Apr 10, 2020

Axios Pro Rata

By Dan Primack
Dan Primack
Top of the Morning

Illustration: Sarah Grillo/Axios

Tomorrow morning we'll host another Peloton ride for Axios Pro Rata readers, as a fundraiser to benefit Weill Cornell Medicine's Fund to Support Frontline Staff.

  • This is a nonprofit effort to provide child care, meals, and other daily needs for frontline medical workers in New York City — including ER and ICU doctors, nurses, lab techs, and other clinical staff.

We've secured $40 in matching funds per rider, from generous readers who we'll list on Monday. Plus more than $13,000 in straight reader donations AND up to another $100,000 in per rider matching funds from other donors.

  • Last time we had 660 riders, which was amazing. Let's try to do even better tomorrow, to help those who are risking everything to help us!

How it works: For those with Peloton bikes, please clip in just before 11am ET / 8am PT tomorrow (Saturday) morning. Find the 45-minute "All for One" ride from July 4, 2019. It's the class with all of the instructors, and you can also find it by searching on the tablet for "All for One" or "most popular" rides.

  • If you don't have a Peloton bike, or can't make the ride, but still want to donate, please go to http://give.weill.cornell.edu (scroll down for the second option).
  • A reminder that proceeds will be used to help workers at hospitals and other medical facilities throughout NYC.

I look forward to "seeing" you tomorrow, as we socially distance together for a great cause.

Also...

Illustration: Sarah Grillo/Axios

The Federal Reserve yesterday unveiled new details of a "middle market" lending program aimed at businesses with between 500 and 10,000 employees.

  • This is part of the direct lending pool established in the CARES Act, and does not appear subject to the same affiliation rules that hampered smaller private equity-backed companies that sought Paycheck Protection Program loans (namely because it's not being run through the SBA).
  • Loans are for up to $25 million, but some PE-backed companies could be deemed ineligible due to high existing leverage ratios (and these new loans cannot be used to repay or refinance existing loans). Recipients also must make "reasonable" efforts to maintain employees and payroll over the term of the loan.

Related: As expected, Senate Democrats yesterday blocked the $250 billion expansion of the $349 billion PPP program, and Senate Republicans didn't take up a Democrat-proposed alternative.

  • President Trump also is preparing to launch a second coronavirus task force focused on reviving the U.S. economy, reports Axios' Alayna Treene.
The BFD
Source: Giphy

Apex Parks Group, an Irvine, Calif.-based amusement parks operator owned by The Carlyle Group and Edgewater Funds, filed for Chapter 11 bankruptcy protection. It also disclosed plans to be acquired by a lender group led by Cerberus Capital Management.

  • Why it's the BFD: While much of Apex's financial mess predates the pandemic — it closed an upstate New York park in February — this is a reminder of how lockdowns are devastating tourism companies beyond airlines, cruise lines, and hotels.
  • The bottom line: "The company has 10 entertainment centers and two water parks operating under such names as Big Kahuna’s, Sahara Sam’s, Boomers and SpeedZone in California, Florida and New Jersey.... Apex said the impetus for its bankruptcy filing was to reduce debt and it expects to resume operations." — Becky Yerak, WSJ
Pro Rata for Kids

Today's project is for kid(s) who have pets. Doesn't matter if it's a dog, cat, fish, or Oklahoma-bred tiger. Please make a drawing of your pet or "create" it out of materials found around the house. Then send me a picture of what you made with your pet also in the shot.

Yesterday I asked your kid(s) to come up with a business and a business plan. Here's some of what came back:

Charlie, 11 years old from Utah, presents "Digi-Char." The business will take VHS’s, DVDs, and old photos and digitize them.
Pete, 10 years old from Massachusetts, presents the T.E.Z (Throw Easy). It's an automatic ball feeder for back-yard sports. Per his mom: "Pete's proposed price is quite high… but at this point parents might pay anything for kids to entertain themselves!"
Venture Capital Deals

Kate Farms, a Santa Barbara, Calif.-based provider of plant-based liquid meal formula for hospitals, raised $23 million from individuals like David Roux (Silver Lake), John Hammergren (McKesson), and Gregg Engles (WhiteWave Foods). http://axios.link/Ogjg

Airbrake, a provider of real-time app debugging software, raised $11 million led by Elsewhere Partners. http://axios.link/X8A5

IFM Restoration, a Dallas-based online marketplace to connect contractors with rental property managers and owners, raised $10 million in Series A funding co-led by S3 Ventures and Brick & Mortar Ventures. http://axios.link/C0am

🚑 Ferrum Health, a San Francisco-based provider of an AI platform for identifying radiologist errors, raised $9 million in seed funding. Blumberg Capital led, and was joined by GSR Ventures, Vulcan Capital, and Valley Capital Partners. http://axios.link/ju17

Perch, a Boston-based commerce startup that acquires and operates Amazon FBA businesses, raised $8 million led by Spark Capital. www.perchhq.com

Double, a provider of remote executive assistants, raised $6 million in Series A funding from Index Ventures and Daphni. http://axios.link/PrCU

Seeqc, a New York-based commercial quantum computing startup, raised $5 million from M Ventures. http://axios.link/dcVB

🚑 I20 Therapeutics, a Boston-based platform for orally delivering traditionally-injectable drugs, raised $4 million in seed funding co-led by Sanofi Ventures and JDRF T1D Fund. http://axios.link/IpGn

Private Equity Deals

ReadyLift Suspensions, a Henderson, Nev.-based portfolio company of Clearlake Capital Group, acquired Zbroz, a Logan, Utah-based aftermarket performance parts manufacturer focused on UTV and snowmobile suspension components. www.readylift.com

Canada Pension Plan Investment Board sold a $1.2 billion portfolio of limited partner stakes in private equity funds to Ardian and Lexington Partners, per PE Hub. Underlying funds included ones managed by The Blackstone Group and Apollo Global Management. http://axios.link/UFXL

More M&A

KB Financial Group agreed to buy Prudential Financial’s (NYSE: PRU) South Korean unit for $1.89 billion. http://axios.link/INnz

In Memoriam

Source: Advent International

Peter Brooke, one of the fathers of venture capital and private equity, passed away on Wednesday at the age of 90.

  • In 1968, Peter founded Boston-based TA Associates, which made early bets in companies like FedEx and served as a launch pad for other large firms like Summit Partners. In 1984, he co-founded Advent International, thus helping to expand the venture and private equity industries beyond America.

Per the WSJ:

"Brooke often said he drew inspiration from the Marshall Plan, a global economic aid program crafted by former U.S. Secretary of State George Marshall to help rebuild Europe after World War II. He saw venture capital as a “private-sector Marshall Plan” to drive economic growth. Early in his investment career in the 1950s and 1960s, he sought to invest in companies with new technology that could revive the economy of New England."
Final Numbers
Source: Refinitiv Deals Intelligence. Data through April 9, 2020.
Dan Primack

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