Erin Griffith
Lately, Iโve been getting ambushed by emails from LinkedInโs PE/VC Group. Upon further examination, I see that the groupโs message board is a solicitation free-for-all not unlike my email spam folder. Why would anyone bare their deal-doing deeds on a public forum? Here's an example. Today I received a compelling deal flow opportunity from a Kazakhstani energy company:
Any stratigic investors (Energy Holding or PE energy fund) is interested in Electric Transmission Company in Kazakhstan?
Asked by Arman Seisebayev, Independent Director at REIT "Great Wall" (KASE: VSTN)
Tough to take seriously. But alas, I have found evidence of an actual deal being done! From a firm Iโve actually heard of! Yesterday, Jason Pike of Eos Partners revealed he is on the hunt for Retail, Consumer
VC-backed companies donโt have a lot of exit options right now, but (finally) private equity is stepping up to fill that void.
Today Bedford Funding, a tech-focused PE fund, bought 100% of Authoria Inc. for $63.1 million. The software company has received something like $140 million in funding from at least seven different VC firms over the past nine years. (Details here.)
As one source put it, โthese investors were exhausted.โ
But weโll get to the abysmal VC returns later. The main takeaway from this deal is that a PE firm has finally provided an exit for venture capital money. It hasnโt been too common, as VCs are still relying on trade sales or โAPOsโ (alternative public offerings). Or theyโre simply digging in for longer hold periods. Seems silly to me--why wouldnโt they sell to a mid-market PE firm?
I asked Charles Jones of Bedford Funding, Michael Blaber of Authoria, and some industry sources to break down the transaction.
Itโs safe to assume Vladimir Jacimovic has cleared out his office at New Enterprise Associates, where he had been a venture partner. Last week, he was on the firmโs website and a receptionist passed us through to voicemail. This week, heโs off the website and we were directed to his personal cellphone. The reason is [โฆ]
An article in today's Wall Street Journal highlighted something thatโs been touched on here at peHUB, but not in the mainstream press until now. Its something PE and VC pros have been worried about all week: What does all this mean for my IPO?!
Lucky for you, dear reader, I attended a panel of the same name last week and can dutifully report back that indeed, things are not looking great, but thereโs hope.
Follow the jump to read essential Qs and As about APOs (alternative public offerings), which strategics are on the prowl, why Google is returning to the negotiating table, and how the venture model has to change.
From what Iโve gathered of AIGโs private equity businesses, the holdings are relatively significant compared to the entire PE industry, but not large enough to be the insurance behemothโs top concern. As an LP, AIG has at least $10 billion in commitments to various private equity funds. Whatever isnโt being sold on the secondary market [โฆ]
