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Clearlake and Francisco Partners Complete Acquisition of Black Duck Software, Formerly Known as Synopsys Software Integrity Group

Franciso Partners

The standalone application security company continues its mission to help organizations build trust in their software to support innovation and business transformation

SANTA MONICA & SAN FRANCISCO, Calif., October 1, 2024 – Clearlake Capital Group (“Clearlake”) and Francisco Partners announced today that they have completed their acquisition of the Synopsys Software Integrity Group, establishing the newly independent application security company as Black Duck Software, Inc. (“Black Duck”). The transaction with Synopsys, Inc. (Nasdaq: SNPS), which was first announced on May 6, 2024, is valued at up to $2.1 billion, including up to $475 million in cash payable upon Clearlake and Francisco Partners achieving a specified rate of return in connection with one or more liquidity transactions.

The new Black Duck brand is inspired by its flagship software supply chain solution, Black Duck SCA, which has helped thousands of organizations around the world adopt open-source technology safely and securely for nearly 20 years.

As an independent company, Black Duck provides all the application security solutions previously available from the Synopsys Software Integrity Group. Black Duck’s mission is to help organizations build trust in their software so they can innovate and transform their businesses with new, emerging technologies like AI.

Veteran security leader Jason Schmitt, who joined Synopsys in 2020 as the general manager of the Software Integrity Group, will continue to lead Black Duck as its Chief Executive Officer. Black Duck also announced that it has appointed Joy Meier as Chief Human Resources Officer and General Counsel. The remainder of the existing Software Integrity Group’s leadership team will continue in their roles at Black Duck.

“We are excited to continue our partnership with Jason and the entire Black Duck management team as the company begins the next step of its journey as a standalone business,” said Brian Decker and Evan Daar, Partners at Francisco Partners. “Alongside Clearlake, we are excited to help extend the company’s leadership in the industry as a comprehensive next-generation application security testing provider. This next stage of growth will better serve its customers, while protecting their mission-critical software applications, and we are looking forward to bringing additional resources and expertise to keep accelerating its growth.”

“Black Duck provides critical technology that supports and enables enterprise-scale software development teams to protect their applications against rapidly evolving cybersecurity threats,” said Prashant Mehrotra, Partner, and Sean Courtney, Principal, at Clearlake. “We are committed to supporting Black Duck as it continues to innovate and address the increasing demands for cutting-edge application security solutions with the help of our O.P.S.® value creation framework.”

As a recognized market leader, Black Duck provides a comprehensive portfolio of application security products and services. As a newly independent company with a singular vision and focus, Black Duck is better positioned to deliver the leading solutions the market has come to expect.

“We’re excited to complete our transition from Synopsys to Black Duck with the support of Clearlake and Francisco Partners,” said Jason Schmitt, CEO of Black Duck. “I am proud of what we have accomplished to get here, and I am optimistic about our future as an independent company. With a comprehensive portfolio of application security solutions underpinned by differentiated technology and a talented team of experts, we enter the next phase of our journey with momentum and a renewed focus to help our customers build trust in their software.”

Black Duck’s portfolio, which has been named a Leader in the Gartner® Magic Quadrant™ for Application Security Testing1 for seven consecutive years, includes:
•Polaris™ SaaS Platform
•Coverity® Static Analysis
•Black Duck Software Composition Analysis
•WhiteHat™ Continuous Dynamic Analysis
•Seeker® Interactive Analysis
•Defensics® Protocol Fuzzing
•Security Testing, Consulting, and Audit Services

For more information, read Jason Schmitt’s blog post and visit Black Duck’s new website: www.blackduck.com.

Evercore, Deutsche Bank, and Barclays acted as financial advisors to Clearlake and Francisco Partners. Sidley Austin acted as lead legal advisor to Clearlake and Francisco Partners. Simpson Thacher & Bartlett also advised Francisco Partners. J.P. Morgan served as financial advisor and Cleary Gottlieb Steen & Hamilton served as legal advisor to Synopsys.

About Clearlake Capital
Clearlake Capital Group, L.P. is an investment firm founded in 2006 operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are technology, industrials, and consumer. Clearlake currently has over $85 billion of assets under management and its senior investment principals have led or co-led over 400 investments. The firm is headquartered in Santa Monica, CA with affiliates in Dallas, TX, London, UK, Dublin, Ireland Singapore and Abu Dhabi, UAE. More information is available at www.clearlake.com.

About Francisco Partners
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch 25 years ago, Francisco Partners has invested in more than 450 technology companies, making it one of the most active and longstanding investors in the technology industry. With approximately $45 billion in capital raised, the firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.

About Black Duck Software, Inc.
Black Duck Software, formerly known as the Synopsys Software Integrity Group, offers a comprehensive portfolio of application security testing solutions. The company helps organizations around the world secure their software quickly, integrate security efficiently in their development environments, and safely innovate with new technologies. To learn how Black Duck can help you build trust in your software, visit www.blackduck.com.

