Me and the fam are heading down to Costa Rica in a few hours (J is from there, which is a delightful perk to this marriage), so Pro Rata will be on hiatus until Tuesday, January 2. Hope you also get to enjoy some time off, and we'll chat again in 2018.
The SEC yesterday fined private equity giant TPG Capital for not explicitly disclosing its use of accelerated management fees, related to funds raised nearly a decade ago. The wrist-slap penalty is $13 million, which is below what some rival firms have been forced to pony up.
• Sector wrap: We've talked a lot this year about how later-stage tech startups are pivoting away from the growth-at-all-costs mantra that was once so rampant, in an effort to better appeal to public market investors. But a new report from RBC's tech investment banking group shows that S&P 500 tech "growth" stocks (i.e., >20% growth) returned 48.9% for the first 11 months of 2017, while S&P 500 "value" tech stocks (i.e., <20% revenue growth) returned 32%.
• Who saved carry? Gary Cohn doesn't want to identify those who fought to keep the current tax treatment of carried interest, but The WaPo's Tory Newmyer points the finger at Rep. Kevin Brady (R-TX), chairman of the House Ways & Means Committee. The same Kevin Brady who kept dodging questions on carried interest during a recent MSNBC interview.
• More tax talk: Sen. Majority Leader Mitch McConnell yesterday said at an Axios event that he "would not expect to see" welfare reform on the 2018 agenda, and that infrastructure won't be done without Democratic buy-in. This is particularly notable because the Treasury Department's one-pager on the tax bill included both welfare reform and infrastructure in its economic growth projections.
ADT, a Florida-based home security company owned by Apollo Global Management, has filed for a $100 million IPO (placeholder figure, with Renaissance Capital estimating it could raise $1.5 billion).
🚑 Aledade, a Bethesda, Md.-based startup that works with doctors to analyze patient data and coordinate care, has secured $23 million of what could be a $28 million funding round, per an SEC filing. Backers include Venrock and Biomatics Capital. http://axios.link/JXgc
• Socrates AI, a San Francisco-based virtual assistant for enterprise workforce management, has raised $11 million in VC funding, per an SEC filing. Board members include partners with Venrock and Norwest Venture Partners. www.socrates.ai
• Framer, an Amsterdam-based developer of visual design tools, has raised $7 million in new VC funding. Accel led, and was joined by Foundation Capital, Designer Fund and AngelList. http://axios.link/2eES
• Nylas, a San Francisco-based provider of APIs for email, calendars and contacts, has raised $4 million in new funding. 8VC led, and was joined by Crunchfund, Great Oaks Venture Capital and Rubicon Venture Capital. www.nylas.com
• Radar Relay, developer of a decentralized token exchange, has raised $3 million in VC funding. Blockchain Capital led, and was joined by Collaborative Fund, Digital Currency Group, Kindred Ventures, Kokopelli Capital, Notation Capital, Reciprocal Ventures, Sparkland Capital, SV Angel and V1.VC. Plus a Boulder, Colo.-based firm called Batshit Crazy Ventures, which is apparently a real thing. http://axios.link/NmCD
• Eurazeo and Primavera Capital Group have completed their previously-announced purchase of WorldStrides, a Charlottesville, Va.-based student travel company.
🚑 FFL Partners has acquired Autism Learning Partners, a Glendale, Calif.-based provider of applied behavior therapy. www.autismlearningpartners.com
⛽ Kinderhook Industries has acquired Intergulf, a La Porte, Texas-based provider of petroleum repurposing and treating services. www.intergulfcorp.com
⛽ Panther Energy Company III, a Tulsa, Oka.-based exploration and production company focused on development drilling opportunities in oil-weighted North American basins, has launched with a $375 million equity commitment led by Kayne Anderson. www.pantherenergy.com
🚑 SoClean, an Oxford, Mass.-based maker of cleaning devices for CPAP machines, has raised an undisclosed amount of equity funding from DW Healthcare Partners. www.soclean.com
⛽ Zenith Energy, an international liquids and bulk terminaling company owned by Warburg Pincus, has completed its previously-announced purchase of New York-listed Arc Logistics GP for around $322 million, or $16.50 per common unit. Sellers included Lightfoot Capital Partners. www.zenithem.com
• CyrusOne (Nasdaq: CONE) has agreed to acquire Zenium Data Centers, a London-based data center operator, for $442 million from Soros Fund Management. http://axios.link/E1SR
• FullContact, a Denver-based content management software company, has agreed to acquire Mattermark, a sales lead startup that also provided startup data. According to TechCrunch, Mattermark will shut down and the deal amount isn't enough to pay out any common shareholders (i.e., employees). FullContact has raised around $50 million from Foundry Group, Baird Capital, Shea Ventures and Blue Note Ventures. Mattermark (which had limited layoffs over the summer) had raised $18 million from Foundry, Drummond Road Capital, NKM Capital and FUEL Capital. http://axios.link/HAWs
• Boeing (NYSE: BA) held takeover talks with Brazilian airplane maker Embraer SA, which currently is valued at around $3.7 billion, per the WSJ. http://axios.link/IsjH
🍺 Fosun International has agreed to acquire an 18% stake in listed Chinese brewery Tsingtao for around $844 million. http://axios.link/jMAC
• GVC Holdings (LSE: GVC) has agreed to acquire in British bookmaker Ladbrokes Coral Group (LSE: LCL) for $5.3.5 billion in cash and stock. http://axios.link/vIpS
• Liberty Global (Nasdaq: LBTYA) is in advanced talks to sell its Austrian unit (UPC Austria) to Deutsche Telekom for around $2 billion, per the FT. http://axios.link/Y81i
🚑 Roche (Swiss: ROG) has agreed to acquire San Diego-based cancer drug company Ignyta (Nasdaq: RXDX) for $1.7 billion, or $27 per share (74% premium over yesterday's closing price). http://axios.link/d64Q
⛽ Royal Dutch Shell has agreed to acquire First Utility, a British provider of residential energy and broadband services. http://axios.link/4wH5
• Beecken Petty O'Keefe, a Chicago-based private equity firm, is raising up to $600 million for its fifth fund, per SEC filings. Lazard is serving as placement agent. www.bpoc.com
⛽ Orion Energy Partners has promoted Ethan Shoemaker and Chris Leary to managing director, and Inés Tovo and Tim Mister to vice president. www.orionenergypartners.com