“We Aren't Doing Our Job If We're Not Having the Awkward Conversations.” “I Am Fortunate to Have Often Been the '
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THEMIDDLEMARKET.COM JANUARY 2020 “We aren’t doing our job if we’re not having the awkward conversations.” THE Ivelisse Simon, Avante 2020 MOST INFLUENTIAL“I am fortunate to have often been the ‘first’ of something.” WOMEN IN Kate Faust, Rockwood Equity MID-MARKET“Women who have achieved success have a responsibility to help other promising females.” M&A MEG Montague, The McLean Group CV1_MAJ_0120.indd 1 12/9/19 10:08 AM Gain revolution. We broke the mold by bringing M&A payments online. Now we are turning things up a notch with a fast, easy, and predictable platform that takes care of all the details of your deal. Join the movement. Take us for a spin on your next deal. Learn more at srsacquiom.com Securities products and Payments services offered through Acquiom Financial LLC, an affiliate broker-dealer of SRS Acquiom Inc. and member FINRA/SIPC. Visit www.finra.org for information about FINRA membership. Acquiom Financial does not make recommendations, provide investment advice, or determine the suitability of any security for any particular person or entity. 0C2_MAJ0120 2 12/9/2019 10:08:25 AM Contents January 2020 | VOL. 55 | NO. 1 Cover Story 20 The Influencers Mergers & Acquisitions has been featuring the Most Influential Women THE in Mid-Market M&A for five years. During that time, the profile of women in the dealmaking world has been raised significantly, and yet women still represent only a small minority of 2020 MOST senior positions at private equity firms throughout the world. The low representation underscores the importance of projects, like this one, that feature successful female INFLUENTIAL dealmakers. The 42 women named on the 2020 list are all committed to transforming the dealmaking world and to inspiring and WOMEN IN guiding the next generation. All are champions of change. MID-MARKET Data 36 Completed transactions HGGC’s deal for Monotype is among M&A deals that closed in October. Watercooler Private Equity Perspective 6 12 18 Doubling up A-list investor roster Change agents Apollo is on track to double the firm’s Al Gore’s Generation leads funding We’re pleased to welcome many assets in five years. round in Convoy. newcomers to the Most Influential Women list, including William Blair’s 8 12 Shay Brokemond and Avante’s Ivelisse Collecting hardware Global growth Simon. Google buys smartwatch maker Estée Lauder buys remaining stake in Fitbit to shore up hardware business. Dr. Jart+ owner to expand in Asia. The Buyside 10 14 19 Retail tech deals Next gen Amperity, Custora help retailers grasp Coty backs Kylie Jenner’s beauty line Going dark shopping behavior. to reach a younger clientele. Grocery stores are opening mini- warehouses and “dark stores” to keep up with rising online orders. TheMiddleMarket.com January 2020 Mergers & Acquisitions 1 001_MAJ0120 1 12/9/2019 12:12:35 PM Inside Word January 2020 | VOL. 55 | NO. 1 TheMiddleMarket.com 1 STATE STREET PLAZA, 27TH FLOOR NEW YORK, NY 10004-1505 • (212) 803-8200 EDITOR-IN-CHIEF The Influencers Mary Kathleen Flynn MANAGING EDITOR Demitri Diakantonis CONTRIBUTING EDITORS Keith Button, Danielle Fugazy GROUP EDITORIAL DIRECTOR, Mergers & Acquisitions BANKING AND CAPITAL MARKETS names 42 dealmakers to the Richard Melville 2020 Most Influential Women in EXECUTIVE DIRECTOR, CONTENT OPERATIONS AND CREATIVE SERVICES Mid-Market M&A. Michael Chu SR. ART DIRECTOR Nick Perkins VICE PRESIDENT, CAPITAL MARKETS Harry Nikpour (212) 803-8638 Marilyn Adler, Mizzen Capital Heather Madland, Huron Capital SENIOR MARKETING MANAGER Shay Brokemond, William Blair Corrie Menary, Kirtland Capital Jamie Billington Sonya Brown, Norwest Venture Partners Partners CHIEF EXECUTIVE OFFICER ........................ Gemma Postlethwaite Frances Brunelle, Accelerated Beatrice Mitchell, Sperry, Mitchell & Co. CHIEF FINANCIAL OFFICER ....................................... Debra Mason Manufacturing Brokers Meg Montague, The McLean Group CHIEF STRATEGY OFFICER ........................................... Jeff Mancini Gina Cocking, Colonnade Advisors Nicola Morris, Wex CHIEF REVENUE OFFICER ...........................................Dave Colford Alysa Craig, Stifel Chen Na, Stifel CHIEF CONTENT OFFICER ........................................... David Evans Catherine Dargan, Covington & Burling Marcia Nelson, Alberleen Family Office VP, PEOPLE & CULTURE ....................................................Lee Gavin Eva Davis, Winston & Strawn Solutions Mary Ann Domuracki, MMG Advisors Raquel Palmer, KPS Capital Partners LICENSING AND REUSE OF CONTENT: Kate Faust, Rockwood Equity Partners Kimberly Petillo-Décossard, Cahill Contact our official partner, Wright’s Media, about available