  1. Gartner, Inc. “Magic Quadrant for Application Security Testing” by Mark Horvath, Dale Gardner, Manjunath Bhat, Ravisha Chugh, Angela Zhao, May 17, 2023.

Media Contacts:

Contacts:

Clearlake:
Jennifer Hurson
Lambert
jhurson@lambert.com

Francisco Partners:
Whit Clay / Jake Cohen
Sloane & Company
wclay@sloanepr.com / jcohen@sloanepr.com

Black Duck:
Liz Samet
Black Duck Software, Inc.
336.414.6753
esamet@blackduck.com

Team

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Current

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North America

Divisional Carve-Outs

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Equistone portfolio company SF-Filter maintains growth trajectory and expands footprint through acquisitions of Filter Center and Filter Agri

Equistone

SF-Filter Group (“SF-Filter”), in which funds advised by Equistone Partners Europe have held a majority stake since September 2022, is continuing its growth trajectory with two further add-ons. The Swiss group is significantly expanding its position as a pan-European sales platform with the takeover of Filter Center, one of Italy’s largest independent wholesalers in the mobile and industrial filtration market. SF-Filter has also acquired Filter Agri, a start-up specialising in agricultural filter solutions.

With a broad product portfolio as well as end customers and resellers from more than 60 countries, SF-Filter has positioned itself as a major one-stop-shop for filtration. Founded in 1962 and based in Bachenbuelach, Zurich, the group provides filter solutions for a range of applications in areas including air, fuel, hydraulics, pneumatics, liquids, dust extraction, and air conditioning technology.

Since September 2022, funds advised by Equistone have owned a majority stake in SF-Filter, supporting its internationalisation and growth trajectory. Following the takeover of Busse & Kuntze in October 2023, SF-Filter made two further strategically important acquisitions at the beginning of this year. With the acquisition of the filter specialist Ostholte and its former sales partner Hermans Brems, SF-Filter has strengthened its market position in Germany and Belgium, as well as driven forward digitalisation towards a cloud-only company. The group is currently also building a 17,000 square-metre logistics centre in Immendingen, south-west Germany, with the new facility ranking among the largest, most efficient and most modern in the industry and representing an important milestone in the move towards offering 24-hour accessibility to all customers in Europe.

Through the acquisition of Filter Center, SF-Filter has secured direct access to the attractive and fast-growing Italian market. Filter Center, headquartered near Parma, has been one of the largest independent providers of mobile and industrial filtration solutions in the Italian filter market since its foundation in 1992. The acquisition will provide SF-Filter with Filter Center’s comprehensive expertise in the compressed air segment and the platform to develop its brand in the Italian market, as well as strengthening the group’s reseller business through intensified cooperations and facilitating the roll-out of the SF-Filter service portfolio across Italy.

“With the acquisition of Filter Center as a market leader in Italy, we are opening up a new, extremely promising sales region for our group,” explains Daniel Infanger, CEO of SF-Filter. “Both companies have impressive synergies in their business models and Filter Center also brings extensive know-how in a sub-area of industrial filtration. Important factors with which we will once again significantly expand our group’s already leading position within the industry. We are very much looking forward to working with the motivated and determined local management team at Filter Center and to achieving new successes with a shared vision,” Infanger adds.

“SF-Filter has developed excellently since the Equistone funds acquired a majority stake two years ago and has continuously expanded its international position as a pre-eminent distribution platform specialising in filtration through targeted acquisitions. With the two most recent acquisitions, SF-Filter has not only successfully entered the Italian market but is also significantly driving forward consolidation as an important player in the highly fragmented European filtration market,” explains David Zahnd, partner in Equistone’s Zurich office.

Enrico Losa, Managing Director of Filter Center, adds: “By integrating into the group, Filter Center gains access to the broadest product range in the industry, which creates new growth opportunities for our company. With the strong brand and the excellent reputation of SF-Filter behind us, we are ideally positioned to further expand our market position. What is particularly valuable for us is the access to the first-class, group-wide service portfolio and the SF-Filter private label brand, which enables us to offer our customers the best service and high quality.”

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VisiQuate Joins Forces with Accel-KKR to Propel Growth and Innovation

AKKR Logo
  • Accel-KKR
  • | 

Santa Rosa, CA and Menlo Park, CA – October 1, 2024 – VisiQuate, a leading provider of advanced revenue cycle analytics, AI-powered workflow, and automation, today announced its acquisition by Accel-KKR, a global technology-focused investment firm. This strategic partnership marks a new chapter in VisiQuate’s journey, leveraging Accel-KKR’s extensive resources and strategic expertise to support the company’s continued growth and innovation.

The healthcare industry is at a pivotal moment, with increasing demands for accelerated ROI, efficiency, accuracy, and cost effectiveness. Denials, underpayments and other forms of revenue and process leakage have been rising, with over $265 billion of annual waste[1] in healthcare spending due to administrative complexity, resulting in billions of unclaimed revenue and costs for healthcare providers.

