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Combining Banking with Private Equity Investing*
Unstable Equity? * Combining Banking with Private Equity Investing First draft: April 14, 2010 This draft: July 30, 2010 Lily Fang INSEAD Victoria Ivashina Harvard University and NBER Josh Lerner Harvard University and NBER Theoretical work suggests that banks can be driven by market mispricing to undertake activity in a highly cyclical manner, accelerating activity during periods when securities can be readily sold to other parties. While financial economists have largely focused on bank lending, banks are active in a variety of arenas, with proprietary trading and investing being particularly controversial. We focus on the role of banks in the private equity market. We show that bank- affiliated private equity groups accounted for a significant share of the private equity activity and the bank’s own capital. We find that banks’ share of activity increases sharply during peaks of the private equity cycles. Deals done by bank-affiliated groups are financed at significantly better terms than other deals when the parent bank is part of the lending syndicate, especially during market peaks. While bank-affiliated investments generally involve targets with better ex-ante characteristics, bank-affiliated investments have slightly worse outcomes than non-affiliated investments. Also consistent with theory, the cyclicality of banks’ engagement in private equity and favorable financing terms are negatively correlated with the amount of capital that banks commit to funding of any particular transaction. * An earlier version of this manuscript was circulated under the title “An Unfair Advantage? Combining Banking with Private Equity Investing.” We thank Anna Kovner, Anthony Saunders, Antoinette Schoar, Morten Sorensen, Per Strömberg, Greg Udell and seminar audiences at Boston University, INSEAD, Maastricht University, Tilburg University, University of Mannheim and Wharton for helpful comments. -
Spendesk Raises €100M Series C to Bring Spend Management to Every finance Team in Europe
Spendesk raises €100M Series C to bring spend management to every finance team in Europe Round led by global growth equity firm General Atlantic to accelerate product innovation and grow headcount internationally. Paris, FR - July 21, 2021 Spendesk, the leading all-in-one spend management platform for finance teams, has raised €100M in Series C funding led by global growth equity firm General Atlantic. All previous investors, including Index Ventures and Eight Roads Ventures, also participated in this round, bringing Spendesk’s total funding to €160M. With the additional investment, Spendesk will focus on hiring top talent and accelerating product innovation to bring more automation and insights to every aspect of business spending. Spendesk offers an intuitive SaaS spend management solution that provides full visibility and control on all company spending — with every purchase trackable to a person, a project, and a budget. The platform combines payments, processes and data into one source of truth, with virtual and physical cards for employees, expense reimbursements, invoice management, automated spend approvals, and budgets. The solution aims to liberate finance teams from day-to-day admin tasks, freeing them to focus on proactive and strategic value-add. “Work culture is becoming increasingly informed by our private lives. Employees crave more empowerment, agility and faster decision-making to be effective in their roles. And traditionally, finance teams haven’t been equipped with the tools that can support this transformation,” said Spendesk’s co-founder and CEO, Rodolphe Ardant. “In the past few years we have built the reference spend management solution for finance teams in Europe, which frees businesses and their people from administrative constraints of spending and managing money at work. -
Oil and the Financial Sector; Private Equity Perspective Gary R
Oil and the Financial Sector; Private Equity Perspective Gary R. Petersen Managing Partner & Founder, EnCap Investments November 18, 2016 Overview of EnCap Investments • Leading provider of private growth capital across upstream and midstream oil and gas • Raised aggregate capital commitments of approximately ~$27 billion across 19 institutional funds since 1988 • Exceptional track record of 2.4x ROI and 52% IRR on 174 realized investments across 19 funds • Investment strategy revolves around partnering with seasoned oil and gas executives with demonstrable track records of success Upstream - EnCap Investments Midstream - EnCap Flatrock • Core funds started in 1988 Oklahoma City • 2nd business line started in 2008 • 16 funds totaling ~$21 billion • 3 funds totaling ~$6 billion Houston Office Dallas • 21 total employees • 49 Employees San Antonio Office Houston • 19 Investment Staff San Antonio • 11 Investment Staff • 5 Technical Professionals Oklahoma City Office Dallas Office • 3 Investment Staff • 16 Employees Houston Office • 11 Investment Staff • 2 Investment Staff • 1 Technical Professional Confidential 2 Fund History • Long history of helping companies grow and create shareholder value – Provided growth capital to 242 oil and gas companies – 174 realized investments EnCap Energy EnCap Energy EnCap Energy EnCap Energy Capital Fund III Capital Fund V Capital Fund VII Capital Fund IX $405,000,000 $815,000,000 $2,500,000,000 $5,000,000,000 August 1997 July 2004 December 2007 January 2013 Reserve Acquisition Mezz. Debt Funds I- EnCap -
