Axios Pro Rata

November 12, 2024
⛷️ Axios returns to Davos on Jan. 19-23, for a full slate of live programming. And I'll be there too, for the first time.
- Get updates, and please let me know if you're going to be in town.
Top of the Morning
Are you a distributions-deprived limited partner in private equity funds, dreading that scheduled meeting with your chief investment officer? If so, please take some blood pressure meds before reading this:
- Private equity bonuses are expected to rise in 2024, excluding carried interest, according to a new report from compensation consultant Johnson Associates.
The big picture: The biggest bonuses are expected to be doled out by the bigger firms (i.e., asset accumulators), plus by secondaries firms.
- Smaller PE firms, particularly those with singular strategies, are expected to have flatter bonus increases. But still bonus increases.
Behind the scenes: This is about retaining talent.
- Private equity has a historical reputation for sky-high compensation, but is facing renewed competition from Wall Street and upstart asset classes like private credit.
By the numbers: Private equity bonuses are expected to be 5% higher in 2024 than in 2023.
- That's only about half the bonus expectations for private credit, and well below investment banking bonuses (15-25% for equity underwriting, 15-35% for debt underwriting).
- Hedge fund bonus increases are expected to be 5-15%, while real estate is expected to be flat.
The bottom line: All eyes are now turning toward 2025, when a possible dealmaking boom could get LPs and GPs in better alignment.
The BFD
Ari Emanuel is leading a $450 million management buyout of sportsbook tech providers OpenBet and IMG Arena from Endeavor (NYSE: EDR), the company Emanuel founded and leads.
Why it's the BFD: This is being positioned as a prerequisite for Silver Lake to complete its $13 billion take-private of Endeavor, but it's certainly unusual for a target company's CEO to so directly enable such divestitures.
- Let alone to do so twice in as many months.
- TKO Group, the Emanuel-led parent company of WWE and UFC, recently agreed to buy three assets from Endeavor for $3.25 billion in stock (which increased Endeavor's stake in TKO to 59% from 51%).
- Emanuel also is said to be interested in a pair of tennis torunaments and an art fair that Endeavor put on the block.
The bottom line: "A decade after building his media empire, Emanuel is helping to fund its breakup." — Tim Baysinger, Axios Pro
Venture Capital Deals
• Neo Financial, a Canadian challenger bank, raised C$360m in Series D funding from Tobi Lütke (Shopify), Stewart Butterfield (Slack), David Baszucki (Roblox), Mike Wessinger (PointClickCare) and insiders Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures. axios.link/40M9PYn
• Ualá, an Argentine challenger bank, raised $300m in Series E funding at a $2.75b valuation. Allianz X led, and was joined by Stone Ridge Holdings Group, Pershing Square Holdings, Alan Howard, Rodina, Claure Group and insiders Soros Fund Management, Goldman Sachs, SoftBank, and Tencent. axios.link/4fpJyDK
• Writer, an SF-based generative AI platform for enterprises, raised $200m in Series C funding at a $1.9b valuation. Premji Invest, Radical Ventures, and Iconiq Growth co-led, and were joined by Salesforce Ventures, Adobe Ventures, B Capital, Citi Ventures, IBM Ventures, and Workday Ventures. axios.link/4emjUOY
🚑 Alentis Therapeutics, a Swiss developer of treatments for CLDN1+ tumors and organ fibrosis, raised $181m in Series D funding. OrbiMed, Novo Holdings, and Jeito Capital co-led, and were joined by Frazier Life Sciences, Longitude Capital, Catalio Capital, Piper Heartland Healthcare Capital, Avego Bioscience Capital, RA Capital Management, Morningside Venture Investments, BB Pureos, and Bpifrance. axios.link/3Z0BuDv
🚀 Firefly Aerospace, a Houston-based rocket maker backed by AE Industrial Partners, raised $175m in Series D funding at a valuation north of $2b led by RPM Ventures. This one has an interesting backstory.