VisiQuate offers a leading platform for revenue cycle analytics, workflow and automation for health systems that maximizes the visibility and efficiency within the revenue cycle operations team, driving transformational business and financial health for clients. In 2023, Black Book named VisiQuate as the Number #1 revenue analytics financial IT solution for hospitals and health systems.

Brian Robertson, founder & CEO of VisiQuate, said, “Joining forces with Accel-KKR marks a pivotal milestone for VisiQuate. Healthcare revenue cycle management continues to be burdened with too much waste, inefficiency, and dissatisfaction — and the combined financial angst is mounting at an accelerating pace.   We remain passionate and relentless in our pursuit of solutions that drive meaningful change, elevate management, staff and C-suite objectives, and most importantly, deliver undeniable ROI. This partnership with Accel-KKR will accelerate product innovation and expand our expert team, enabling us to help more healthcare systems achieve peak financial performance.”

Park Durrett, Managing Director at Accel-KKR, said: “VisiQuate delivers mission-critical solutions that empower healthcare organizations to optimize their revenue cycles and enhance financial performance. We are excited to support VisiQuate’s next chapter of growth and look forward to helping them continue to provide industry-leading innovations, while delivering even greater value to their clients.”

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About VisiQuate

VisiQuate, a leading provider of advanced revenue cycle analytics and AI-powered workflow automation software, dramatically improves performance and reduces process waste. For nearly two decades, VisiQuate has partnered with hospitals and health systems to markedly improve their top and bottom line. VisiQuate delivers optimized enterprise outcomes through a unique combination of complex data curation, deep AI & ML, advanced analytics and intelligent process automation. VisiQuate’s revenue cycle analytics, workflow, and automation has shifted RCM from a manual, low visibility, unpredictable, and sub-scale function to an automated, efficient, and high performing strategic advantage. The company is headquartered in Santa Rosa, CA, with offices in Harrisburg, PA and Dallas, TX. Visit www.visiquate.com to learn more.

About Accel-KKR

Accel-KKR is a technology-focused investment firm with $19 billion in cumulative capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for top-line and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions, including buyout capital, minority-growth investments, and credit alternatives. Accel-KKR also invests across various transaction types, including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR’s headquarters is in Menlo Park, with offices in Atlanta, Chicago, London, and Mexico City. Visit accel-kkr.com to learn more.

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Cendyn Acquires Knowland

AKKR Logo
  • Accel-KKR
  • | 

Integrated hospitality solutions leader dives deeper into group sales, meetings, and events in its latest acquisition supported by its investors, including Haveli Investments

Austin, Texas, USA – 1 October 2024: Cendyn, a global hospitality cloud-based technology company, has acquired Knowland, the US-based leader in data-as-a-service intelligence on meetings and events for hospitality. The strategic acquisition presents an opportunity to enhance sales prospecting by yielding greater bookings in the MICE (meetings, incentives, conferences, and events) space.

Knowland’s platform includes extensive market intelligence data on meetings and events gathered from over 7,500 hotels across the USA and a select handful of international markets. Knowland’s products connect hoteliers with market insights to drive more revenue, accelerate the sales cycle, and optimize processes to achieve group sales goals.

Alongside Cendyn’s current investors, earlier this year Cendyn welcomed Austin-based Haveli Investments to its private equity portfolio. With their focus on high-quality technology companies, the backing by Haveli Investments along with Accel-KKR puts Cendyn on a strong path to deliver innovation for the hospitality industry. The pairing of Knowland’s meeting and event data with Cendyn’s Sales CRM, Proposals, and Grouprev platforms highlights the opportunity this acquisition brings to their customers, empowering them to find and drive group bookings with a complete and single solution.

“To effectively sell group business, hoteliers need immediate access to data, and Knowland’s event intelligence platform is undoubtedly the market leader in this area. Its sales intelligence complements our Sales CRM, helping hoteliers find their target audience. Then, using our Proposals and Grouprev platforms, hoteliers can complete the booking process. It’s the perfect fit with our commitment to helping hoteliers ‘Find, Book, and Grow’ their business. With Haveli Investments’ dedication and expertise in technology joining our expansion, we’re poised to deliver a bright future for Cendyn’s customers,” said Jack Blaha, CEO at Cendyn.

“Salespeople thrive on information, and over the past 20 years, Knowland has provided them with essential data to help target new business efforts and hone in on genuine leads,” said Jeff Bzdawka, CEO at Knowland. “This exciting new era furthers our commitment to improving the working lives of hotel sales teams and helps shift the needle towards a proactive sales approach to group business.”

According to the US Travel Association, after a slow recovery, business travel is expected to regain 95% of its 2019 peak in 2024. The acquisition provides Cendyn with the opportunity to equip its customers with a combined event intelligence and B2B prospecting solution, simplifying and automating the sales process to ease the management and success of sales outreach.

