Countdown: 4 days until the premiere of Axios on HBO. It's like Game of Thrones, but with way more dragons. Sunday at 6:30 pm ET, and then again at 11:30 pm.
Private equity firms rarely sue their limited partners, let alone well-heeled limited partners. But that's exactly what's happening between San Francisco-based Northgate Capital and Indian outsourcing giant Tech Mahindra, according to court documents.
Seems at first like a cut-and-dry contract violation, but then you need to factor in the major personnel turnover at Northgate, which was originally founded in 2000 by former NFL players Brent Jones and Tommy Vardell.
Complicating things is the matter of Hosein Khajeh-Hosseiny, who was promoted from Northgate managing partner to CEO once The Capital Partnership assumed control. He also was listed as a sole keyman in the LPA, but left this past summer.
Tech Mahindra is asking for Khajeh-Hosseiny to be held in contempt of court — and it was his non-appearance that moved all of the relevant court docs from private arbitration into the public sphere.
📬 Open question: The midterms are just a few days away. Do you expect the results to impact your business, either positively or negatively? Let me know via email@example.com. If you prefer to be kept anonymous, just let me know.
🎧 Pro Rata Podcast: On the new episode I chat with Salesforce CEO Marc Benioff, over his support for a controversial San Francisco ballot initiative that would raise taxes on local companies, in order to fund anti-homelessness efforts. Listen here.
Apple (Nasdaq: AAPL) has held preliminary talks about investing in bankrupt broadcaster iHeart Radio, in an effort to boost its streaming music service, per the FT.
• Neo4j, a San Mateo, Calif.-based provider of graph databases, raised $80 million in Series E funding. One Peak Partners and Morgan Stanley Expansion Capital co-led, and were joined by return backers Creandum, Eight Roads and Greenbridge Partners. www.neo4j.com
🐱 Dapper Labs, the Vancouver-based consumer blockchain company behind Cryptokitties, raised US$15 million in new VC funding. Venrock led, and was joined by Andreessen Horowitz, GV, Samsung NEXT, Union Square Ventures, William Morris Endeavor and aXiomatic.
🚑 IntelyCare, a Quincy, Mass.-based provider of workforce management software for post-acute healthcare facilities, raised $10.8 million in Series A funding. Leerink Revelation Partners led, and was joined by Longmeadow Capital and return backer LRVHealth. www.intelycare.com
• Marvrck, a Boston-based influencer marketing startup, raised $5.8 million in Series B funding from GrandBanks Capital and Kepha Partners. http://axios.link/oWnl
• Leap, a Chicago-based startup that helps digital brands launch experiential retrial stores, raised $3 million in seed funding. Costanoa Ventures led, and was joined by Equal Partners and Brand Foundry Ventures. www.leapinc.co
• King Children, a custom eyewear startup, raised $2 million from Great Oaks VC, RBC Venture Partners, Gen Z Capital and Casper co-founder Neil Parikh. www.kingchildren.com
• Cerberus agreed to buy Singapore-based SGI Frontier Capital. http://axios.link/kMQ0
• Lee Equity Partners invested in McLarens, a Norcross, Ga.-based insurance services provider. www.mclarens.com
• Platinum Equity agreed to buy the water care business of Lonza (Swiss: LONN) for $630 million. http://axios.link/nBrC
🚑 Veritas Capital and Elliott Management are nearing an agreement to buy Athenahealth (Nasdaq: ATHN), the Watertown, Mass.-based healthcare software company in which Elliott already holds a 1.4% stake, per Bloomberg. http://axios.link/pVVb
🚑 Warburg Pincus completed its previously-announced carve-out of DKSH’s (Swiss: DKSH) healthcare business in China for around $100 million. http://axios.link/DAcL
🚑 Axonics Modulation Technologies, an Irvine, Calif.-based developer of minimally-invasive sacral neuromodulation, raised $120 million in its IPO. It priced 8 million shares at $15, versus plans to offer 6.7 million at $14-$16, for an initial market cap of $400 million. The company will trade on the Nasdaq (AXNX), used BofA Merrill Lynch as lead underwriter, and had raised over $140 million from firms like Andera Partners (14.44% stake), Longitude Venture Partners (12.88%), Gilde Healthcare (12.16%), Advent Life Sciences (9.09%), NeoMed (8.1%), Legend Capital, Edmond de Rothschild Investment Partners and Cormorant Asset Management.