• Lean Technologies, a Saudi fintech infrastructure platform, raised $67.5 million in Series B funding. General Catalyst led, and was joined by Bain Capital Ventures, Stanley Druckenmiller's Duquesne Family Office, Arbor Ventures, and Saudi Venture Capital. axios.link/3Z0nbPm
• AgiCap, a French treasury management SaaS, raised €45m in Series C funding led by AVP. axios.link/40HTpA8
• LocalStack, a Swiss provider of of local-cloud development environments, raised $25m in Series A funding. Notable Capital led, and was joined by insiders CRV and Heavybit. axios.link/48Ksm9q
• Fleek, an SF-based secondhand clothing marketplace, raised $20.4m in Series A funding from HV Capital, a16z, and YC. axios.link/3Z0Uphz
• PointFive, an Israeli cloud cost optimization startup, raised $20m in Series A funding. Salesforce Ventures led, and was joined by Index Ventures, Entree Capital, Sheva VC, and Vesey Ventures. axios.link/4hDreZr
• UnifyApps, an Indian unified enterprise AI agent, raised $20m. Iconiq Growth led, and was joined by Elevation Capital. axios.link/4fnWb25
• Vega, an OS for alt asset managers, raised $20m in Series A funding co-led by Apollo and Motive. vega-alts.com
• SmartBank, a Japanese personal finance management app, raised around $19m in equity funding from SMBC. axios.link/3CpTmiq
• Polar Analytics, a French e-commerce data platform, raised $18m in Series A funding, per Axios Pro. Chalfen Ventures led, and was joined by Point Nine and Frst. axios.link/3Z2xVNi
• Northflank, a London-based workload platform for developers, raised $16m in Series A funding. Bain Capital led, and was joined by Vertex Ventures, Kindred Ventures, Tapestry VC, Pebblebed, and Uncorrelated Ventures. axios.link/3Z08ImD
• Cogna, an AI for writing enterprise software, raised $15m in Series A funding. Notion Capital led, and was joined by Hoxton Ventures and Chalfen Ventures. axios.link/3O3CoJh
• Wheelocity, an Indian supply chain startup focused on rural communities, raised $15m in Series A2 funding led by insider Lightspeed. axios.link/4fqogWK
• Tako, a Brazilian fintech focused on the employee life cycle, raised $13.2m in seed funding co-led by Ribbit Capital and a16z. axios.link/4fmz2NF
• Brightpick, an Erlanger, Ky.-based provider of warehouse automation solutions, raised $12m in equity and debt led by EBRD Venture Capital. brightpick.ai
⚡Tozero, a German battery recycling startup, raised €11m in seed funding. NordicNinja led, and was joined by In-Q-Tel, Honda, and JGC Group. axios.link/3YGJvwh
• Big xyt, a London-based provider of data analytics for financial markets, raised €10m led by Finch Capital. axios.link/3UO6fcF
• Equal, an Indian data-sharing platform, raised $10m in Series A funding at an $80m post-money valuation co-led by Prosus Ventures, Tomales Bay Capital, and founder Keshav Reddy. equal.in
• Substack, the newsletter platform, quietly raised around $10 million from a broad range of strategic investors, including Omeed Malik and Nate Silver, per Axios. axios.link/4evu67I
🚑 Vittoria Biotherapeutics, a UPenn spinout focused on developing cell therapies, raised $10m led by Valley Forge Investment with participation from Global BioAccess Fund, Hatch Biofund, Agent Capital, Tellus BioVentures, NYBC Ventures, and UPenn. vittoriabio.com
🚑 Quantune, a German developer of non-invasive glucose monitoring solutions, raised €8.5m from Point72 Ventures and Vsquared Ventures. axios.link/3CsmCW0
⚡Etpa, a Dutch short-term electricity marketplace, raised €5.5m from 4impact capital and insiders SET Ventures and ABN AMRO SIF. axios.link/3CptN0Y
