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Private Equity News
Funded
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The Top 5 Success Factors Every Entrepreneur Needs to Thrive
- Having a clear vision and setting SMART goals are key success factors for entrepreneurs.
- Resilience and adaptability help entrepreneurs overcome obstacles and pivot when needed.
- Building strong networks and relationships is important for collaboration and growth.
- Financial acumen and continuous learning enable entrepreneurs to manage finances effectively and stay ahead of the competition.
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Siliconangle
7d
208
Image Credit: Siliconangle
A bold plan to spin out and revive Intel’s foundry business
- Intel's foundry business has negative value and is therefore unsustainable despite its strategic significance for the U.S. national interests and competitiveness.
- Intel's foundry is an asset showing negative worth with unsustainable losses that are dragging cash and lack the scale to compete in advanced manufacturing.
- A spinning-out Intel's foundry operation can be funded via multi-stakeholder investment and strategic partnerships with industry leaders like Taiwan Semiconductor Manufacturing Corp.
- A possible solution to save U.S. advanced semiconductor manufacturing is for Intel to spin out Intel Foundry Services (IFS) as a joint venture and partner with TSMC or Samsung to leverage advanced manufacturing expertise.
- The new entity will reduce Intel's financial burden and create a competitive and independent entity capable of safeguarding U.S. semiconductor leadership and aligns with broader industry and geopolitical imperatives.
- Intel's wafer volumes for its x86 business is in long-term decline compared to the wafer demand for Arm processors dominated by TSMC that is at least tenfold greater.
- Intel's lower wafer volumes result in manufacturing costs that are at best 30% to 35% higher than TSMC's due to Wright's Law and cost challenges.
- IFS produces $19 billion in revenue and posted a 31% revenue decline year-over-year with a $7 billion operating loss in April 2021.
- There are stakeholders needed for the long-term success of a spun-out foundry entity that will take at least more than 10 years to become a viable competitor.
- The venture will require contributions from diverse stakeholders, including major US tech companies such as Amazon, Google, Apple, Microsoft, NVIDIA, private equity firms, and public funds.
- The US government should divest its position over time and give the proceeds back to taxpayers in the form of debt reduction.
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Peprofessional
2d
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Kano Laboratories Switches Sponsors
- Kano Laboratories, a producer of branded oils and lubricants, has been sold by Gryphon Investors to L Squared Capital Partners.
- Kano specializes in industrial maintenance, repair, and operations (MRO) products and is known for its Kroil brand.
- Gryphon's partnership with Kano helped transform the business and solidify its position in the market.
- L Squared Capital Partners plans to partner with Kano to further scale its reach and growth.
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Peprofessional
3d
284
Are M&A Deal Parties Turning Away from Reps & Warranties Insurance?
- Reps and warranties insurance (RWI) is waning for M&A due to being time-consuming and complex.
- It also may not provide a safety net for sellers who now are reevaluating indemnification's structure.
- Data shows that RWI use has declined, especially for cleaner deals and after high usage during the competitive landscape of 2021.
- Indemnification provisions are now more carefully negotiated, with RWI providing special or smaller escrows.
- Deals with RWI have special escrows covering policy exclusions and caps, often taking longer to resolve post-closing.
- PE buyers were initially more likely to use RWI but the trend has shifted.
- In negotiating deals, buyers are treating RWI on a case-by-case basis.
- The M&A market is adapting by assessing whether RWI is the best fit for their transaction.
- Due diligence practices are expected to remain thorough and indemnification provisions a focal point of negotiation.
- RWI trends are being watched as data continues to provide insights to the ever-adapting market.
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Peprofessional
3d
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Abacus Unlocks SBA Partnership with SBIC Fund Debut
- Abacus Finance Group has closed its inaugural SBIC fund, Abacus Finance SBIC Fund I LP (Fund I).
- The SBIC program was created by the SBA to help small businesses access capital through private investment firms.
- Abacus aims to support U.S.-based lower-middle market businesses and their financial sponsors with the newly licensed SBIC fund.
- Abacus provides cash-flow-based senior financing to private equity-sponsored, lower middle-market companies across various industries.
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Peprofessional
6d
127
Vance Street Seals the Deal
- Vance Street Capital has acquired System Seals, a Cleveland-based designer and manufacturer of high-performance sealing products.
- System Seals specializes in designing and manufacturing proprietary, high-performance sealing products for manufacturing, energy, and industrial equipment applications.
- System Seals' products are crafted from advanced materials for low-friction performance, superior chemical resistance, and resilience in demanding environments.
- System Seals' CEO, Arnold von Engelbrechten, will retain a significant ownership stake and lead the company alongside the existing management team in partnership with Vance Street.
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Peprofessional
6d
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Family-Owned Tropical Cheese Partners with AUA and Avance
- Avance Investment Management and AUA Private Equity Partners have acquired Tropical Cheese Industries, a family-owned producer of Hispanic dairy and meat products.
- Tropical Cheese's product portfolio includes cheeses, meats, tortillas, yogurt drinks, seafood, creams, and desserts.
- The company primarily serves Hispanic households in the United States, the Caribbean, Central and South America, and Europe.
- The founding Mendez family and the senior management team will have a minority stake in the business in partnership with Avance and AUA.
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Peprofessional
6d
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Northern Wholesale Acquired by Sun
- Sun Capital Partners has acquired Northern Wholesale Supply (NWS), a distributor of outdoor and powersports equipment and supplies.
- NWS offers over 30,000 parts and accessories for recreational vehicles, powersports vehicles, boat-related parts, and manufactured and mobile home components.
