solution to environmental challenges in farming,” Justin Reizes, Member and Head of KKR Australia, said. “KKR looks to invest in and partner with companies that provide solutions to environmental and societal challenges. Sundrop Farms epitomizes this effort, and we are delighted to work with this experienced and knowledgeable team to pursue new growth opportunities in Australia and internationally.” Internationally recognized contractors John Holland Group, Aalborg CSP, and Van der Hoeven are managing the construction of the new facility. The construction and operation of each hectare of Sundrop Farms glasshouses creates long-term green employment in regions of the world which might not otherwise be home to a high-value agricultural industry. Construction of the Sundrop Farms Port Augusta expansion facility begins this month and is due for completion in 2016. KKR has made its investment from its Asian Fund II. Additional terms of the transaction were not disclosed. About Sundrop Farms Sundrop Farms is a pioneer in sustainable agriculture for the arid world, growing high-value crops using seawater and sunlight. It has the technology and operational skills to develop, construct and operate greenhouses in locations that have little or no access to arable land, fresh water sources, grid electricity or natural gas. The company has created a proprietary food production system which grows high quality produce, all year round, in greenhouses that use the abundant and renewable resources of sunlight and seawater. As the world’s population continues to grow, Sundrop Farms is de-coupling food production from finite resources and relying instead on renewable resources to grow the world’s food industry, not just profitably but also sustainably. Please visit Sundrop’s website atwww.sundropfarms.com About KKR KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com.  

Rockbridge Growth buys the Robb Report

Rockbridge Growth Equity said Wednesday it has acquired the Robb Report. Financial terms weren’t announced but a news report said the deal was valued at $60 million. Malibu, Calif.-based Robb Report is a magazine that caters to ultra affluent consumers. Dan Gilbert, who owns the Cleveland Cavaliers, is the Rockbridge Growth’s managing partner. Kathleen Thomas of Berkery Noyes advised the Robb Report. PRESS RELEASE DETROIT, Dec. 3, 2014 /PRNewswire/ — Detroit-based private equity firm Rockbridge Growth Equity today announced it has acquired Robb Report, the worldwide definitive authority on luxury lifestyle which connects the most discerning global audiences to the most respected luxury marketers through magazines, websites, apps, events and a private club.
“Robb Report is an exciting consumer-based, well-branded company with an experienced and strong management team. We believe Rockbridge and its Family of Companies’ operational expertise and infrastructure, particularly in the areas of marketing and technology, will help leverage the opportunity for Robb Report to grow at an accelerated pace,” said Managing Partner of Rockbridge, Brian Hermelin. “It is always thrilling to provide the needed capital and support to a motivated and smart leadership team who sit at the center of an internationally growing space that is primed for innovation and creativity. We are more than pleased to be partnering withBill Curtis and his management group to acquire this company and build it in the years ahead.”
For close to 40 years, the Robb Report brand has been the ultimate source of inspiration and information about luxury products and services worldwide. With a focus on quality, craftsmanship and connoisseurship, Robb Report curates the best-of-the-best in all categories of luxury in 14 international markets and 9 languages.
“The insight and creativity of the Rockbridge team, combined with expertise from its affiliated companies, will facilitate rapid growth at Robb Report allowing us to build upon our digital and international momentum,” said Bill Curtis, Robb Report CEO. “The partnership with Rockbridge will allow us to expand our digital and international strategy and reach more of our unique audience and better connect them with our advertisers.”
Plans are underway for Robb Report to open a new downtown Detroit office to support its expanding technology, digital media and sales initiatives. Rockbridge has been one of the primary players engaged in building the new burgeoning technology district in the urban core of the Motor City. In the past four years alone, over 120 technology and new economy companies along with over 12,000 plus full-time employees have located along or near the high-tech corridor in Detroit.
Robb Report joins the Quicken Loans and Rock Ventures Family of Companies that includes other high-growth businesses with expertise in technology, digital media, interactive marketing and direct-to-consumer customer acquisition. These companies include Quicken Loans; Triad Retail Media, the market leader in creating, managing and operating digital retail media programs for highly trafficked retail websites; Gas Station TV, America’s number one video network at the pump delivering an industry-leading experience to more than 50 million monthly viewers nationwide; Northcentral University, a leader in for-profit, post-graduate education; Purchasing Power, an e-commerce and finance company that allows highly-qualified, under banked customers to purchase a broad variety of “large-ticket” products over the internet and finance them through direct payroll deduction; and Fathead, a leader in digital sports and entertainment products.
Headquartered in Malibu, California, with offices in New York, Massachusetts and Florida, Robb Report currently employs 110 people.Robb Report is working towards doubling its global footprint from 14 international editions to 30 in the coming months.
Robb Report is accessible to digital users at RobbReport.com, in a variety of digital newsletters, and apps are accessible via iPad, Kindle Fire, and Nook Tablets. It is also available through Zinio’s online newsstand, Magzter, and Google Play.
Berkery Noyes served as the exclusive financial advisor to Robb Report and Michigan-based Flagstar Bank arranged the senior debt facilities in conjunction with the transaction. Honigman Miller Schwartz and Cohn LLP served as Rockbridge Growth Equity’s legal counsel and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Robb Report.
Rockbridge was founded in 2007 by partners Brian Hermelin, Kevin Prokop and Dan Gilbert, who is also Founder and Chairman of Rock Ventures LLC and Quicken Loans Inc., the 2nd largest mortgage lender in the United States. Mr. Gilbert is also majority owner of the NBA’s Cleveland Cavaliers among numerous other technology, finance, sports and entertainment businesses which he owns and/or operates.
About Rockbridge Growth Equity, LLC
Rockbridge Growth Equity, LLC is a Detroit, Michigan-based private equity firm that invests in financial and business services, consumer-direct marketing, and sports, media & entertainment industries. Rockbridge owns equity stakes in Triad Retail Media, RapidAdvance, Purchasing Power, Connect America, Account Now, Protect America, Northcentral University, Gas Station TV and One on One Marketing, and is affiliated with other leading businesses in its target sectors including Quicken Loans, the Cleveland Cavaliers, Title Source and Fathead. For more information on Rockbridge Growth Equity, visit www.rbequity.com.
About Robb Report
Now in its 38th year, Robb Report is the international authority on the luxury lifestyle. In its digital and print forms, the brand offers affluent connoisseurs insights and detailed information designed to assist them in selecting only the most exceptional products and services in markets around the globe. Categories of coverage include automobiles, motorcycles, yachts, aircraft, art, fine dining, jewelry, watches, fashion, travel, homes, wines, spirits, cigars, and health and wellness. For more information, visit the Robb Reportwebsite at www.robbreport.com.

