M&A wrap: Pathway, Lexington, Teladoc, Clearlake, Harvest, William Blair, Most Influential Women, Call for Nominations
Pathway Capital Management has raised its second private credit fund at $1 billion. The fund will offer debt financing to private equity-backed deals. Pathway has invested more than $5.7 billion to private credit opportunities since it began investing in them in 1994. In addition, the firm has invested over $85 billion across various private market strategies since it was founded in 1991. In 2019, Pathway formed a $250 million co-investment fund in partnership with the Oregon Public Employees’ Retirement Fund (OPERF), which is managed by the Oregon State Treasury. The fund is investing alongside OPERF's PE managers. Pathway was co-founded by Douglas Le Bon, James Reinhardt and Karen Jakobi. Before Pathway, Le Bon and Reinhardt were with Wilshire Asscociates' special investments division, and Jakobi was the assistant treasurer at the same firm.
Mergers & Acquisitions has named the 2020 Most Influential Women in Mid-Market M&A. This marks the fifth year we have produced the list, which recognizes female leaders with significant influence inside their companies and in the wider dealmaking world. It’s been gratifying to watch the project evolve over the years – and become more influential itself. This year, we received more nominations than ever before. As a result, we expanded the number honored to 42 in 2020, up from 36 in 2019. Many dealmakers are new to our list, including Rockwood Equity Partners' Kate Faust, William Blair's Shay Brokemond and Avante Capital Partners' Ivelisse Simon. Read our full coverage of all the champions of change on our list, including Q&As with each individual.
Mergers & Acquisitions has opened up the nomination process for the 13th Annual M&A Mid-Market Awards, which will honor leading dealmakers and deals that set the standard for transactions in the middle market in 2019. Nominations are accepted only through our electronic forms. The deadline is Friday, Feb. 7, 2020. There is no fee. For more information on the nomination process and what we seek in winning candidates, see Call for nominations: Submissions for the M&A Mid-Market Awards due Feb. 7.
Lexington Partners has closed its ninth fund at $14 billion. The fund will acquire private equity and alternative assets through secondary transactions, and has already committed 30 percent of its capital. “Today’s secondary market is well-capitalized, global, and complex. Over three decades, the Lexington team has developed the sourcing network, substantial capital base, time-tested investment process, and leading counterparty reputation to consistently execute innovative transactions," says Lexington Partner Pål Ristvedt. Simpson Thacher advised Lexington.
Virtual healthcare provider Teladoc Health Inc. (NYSE: TDOC) is buying InTouch Health, a virtual care provider for medical professionals, for $600 million. “Now is the perfect time for us to join together with Teladoc Health and deliver to hospitals and health systems everywhere what they've been asking for – a single, enterprise solution to support their virtual care strategies and enable them to better engage with patients at every point along their healthcare journey,” says InTouch CEO Josesph DeVivo. Lazard and Latham & Watkins are advising Teladoc. J.P. Morgan (NYSE: JPM) and Wilson Sonsini Goodrich & Rosati LLP are advising InTouch.
Clearlake Capital has acquired Pretium Packaging, a manufacturer of packaging products, from Genstar. Evercore advised Clearlake. Rothschild and Jefferies advised the target.
Harvest Partners has invested in real estate software company MRI Software, joining existing investors TA Associates and GI Partners. TA is making a new investment in the target. UBS, Kirkland & Ellis and Goodwin Procter advised MRI, GI and TA. White & Case advised Harvest.
Aquiline Capital Partners-backed ClearCourse has purchased technology consulting firm Hart Square. The latter works with charities and not-for-profits in helping them with system integration, vendor selections, technology audits, business process reviews and digital transformation strategies.
Digital marketing agency Cardinal Path has acquired data analytics firm E-Nor. Clearsight Advisors advised E-Nor.
Huron Capital-backed Albireo Energy has bought Advanced Automated Systems, a provider of building automation and energy management services.
May River Capital has acquired independent testing lab NSL Analytical Services.
Seafood distributor Fortune International has purchased the Kansas City operation of Seattle Fish.