- The acquisition aims to drive innovation, service, and expansion for NWS with the resources provided by Sun Capital.
- Immediate areas for value creation include operational improvements, product line expansion, and exploration of new markets.
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Peprofessional
6d
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Cornell Names Jennifer Cattier as Newest Partner
- Cornell Capital has promoted Jennifer Cattier to Partner.
- Ms. Cattier joined Cornell Capital in 2022 as chief operating officer and chief compliance officer.
- With today’s promotion, Cornell Capital’s partner group now consists of seven partners across its New York City and Hong Kong offices.
- Cornell Capital was founded in 2013 by Henry Cornell and focuses on investing in companies in the consumer, energy, financial, and industrial sectors.
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Moneyweb
7d
162
Talking alternative investments: Private credit, private equity
- The trend towards growing demand and appetite for alternative investment mandates has been significant in 2019, according to Dino Zuccollo, Co-founder, and Chairman of Westbrooke Alternative Asset Management. Westbrooke currently manages over R13bn ($885m) on behalf of approximately 3,000 direct private clients, 120 wealth management businesses around the world and a variety of local and offshore institutions.
- Private equity, especially in South Africa, has had fewer opportunities than private credit. Zuccollo has seen a significant increase in demand and capital flows from clients seeking access to global private markets and alternatives in the second half of 2019.
- The primary reason cited for allocating to alternatives: the lack of correlation, and diversification away from traditional equity and bond markets.
- Zuccollo sees illiquidity in private credit to be a feature and not a downside of the alternative space, locking in investors for a period of time, allows for better long-term decision-making by investment managers.
- The private debt funds have been relatively quiet for the first half of the year in South Africa, but have been more active in the second half, driven by the government of national unity and capital flows flowing back into the country.
- Zuccollo has reported Westbrooke's business has done well with 12B, an investment structure into the renewable energy sector in South Africa, deploying approximately R450m ($31m) this year across 65 deals, as Eskom increases electricity costs.
- Furthermore, Zuccollo believes the private credit space is booming, both from the business and investor demand, especially in the UK. Westbrooke Yield Plus secures private credit funding against real estate and is delivering a return of between 7% to 9% in sterling.
- Westbrooke's Hybrid Capital business, which funds mezzanine and preference shares, has been active, fully investing in the UK with approximately £40bn ($51bn) of funds, across seven to eight investment opportunities. A second fund could be established next year.
- Westbrooke's plan is to cautiously re-enter the US real estate space, with a tentative buyer bidding environment and a political atmosphere set to offer attractive investment opportunities.
- Westbrooke is also looking to build out a private credit capability similar to that offered in the UK, according to Zuccollo.
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Guardian
7d
278
Image Credit: Guardian
Billionaire Guy Hands’s property firm sells military homes to MoD for £6bn
- Annington, a property company linked to Guy Hands, has agreed to sell 36,000 military homes to the UK Ministry of Defence (MoD) for £6bn.
- The deal ends a long-running battle between Annington and the government.
- The sale amount is almost twice what Hands's company, Terra Firma, paid for Annington over a decade ago.
- The MoD expects to achieve savings of approximately £230m annually through this deal.
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Funded
7d
366
Image Credit: Funded
Affordable AI Solutions for Small Businesses
- AI tools have become more accessible and affordable for small businesses.
- Small businesses can automate repetitive tasks with AI tools like Calendly, Zapier, and QuickBooks.
- AI-powered chatbots like Tidio, Intercom, or Freshdesk can enhance customer support.
- Small businesses can utilize AI for marketing automation, data insights, hiring, and content creation.
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Funded
7d
320
Image Credit: Funded
Cartesia Funded $27M Funding to Advance Real-Time AI Models
- Cartesia, a San Francisco-based company, has secured $27 million in funding to advance real-time AI models.
- The funding round was led by Index Ventures, with participation from several investors including A* Capital, Conviction, General Catalyst, Lightspeed, and SV Angel.
- Real-time AI models are crucial for industries such as healthcare, finance, autonomous vehicles, and logistics, where quick decision-making is essential.
- Cartesia plans to use the funding to expand its research and development team, enhance its algorithms, and scale its infrastructure for global deployment.
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Peprofessional
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Crossplane’s Fund II Acquires Distributor Wire and Cable
- Crossplane Capital has acquired Distributor Wire and Cable (DWC), a master distributor specializing in electrical wire and cable products.
- Distributor Wire and Cable supplies specialty wire and cable products to electrical distributors and wholesalers across the United States. The company serves industrial, commercial, residential, and utility end markets.
- DWC offers value-added services such as custom-cut orders, inventory management, and same-day shipping. It was founded in 2008 and is headquartered in Aurora, Colorado.
- Crossplane Capital aims to leverage DWC's brand and relationships to drive growth initiatives and strengthen its position in the market. Crossplane's recent fund closed at $325 million.
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Peprofessional
1w
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Allied’s CES Power Acquires Base Craft, Launches Studio Services Division
- CES Power, a portfolio company of Allied Industrial Partners, has acquired Base Craft, a provider of specialty equipment and services for the motion picture industry.
- Base Craft offers production trailers, basecamp setups, power generation equipment, and other tools used on motion picture sets.
- With the acquisition of Base Craft, CES Power has launched CES Studio Services, a division focused on supporting film, television, and broadcast production needs.
- Allied Industrial believes that the acquisition of Base Craft and the establishment of CES Studio Services will contribute to the strategic growth of the CES Power portfolio.
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