🚑 Conflixis, a Dallas-based data and risk intelligence startup for hospitals, raised $4.2m in seed funding. Lerer Hippeau and Origin Ventures co-led, and was joined by mark vc, Springtime Ventures, and Crētiv Capital. axios.link/4eoSXtY
• Lume AI, a data mapping automation startup, raised $4.2m in seed funding. General Catalyst led, and was joined by YC, Khosla Ventures, Floodgate, and Soma Capital. axios.link/40JKNJE
🌏 Anthrogen, an SF-based low-carbon chemicals developer, raised $4m in seed funding, per Axios Pro. Regen Ventures and BoxGroup co-led, and were joined by YC and Wayfinder. axios.link/3UI1PDN
• Deckmatch, an Oslo-based VC matching platform, raised $3.1m in seed funding. Alliance VC and Luminar Ventures co-led, and were joined by First Degree Capital and Skyfall Ventures. axios.link/3O4aE7f
• Ooodles, a U.K. fintech focused on IT procurement, raised $2.7m led by Altitude VC. ooodles.com
🚑 Paloma Health, a provider of NHS-funded autism assessments for children, raised £2m in pre-seed funding. Triple Point Ventures led, and was joined by Heal Capital. paloma.health
Private Equity Deals
• ADIA agreed to buy a stake in Qlik, a data analytics software owned by Thoma Bravo, at a $10b valuation, per the FT. axios.link/3YMP5wW
• Blackstone is in talks to buy a massive minority stake in PE firm American Industrial Partners, per Bloomberg. axios.link/4fCtNJa
• Bridgepoint agreed to acquire Schuberg Philis, a Dutch IT consultancy. schubergphilis.com
• Decks & Docks, a Clearwater, Fla.-based portfolio company of CCMP, acquired Bayou City Lumber, a Houston-area outdoor building material supplier. decks-docks.com
• Fortress Investment Group acquired Curzon, a U.K. arthouse film company. axios.link/3UMiDK2
🚑 Genesis Capital sweetened its bid for Australian dental chain Pacific Smiles to A$316.4 million. axios.link/3UNPi1I
• Golden Gate Capital acquired a majority stake in Brava, a Washington, Iowa-based provider of composite roofing materials. bravarooftile.com
• Goldman Sachs Alternatives agreed to buy Sila Services, a King of Prussia, Pa., provider of residential HVAC, plumbing and electrical services, from Morgan Stanley Capital Management. axios.link/3UI9t1i
• Sound Growth Partners acquired LPi Digital, a Milwaukee-based provider of print and digital bulletins and newsletters to faith-based, community, and membership organizations. 4lpi.com
🚑 Triton is considering a takeover bid for Evotec, a listed German drug discovery company, per Bloomberg. Evotec backers include Novo Nordisk and Mubadala. axios.link/3UKYHam
Public Offerings
• Partners Group picked UBS and Bank of America to lead an IPO of Dutch conveyor-belt maker Ammega, per Bloomberg. axios.link/4hGxoIa
SPAC Stuff
• Flag Fish Acquisition, a SPAC focused on businesses with a connection to Asian markets, filed for a $60m IPO. axios.link/3AFKGE7
• Hennessy Capital Investment VII, the latest SPAC led by Daniel Hennessy, filed for a $150m IPO. axios.link/3Z4L4pi
• Willow Lane Acquisition, a consumer goods SPAC led by blank-check vet Luke Weil, raised $110m in its IPO. axios.link/3zyfAOo
Liquidity Events
🚑 Cardinal Health (NYSE: CAH) agreed to buy a majority stake in GI Alliance from Apollo and its physician owners, for $2.8b in cash. It also will pay $1.1b in cash for Advanced Diabetes Supply Group. axios.link/4fGIv23
• Carlyle is seeking to sell or list Flender, a German maker of mechanical and electrical drive tech that could fetch around €4b, per Bloomberg. axios.link/3Ashvo9
• First Reserve is talking with bankers about a sale process for Refuel, a Charleston, S.C.-based convenience store operator that could fetch more than $1.5b (including debt), per Reuters. axios.link/4fj3BDR