Primus Capital invests in SkillSurvey

SkillSurvey, a Wayne, Penn.-based provider of reference assessments, has secured an investment from Primus Capital. No financial terms were disclosed. Raymond James advised SkillSurvey on the transaction. Also, Phil Molner and Aaron Davis of Primus have been named to SkillSurvey’s board of directors. PRESS RELEASE CLEVELAND, OH – Dec. 3, 2014 – Primus Capital (Primus) today announced that it has made a major growth investment in SkillSurvey, Inc. Based in Wayne, PA, SkillSurvey provides cloud-based solutions to help human capital management professionals manage critical points in the talent lifecycle using data and insight to more effectively recruit, hire and manage employees to drive business results. The terms of the transaction were not disclosed. SkillSurvey is the leading provider of reference assessments that use insight and feedback from managers, peers and other employees who have worked with job candidates to help prospective employers make better hiring decisions. The company’s flagship product, Pre-Hire 360®, is an award-winning, patented technology solution that utilizes a combination of behavioral science, talent analytics, job specific assessments, and data-driven benchmarking to generate predictive insights about job candidates based upon a candidate’s past work performance. The company recently launched Credential 360TM, a solution to help hospitals and healthcare organizations improve patient care outcomes by expediting the typically cumbersome professional credential verification process. “We are very impressed with SkillSurvey’s strong management team, their best-in-class solutions, and robust customer base. We are particularly excited about the company’s growth prospects as organizations look to leverage human capital management as a competitive advantage to drive business outcomes. We are confident that our partnership with SkillSurvey will enhance its position as a market leader and fuel further innovation that will benefit customers,” said Phil Molner, Managing Partner of Primus. “They are an obvious partner for us and we look forward to working with the current management team to grow the business by accelerating investment in developing new solutions.” The new funding will allow SkillSurvey to extend its industry-leading product set to address additional points in the talent lifecycle and invest in expanded sales and marketing initiatives to drive customer engagement. In addition to SkillSurvey’s solution to support credentialing in the healthcare industry, and its widely adopted reference assessment solution, the company helps customers engage with and build a pipeline of “passive candidates” by staying connected with a candidate’s job references through The Q® – a targeted portal to find and recruit passive prospects who are not actively searching for jobs. “There is wide opportunity ahead for SkillSurvey, and we’re excited to align with an investment partner that will support our growth and share our vision of helping human capital management professionals deliver even more value to their companies’ bottom lines,” said Ray Bixler, CEO of SkillSurvey. “The expertise that Primus brings in industries like healthcare, software, technology-enabled services, and education makes our partnership an ideal fit. We’re looking forward to providing our solutions to many more employers, from the Fortune 500 to small businesses across the country.” Mr. Bixler will continue in his role as President and CEO, and all other management team members will remain in their current positions. Both Mr. Molner and Aaron Davis, Principal of Primus, will join the SkillSurvey Board of Directors. Raymond James & Associates served as financial advisor to SkillSurvey on this transaction. About Primus Capital
Primus Capital is a private equity firm that invests in high-growth companies within the healthcare, software, technology-enabled services, and education industries. Founded in 1983 and currently investing Primus Capital Fund VII, Primus has invested in over 100 growth companies. Transaction types include buyouts, recapitalizations and growth equity investments. For more information, visit www.primuscapital.com About SkillSurvey
SkillSurvey provides cloud-based solutions to help human capital management professionals manage critical points in the talent lifecycle using data and insight to more effectively recruit, hire and manage employees to drive business results. The company’s flagship solution, Pre-Hire 360®, is an award-winning, patented technology solution that utilizes a unique combination of behavioral science, talent analytics, and data-driven benchmarking. SkillSurvey’s Pre-Hire 360 reference assessment is scientifically proven to drive better hiring decisions and generate predictive candidate insight based upon feedback provided by references on past job performance. The company also offers an extension of Pre-Hire 360 in the form of a passive sourcing solution, The Q®, and the recently launched Credential 360TM, a new solution that helps hospitals and healthcare organizations improve patient care outcomes by expediting the professional credential verification process. SkillSurvey’s cloud-based software products are being used by 1,400 companies, institutions and organizations. Visit SkillSurvey at www.skillsurvey.com

Brown Shoe vying for Stuart Weitzman: Reuters

NEW YORK (Reuters) – Footwear retailer Brown Shoe Company Inc is in contention to acquire women’s luxury shoe retailer Stuart Weitzman Holdings LLC, in a deal that could reach $1 billion, three people familiar with the matter said on Tuesday. Brown Shoe is competing against other potential suitors, that include private equity firms and financial investors, for Stuart Weitzman, the people said. An outcome in the auction for Stuart Weitzman is expected this month, the people added. Buyout firm Sycamore Partners, the owner of Stuart Weitzman, has been working with Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Citigroup Inc (C.N: Quote,Profile, Research, Stock Buzz) on the sale of the company, Reuters reported in August. The sources asked not to be identified because the sale process is confidential. Representatives for Sycamore declined to comment. Representatives for Brown and Stuart Weitzman did not respond to requests for comment.