🚑 Orchard Therapeutics, a British gene therapy startup that recently bought a drug portfolio from GlaxoSmithKline, raised $200 million in its IPO. The company priced 14.3 million shares at $14, compared to plans to offer 13.3 million shares at $14-$16. J.P. Morgan was lead underwriter, and Orchard will trade on the Nasdaq (ORTX). Shareholders include F-Prime (29.3% pre-IPO stake), GlaxoSmithKline (17.9%), Deerfield Management (6.7%), RA Capital Management and Venrock.
🚑 Twist Bioscience, a San Francisco-based startup focused on synthetic DNA, raised $70 million in its IPO. The company priced 5 million shares at $14 (low end of range), for an initial market cap of $373 million. It will trade on the Nasdaq (TWST), used JPMorgan as lead underwriter and had raised around $280 million from firms like Arch Venture Partners (14.8% stake), Illumina (14.8%), Tao Capital Partners (7.7%), Fidelity (5.7%), Paladin Capital Group (4.9%), Foresite Capital Management and Yuri Milner.
• American Tower (NYSE: ATC) agreed to buy a majority stake in Indian mobile tower business ATC Telecom Infrastructure from IDFC Private Equity and Tata Teleservices (which will retain a minority stake) for $397 million. http://axios.link/sRCw
• Deutsche Private Equity said it’s considering a sale process for its 36% stake in First Sensor (DE: SISG), a German maker of electronic sensors used in the industrial, medical and automotive sectors. http://axios.link/XTrZ
⛽ Encana (TSX: ECA) agreed to buy Texas-based Newfield Exploration (NYSE: NFX) for around $4.2 billion in an all-stock deal. http://axios.link/7nhn
• LaSalle Investment Management agreed to buy Latitude Management Real Estate Investors, which manages around $1.2 billion in credit funds. http://axios.link/yCfY
• PepsiCo (Nasdaq: PEP) acquired Health Warrior, a Richmond, Va.-based maker of plant-based snack bars. http://axios.link/6BI8
• TP ICAP (LSE: TCAPI) is in advanced talks to Houston-based brokerage buy Axiom Commodity Group, per Reuters. http://axios.link/UOI3
• CVC Capital Partners is targeting $1.5 billion for its second tech growth equity fund, per Financial News. http://axios.link/CX5D
• Full In Venture Partners is raising between $150 million and $200 million for a debut fund, per Bloomberg. The New York-based firm’s founders are Elodie Dupuy (ex-Iconiq), Jess Davis (ex- Insight Venture Partners) and Eric Tonkyn (ex- Bridgewater Associates). http://axios.link/vX5b
• Peloton Capital Management has launched as a Canadian middle-market buyout firm with longer hold times than typical private equity. Its co-founders are, Steve Faraone and Mike Murray (ex-Ontario Teachers’ Pension Plan) and Stephen Smith (co-founder of First National Financial). http://axios.link/Ehu7
• Marten Abrahamsen quietly left Coatue Management, in order to join The Chernin Group as a partner.
• Marc Baliotti joined AE Industrial Partners as a senior managing director. He previously was with GSO Capital. www.aeroequity.com
• Sean Gallary has quietly left The Carlyle Group's AlpInvest business, where he led an effort to buy minority stakes in third-party alternative investment firms. No word yet on future plans.
• Industry Ventures promoted Lindsay Sharma to managing director and Amir Malayery to principal. www.industryventures.com
• Mary Pang joined Cambridge Associates as global head of private clients. She previously was a managing director and senior banker with JP Morgan Private Bank. www.cambridgeassociates.com