Vol. 84 Wednesday, No. 171 September 4, 2019 Pages 46419
Vol. 84 Wednesday, No. 171 September 4, 2019 Pages 46419–46652 OFFICE OF THE FEDERAL REGISTER VerDate Sep 11 2014 20:59 Sep 03, 2019 Jkt 247001 PO 00000 Frm 00001 Fmt 4710 Sfmt 4710 E:\FR\FM\04SEWS.LOC 04SEWS jbell on DSK3GLQ082PROD with FRONTWS II Federal Register / Vol. 84, No. 171 / Wednesday, September 4, 2019 The FEDERAL REGISTER (ISSN 0097–6326) is published daily, SUBSCRIPTIONS AND COPIES Monday through Friday, except official holidays, by the Office PUBLIC of the Federal Register, National Archives and Records Administration, under the Federal Register Act (44 U.S.C. Ch. 15) Subscriptions: and the regulations of the Administrative Committee of the Federal Paper or fiche 202–512–1800 Register (1 CFR Ch. I). The Superintendent of Documents, U.S. Assistance with public subscriptions 202–512–1806 Government Publishing Office, is the exclusive distributor of the official edition. Periodicals postage is paid at Washington, DC. General online information 202–512–1530; 1–888–293–6498 Single copies/back copies: The FEDERAL REGISTER provides a uniform system for making available to the public regulations and legal notices issued by Paper or fiche 202–512–1800 Federal agencies. These include Presidential proclamations and Assistance with public single copies 1–866–512–1800 Executive Orders, Federal agency documents having general (Toll-Free) applicability and legal effect, documents required to be published FEDERAL AGENCIES by act of Congress, and other Federal agency documents of public Subscriptions: interest. Assistance with Federal agency subscriptions: Documents are on file for public inspection in the Office of the Federal Register the day before they are published, unless the Email [email protected] issuing agency requests earlier filing. -
Warburg Pincus to Invest $150 Million in Apollo Tyres the Investment Is a Strong Vote of Confidence in the Business and Management
MEDIA RELEASE February 26, 2020 Warburg Pincus to invest $150 million in Apollo Tyres The investment is a strong vote of confidence in the business and management The Board of Directors of Apollo Tyres Ltd today approved an issuance of compulsorily convertible preference shares in the company worth Rs 10,800 million (approximately US$150 million) to an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing. The investment represents a primary capital infusion into the company and is subject to shareholder and regulatory approvals. Commenting on the transaction, Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres Ltd said, “I am delighted to announce Warburg Pincus’ investment in Apollo Tyres. Their investment is a strong vote of confidence in our business, management team and growth prospects. I believe the company will benefit from the backing of a large financial investor of their pedigree and our partnership will further strengthen Apollo Tyres’ board and governance.” Vishal Mahadevia, Managing Director and Head, Warburg Pincus India, said “We see a compelling growth story in Apollo Tyres and believe the company is well-positioned to build upon the strong leadership position it has carved out within the industry. Warburg Pincus is excited to partner with the management team of Apollo Tyres in this journey and looks forward to supporting them during the next phase of the company’s growth.” (ends) For further details contact: Rohit Sharan, +91 124 2721000, [email protected] About Apollo Tyres Ltd Apollo Tyres Ltd is an international tyre manufacturer and the leading tyre brand in India. -
Private Equity 05.23.12
This document is being provided for the exclusive use of SABRINA WILLMER at BLOOMBERG/ NEWSROOM: NEW YORK 05.23.12 Private Equity www.bloombergbriefs.com BRIEF NEWS, ANALYSIS AND COMMENTARY CVC Joins Firms Seeking Boom-Era Size Funds QUOTE OF THE WEEK BY SABRINA WILLMER CVC Capital Partners Ltd. hopes its next European buyout fund will nearly match its predecessor, a 10.75 billion euro ($13.6 billion) fund that closed in 2009, according to two “I think it would be helpful people familiar with the situation. That will make it one of the largest private equity funds if Putin stopped wandering currently seeking capital. One person said that CVC European Equity Partners VI LP will likely aim to raise 10 around bare-chested.” billion euros. The firm hasn’t yet sent out marketing materials. Two people said they expect it to do so — Janusz Heath, managing director of in the second half. Mary Zimmerman, an outside spokeswoman for CVC Capital, declined Capital Dynamics, speaking at the EMPEA to comment. conference on how Russia might help its reputation and attract more private equity The London-based firm would join only a few other firms that have closed or are try- investment. See page 4 ing to raise new funds of similar size to the mega funds raised during the buyout boom. Leonard Green & Partners’s sixth fund is expected to close shortly on more than $6 billion, more than the $5.3 billion its last fund closed on in 2007. Advent International MEETING TO WATCH Corp. is targeting 7 billion euros for its seventh fund, larger than its last fund, and War- burg Pincus LLC has a $12 billion target on Warburg Pincus Private Equity XI LP, the NEW JERSEY STATE INVESTMENT same goal as its predecessor. -
