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PE HUB Wire Highlights, 10.23.18

San Diego stressed by Blackstone’s New Mountain stake; Clearlake buys symplr from Pamlico, CapStreet; Is Cortec’s YETI investment one of the best PE deals ever?

It’s Tuesday.

LBO fund performance has fallen for three straight quarters, after hitting a 10-year high in 2017, eFront said in its “Private Equity Performance Overview.” LBO funds hit a peak of 1.49x in third quarter, and are now back to the level of Q2 2017 of 1.45x. Still, active global LBO funds have outperformed the average of 1.3x achieved from 2009 to 2018 by 0.15x, the report said.

The average time for funds to achieve liquidity has also dropped, to just 2.63 years. The best vintage years so far? eFront pointed to 2009 and 2014 while 2010 and 2013 “are more subdued.”

The best PE deal? Advent International’s investment in Lululemon back in 2005 was considered, for a time, one of the better PE deals in terms of returns, I’ve been told. (Lululemon went public in 2007, raising $327.6 million. Advent cashed out its remaining stake in 2009.)

Today, we have another potential candidate to this hallowed club of good performers. Cortec Group looks like it will make a massive return with the IPO of YETI Holdings. Cortec, a New York PE firm, invested a mere $67 million in YETI back in 2012, according to the Wall Street Journal. YETI, known for its bear-proof coolers, is expected to price its IPO tomorrow and go public on Thursday. Find out how well Cortec stands to do here.

Hubsters, what do you consider the best PE deal? And why? Email me your thoughts at lbeltran@buyoutsinsider.com

DealsWarburg Pincus has invested more than $100 million in Assent Compliance. Read our brief here.

Dyal Capital Partners has bought a small chunk of American Securities. Dyal’s minority stake is passive with non-voting interest. Check out our brief here.

Clearlake Capital Group is buying symplr from Pamlico Capital and CapStreet GroupBuyouts‘s Sarah Pringle reported in July that symplr could fetch around $600 million.

News from Buyouts/VCJProvidence Service Corp, whose businesses range from medical transportation to in-home health assessments for seniors, has engaged JPMorgan to explore a sale. Find out more about the deal here.

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