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PE HUB Wire Highlights, 10.18.18

Vista Equity’s latest flagship collects $11.4 bln on $16 bln target; Smith family does first direct investment; Vector Capital to exit Triton in $150 mln sale

Morning, Hubsters.

The M&A market is expected to get stronger, according to Dykema’s 14th Annual M&A Outlook Survey. Nearly two-thirds, or 65 percent, of executives questioned said they believe mergers will strengthen in the next 12 months. The Debbie Downers, or those execs with negative sentiment, dropped to 15 percent, Dykema said. Interestingly, only 39 percent of those surveyed in 2017 were positive about the M&A market.

Technology and healthcare are no longer the favorite sectors in M&A, the survey said. Instead, automotive, energy and consumer products snagged the top votes. Executives were also not bullish about large deals. Only 26 percent expected growth for transactions above $100 million.

The most interesting aspect of this survey? Dykema asked executives about “Weinstein Misconduct Clauses.” These clauses legally vouch for the behavior of company leaders. More than a quarter of executives questioned said they haven’t been involved in a deal where such a clause was proposed while nearly one third, or 28 percent, said they have seen it.

So, hubsters, have you been involved in a deal where the “Weinstein Misconduct Clause” was inserted? What sort of effect would this clause have? Are you seeing them more in deals? Do you favor them? Why or why not? Email me your thoughts at lbeltran@buyoutsinsider.com

Hot market: Fundraising is hot and so is Vista Equity PartnersRobert Smith‘s buyout shop is now seeking $16 billion for its latest flagship, the Wall Street Journal reported. Vista has already collected $11.4 billion for the pool. See our brief here.

Deals: Vector Capital looks to be exiting Triton Digital after a three-year hold. E.W. Scripps Co said yesterday it would buy Triton for $150 million.  Triton, of Sherman Oaks, California, provides software to the digital audio marketplace. Check out our brief here.

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