“We are excited to partner with Cendyn, its leadership team, and all of its shareholders, including Accel-KKR to capitalize on the growth opportunities that lie ahead,” said Ian Loring, Senior Managing Director and Executive Chair at Haveli Investments. “We believe Cendyn’s broad portfolio of hospitality solutions uniquely positions it to help continue capturing market share, expanding into new markets, and driving value for its customers.”

About Cendyn
Cendyn is a global hospitality cloud-based technology company that enables hotels to drive revenue, maximize profitability, and create deeper connections with guests through its integrated solutions. Serving hoteliers for nearly 30 years, Cendyn drives commercial success for hotels through its Find, Book, Grow promise: find the right guests; drive them to book direct, and grow loyalty and revenue across the spectrum of digital guest interactions. Cendyn has over 32,000 customers worldwide in more than 150 countries. The company supports its growing customer base from locations across the globe, including the United States, France, the United Kingdom, Singapore, Bangkok, and India. To find out more, visit cendyn.com

About Knowland
Celebrating its 20th year in 2024, Knowland is the world’s leading provider of data-as-a-service insights on meetings and events for hospitality. With the industry’s largest historical database of actualized events, thousands of customers trust Knowland to sell group smarter and maximize their revenue. Knowland operates globally and is headquartered just outside Washington, DC. To find out more, visit www.knowland.com

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TJC Closes Second Continuation Fund of $2.1 Billion Led by AlpInvest

Carlyle

NEW YORK–(October 1, 2024) – TJC LP (“TJC” or “the Firm”), a middle-market private equity firm investing primarily in North American businesses, today announced the close of its second continuation fund (the “Continuation Fund”) at $2.1 billion, which will be an extension of The Resolute Fund III, L.P. (“Resolute III”) and include an asset jointly owned with The Resolute Fund IV, L.P. (“Resolute IV”).

The Continuation Fund purchased a total of five portfolio companies including assets from Resolute III, a 2013 vintage fund with approximately $3.2 billion in capital commitments and a portfolio company Resolute III jointly owned with Resolute IV, a 2018 vintage fund with approximately $3.6 billion in capital commitments. The Continuation Fund will give TJC time and capital to accelerate growth of core portfolio assets, while offering limited partners from Resolute III and Resolute IV an opportunity to achieve liquidity in a timely manner.

“As we drive ongoing acquisition integration and operational initiatives within the Continuation Fund portfolio, we believe this transaction will enable us to provide the Fund’s portfolio companies with greater resources, time and flexibility to execute on these strategies which will continue to build shareholder value,” said Rich Caputo, Chairman and Chief Executive Partner of TJC. “We have given our investors an option to take accelerated liquidity at a market-driven price while allowing the portfolio companies the opportunity to continue to pursue their long-term growth plans.”

“This is the second consecutive transaction that earned overwhelming support from limited partners, and was oversubscribed by new investors,” said Kristin Custar, Partner and Head of TJC’s Global Investor Capital Group. “We are thankful for the partnership of the investors who supported the Continuation Fund and appreciate their continued support.”

The transaction was led by AlpInvest, a subsidiary of global investment firm Carlyle (NASDAQ: CG), and included a diverse group of secondary and primary investors, including Resolute III and Resolute IV limited partners. TJC offered all existing Resolute III and Resolute IV limited partners the opportunity to exercise a full liquidity option, a rollover option, and an option to seek to make additional capital commitments to the Continuation Fund.

“AlpInvest is pleased to have the opportunity to expand our partnership with TJC in leading the Resolute III Continuation Fund transaction,” said Eric Anton, Managing Director at AlpInvest. “The transaction is strongly aligned with our strategy, and we look forward to continuing to support TJC in driving value creation initiatives across the portfolio.”

William Blair served as exclusive financial advisor to TJC and placed the Continuation Fund. Latham & Watkins LLP acted as legal advisor to TJC.

 

About TJC

TJC LP, formerly known as The Jordan Company, has worked for more than 40 years with CEOs, founders and entrepreneurs across a range of industries including Consumer & Healthcare, Diversified Industrials, Industrial Technology, Logistics & Supply Chain and Technology & Infrastructure. With $31.4 billion of assets under management as of June 30, 2024, TJC is managed by a senior leadership team that has invested together for over 22 years on over 80 investments. TJC has offices in New York, Chicago, Miami and Stamford. For more information, please visit www.tjclp.com.

About AlpInvest

AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), is a leading global private equity investor with $80+ billion of assets under management and more than 500 investors as of June 30, 2024. It has invested with over 360 private equity managers and committed approximately $100 billion across primary commitments to private equity funds, secondary and portfolio finance transactions and co-investments. AlpInvest employs more than 230 people in New York, Amsterdam, Hong Kong, London, and Singapore. For more information, please visit www.carlyle.com.