Tpg to Invest ₹ 4,546.80 Crore in Jio Platforms Tpg's Deep
TPG TO INVEST ₹ 4,546.80 CRORE IN JIO PLATFORMS TPG’S DEEP CAPABILITIES IN TECH INVESTING TO SUPPORT JIO’S INITIATIVES TOWARDS DEVELOPING THE DIGITAL SOCIETY JIO PLATFORMS FUND RAISING FROM MARQUEE GLOBAL TECHNOLOGY INVESTORS CROSSES ₹ 1 LAKH CRORE Mumbai, June 13, 2020: Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”), India’s leading digital services platform, announced today that global alternative asset firm TPG will invest ₹ 4,546.80 crore in Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore. The investment will translate into a 0.93% equity stake in Jio Platforms on a fully diluted basis for TPG. With this investment, Jio Platforms has raised ₹ 102,432.45 crore from leading global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and TPG since April 22, 2020. Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers. Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. Jio Platforms’ vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth. TPG is a leading global alternative asset firm founded in 1992 with more than $79 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity. -
80 Acres Farms Secures $160 Million in Series B Led by General Atlantic to Accelerate Global Farm Expansion & Product Development
80 Acres Farms Secures $160 Million in Series B Led by General Atlantic to Accelerate Global Farm Expansion & Product Development Hamilton, OH - August 9, 2021 80 Acres Farms, an industry-leading vertical farming company, has secured $160 million in additional funding in a round led by General Atlantic and joined by Siemens Financial Services, Inc. (the U.S. financing arm of global technology company Siemens). The company intends to utilize the capital for continued expansion and product development, building from its current footprint of vertical farms that yield a diverse offering of high-quality produce. The funding round also included Blue Earth (formerly PG Impact Investments) and General Atlantic’s Beyond Net Zero team, in addition to participation from existing investors including Barclays and Taurus. 80 Acres Farms’ vertical farm systems grow a wide variety of produce commercially sold at scale, including leafy greens, herbs, tomatoes, cucumbers, and microgreens. The company’s breakthrough growing technologies and advanced data analytics capabilities have enabled this industry-leading product breadth, driving over 450% revenue growth since the end of 2020. 80 Acres Farms now services over 600 retail and food service locations, including its recent expansion with Kroger, announced earlier this year to 316 stores in the U.S. Midwest and to the e-commerce channel powered by Kroger – Ocado Solutions’ partnership. With farms co-located near customers, 80 Acres Farms’ produce travels significantly fewer food miles, shortening the farm-to-table footprint and reducing overall food waste. Growing methods at 80 Acres Farms use 97% less water than traditional farming practices and are powered by renewable energy. -
Enewsletter No. 457 | SECA | Swiss Private Equity & Corporate
eNewsletter no. 457 Dear Reader 20 May 2016 It was a school project: Start a Business! Taylor Rosenthal of SECA Opelika, Alabama, did just that. He is a baseball player and thought it would be sensible to post First Aid Kits near the diamond or in Venture Capital fact any playground where kids may suffer injuries. He developed Private Equity – Swiss News the box and stocked it with necessities, filed a patent suit and started the company RecMed, and all that before he had his first Private Equity – Int. News shave.Taylor Rosenthal is only 14. The price of the First Aid Box is Corporate Finance a hefty 5 500 dollar, but recreation park chains and investors are Mergers & Acquisitions interested. Already Taylor Rosenthal has turned down an offer of 30 million dollar. You can't pull the wool over a guy's eyes just Management Buyout because he is young. He tends to his business, keeps going to Book of the Week school and persues new projects. Jobs If given a chance, I will invest in RecMed and wait for the First Aid Box in my gym in Zug, Switzerland. On the other hand: why not Agenda wait for his next venture? This guy will go places. Editor Have a nice week! Maurice Pedergnana Toolbox Print Newsletter Send Newsletter to a Friend Download as PDF SECA 15. SECA Private Equity & Corporate Finance Conference The conference will take place on Wednesday, 6 July 2016, in the SIX ConventionPoint in Zurich and is one of the biggest conferences in Switzerland, which brings together the private equity, venture capital and corporate finance industries. -