Orix Mezzanine & Private Equity, a unit of Orix Corp. USA, has rebranded itself as Orix Private Equity Solutions.
The Abu Dhabi Investment Authority is preparing to sell around $2 billion of its stakes in private-equity funds, amid an increasing push toward direct investments by the sovereign wealth fund, according to Bloomberg News. Large investors like ADIA often end up with a multitude of investments run by different private-equity managers, making them cumbersome to administer. Read the full story by Bloomberg News: Abu Dhabi pans to sell a $2 billion slice of its private equity book.
After 2019's deluge of financial technology megadeals, investors wondered if the boom could continue into 2020. Visa Inc.’s (NYSE: V) $5.3 billion acquisition of Plaid Inc. offered an answer: Yes. Read the full story by Bloomberg: Visa's Plaid takeover signals wave of fintech dealmaking.
Glencore Plc is negotiating a long-term contract to ship cobalt to Tesla Inc.’s new electric-vehicle factory in Shanghai, according to Bloomberg. A deal would help Tesla avoid a supply squeeze on the key battery metal as it pushes into the world’s largest car market, and mark a win for Glencore after a tough spell for its cobalt business. Read the full story by Bloomberg: Tesla in talks to buy Glencore Cobalt for Shanghai car factory
Asset manager BlackRock (NYSE: BLK) is putting climate change at the forefront of the firm's agenda. In a letter to investors, CEO Larry Fink says: "Climate change has become a defining factor in companies’ long-term prospects. The evidence on climate risk is compelling investors to reassess core assumptions about modern finance." Fink went to say that BlackRock will make “sustainability integral to portfolio construction and risk management."
Demetrios Dounis has been promoted to partner and head of business development and Raj Dalal has been promoted to principal at middle-market investment firm Compass Diversified Holdings (NYSE: CODI).
Steven Harris has been promoted from senior vice president to managing director at healthcare-focused investment Bailey Southwell. Harris joined the firm in 2017.
J.D. Kuhn has been hired as chief financial officer at Enlightenment Capital-backed EverWatch. Kuhn was most recently with Salient CRGT.
Stuart Blythe has joined law firm Baker Botts where is focusing on M&A in technology, media and telecom. Blythe was previously general counsel at Verizon Communications Inc. (NYSE: VZ).
Harsh Agarwal was hired by PE firm Clayton, Dubilier & Rice as a principal. Argawal was previously with EQT Partners.
Henry Ventura was hired by investment bank Prairie Capital Advisors as a director. He was most recently with Ernst & Young.
If there’s anything M&A professionals dislike, it’s uncertainty. And heading into 2020, there’s more than enough uncertainty to go around, including questions about the economy, international trade, impeachment, domestic politics and more. The funny thing is, the lack of clarity may actually make the first half of the year a great time for M&A, as dealmakers push to close transactions before the looming uncertainty of Election Day and its outcome. We conducted interviews with 8 investment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the uncertainty may have a negative impact throughout 2020. Read the full story, What’s ahead for M&A in 2020? We ask 8 advisors.
Mergers & Acquisitions examines the impact of 7 technologies on M&A in the retail sector. Read the whole series:
Overview: Retail Tech M&A: 7 Technologies Driving Change
Retail Tech M&A #1: Nike, McDonald's, PayPal, add customization, IoT
Retail Tech M&A #2: Why Walmart and other retailers are buying artificial intelligence startups
Retail Tech M&A #3: Amazon leads race to build fulfillment centers
Retail Tech M&A #4: Do robots fill orders faster?
Retail Tech M&A #5: Voice recognition gives retailers more ways to communicate
Retail Tech M&A #6: Data improves customer service
Retail Tech M&A #7: Demand for convenience drives growth in mobile ordering
To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and the Most s for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most Influential Women.
ACG Boston is hosting The Big Deal at the Legal Harborside in Boston on Jan. 21.
ACG New York is hosting the 12th annual healthcare conference and bourbon tasting at the Metropolitan Club in New York on Feb. 27.
InterGrowth 2020 is taking place at the Aria Resort & Casino in Las Vegas from April 20-22.