 

Contacts

AlpInvest

Isabelle Jeffrey

Isabelle.jeffrey@carlyle.com

Brittany Berliner

Brittany.Berliner@carlyle.com

 

TJC

Jonathan Marino

Prosek Partners

jmarino@prosek.com

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CapMan Infra achieves two five-star GRESB ratings, improves asset-level scores across the board

Capman

CapMan Infra achieves two five-star GRESB ratings, improves asset-level scores across the board

CapMan Infra’s first fund achieved top scores and the highest possible rating of five stars in GRESB’s annual ESG assessment, placing it in the top quartile among GRESB benchmarks. Infra’s second fund participated in the assessment separately for operational and pre-operational assets, receiving a five-star rating in the pre-operational assets ranking and a three-star rating in the operational assets ranking.

GRESB assesses and compares the ESG performance of real assets globally and has become the go-to benchmark for asset managers and investors when it comes to ESG performance of different funds and portfolio companies.

The CapMan Nordic Infrastructure I (CMNI I) fund participated in the GRESB assessment for the fourth year in a row. This year’s review awarded the fund with a score of 94 out of 100, an improvement of 2 points from last year, achieving a five-star rating.

The fund saw an overall improvement in asset scores as compared to the previous year, all assets scoring above 90 points. The biggest improver, and highest scoring asset of the fund was Koiviston Auto, Finland’s leading bus operator, which achieved a score of 93, an eleven-point increase as compared to last year. This improvement was largely driven by enhanced ESG risk assessments and more comprehensive environmental KPI reporting, particularly in air pollution.

CapMan Nordic Infrastructure II (CMNI II) participated in the GRESB assessment across two categories, operational and pre-operational assets. This year marks the first time GRESB has assessed pre-operational assets using its Infrastructure Development Asset Assessment1.

In the category for pre-operational assets the fund achieved a five-star rating with a score of 89 out of 100, driven by first-year participant Skarta Energy’s score of 84 points out of 100. Skarta Energy is a developer of renewable energy projects, demonstrating strong performance in implementing ESG policies and reporting practices.

In the category for operational assets, the fund achieved a three-star rating and score of 88 out of 100. This strong performance was supported by first-year participant Napier, an aquaculture support vessel company, which achieved the highest first-year asset-level GRESB score received so far at CapMan Infra with 89 points out of 100. Napier’s success was driven by its commitment to embedding ESG into its operations, including implementing robust policies and procedures and setting clear ESG objectives.

“We are thrilled to have achieved such excellent GRESB results this year including two five-star ratings. Our achievements are a testament to our commitment to systematically develop the sustainability performance of our assets and our ambition to be a leader in this field. We are proud of the results in all our assets which demonstrate the effectiveness of our approach and the strong collaboration we have built with our portfolio companies,” says Ville Poukka, Managing Partner at CapMan Infra.

The GRESB assessment reflects performance during 2023.

1. Infrastructure Development Asset Assessment: https://www.gresb.com/nl-en/infrastructure-development-asset-assessment/

For more information, please contact:

Ville Poukka, Managing Partner, CapMan Infra, tel. +358 50 572 9120

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation and €5.8 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com

About GRESB

GRESB is a mission-driven and industry-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to financial markets. Established in 2009, GRESB has become the leading ESG benchmark for real estate and infrastructure investments across the world, used by 170 institutional and financial investors to inform decision-making. GRESB standards are governed by the independent, not-for-profit GRESB Foundation, while ESG assessments are managed by GRESB BV, a benefit corporation. For more information, visit GRESB.com.

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TJC Closes Second Continuation Fund of $2.1 Billion Led by AlpInvest

Carlyle

NEW YORK–(October 1, 2024) – TJC LP (“TJC” or “the Firm”), a middle-market private equity firm investing primarily in North American businesses, today announced the close of its second continuation fund (the “Continuation Fund”) at $2.1 billion, which will be an extension of The Resolute Fund III, L.P. (“Resolute III”) and include an asset jointly owned with The Resolute Fund IV, L.P. (“Resolute IV”).

The Continuation Fund purchased a total of five portfolio companies including assets from Resolute III, a 2013 vintage fund with approximately $3.2 billion in capital commitments and a portfolio company Resolute III jointly owned with Resolute IV, a 2018 vintage fund with approximately $3.6 billion in capital commitments. The Continuation Fund will give TJC time and capital to accelerate growth of core portfolio assets, while offering limited partners from Resolute III and Resolute IV an opportunity to achieve liquidity in a timely manner.

“As we drive ongoing acquisition integration and operational initiatives within the Continuation Fund portfolio, we believe this transaction will enable us to provide the Fund’s portfolio companies with greater resources, time and flexibility to execute on these strategies which will continue to build shareholder value,” said Rich Caputo, Chairman and Chief Executive Partner of TJC. “We have given our investors an option to take accelerated liquidity at a market-driven price while allowing the portfolio companies the opportunity to continue to pursue their long-term growth plans.”

