Private Equity
SparkCognition, the Austin, Texas, producer of cognitive security analytics systems, closed a $6 million oversubscribed Series B funding. New investors included CME Group’s CME Ventures as well as Verizon Ventures. Current investors participating were Entrepreneurs’ Fund and Alameda Ventures. SparkCognition says it has developed machine-learning technology that models physical and virtual assets, learns from data and derives insights to protect those assets. The tech allows “for more accurate risk mitigation and prevention policies to intervene and avert disasters,” the company said.
3 min read · 26 April 2016
ProtoStar Inc, the San Diego producer of the LifeWalker Upright medical walker, closed its initial round of equity capital, raised mainly from private San Diego investors. The amount wasn’t disclosed. ProtoStar said it plans a line of equipment for people who need help with walking “as a result of aging, trauma, spine or joint replacement surgery, musculoskeletal, neurological and gait disorders, and obesity.” The company also named James H. Berglund chairman and Selwyn Isakow a director. Berglund is a co-founder of Enterprise Partners Venture Capital. Isakow is founder, chairman and chief executive of Oxford Investment Group Inc.
3 min read · 26 April 2016
The University of Michigan's Social Venture Fund said it participated in the Series Seed B convertible-note round of financing for Conversa Health. Conversa, San Rafael, California, provides services to enable physicians to manage their relationships with patients. The student-led fund said in a statement that it was part of a syndicate of early-stage healthcare investors. A team of seven students did a due-diligence review of Conversa, the fund said. The Social Venture Fund, managed by about 40 students who are on track to bachelor’s and master’s degrees in business administration, said it backs “for-profit companies that place social and environmental impact at the heart of their business models.” The fund has seven active investments. It focuses on healthcare, education, food systems and environment and urban revitalization.
4 min read · 26 April 2016
SkyTran, developer of elevated and levitating high-speed rapid-transit systems for people and cargo, closed a Series B financing agreement. In a statement skyTran, based in NASA Research Park at Moffett Field, California, said the accord entailed “execution of a bridge loan tied to a $30 million Series B commitment.” The deal, negotiated and managed by Verita Merchant Bank of Hong Kong, enables skyTran to continue sales efforts and introduce the system worldwide. The company has demo systems in place at the NASA park and in Israel. SkyTran also has backing from Innovation Endeavors, the private venture-capital arm of Google Chairman Eric Schmidt.
2 min read · 26 April 2016
BlackArch Partners, the Charlotte, North Carolina, middle-market investment bank, tapped Grant Hamilton as managing director and head of the firm’s building-products industry practice. For more than a decade, he’s been advising on middle-market M&A, emphasizing the building-products and diversified-industrials sectors, BlackArch said in a statement. Hamilton and a number of BlackArch senior bankers worked previously at Edgeview Partners, which Piper Jaffray acquired in 2013.
2 min read · 26 April 2016
Council Capital, the Nashville healthcare-focused private equity firm, named Grant Jackson managing partner. Jackson had joined the firm in 2008 as a general partner and had effectively assumed the MP’s role in October 2014. He led the closing of the firm’s third private equity fund, which closed two weeks ago on more than $150 million. Jackson has 15 years of experience in healthcare PE at all levels, including company directorships and deal sourcing through to exits. Council Capital, currently managing about $300 million, makes control and minority investments in healthcare companies, targeting those with enterprise values of $10 million to $50 million.
3 min read · 26 April 2016
RealtyShares, the San Francisco online marketplace for real estate investing, named Arash Sotoodehnia chief credit officer, responsible for managing the firm’s risk analytic framework, policies and guidelines. Sotoodehnia was previously Citi Mortgage’s head of risk policy and controls; his resume also includes tenures with Ally Financial and Fannie Mae.
3 min read · 25 April 2016
Transpay, the New York cross-border payments platform, named Mike Carlo global head of travel payments. Carlo had been head of travel solutions at Wex Inc and global market leader for travel at GlobalCollect/Ingenico. At Transpay he’ll oversee expansion of the company’s travel-industry solutions. Transpay is backed by GCP Capital Partners, the $1.8 billion New York private equity fund led by top investors in the payments industry.
2 min read · 25 April 2016
Advent International, the Sao Paulo, Brazil, private equity investor, agreed to acquire Viakem SA, the Mexican crop-protection-chemicals producer. Terms weren’t disclosed. In a statement, Advent said it’s invested in more than 30 chemicals companies worldwide over 25 years. Its recent investments in the sector include Allnex, GTM, Maxam, Mondo Minerals, Oxea and H.C. Starck. Galicia Abogados was legal adviser to Advent while Santos-Elizondo-Cantu-Rivera Gonzalez-de la Garza-Mendoza S.C. provided legal advice to Viakem.
4 min read · 25 April 2016
NGL Energy Partners LP, the Tulsa, Oklahoma, energy firm, formed a partnership with funds managed by Oaktree Capital Management, the Los Angeles investment manager. Under the terms, NGL will issue $200 million of 10.75% Class A convertible preferred units to Oaktree. Oaktree will acquire 16.6 million preferred units for $12.03 each as well as 3.6 million warrants, which are subject to certain vesting and exercise terms. NGL expects to use the proceeds to repay borrowings outstanding on its revolving credit facility. It said it may reborrow those funds to finance capital expenditures and other matters. RBC Capital Markets, UBS Investment Bank and Deutsche Bank Securities were placement agents and financial advisers to NGL. Andrews Kurth LLP was legal counsel to NGL. Oaktree took financial advice from Barclays and legal advice from Vinson & Elkins.
6 min read · 22 April 2016