• Kaiko, a French crypto data provider that's raised $90m in VC funding, agreed to buy Swedish crypto index provider Vinter that had raised $7m from firms like Octopus Ventures. axios.link/4fLXCY5
• Partners Group is weighing a sale of International Schools Partnership, a London-based private international schools operator that could fetch more than €5b, per Reuters. axios.link/4fHrS66
• Red Hat, owned by IBM, agreed to buy Neural Magic, a Somerville, Mass.-based developer of deep learning inference software that had raised $30m from NEA, a16z, Amdocs, Comcast Ventures, Pillar VC, and Ridgeline Ventures. axios.link/4fm24wB
More M&A
🚑 The U.S. Justice Department will seek to block UnitedHealth (NYSE: UNH) from completing its proposed $3.3b purchase of Amedisys (Nasdaq: AMED), per Bloomberg. axios.link/3UIaupN
• Aristocrat Leisure (AX: ALL) agreed to sell its mobile gaming unit Plarium Global to Modern Times (STO: MTG) for up to $820m ($600m upfront). axios.link/40IqTOP
• Boeing (NYSE: BA) is considering a sale of its Jeppesen navigation unit, which could fetch around $6b, per Bloomberg. axios.link/3O5GikM
🚑 Cigna (NYSE: CI) says it will not pursue a merger Humana (NYSE: HUM). axios.link/4evn1nE
🚑 McKesson (NYSE: MCK) and Oracle (NYSE: ORCL) are among the final bidders for listed EMR data company Veradigm (fka Allscripts), per Axios Pro. axios.link/4fkCVCN
• Julius Baer Group (Swiss: BAER) hired Goldman Sachs to sell its Brazil unit, per multiple reports. axios.link/3ArpjXd
Fundraising
• AshGrove Capital of London raised 650m for its second specialty lending fund. axios.link/4g1juyT
• Bynd VC raised €40m for its third fund focused on startups in Portugal and Spain. axios.link/3UN8sFf
• Forerunner Ventures raised $500m for its seventh early-stage fund. axios.link/4hMGpiQ
• Godspeed Capital, a PE firm focused on lower midmarket defense and government services companies, raised $675m for its third fund. godspeedcm.com
• Intudo, an Indonesian VC firm, raised $75m for its fourth flagship fund and $50m for a fund focused on natural resources and renewable energy. axios.link/4fzqVNo
• Israel Secondary Fund added $40m for its third fund, which is now $350m. axios.link/3Z2dnVk
• Transom Capital Group, an LA-based midmarket PE firm, raised $675m for its fourth fund. transomcap.com
It's Personnel
• Arch Venture Partners promoted Corey Ritter to partner. axios.link/4erzTuY
• Brad Boggess joined Houlihan Lokey as a managing director of capital markets. He previously led asset management for Blackstone Credit and Insurance. axios.link/3CrlWjG
• Jacques Chappuis was named CEO of PGIM, the asset management business of Prudential Financial, effective next May. He most recently was co-head of Morgan Stanley Investment Management. axios.link/40IGyO9
• Bhumika Gashti joined PPM America Capital Partners as senior managing director of IR. She previously was with Intrinsic Edge Capital Management. axios.link/3UKpweV
• Josko Grljevic joined Mayfair Equity Partners as CTO. He previously was group COO at Talon Outdoor. axios.link/4hJ2yhV
• Richa Mehta joined Radical Ventures as a partner. She previously was with Iconiq Capital. axios.link/4flyIyv
• Rajeev Misra is formally stepping down as co-CEO of SoftBank Vision Fund, more than a year after he launched his own investment firm.
• Greg Myers stepped down as IR chief at Vista Equity Partners, and will be succeeded by Cheryl Leahy and Stephen Seelbach, per Bloomberg. axios.link/3Z389sq
• Qatar Investment Authority named Mohammed Al Suwaidi as CEO. He previously was Americas CIO for the $510b sovereign wealth fund. axios.link/4felEuR
Final Numbers

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