“This is the second consecutive transaction that earned overwhelming support from limited partners, and was oversubscribed by new investors,” said Kristin Custar, Partner and Head of TJC’s Global Investor Capital Group. “We are thankful for the partnership of the investors who supported the Continuation Fund and appreciate their continued support.”

The transaction was led by AlpInvest, a subsidiary of global investment firm Carlyle (NASDAQ: CG), and included a diverse group of secondary and primary investors, including Resolute III and Resolute IV limited partners. TJC offered all existing Resolute III and Resolute IV limited partners the opportunity to exercise a full liquidity option, a rollover option, and an option to seek to make additional capital commitments to the Continuation Fund.

“AlpInvest is pleased to have the opportunity to expand our partnership with TJC in leading the Resolute III Continuation Fund transaction,” said Eric Anton, Managing Director at AlpInvest. “The transaction is strongly aligned with our strategy, and we look forward to continuing to support TJC in driving value creation initiatives across the portfolio.”

William Blair served as exclusive financial advisor to TJC and placed the Continuation Fund. Latham & Watkins LLP acted as legal advisor to TJC.

 

About TJC

TJC LP, formerly known as The Jordan Company, has worked for more than 40 years with CEOs, founders and entrepreneurs across a range of industries including Consumer & Healthcare, Diversified Industrials, Industrial Technology, Logistics & Supply Chain and Technology & Infrastructure. With $31.4 billion of assets under management as of June 30, 2024, TJC is managed by a senior leadership team that has invested together for over 22 years on over 80 investments. TJC has offices in New York, Chicago, Miami and Stamford. For more information, please visit www.tjclp.com.

About AlpInvest

AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), is a leading global private equity investor with $80+ billion of assets under management and more than 500 investors as of June 30, 2024. It has invested with over 360 private equity managers and committed approximately $100 billion across primary commitments to private equity funds, secondary and portfolio finance transactions and co-investments. AlpInvest employs more than 230 people in New York, Amsterdam, Hong Kong, London, and Singapore. For more information, please visit www.carlyle.com.

 

Contacts

AlpInvest

Isabelle Jeffrey

Isabelle.jeffrey@carlyle.com

Brittany Berliner

Brittany.Berliner@carlyle.com

 

TJC

Jonathan Marino

Prosek Partners

jmarino@prosek.com

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Extens acquires majority stake in Medicore

Extens logo

Extens announces the acquisition of a majority stake in Medicore, a Netherlands-based company specializing in the development of a unique solution for mental health and youth care facilities. This marks Extens’s first investment outside of France, in line with its European expansion strategy.

Founded in 2004 and headquartered in Utrecht, Medicore is an innovative and fast-growing developer of unique web-based, interoperable electronic patient and client records (EHRs) and data-driven applications for healthcare. Medicore’s software solutions significantly contribute to process improvement, enabling healthcare professionals to fully focus on providing care. The software’s user-friendly design and commitment to continuous improvement are highly valued by its customers, which include mental health institutions, youth care facilities, the medico-social domain, and specialist clinics. Medicore currently serves over 25,000 healthcare professionals.

This third carve-out within the Extens III fund brings together ING Corporate Investments as a local partner, Livingstone Partners, and Medicore’s founders who reinvested. The transaction, led by Extens, was also shared with “Investir pour l’Enfance,” a sharing fund managed by RAISE, dedicated to financing projects with a high societal impact. Medicore was previously part of The Tenzinger Group, a provider of innovative healthcare ICT solutions and high-quality data, backed by Fortino Capital.

Medicore offers an outstanding 100% SaaS EHR application, which consist of a comprehensive suite of tools, including patient registration, health record management, invoicing, compliance tracking, a patient portal, and a mobile remote app. With a top position in outpatient mental healthcare, youth care and specialist clinics, Medicore is well-positioned for continued growth. The company’s robust product offering and leadership in key segments provide a clear pathway for expansion.

In the coming years, Medicore will focus on enhancing decision support for users, extensive connectivity and delivery of client records from the public cloud. Starting this autumn, Medicore will deliver actionable insights (UPs) based on data from records, aimed at saving time for users. Additionally, Medicore will migrate client user environments to Microsoft Azure before the end of this year, making it the first ECD provider in the Netherlands to offer its clients the benefits of the public cloud.

Morgane DECULTIEUX

« Medicore’s strategy is aligned with our focus on transforming promising healthtech companies into market leaders. We recognize the growing pressure on healthcare systems across Europe, and Medicore’s decision support EPD provides substantial value to its users while improving care quality. We are excited to partner with the Medicore team and look forward to leveraging our expertise to help them unlock its full growth potential. »

Morgane DECULTIEUX

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TJC Closes Second Continuation Fund of $2.1 Billion Led by AlpInvest

Carlyle

NEW YORK–(October 1, 2024) – TJC LP (“TJC” or “the Firm”), a middle-market private equity firm investing primarily in North American businesses, today announced the close of its second continuation fund (the “Continuation Fund”) at $2.1 billion, which will be an extension of The Resolute Fund III, L.P. (“Resolute III”) and include an asset jointly owned with The Resolute Fund IV, L.P. (“Resolute IV”).

