In golf, you don't want to be in the "tall grass." So far in 2019, the same rule applies to private equity.
The bottom line is that Blackstone bought into a bear market for energy stocks, despite the White House's much hyped deregulation. But rather than glumly head back into the clubhouse, it's pulling out another club... believing that its luck will improve if given enough time. Just like every amateur golfer ever.
• No, I don't golf. So I really hope I didn't butcher any of that.
🚴 Connected fitness company Peloton yesterday filed for a $500 million IPO, and reported a $196 million net loss on $915 million in revenue for the year ending June 30, 2019. Here's what I wrote in June, after reports that the company had filed confidentially:
Peloton may be first out of the gate for the post-Labor Day IPO rush, and will confound analyst 'buckets.' It's a hardware maker that's also a subscription content creator that's also a streaming software company that also does its own last-mile logistics. CEO John Foley is known to prompt cynical chuckles by calling Peloton the next Apple, but it's hard to think of a much better comp.
Yesterday's filing shows that hardware revenue tops software revenue by about a 6-to-1 margin, which makes sense given the high price points for Peloton's bikes and treadmills (no sales breakdown by device type).
Nowhere in the entire IPO prospectus is the mention of "spinning" or "spin classes." Likely because that commonly-used term was trademarked by another company years ago, forcing companies like Peloton and SoulCycle to refer to their core product offering as "indoor cycling."
🎧 Pro Rata Podcast digs into the landmark opioids judgment against Johnson & Johnson. Listen here.
Advanced Farm Technologies, a Davis, Calif.-based developer of strawberry-harvesting robots, raised $7.5 million in Series A funding led by Yamaha Motor Ventures & Lab.
🚑 HiFiBio Therapeutics, developer of a single-cell analytics platform for immune profiling, raised $67 million in Series C funding. IDG Capital led, and was joined by Delian Capital, Hanne Capital, Kite and return backers Sequoia Capital China, VI Ventures, Legend Star Capital, and LYFE Capital. www.hifibio.com
⛽ Bboxx, a London-based developer of plug-and-play solar systems, raised $50 million in Series D funding from backers like Mitsubishi Corp. http://axios.link/ADk8
• Groups360, a Nashville-based online marketplace for meetings, raised $50 million from Accor, Hilton, InterContinental Hotels Group, and Marriott International. http://axios.link/KoVZ
• Bestmile, a Swiss fleet orchestration platform, raised $16.5 million in Series B funding. Blue Lagoon Capital and TransLink Capital co-led, and were joined by return backers Road Ventures, Partech, Groupe ADP, Airbus Ventures, and Serena Capital. http://axios.link/IApu
• Tesorio, a Burlingame, Calif.-based provider of cash flow management software, raised $10 million in Series A funding. Madrona Venture Group led, and was joined by First Round Capital, Floodgate, YC, Fathom Capital, and Fuel Capital. http://axios.link/vPBC
• Mythic Markets, a San Francisco-based fractional investing platform, raised $2 million in seed funding led by Slow Ventures. http://axios.link/PzjV
• Altas Partners agreed to buy DuBois Chemicals, a Sharonville, Ohio-based specialty chemicals company, from The Jordan Company. www.duboischemicals.com
• McAfee, the cybersecurity company owned by TPG Capital, Thoma Bravo and Intel, hired Morgan Stanley and BAML to lead its upcoming IPO, per Bloomberg. An earlier WSJ report said the company could seek to raise around $1 billion at a $5 billion valuation. http://axios.link/XrE3
• TeamViewer, a German business collaboration software company owned by Permira, is launching a Frankfurt IPO this year that could value the company at between 4 billion and 5 billion, per Bloomberg. http://axios.link/BzLB
• China Sinda, a Chinese IP law firm, is seeking a buyer at around a $300 million price-tag, per Bloomberg. http://axios.link/6NPs
• JPMorgan Chase (NYSE: JPM) is seeking a buyer for its AARP credit card portfolio, which includes around $1 billion in credit card receivables, per Bloomberg. http://axios.link/fVI7
• Jiangsu Shagang Group, a Chinese steelmaker, paid $2.2 billion to increase its stake in London-based data center operator Global Switch from 24% to 49%, ahead of an anticipated Global Switch IPO. http://axios.link/lAlE
• LGT, the private bank of Liechtenstein's royal family, acquired Aspada, an Indian VC firm focused on impact investing, from the Soros Economic Development Fund. Aspada has around $100 million in AUM. http://axios.link/hQwA
🚑 Nuvectra (Nasdaq: NVTR), a Plano, Texas-based maker of neurostimulation medical devices, said it would explore strategic alternatives, including a possible sale. Its market cap is just $37 million. http://axios.link/UDDn
• WeWork acquired Spacious, a New York-based co-working space startup that utilizes restaurants during unused daytime hours. http://axios.link/6RDD
• Lexington Partners is raising $2.5 billion for its fifth private equity co-investment fund, per public pension documents. http://axios.link/WDJK
🚑 Varsity Healthcare Partners, a lower middle-market private equity firm, raised $417 million for its third fund.
British Petroleum (LSE: BP) agreed to sell its Alaska properties for $5.6 billion to Hilcorp Energy. thus exiting the state after having operated there for six decades.