Canada’s Onex in talks to buy UK survival firm Survitec: Bloomberg

(Reuters) – Canadian buyout firm Onex Corp is in talks to buy a UK safety and survival equipment maker from Warburg Pincus LLC for about 450 million pounds ($704 million), Bloomberg reported, citing three people with knowledge of the discussions. The two private equity firms are negotiating a price for Survitec Group Ltd and a deal is expected before the end of the month, Bloomberg reported. Private equity firms were preparing to submit final bids for Survitec, Thomson Reuters Loan Pricing Corp reported early last month. Survitec provides survival products from life jackets to anti-gravity suits to the marine, aviation and defense industries among others. Warburg Pincus declined to comment. Onex and Survitec were not available for comment. Warburg Pincus bought from Survitec from private equity group Montagu in 2010 for 280 million pounds and has been looking to sell the company for 500 million pounds, Reuters reported earlier this year. The Bloomberg report comes about a fortnight after Onex said it would buy Swiss packaging group SIG Combibloc Group AG for up to 3.57 billion euros.

Tomy to spend $56 million on buy backs, including TPG’s 4.6 percent stake: Reuters

TOKYO (Reuters) – Japanese toymaker Tomy Co on Wednesday said it would spend up to 6.7 billion yen ($56.10 million) buying back around 10 percent of its outstanding shares, including 4.6 percent from U.S. private equity firm TPG Capital Management LP. Tomy in a statement said it would buy back up to 9.7 million shares to “improve its corporate and shareholder value.” The toymaker also said it would pay 7.4 billion yen to buy back convertible bonds held by TPG.
TPG declined to comment. Tomy’s relationship with TPG stretches back at least to 2007 when the private equity firm bought a 14 percent stake. TPG sold the bulk of its stake in 2009 to Japanese peer Marunouchi Capital Co, which is now Tomy’s biggest shareholder. “While TPG had a stake in our company, we were able to build our global platform through acquiring the U.S. toymaker RC2 Corporation,” Tomy said in the statement. Tomy bought RC2 in 2011 to help the Japanese toymaker compete against top global rivals such as Mattel Inc (

KKR invests $50 mln in Next Issue Media

KKR has closed a $50 million investment in Next Issue Media. Next Issue is a joint venture formed by six publishers – Condé Nast, Hearst, Meredith, News Corp., Rogers Communications and Time Inc. – to provide unlimited access to digital magazine content in the U.S. and Canada. The Raine Group advised Next Issue. PRESS RELEASE MENLO PARK, Calif., Dec. 3, 2014 /PRNewswire/ — Next Issue Media™, the first and only company to provide unlimited access to premium digital magazine content in the U.S. and Canada, announced today it has closed $50 million in funding from leading global investment firm KKR. The investment will support further development of Next Issue’s innovative digital magazine platform and will help deliver Next Issue’s exclusive all-you-can-eat content to a broader audience. “Our focus at Next Issue is on the biggest brands in the magazine world so it was only natural to close our funding with the biggest brand in private equity,” said Morgan Guenther, CEO of Next Issue Media. “We are delighted to have the support and confidence from a prestigious investment partner like KKR as we expand our reach, deliver more personalization and fill one of the last subscription white spaces in the digital media world, following successful models in video and music.” “For KKR, this investment demonstrates our belief in Next Issue.  Today’s consumer demands mobile access to large catalogs of premium content, anytime, anywhere.  Next Issue’s proven success applying this model to magazines has created a compelling consumer proposition that will serve the interests of readers, publishers, and advertisers alike,” said Richard Sarnoff, Managing Director at KKR and Head of the firm’s Media & Communications investment team in the Americas. Next Issue has developed a singular tablet and smartphone app that delivers unlimited access to 145 of the world’s most popular magazines – from PEOPLE to Vogue to Better Homes & Gardens to Esquire – starting at only $9.99 a month.  In addition to instant, on-demand access to current issues and back catalogs, Next Issue subscribers have access to engaging and beautiful digital-only extras such as videos, extended photo galleries, Twitter feeds and live web links. The intuitive interface will also be complemented by a growing list of tools to help readers explore, share, search and discover new content in 2015. “The publisher-owners of Next Issue are thrilled to be joined by KKR as we look to amplify our unparalleled content with new audiences in this critical channel,” commented Lynne Biggar, Time Inc. Executive Vice President of Consumer Marketing + Revenue and Chairman of the Next Issue Board of Directors. For KKR, the investment is part of the firm’s growth equity strategy, which is focused on market-leading, high-growth companies that KKR can help reach scale and the next level of growth. KKR is funding the investment from the balance sheet of KKR & Co. LP (NYSE:KKR). The Raine Group advised Next Issue Media on the transaction. About Next Issue Media
Next Issue Media is a joint venture of six leading publishers – Condé Nast, Hearst Magazines, Meredith, News Corp., Rogers Communications and Time Inc.  The company was formed to bring the world’s most popular magazines to life on the digital device of your choice. About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, growth equity, energy, infrastructure, real estate, hedge funds and credit. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com or on Twitter @KKR Co.  