The Continuation Fund purchased a total of five portfolio companies including assets from Resolute III, a 2013 vintage fund with approximately $3.2 billion in capital commitments and a portfolio company Resolute III jointly owned with Resolute IV, a 2018 vintage fund with approximately $3.6 billion in capital commitments. The Continuation Fund will give TJC time and capital to accelerate growth of core portfolio assets, while offering limited partners from Resolute III and Resolute IV an opportunity to achieve liquidity in a timely manner.

“As we drive ongoing acquisition integration and operational initiatives within the Continuation Fund portfolio, we believe this transaction will enable us to provide the Fund’s portfolio companies with greater resources, time and flexibility to execute on these strategies which will continue to build shareholder value,” said Rich Caputo, Chairman and Chief Executive Partner of TJC. “We have given our investors an option to take accelerated liquidity at a market-driven price while allowing the portfolio companies the opportunity to continue to pursue their long-term growth plans.”

“This is the second consecutive transaction that earned overwhelming support from limited partners, and was oversubscribed by new investors,” said Kristin Custar, Partner and Head of TJC’s Global Investor Capital Group. “We are thankful for the partnership of the investors who supported the Continuation Fund and appreciate their continued support.”

The transaction was led by AlpInvest, a subsidiary of global investment firm Carlyle (NASDAQ: CG), and included a diverse group of secondary and primary investors, including Resolute III and Resolute IV limited partners. TJC offered all existing Resolute III and Resolute IV limited partners the opportunity to exercise a full liquidity option, a rollover option, and an option to seek to make additional capital commitments to the Continuation Fund.

“AlpInvest is pleased to have the opportunity to expand our partnership with TJC in leading the Resolute III Continuation Fund transaction,” said Eric Anton, Managing Director at AlpInvest. “The transaction is strongly aligned with our strategy, and we look forward to continuing to support TJC in driving value creation initiatives across the portfolio.”

William Blair served as exclusive financial advisor to TJC and placed the Continuation Fund. Latham & Watkins LLP acted as legal advisor to TJC.

 

About TJC

TJC LP, formerly known as The Jordan Company, has worked for more than 40 years with CEOs, founders and entrepreneurs across a range of industries including Consumer & Healthcare, Diversified Industrials, Industrial Technology, Logistics & Supply Chain and Technology & Infrastructure. With $31.4 billion of assets under management as of June 30, 2024, TJC is managed by a senior leadership team that has invested together for over 22 years on over 80 investments. TJC has offices in New York, Chicago, Miami and Stamford. For more information, please visit www.tjclp.com.

About AlpInvest

AlpInvest, a subsidiary of Carlyle (NASDAQ: CG), is a leading global private equity investor with $80+ billion of assets under management and more than 500 investors as of June 30, 2024. It has invested with over 360 private equity managers and committed approximately $100 billion across primary commitments to private equity funds, secondary and portfolio finance transactions and co-investments. AlpInvest employs more than 230 people in New York, Amsterdam, Hong Kong, London, and Singapore. For more information, please visit www.carlyle.com.

 

Contacts

AlpInvest

Isabelle Jeffrey

Isabelle.jeffrey@carlyle.com

Brittany Berliner

Brittany.Berliner@carlyle.com

 

TJC

Jonathan Marino

Prosek Partners

jmarino@prosek.com

Categories: News

Platinum Equity Carveout Experience, Expected Growth in Organic Milk Market Fuels Horizon Investment

Platinum

The organic dairy market is expected to grow because of rising demand and other factors.

In an interview shortly after Platinum Equity closed on Horizon Organic, the largest USDA-certified organic dairy brand in the world, Managing Director Adam Cooper cited that trend.

“The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company.”

Louis Samson, Co-President, Platinum Equity

“Broadly speaking, the milk industry is in secular decline, but premium, organic milk products show moderate growth because of the health-conscious categories in food and beverage.”

Earlier this year, Platinum Equity acquired a majority interest in Horizon Organic from Danone. The deal also included the Wallaby brand, an Australian-inspired Greek-style yogurt made with organic milk and premium ingredients.

“Horizon Organic is an iconic name in dairy that is well-recognized and beloved by consumers,” Platinum Equity executive Louis Samson said after the April closing. “The brand has earned a reputation for quality and innovation that is unmatched in the industry. We appreciate Danone’s confidence in our ability to build on that legacy and support Horizon Organic’s growth as a standalone company.”

Financial terms of the deal were not disclosed, although the deal is structured as a joint venture where Danone retains a minority interest.