General Atlantic Leads $100 Million Investment in Fresha, Leading Global Beauty and Wellness Platform, to Fuel Continued Growth
General Atlantic leads $100 million investment in Fresha, leading global beauty and wellness platform, to fuel continued growth New York, NY - June 11, 2021 Fresha, a top beauty and wellness software platform, announced today a $100 million Series C investment led by General Atlantic, a leading global growth equity firm, with strategic participation from Huda Kattan of HB Investments and the founder of Huda Beauty, as well as Michael Zeisser of FMZ Ventures, former Chairman Investments at Alibaba Group, and Jonathan Green of Lugard Road Capital. Fresha’s existing global investors Partech, Target Global and FJ Labs also participated in the round, bringing the company’s total fundraising to $132 million to date. Fresha will leverage the new funds to further broaden its global community of partner salons and spas, scale product development, deepen its marketplace bookings and pursue strategic M&A. Fresha allows consumers to discover, book and pay for beauty and wellness appointments with local businesses via its marketplace, while salons, spas and barbershops can leverage Fresha to manage their operations with its intuitive, subscription-free business software. The Fresha platform removes the critical pain points that service- based businesses often encounter by seamlessly facilitating the acceptance of online appointment bookings, processing of card payments and management of customer records, along with automations for marketing, staffing, product inventory and accounting, all in one place. In addition to its free offering, Fresha Plus provides partners with additional advanced features; rather than a traditional subscription model, the company collects fees on the usage of features for card payment processing and online bookings. -
Stepstone Atlantic Fund, L.P
StepStone Atlantic Fund, L.P. Private Equity and Infrastructure Investment Plan Proposed: November 2020 Report Prepared For: Important Information This document is meant only to provide a broad overview for discussion purposes. All information provided here is subject to change. This document is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or as an offer to provide advisory or other services by StepStone Group LP, StepStone Group Real Assets LP, StepStone Group Real Estate LP, StepStone Conversus LLC, Swiss Capital Invest Holding (Dublin) Ltd, Swiss Capital Alternative Investments AG or their subsidiaries or affiliates (collectively, “StepStone”) in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this document should not be construed as financial or investment advice on any subject matter. StepStone expressly disclaims all liability in respect to actions taken based on any or all of the information in this document. This document is confidential and solely for the use of StepStone and the existing and potential clients of StepStone to whom it has been delivered, where permitted. By accepting delivery of this presentation, each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents (except to its professional advisors), without the prior written consent of StepStone. While some information used in the presentation has been obtained from various published and unpublished sources considered to be reliable, StepStone does not guarantee its accuracy or completeness and accepts no liability for any direct or consequential losses arising from its use. -
TPG Announces Leadership Appointments
TPG Announces Leadership Appointments June 10, 2019 Fort Worth, Texas and San Francisco– June 10, 2019 – TPG, a global alternative asset firm, today announced the following leadership appointments for TPG Growth and The Rise Fund. The appointments are effectively immediately. Maya Chorengel and Steve Ellis will serve as Co-Managing Partners of The Rise Fund with Jim Coulter, who will transition from Interim Managing Partner to Co-Managing Partner. Matt Hobart will serve as Co-Managing Partner of TPG Growth alongside Jim Coulter, who will continue to act as Interim Co-Managing Partner for the fund. “The strength of our team is core to TPG’s success, and Maya, Steve, and Matt will help drive the firm’s continued growth. They are well-regarded leaders both within the firm and the industry, with invaluable experience in their sectors. We congratulate them on their new roles, and look forward to Growth and Rise evolving under their collective leadership,” said Jim Coulter and Jon Winkelried, co-CEOs of TPG. Chorengel and Hobart will continue to oversee the day-to-day activity of their investment sectors. Chorengel oversees Impact and Financial Services for The Rise Fund, and Hobart oversees Financial Services and Healthcare for TPG Growth and Healthcare for The Rise Fund. Ellis will continue to lead Business Building for TPG Growth and The Rise Fund. Mike Stone will continue his roles as Chief Investment Officer of The Rise Fund and Senior Advisor to TPG Growth. Maya Chorengel Maya Chorengel is Senior Partner, Impact, with The Rise Fund and the fund’s Sector Lead for Financial Services.