Highly leveraged Tibco loan succumbs to investor demands: Reuters

(Reuters) – A high-profile $2.02 billion leveraged loan for Tibco Software is the latest US buyout deal that has been forced to add expensive perks to attract buyers as risk-averse investors hold out for better terms amid a market correction. Tibco increased its loans by $70 million to finance a deeper discount. The company also increased the interest margin on the loan and made other concessions designed to tempt investors into the deal, bankers said. Loan buyers are treading cautiously after a volatile October saw interest margins on US leveraged loans widen by 100-150 basis points (bp) as the equity markets took a hit and the federal government warned on leveraged lending. US regulators are clamping down on risky loans and have been taking a tougher line on deals that fall outside leveraged lending guidelines, which say that deals should not have leverage of more than six times debt to Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA). Tibco’s high level of indebtedness at eleven times debt to EBITDA, according to Moody’s, gave investors enough ammunition to ask for higher compensation, bankers said. The $2.02 billion loan backing the company’s $4.3 billion buyout by Vista Equity Partners was underwritten by JP Morgan and Jefferies. The financing package totalled $2.97 billion and also included a high-yield bond. As Jefferies is not a commercial bank, it is not subject to the same regulatory scrutiny and was therefore able to offer more leverage by adding around $200-400 million to the loan then an earlier financing offer. KKR, which also participated in Tibco via Merchant Capital Solutions, a capital markets business that it created with the Canada Pension Plan Investment Board and Stone Point Capital, and also underwrites its own buyouts with banks, is also not subject to the same scrutiny. Unregulated lenders have played a bigger role in many highly leveraged deals this year as traditional investment banks have been forced to bow to regulators’ demands. [ID: nL3N0SC51C] INVESTOR DEMANDS
Investors currently have the upper hand on deals that are considered to be weaker credits amid the market correction, which is removing some of the more aggressive terms and conditions seen in the first half of 2014. “They (investors) will use as much leverage as they can get because they know it will disappear,” an investment banker said. Tibco increased pricing on the term loan to 550bp over Libor from original guidance of 450bp over Libor and the Original Issue Discount (OID) was deepened to 95 percent of face value from 98.5-99. The company also increased the size of its term loan by $20 million to $1.67 billion from $1.65 billion and an asset sale bridge loan by $50 million to $350 million from $300 million to fund the bigger discount, bankers said. Investors also asked Tibco to remove an 18-month most favored nation sunset clause, which keeps pricing level between new and old debt, and cut the size of incremental debt facilities that it can add to existing debt. Tibco is one of several companies that have recently had to alter pricing and terms in the weaker market that followed October’s volatility. This has proved expensive for borrowers and arranging banks which can share the cost of the adjustments, that in many cases can bring losses. International software product group Micro Focus priced a $1.275 billion term loan B at 425bp over Libor in early October, 100bp higher than the proposed 325bp over Libor and widened the discount to 95.5 from 99. A $500 million term loan C also priced 75bp higher at 375bp over Libor and the discount was widened to 95 from 99.5. The company also removed its most favored nations sunset clause. Abaco Energy Technologies priced a $175 million term loan in mid-November at 700bp over Libor, up from 575bp over Libor. The discount was also widened to 94 from 99 and included most favored nation for the life of the loan. The recent flurry of adjusted deals is a natural pullback after 18 months of strong conditions, Jay Ptashek, a debt financing partner at Kirkland & Ellis LLP said. “When the market’s really good every deal kind of sails through. When the market’s weaker it’s easier for accounts to push back on some of the things that they don’t like,” Ptashek said. A report from the Shared National Credit (SNC) review in October, which followed warnings from the regulators to comply with the leveraged lending guidelines may have contributed to the market’s weakness in November, Ptashek said. “The most recent SNC review – when combined with the letters sent to banks at the end of the summer – really made people think, wow these guys are really very serious on this,” Ptashek said. The US leveraged loan market stayed open, but is running at lower levels of activity as banks digest regulators harsh criticism of their leveraged lending practises. “The wildcard is how the leveraged lending guidance will play out. Things are getting done. They’re just getting done wider,” Ptashek said. Photo courtesy of Shutterstock

Marlin Equity merges LogicBlox with Predictix

Marlin Equity Partners said Wednesday it merged LogicBlox with Predictix and completed a growth equity investment in the companies. Financial terms weren’t announced. LogicBlox, of Atlanta, is a database provider while Predictix, also of Atlanta, offers cloud-based retail applications. PRESS RELEASE LOS ANGELES – December 3, 2014: Marlin Equity Partners (“Marlin”) is pleased to announce that it has completed a growth equity investment and simultaneous merger of LogicBlox, Inc., a Hybrid Transactional/Analytical Processing database provider, and Predictix, LLC, a leading provider of predictive, cloud-based retail applications. LogicBlox is a horizontal technology platform that allows enterprises to create sophisticated, highly scalable models to analyze, plan and manage their businesses. The LogicBlox platform provides the smart database foundation that enables next-generation predictive and prescriptive applications across multiple industries including retail, financial services, consumer goods and healthcare. Predictix, developed and delivered utilizing the LogicBlox platform, offers a unified suite of SaaS merchandising and supply chain applications to help forecast, plan, optimize and analyze large data sets for some of the world’s top retailers. Unlike traditional applications, Predictix’s cloud-native design lets even the largest retailers optimize their decisions with real-time performance – leveraging the power of big data analytics to meet retailers’ constantly changing needs. “We are excited to be working with the LogicBlox/Predictix team to build on the strong Predictix retail client base and to drive similar success across additional industries,” said Jonah Sulak, a partner at Marlin. “The combination of high-value applications and next-generation technology is compelling and we look forward to investing alongside the management team to accelerate future growth.” Molham Aref, CEO and co-founder of LogicBlox/Predictix, stated, “We selected Marlin as the firm we wanted to partner with because they share our strategic vision for the future. Predictix showcases the high-value applications that are possible utilizing the LogicBlox technology platform. Together, we will work to deepen our retail expertise and to expand into other industries.” Eric Hinkle, an operating partner to Marlin, stated, “Decision-makers across all industries understand the promise of using predictive and prescriptive analytics to inform front-line decisions that are enabled by applications that harness the power of big data. LogicBlox and Predictix are ideally positioned to meet the growing demand from large enterprises around the world for these applications and we look forward to working with the combined team to build on their success and scale the business globally.” About Marlin Equity Partners Marlin Equity Partners is a global investment firm with over $3 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthen a company’s outlook and enhance value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 80 acquisitions. The firm is headquartered in Los Angeles, California with an additional office in London. For more information, please visit www.marlinequity.com. bout LogicBlox LogicBlox enables next-generation cloud-native, predictive and prescriptive applications across multiple industries with its Hybrid Transaction/Analytical Processing database. The LogicBlox technology platform empowers domain experts and business users to develop and maintain complex models for forecasting, planning, optimization and analytics on large data sets which allow enterprises to more effectively and efficiently analyze, plan and manage their businesses. For more information, please visit www.logicblox.com. About Predictix Predictix solutions, powered by the LogicBlox technology platform, help retailers make better decisions in planning, merchandising, forecasting and supply chain for more than 8 billion store-SKU combinations which generate approximately $168 billion in annual sales. Predictix applications leverage the power of big data and advanced predictive and prescriptive analytics to drive substantial revenue and margin improvements for some of the world’s top retailers. For more information, please visit www.predictix.com.