Platinum Equity has decades of experience acquiring and operating global businesses that have been part of large corporate entities. Earlier this year, the firm closed on Kohler Energy, an investment partnership with Kohler Co. In recent years Platinum Equity has also acquired businesses from firms like Ball Corporation, Caterpillar, ConAgra, Emerson Electric, Ingersoll Rand and Johnson & Johnson.

In the case of Horizon Organic, Platinum Equity adds a company with a recognized name among consumers.

“Horizon’s been in my house, it’s something we all raised our kids on,” Cooper said. “It’s an iconic brand with amazing brand recognition in the consumer market. The opportunity to acquire the market-leading brand coupled with the complex transaction dynamics and meaningful operational lift made us feel like it could be a Platinum deal.”

Samson and Cooper provided additional details about the investment.

(Questions and answers have been edited for length and clarity). 

Q: Why did Platinum do this deal?

Cooper: It’s a complex carveout, an area where Platinum has great experience. It’s clearly a well-known brand. We also like the food and beverage space when we can get them at attractive values. When Danone announced it wanted to exit the fluid milk business, we decided the business interested us.

Q: Why the food and beverage space? Platinum Equity’s current portfolio includes Farnese Vini (wine), Biscuit (cookies) and Iberconsa (shrimp)?

Samson: Food and beverage is a relatively stable category. Businesses tend to be recession-resistant so the downside is not as extreme. People have to buy food. Even with COVID, which was a major shock to the economy, food and beverage remained relatively stable.

Q: Speak to Platinum Equity’s experience with carveout transactions with large corporate sellers, specifically the firm’s ability to negotiate joint ventures.

Samson: Our experience suggests that corporate sellers can benefit from a structure that allows for a partial sale at the outset of their divestment process, with the opportunity to deliver incremental value by participating in the upside we can create. An example is the Ball Metalpack partnership with Ball Corporation, which became a successful outcome for all stakeholders. There are multiple examples throughout our history.

Q: Why did Danone divest? Why were Horizon Organics and Wallaby on the market?

Cooper: Danone is a huge food and beverage company, and Horizon came to them through a larger transaction in 2016. Fluid milk is just non-core to Danone, and Wallaby is a small organic product for them. Fluid milk has very low growth prospects. Danone is focused on deploying their resources and capital toward their higher growth and margin products.

Q: Describe Horizon Organics’ market position.

Cooper: The company is the market-leading organic milk producer in the U.S. They have about a 40% – 45% market share. It varies between 40% and 45%, depending on time of year and the sourcing of organic milk.

Q: What are the challenges with creating a standalone business with Horizon Organics?

Cooper:  From a transaction documentation perspective, it was very complex to negotiate. And the next few years will be a tough lift. The company’s manufacturing, marketing and transportation/logistics functions were largely co-mingled with Danone, so there’s a lot that must be done to get this business carved out and operating as a standalone business.

We need to move milk-producing capacity that’s currently produced at Danone sites to other locations. On the back end, these products are stored in warehouses, loaded on trucks and taken to customers in the same trucks. We have to set up our own transportation and logistics functions to deliver products to customers in the most efficient manner. There are heavy-duty complexities associated with that. And remember these products are heavy and perishable.

Q: Why does Platinum Equity seek out these types of transactions?

Samson: If anything, we get more excited when we see that complexity. We aren’t intimidated by size or complexity. We tend to think of these transactions as giving us a competitive advantage because we have the operational bench, we have the functional experts, we have the expertise and lots of experience. It’s an approach that works across multiple categories, multiple spaces.

Q: Are there any headwinds associated with this deal?

Cooper: It’s incumbent upon the company to continue to market the product and continue to show consumers the value proposition in premium products. The other headwind really is that organic milk supply is constrained. Unlike the endless supply of conventional milk, organic milk is relatively limited. It’s expensive to farm from the feed to production. As a company, they need to work with the milk supply base to expand production and continue to differentiate and drive the value proposition of premium milk to drive top line growth.

Q: With some of the negative attention the dairy industry receives, is there an ESG story with Horizon Organic?

Cooper: Horizon works with farmers to minimize the impact milk production has on the environment. Also from an ESG perspective, Horizon takes a 360-degree approach to ESG. The company believes it’s an important differentiator from a commercial standpoint because it’s important to customers. It’s not just what they’re doing relative to those things in the market, but it also puts the burden on the company to consider the standards it maintains as it pertains to its corporate governance, operations, value chain, and stakeholders. The approach creates accountability across the stakeholder universe and requires ongoing transparency with measures of performance across all relevant standards. It’s also very focused on the employees, making sure the company is cognizant of mental health, employees’ financial health and making sure there are opportunities for growth in a safe working environment. I was intrigued when I learned just how deeply this operating philosophy was embedded in the culture at Horizon. These things are important to consumers, the company and its employees, so here’s another case where doing good can be good for business.

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