usages, license and reprint fees, and award seal artwork Leslie Fenton, Alantra Gordon & Reindel at [email protected] or (877) 652-5295 for more information. Please note that Wright’s Media is the only authorized company that we’ve partnered with for Venita Fields, Pelham S2K Managers Natasha Plooster, Bridgepoint SourceMedia materials. Carolyn Galiette, Ironwood Capital Investment Banking Kallie Hapgood, Gridiron Capital Kapila Ratnam, NewSpring Capital CUSTOMER SERVICE Jeri Harman, Avante Capital Partners Ivelisse Simon, Avante Capital Partners [email protected] or (212) 803-8500 Hollie Haynes, Luminate Capital Katerina Timaeva, Duff & Phelps Partners Sarah English Tune, Davis Wright Mergers & Acquisitions Vol. 55/No. 1 (ISSN 0026-0010) is Nanette Heide, Duane Morris Tremaine published monthly with combined issues in July/August and November/December by SourceMedia, One State Pam Hendrickson, The Riverside Co. Michelle Van Hellemont, Accordion Street Plaza, 27th Floor, New York, NY 10004-1505. Yearly subscription is $1,995; $2035 for one year in all other Mary Josephs, Verit Advisors Shoshana Vernick, Avathon Capital countries. Periodical postage paid at New York, NY and U.S. additional mailing offices. POSTMASTER: Send address Megan Austin Karlen, Francisco Maria Watts, Baird changes to Mergers & Acquisitions / SourceMedia, One State Street Plaza, New York, NY 10004. For subscriptions, Partners Amy Weisman, Sterling Investment renewals, address changes and delivery service issues contact our Customer Service department at (212) 803- Karin Kovacic, Monroe Capital Partners 8500 or email: [email protected]. This publication is Jennifer Landis, Zoll Medical Corp. Suzanne Yoon, Kinzie Capital designed to provide accurate and authoritative information regarding the subject matter covered. It is sold with Lauren Leichtman, Levine Leichtman Partners M&A the understanding that the publisher is not engaged in rendering financial, legal, accounting, tax, or other Capital Partners – Mary Kathleen Flynn professional service. Mergers & Acquisitions is a registered trademark used herein under license. © 2020 Mergers & Acquisitions and SourceMedia, Inc. All rights reserved. 2 Mergers & Acquisitions January 2020 002_MAJ0120 2 12/9/2019 1:05:22 PM You manage the deal. We’ll manage the escrow. When establishing an escrow account, you need a solid and reliable inancial Southern California, partner. For nearly a century, MUFG Union Bank, N.A., has provided timely and Midwest and Texas James George, Director accurate corporate trust services. We understand the complexities of escrow 2132367150 and do everything possible to make transactions worry-free. Northern California and Paciic Northwest 20 years of industry experience means our corporate trust managers provide Dean Levitt, Director quick, e icient, and customized service for our global clients. We can open 4157055020 your escrow account in days and start providing timely payments and accurate Eastern U.S., reporting, allowing you to drive your business forward. Europe, Middle East, Africa, and Australia Nils Dahl, Director Learn more at mufgamericas.com/corporatetrust 6464522115 Asia and Latin America Rafael Diaz, Director 6464522014 Global Banking & Finance Review Award Winner 2012, 2013, 2014, 2016, and 2018 MUFG Union Bank, N.A. A member of MUFG, a global inancial group ©2019 Mitsubishi UFJ Financial Group, Inc. All rights reserved. The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc., and is used by MUFG Union Bank, N.A., with permission. Member FDIC. 003_MAJ0120 3 12/9/2019 10:08:25 AM What’s going on @TheMiddleMarket.com www.themiddlemarket.com Retail technology PE trends Giving back Smart supermarkets M&A in packaging Riverside, and others, volunteer Grocery stores are no longer just PE investors are increasingly turning to Many PE firms give employees op- places for consumers to do their food packaging, which remains saturated portunities to make a difference. The shopping in person. Kroger and oth- with untapped potential. Changing Riverside Co. offers a range of ways ers are rolling out smart warehouses, consumer behaviors, sustainability to contribute. Firm employees recently which use robots to fill online orders demands and market fragmentation coached students from Saint Martin and deliver them. More shoppers are all create significant opportunities for de Porres High School in Cleveland buying groceries online. buyers seeking deals. through a business pitch competition. 4 Mergers & Acquisitions January 2020 004_MAJ0120 4 12/9/2019 12:20:22 PM Watercooler BLOOMBERG NEWS Doubling up Apollo, led by Leon Black, is collecting a record amount of cash from investors By Demitri Diakantonis and Mary Kathleen Flynn Leon Black, co-founder of Apollo in 2014. “The opportunities in front of us are Global Management Inc. (NYSE: The