Battlecat Oil & Gas scores up to $220 mln

Houston-based Battlecat Oil & Gas has raised up to $220 million in funding. The investors include Lime Rock Partners and Wells Fargo Energy Capital. Battlecat focuses on gas exploration and production opportunities in the South Texas region. PRESS RELEASE HOUSTON, Dec. 2, 2014 /PRNewswire/ –Battlecat Oil & Gas, LLC, a Houston-based oil and gas company, announced today that it has secured equity commitments of up to $220 million from funds managed by Lime Rock Partners, Wells Fargo Energy Capital, and the company’s management team. Battlecat will primarily focus on oil and gas exploration and production opportunities in the South Texas region of the United States. Battlecat is led by Managing Directors Mark Semmelbeck and Kurt von Plonski and CFO Jamie Liang. They are joined by Chief Geologist Greg Hair, Chief Geophysicist Dave Purcell, and Director of Land A. Ray Davis. Members of the management team have worked in the South Texas region since the late 1980’s and have over 200 years of combined industry experience. Over the last 15 years, Dr. Semmelbeck and Mr. von Plonski have partnered together to build and sell several successful oil and gas companies and related assets, most recently serving as founding partners of Escondido Resources II. Battlecat will apply a strategy utilizing the team’s deep operational and technical expertise to exploit opportunities in the Eagle Ford shale and other formations in the region. Mr. von Plonski said, “The Battlecat team has been involved with South Texas unconventional exploitation since its inception, and we look forward to applying that experience to build a successful business with our investment partners.” Dr. Semmelbeck added, “We have leased a significant position in the oil window of the Eagle Ford and are excited to kick off our drilling program in early 2015. Lime Rock and we share similar strategic ideas on how to navigate competitive pressures and market challenges to create value in this exciting play.” James Wallis, Director of the Lime Rock Partners team, said, “The Battlecat team combines everything we look for in an E&P team: they are basin specialists, technical leaders in drilling and completion in their focus area, proven entrepreneurs, and great partners with everyone they’ve worked with. It’s a privilege to be partnering with them, and we are excited about launching our efforts in the field.” About Battlecat Oil & Gas, LLC
Battlecat Oil & Gas is a private company focused on the acquisition and development of upstream oil and gas assets. Headquartered in Houston, Texas, its primary objective is to build and operate a portfolio of assets in the South Texas region of the United States. For more information, visit www.battlecatoil.com. About Lime Rock Partners
Established in 1998, Lime Rock Management has raised $5.5 billion in private equity funds for investment in the energy industry through Lime Rock Partners, investors of growth capital in E&P and oilfield services companies worldwide, and Lime Rock Resources, acquirers and operators of oil and gas properties in the United States. Lime Rock Partners is a creative investment partner in building differentiated oil and gas businesses, side by side, with entrepreneurs every day. From three locations worldwide, the Lime Rock Partners team brings its specialist finance and operating expertise, global presence, technology leadership, people-centered strategies, and patient hard work to help its investors and portfolio company partners profit from operational growth. For more information, please visit www.lrpartners.com.

Deutsche Bank eyes Arrowgrass stake sale to Foundation – WSJ

(Reuters) – Deutsche Bank is negotiating the sale of its stake in London hedge fund Arrowgrass Capital Partners to private equity firm Foundation Capital Partners, the Wall Street Journal reported on Tuesday. Foundation would pay between $100 million and $200 million for at least a 20 percent stake in Arrowgrass, the paper reported, citing unnamed sources. Deutsche Bank’s 17.5 percent stake in Arrowgrass would be included in that sale, the paper said. Deutsche Bank was not immediately available for comment.

MML acquires a minority stake in French ingredients supplier Nactis

Nactis Flavours has raised 10 million euros in funding from MML Capital Partners. Based in France, Nactis is a provider of ingredients for the food industry. PRESS RELEASE MML Capital Partners has made a €10 million investment into Nactis Flavours, a specialist in aromatic raw materials, ingredients and flavours based in France. MML is taking a minority share in Nactis, and is partnering with CEO and founder Hervé Lecesne to deliver an international growth plan. Since being founded in 1996, Nactis has been delivering flavours, aromatic and functional ingredients for the food industry. Nactis offers its clients a range of innovative, high-quality solutions tailored to their needs. The business has grown organically and through acquisition to date. Each time, the team had the expertise to adapt manufacture to remain in line with consumer practices and regulations. With its production sites in France (Bondoufle, Yssingeaux, Chartres, Furdenheim and Illkirch), its three commercial subsidiaries in Bulgaria, Poland and Tunisia, and its agents in 50 countries, the company generated €40 million in revenues in 2013, including 24% for export. Nactis has 175 staff in France and 25 internationally. “Through its original approach as a flexible capital and debt investor, its human-scale structure, its high level of proximity and its responsiveness, MML Capital is an ideal financial partner that shares our culture and our values as an SME. Thanks to its international experience, it will be supporting us with a view to achieving our goal to double in size within five years, generating more than 50% of our business internationally”, concludes Hervé Lecesne, Chairman and CEO of Nactis Flavours. “We were attracted by the quality of the team assembled around Nactis Flavours’ founder, as well as the group’s track record in the buoyant food ingredients and flavours sector, in addition to its ambitious plans for international development”, confirms Henry Louis Mérieux, Managing Partner at MML Capital.

Vista Equity Partners funds Return Path

New York City-based Return Path, an e-mail data analytics firm, has raised $35 million in funding. Vista Equity Partners was the investor. In conjunction with the investment, Patrick Severson, a principal at Vista Equity Partners, has been added to Return Path’s board of directors. PRESS RELEASE NEW YORK–(BUSINESS WIRE)–Email data analytics company Return Path announced today that it has secured a $35 million investment led by leading private equity firm Vista Equity Partners. The funding will support a significant expansion of Return Path’s sales and marketing capabilities as well as an acceleration of its product roadmap. Return Path’s analytical insight enables more than 2,500 leading brands to gain visibility into the return on their marketing investments and their customers’ behavior. In recent years, the company has built on its global leading Email Optimization business with the launch of Email Fraud Protection, the industry’s leading security and brand protection solution. The Email Fraud Protection solution, developed with the needs of the Chief Information Security Officer in mind, is designed to eliminate the impact of email fraud. By analyzing data from its cooperative network of mailbox and security providers – representing 2.5 billion email accounts, approximately 70% of the worldwide total – Return Path delivers real-time threat intelligence to block phishing attacks and other abuse at the network perimeter. The company’s data assets and global network of gateway, application, and security partners enable Return Path to detect and mitigate threats beyond the scope of authentication-based solutions. Return Path today launched a website exclusively for security professionals at www.emailfraudprotection.com. In addition, Return Path is adding analytic capabilities to enable its customers to better understand how consumers interact with competitors’ campaigns as well as how consumers spend their time and money by analyzing transactional trends from its fast-growing digital consumer data. Return Path will continue to invest in developing and bringing solutions based on these capabilities to market in 2015 to solve the most challenging business decisions of its fast growing customer base. “As demand continues to rapidly expand, especially for our security and consumer intelligence offerings, this investment enables us to accelerate our roadmap and ramp up our sales power to take advantage of our leadership in email data-driven solutions across all our lines of business,” said CEO Matt Blumberg. “Return Path has a history of creating new opportunity through innovation, and we’re grateful to find in Vista Equity Partners a team with the vision and experience to help us capitalize on it given their impressive track record of investing in B2B software and data companies. This partnership will foster new opportunities for growth and success for years to come.” Return Path has posted 40 consecutive quarters of revenue growth and now has more than 420 employees in 12 offices around the world, including New York; Sunnyvale, CA; Broomfield, CO; Austin, TX; Toronto; London; Paris; Munich; Sao Paulo; and Sydney. This year Return Path was ranked the #2 best medium-sized company to work for in the U.S. by Fortune magazine and was honored on the Inc. 5000 list of fastest growing companies in America for the 7th time. As part of the investment, Patrick Severson, principal with Vista Equity Partners, will join Return Path’s Board of Directors. With over $14 billion in cumulative capital commitments, Vista Equity Partners focuses its investments in software, data and technology-enabled businesses. The private equity firm goes beyond traditional investing, providing multilevel support and professional expertise built on a foundation of proven best practices. Vista Equity Partners joins a syndicate of prominent investors in Return Path, including Union Square Ventures, Costanoa Venture Capital, Foundry Group, Sapphire Ventures (formerly SAP Ventures), and Industry Ventures. “Return Path is a premium business with a strong management team, unrivaled network of email data, clear ROI for enterprise marketing and security departments, and a large and rapidly growing market opportunity,” said Patrick Severson. “This is a truly unique company with great products that aligns perfectly with Vista’s strengths.” About Return Path
Return Path analyzes the world’s largest collection of email data to show marketers how to stay connected to their audiences, strengthen their customer engagement, and protect their brands from fraud. Our solutions help mailbox providers around the world deliver great user experiences and build trust in email by ensuring that wanted messages reach the inbox while spam and abuse don’t. Consumers use Return Path technology to manage their inboxes and make email work better for them. Find out more about Return Path at www.returnpath.com. About Vista Equity Partners
Vista Equity Partners, a U.S.-based private equity firm with offices in Austin, Chicago and San Francisco, with more than $14 billion in cumulative capital commitments, currently invests in software, data and technology-enabled organizations led by world-class management teams with long-term perspective. Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. Vista’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing. For more information, please visit www.vistaequitypartners.com.

First Reserve invests in Hoover

Hoover Container Solutions has received an undisclosed investment from First Reserve. Headquartered in Houston, Hoover is a provider of chemical tanks, cargo carrying units and related products and services to the global energy, petrochemical and related industrial sectors. PRESS RELEASE GREENWICH, Conn. and HOUSTON and LONDON, Dec. 2, 2014 /PRNewswire/ — First Reserve, the largest global private equity firm exclusively focused on energy, today announced that First Reserve Fund XIII had entered into an agreement to partner with Hoover Container Solutions (“Hoover”). Hoover is a leading provider of chemical tanks, cargo carrying units and related products and services to the global energy, petrochemical and related industrial end markets. Financial terms of the transaction were not disclosed. One of the global industry leaders in oilfield fluids container solutions, Hoover operates worldwide through fifteen facilities in North and South America, Europe, Australia, the Middle East and Southeast Asia. The company has a rental fleet of approximately 40,000 stainless steel intermediate bulk containers (“IBCs”), 8,000 cargo carrying units and more than 15,000 slings, GPS asset tracking units and other peripheral equipment. Hoover was the original manufacturer of stainless steel IBCs approximately 50 years ago and has a history of pioneering and innovating material handling solutions since 1911. Hoover has earned a reputation with its loyal customers for being a high-quality service provider. Hoover provides customer-driven solutions through a vertically integrated model that includes design, manufacturing, maintenance, certification and cleaning services through the entire life cycle of their products. The company’s products are critical to the energy value chain with a business model that is, in First Reserve’s view, generally resilient to market cyclicality. The Firm believes Hoover’s products are exposed to several favorable macro trends, including the continued demand for oilfield production chemicals, further development of offshore and deepwater oil and gas opportunities as well as the continued investment in North American petrochemical facilities. Donald Young, CEO of Hoover, commented, “After a thoughtful process, we chose First Reserve as our partner to help support Hoover in its next stage of growth. We expect First Reserve will bolster Hoover’s already strong financial position and allow us to accelerate our growth plan as well as continue to introduce innovative products and services to the market.” Neil Wizel, Managing Director of First Reserve, commented, “We are excited to partner with CEO Donnie Young and his management team to progress Hoover’s growth strategy focused on providing the energy, petrochemical and general industrial markets with specialized fluid handling and container solutions. We believe Hoover has demonstrated a strong track record of providing its customers with high quality products and services and that the company is well-positioned for continued expansion in North America and internationally.” About First Reserve
First Reserve is the largest global private equity investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised more than USD $30 billion of aggregate capital since inception. Putting these to work, First Reserve has completed more than 475 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. First Reserve has offices in Greenwich, CT; Houston, TX; London, U.K. and Hong Kong. Visit us at www.firstreserve.com for more information. About Hoover
Hoover Container Solutions, Inc. rents, sells and services intermediate bulk containers (IBCs), transport frames, offshore containers, intermodal (ISO) tank containers and related equipment for the storage and transportation of chemicals, liquids and fluids including the industry leading Liquitote® IBC. Hoover’s products meet the highest quality standards (DNV, UN, IMO and others) in the industry and can be fully customized according to client specifications. In addition to its corporate headquarters in Houston, TX, Hoover has manufacturing, sales, service and distribution facilities in Scott, LA, New Iberia, LA, Houma, LA, Port Fourchon, LA, Midland, TX, Chicago, IL, Stavanger, Norway, Aberdeen, Scotland, Warsaw, Poland, Macae, Brazil, Melbourne and Perth, Australia, Kuala Lumpur, Malaysia and Abu Dhabi, U.A.E. Visit us at www.HooverSolutions.com for more information.

Centerbridge to buy IPC Systems for $1.2 bln

Centerbridge Partners has agreed to buy IPC Systems for about $1.2 billion. Silver Lake Partners is the seller. The deal is expected to close in January 2015. Jersey City, N.J.-based IPC provides network services and trading communication technology for the financial markets. Evercore and The Goldman, Sachs & Co. advised IPC. Barclays and Credit Suisse Securities provided financial advice to Centerbridge. PRESS RELEASE JERSEY CITY, N.J., Dec. 1, 2014 /PRNewswire/ — IPC Systems, Inc. (“IPC” or the “Company”), a global provider of mission-critical network services and trading communication technology to the financial markets community, announced that it has entered into an agreement to be acquired by Centerbridge Partners, L.P. (“Centerbridge”), a leading private investment firm, from Silver Lake Partners (“Silver Lake”) for approximately $1.2 billion in total deal value. From its unified communications and software platform to its leading voice and data extranet and award-winning trading positions, IPC offers services and solutions focused on improving the speed, productivity, collaboration, and efficiency of the entire trade lifecycle. The partnership with Centerbridge further enables the Company to deliver these valued services to its customers and to capitalize on its growth opportunities. IPC continues to accelerate its market leading position, fuelled by the increased adoption of its integrated trading communications and application platform, Unigy, its expanding data and voice business and new enhanced services offerings. “This transaction follows what has been one of IPC’s best years and will help accelerate our continued momentum,” said Neil Barua, Chief Executive Officer of IPC.  “Centerbridge has a proven track record of driving long-term sustainable growth, and we look forward to building on our successes with our new owners. I want to thank all of our dedicated employees for their continued efforts in driving value creation. We are a trusted advisor to our customers and will continue to provide the industry-leading service and expertise they’ve come to expect from us.” Jared Hendricks, Senior Managing Director of Centerbridge said, “Having followed the Company for a number of years, we are excited to back IPC and its management team through its next phase of growth and development.  IPC is uniquely positioned to deliver tailored, state-of-the-art solutions to serve the complex needs of the financial services community. We look forward to continuing to support IPC’s momentum.” Greg Mondre, Managing Partner at Silver Lake said, “The IPC team, led by former Silver Lake Operating Partner Neil Barua, has been instrumental to the Company’s recent impressive growth and has been an invaluable partner in achieving its leading market position.  We look forward to IPC’s continued success and believe Centerbridge will be highly supportive owners.” The transaction is expected to be completed in January 2015 following the satisfaction of customary closing conditions and approvals. The company was advised in the transaction by Evercore and The Goldman, Sachs & Co. Centerbridge was advised by Barclays and Credit Suisse Securities (USA) LLC, who are also providing debt financing for the transaction. About IPC IPC is a global provider of mission-critical network services and trading communication technology to the financial markets community.  With complete focus on this sector and over 40 years of expertise, IPC provides customers with integrated solutions that support traders and participants across the entire trade lifecycle including sell-side and buy-side financial institutions, inter-dealer brokers, liquidity venues, clearing and settlement firms, independent software vendors, corporate finance departments, financial information exchange providers and market data providers. IPC’s offerings include a unified communications/application platform, award-winning trading positions, managed voice and data connectivity solutions, compliance technologies, infrastructure management and a suite of enhanced service offerings. IPC’s global reach extends to more than 60 countries – including a network of 5,000 customer sites over 700 cities and an installed base of approximately 120,000 trading positions deployed worldwide. Headquartered inJersey City, New Jersey, IPC has over 900 employees located throughout the Americas and the EMEA and Asia-Pacific regions. IPC’s mission is to continually innovate to support collaboration across the global financial community and address our clients’ needs in an ever-changing landscape.  For more information, visit www.ipc.com. About Centerbridge Partners Centerbridge Partners, L.P., headquartered in New York, NY is a private investment firm with approximately $25 billion in capital under management.  The firm focuses on private equity and credit investments and is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives. About Silver Lake Partners Silver Lake is the global leader in technology investing, with over $23 billion in combined assets under management and committed capital. The firm’s portfolio of investments collectively generates more than $85 billion of revenue annually and employs more than 200,000 people globally. Silver Lake has a team of approximately 110 investment and value creation professionals located in New York,Menlo Park, San Mateo, London, Hong Kong, Shanghai and Tokyo. Certain statements contained in this press release may be forward-looking statements. These statements may be identified by the use of forward-looking terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “should” or “will” or similar terminology.  Any forward-looking statements are based on current expectations, assumptions, estimates and projections. Such forward looking statements involve known and unknown risks and uncertainties, many of which are beyond our control. Actual results may differ materially from any future results expressed or implied by these forward-looking statements.  

L Capital Asia invests in Seafolly

L Capital Asia, the Asian private equity fund sponsored by LVMH Moët Hennessy Louis Vuitton S.A., has acquired a controlling interest in Seafolly. Financial terms weren’t announced. Seafolly, a leading swimwear company from Australia, produces AUD 100 million in revenues. PRESS RELEASE SYDNEY–(BUSINESS WIRE)–Seafolly, Australia’s leading Swimwear Company, has announced a new partnership with L Capital Asia, the Asian private equity fund sponsored by LVMH Moët Hennessy Louis Vuitton S.A. (LVMH). L Capital Asia 2 will be acquiring a controlling interest in Seafolly for an undisclosed amount. Seafolly is an iconic, home grown Australian brand, renowned globally for its innovative designs and fit. It has achieved over AUD 100 million in revenues, selling through a network of owned stores as well as international partners including Myer, Selfridges, Nordstrom and Galeries Lafayette. There are currently 14 Seafolly exclusive brand stores and 23 Sunburn multi-brand stores in Australia, and a further 6 Seafolly stores in Singapore and California.
With the investment in Seafolly, L Capital Asia has added another well-loved Australian brand to its portfolio, which includes RM Williams, 2XU and Jones the Grocer. L Capital Asia plans to tap into the brand equity of Seafolly to develop it as a full lifestyle brand into other product categories as well as support growth globally across new markets.
Commenting on the transaction, Mr Anthony Halas, CEO of Seafolly said “Our partnership with L Capital cements plans for international expansion and the development of Seafolly into a full lifestyle brand. This is a very exciting time for Seafolly as our core focus has been the swim market of which we are the global leader”.
Mr. Ravi Thakran, Chairman & Managing Partner of L Capital Asia commented “We are excited to partner with the founders to participate in the next phase of Seafolly’s growth. Seafolly invokes Australian summer and beaches in people’s minds across the world, and we expect to take the brand to more people across the globe. Under Anthony’s leadership, Seafolly has grown over time into one of the strongest lifestyle beach brands, and we look forward to partnering towards a new chapter in the brands growth.”
The investment in Seafolly will be the 19th investment by L Capital Asia and marked its 4th investment behind an Australian brand.

H.I.G. invests in Pegasus Electronic Distribution

H.I.G. Capital has invested in Pegasus Electronic Distribution Services via a recapitalization. Toni Portmann is interim CEO for Pegasus and full-time executive chair of the board. Dallas-based Pegasus processes electronic hotel transactions. PRESS RELEASE BOSTON–(BUSINESS WIRE)–H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with more than $17 billion of equity capital under management, is pleased to announce that its affiliate has completed the recapitalization of Pegasus Electronic Distribution Services (“PEDs” or the “Company”). As part of the transaction, Toni Portmann, a frequent collaborator with H.I.G., will join the PEDs senior leadership team as Interim Chief Executive Officer and full-time Executive Chair of the Board of Directors. Founded in 1989, PEDs is the industry standard electronic distribution network used for facilitating electronic shopping and booking of hotel rooms. With connections to over 100,000 hotels in over 200 countries, PEDs has long term partnerships with the largest global hotel chains, leading Online Travel Agents (“OTAs”), and Global Distribution Services (“GDSs”). The PEDs platform is highly scalable, processing over 8 billion hotel booking inquiries each month and 45 million hotel bookings annually, representing over $14 billion of hotel revenue.
“The technology and travel sector is a growing area of focus for our firm globally,” said H.I.G. Managing Director William Nolan. “Our investment in PEDs exemplifies our unique approach to securing attractive investment opportunities in our many different industry sectors. We look forward to working with the PEDs team to realize the Company’s full potential and enable it to deepen its existing client relationships and expand its product and service platform.”
Ms. Portmann added, “I am excited to collaborate with H.I.G. once again and join the outstanding people who have made PEDs the leader in electronic distribution for the lodging sector. With H.I.G. as a partner, the Company is poised to leverage its tremendous legacy and enhance its service and product offerings to help improve our clients’ performance.”
About Pegasus Electronic Distribution
Pegasus Electronic Distribution (PED) is the single largest processor of electronic hotel transactions, delivering advanced and affordable connectivity and distribution solutions to over 100,000 hotels worldwide. PED connects hotels to crucial sources of business, facilitating over 8 billion shopping transactions for its clients a month. In addition to global distribution system (GDS) access and online travel agent connectivity, Pegasus also provides content and business intelligence to the hospitality industry. Pegasus Electronic Distribution is headquartered in Dallas, Texas and has offices in London and Scottsdale. For more information, visit www.pegs.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with more than $17 billion of equity capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
1) H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2) H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as on the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3) Other H.I.G. funds invest in various real assets, including real estate and shipping.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.

GIC to buy IndCor from Blackstone for $8.1 bln

Blackstone said late Monday that it has agreed to sell IndCor Properties to GIC, Singapore’s sovereign wealth fund, for $8.1 billion. IndCor, as a result, will no longer be pursuing an IPO, the statement said. IndCor owns and operates a portfolio of 117 million square feet of industrial properties throughout the United States. Eastdil Secured, Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone. PRESS RELEASE New York, New York, December 1, 2014 – Blackstone (NYSE:BX) today announced that funds affiliated with Blackstone Real Estate Partners VI & VII have agreed to sell their wholly-owned U.S. industrial platform, IndCor Properties (“IndCor”), to affiliates of GIC, Singapore’s sovereign wealth fund, for $8.1 billion.  As a result of this transaction, IndCor will no longer be pursuing an IPO.  IndCor owns and operates a portfolio of 117 million square feet of high-quality industrial properties in key markets throughout the United States.  IndCor’s assets are principally located in desirable in-fill industrial markets, which benefit from proximity to key domestic and global transportation hubs, major logistics and warehouse/distribution networks, as well as large population concentrations. Tim Beaudin, IndCor CEO, said: “We built IndCor through 18 acquisitions to be one of the largest industrial real estate companies in the United States. We are excited about the company’s future prospects under new long-term ownership with GIC.” Closing is expected to occur in the first quarter of 2015. Eastdil Secured (a wholly-owned subsidiary of Wells Fargo & Company), Citigroup, Barclays and RBC Capital Markets acted as advisors to Blackstone. About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has more than $80 billion in investor capital under management.  Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the U.S., Europe, Asia and Latin America.  Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities.  Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust (