A look at how ﬁ ve of the biggest tech companies probe new

THEMIDDLEMARKET.COM

MARCH 2020

A look at how fi ve of the biggesttech companies probe new terrain

through early-stage investments

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TheMiddleMarket.com March 2020 Mergers & Acquisitions 1

Contents March 2020 | VOL. 55 | NO. 3

Fresh TerrainA look at how five of the biggest tech companies explore new territory through early-stage investments.

16

6Climate change draws PEKKR raises first global impact fund to target clean water.

8Protecting businessesAdvent and Crosspoint buy cybersecurity firm Forescout.

9Healthy capitalSimple Mills backer Vestar closes new fund.

10Future of autoBorgWarner acquires Delphi to position for auto industry shift.

12Why investors like steaksSmith & Wollensky owner purchases Strega to form new hospitality group.

12Duff & Phelps changes handsStone Point, Further Global acquire the financial services firm.

Cover Story

Features24Viral impactHow the coronavirus is affecting M&A and private equity.

27Top investment banksHoulihan Lokey leads list based on volume of PE-backed U.S. deals

30Top private equity firmsAudax ranks first in U.S. deals.

Private Equity Perspective14Record year for fundraisingBlackstone’s $26 billion fund marked the largest buyout fund ever raised.

The Buyside15Taking a new pathXPO Logistics is selling assets and has hired a new CFO to lead the process.

Guest article33Women on boardGender diversity on corporate boards is good for performance and for shareholders.

Data35Completed dealsCVC Capital, KKR and Olympus Partners were among notable buyers in January.

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2 Mergers & Acquisitions March 2020

Like many of today’s technology giants, Ama-zon.com Inc. (Nasdaq: AMZN) came from humble beginnings, as a startup in a garage. It’s said that in the early days of the company, founder Jeff Bezos and his wife couldn’t run a vacuum cleaner or hair dryer in their house without blowing a fuse, due to the power drain from the company’s servers. It may be a bit fanciful, but I can’t help wondering if that domestic inconvenience planted the seed for the smart-home technology that would one day blossom

into Amazon’s Echo smart speaker and Alexa voice assistant.Alexa has reached dizzying heights in popularity over the last year. In

January 2019, Amazon announced it had sold 100 million Alexa-powered devices. By January 2020, that number had doubled. Smart-home engage-ment with Alexa nearly doubled, too, with people using the voice assistant for smart-home controls hundreds of millions of times every week.

Within Amazon, Alexa is the also focal point for much activity. The tech-nology even has its own venture capital fund. The Alexa Fund invests up to $200 million in early-stage voice technology companies. It focuses on hard-ware products both inside and outside the home, businesses that deliver new services to devices enabled by Alexa and companies that can contribute to the science behind voice technology.

Many of today’s big tech companies are engaging in corporate venture capital (CVC), perhaps taking a page from their own histories. Bezos, for ex-ample, began raising about $1 million from around 20 angel investors in 1995, then raised an $8 million Series A from Kleiner Perkins in 1996 and then took Amazon public in 1997.

The end goal for startups backed by CVC may more likely be an M&A deal, rather than an IPO. That’s one potential benefit of CVC. If the company doing the investing likes how the startup develops, the investor is in a great position to snatch it up.

Check out our cover story, where we explore how Amazon and other tech giants are using CVC in tandem with their R&D and M&A efforts. M&A

– Mary Kathleen Flynn

Inside Word

The voice assistant has sold 200 million devices and launched a corporate venture capital fund

Alexa, play “Rocketman”

March 2020 | VOL. 55 | NO. 3

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What’s aheadWe conducted interviews with 8 invest-ment bankers and other M&A advisors. Some said the first half of the year will be robust, while others said the un-certainty may have a negative impact throughout 2020.

Conversations

Inclusion Having a more diverse workforce and board of directors leads to a greater diversity of ideas. But it’s not just greater diversity of ideas which leads to innovation; greater board diversity also sets the tone for a more inclusive workplace culture.

Opinion

Weekly roundups Check our website every Friday for PE fundraising scorecard and the Weekly wrap. Recent deals mentioned include Morgan Stanley’s purchase of E*Trade and Franklin Resources’ acquisition of Legg Mason.

Data

What’s going on @TheMiddleMarket.com

www.themiddlemarket.com

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KKR (NYSE: KKR) has raised $1.3 billion for its global impact fund. The fund is “dedicated to investment opportunities in companies whose core business models provide com-mercial solutions to an environmental or social challenge,” the firm says. The fund will target companies in the lower middle-market that contribute towards the United Nations Sustain-able Development Goals. The themes that the fund will focus on include: climate change, clean water, work-force development, waste, mobility and sustainability.

“We are thrilled to see our inves-tors’ shared enthusiasm for the tre-mendous opportunity we see ahead for KKR Global Impact and will build on this to help set the new standard across investing, value creation and measuring success in the space,” says Alisa Amarosa Wood, KKR partner and head of KKR’s private market products group.

Investment firms are raising funds that focus on climate change. For example, BlackRock has raised $1 billion to invest in wind, solar and battery-storage projects. Renewable

energy is becoming “one of the most active sectors in infrastructure,” David Giordano, global head of BlackRock renewable power, told Bloomberg News. It comes, he said, “as global power generation shifts from two-thirds fossil fuels to two-thirds renew-ables over the next few decades.”

Jeff Bezos is also committing to investing in climate change. The Amazon.com Inc. (Nasdaq: AMZN) founder has created the Bezos Earth Fund that is starting with $10 billion and will begin to issue grants in a few months.

By Demitri Diakantonis and Mary Kathleen Flynn

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Climate change draws PEKKR raises first global impact fund to target clean water

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TheMiddleMarket.com8 Mergers & Acquisitions March 2020

Double fundraisingBattery Ventures raises $2 billion to go after enterprise companies

Battery Ventures raised two new funds totaling $2 billion, almost double its last total and highlighting investors’ growing interest in companies that cater to other busi-nesses, rather than consumers.

The new funds, a $1.2 billion Battery Ventures XIII, along with an $800 million side fund to help back extra-large bets, will keep investing in sectors like business-to-business software, information infrastructure and cybersecurity.

Battery’s successes include tax-compliance software maker Avalara Inc., which first received an investment in 2012. Several of Battery’s portfolio companies were also acquired by bigger companies or private equity firms, including WebPT, ClearCare and Glassdoor.

The transactions helped lift interest in enterprise overall, along with the performance of Battery’s funds. Fund IX, which dates from 2010 and held investments in some of the recently exited portfolio companies, has an annual internal rate of return of 26 percent, according to Bloomberg data.

Battery hasn’t entirely escaped the malaise hanging over some consumer companies. It is an investor in Wag Labs Inc., a troubled dog-walking company. Some of its other retail businesses appear to have more momentum, such as StockX, a sneaker-trading marketplace. The firm last raised two funds totaling $1.25 billion in February 2018.

Healthy capital Simple Mills backer Vestar closes new fund

Middle-market private equity firm Vestar Capital Partners has raised its seventh fund at $1.1 billion. The firm focuses on the consumer, business services and healthcare sectors, with a focus on family and founder-owned opportunities. The fund has already made two investments in IRI, a pro-vider of big data and predictive analytics for the consumer, retail and media sectors; and better-for-you food brand Simple Mills.

“Vestar’s talented investment team consistently leverages deep sector relationships to uncover overlooked opportunities, while our Vestar resources team works closely with company management to deliver operational improvement,” says Vestar CEO Dan O’Connell. Since it was founded in 1988, Vestar has in-vested $8 billion in 83 companies and made 200 add-on acquisitions.

About three-quarters of PE managers raising a fund in 2020 expect it to be larger than the prior money pool, according to an EY survey. That’s the highest share since 2013, when EY first started posing the question to firms. Almost 60 percent of managers plan to raise a fund in the coming year, the survey found. Vestar raised its last fund in 2013 at $814 million.

Kirkland & Ellis advised Vestar on the fundraise while Monument Group served as placement agent.

Protecting businesses Advent and Crosspoint buy cybersecurity firm Forescout

Advent International and Crosspoint Capital are buying cy-bersecurity company Forescout Technologies Inc. (Nasdaq: FSCT) for $1.9 billion. “As enterprises continue to shift to the cloud and decentralized networks, today’s chief information security officers are looking for secure solutions to increase visibility and provide orchestration, making their network controls more seamless,” says Crosspoint managing partner Greg Clark.

“Forescout’s platform is already ahead of the curve, and we believe we can further advance the company’s market position by applying the collective experience and exper-tise in cybersecurity software of the Advent and Crosspoint Capital team.”

Forescout offers cloud, device and network security services. The company previously worked with Aflac (NYSE: AFL), Humana (NYSE: HUM) and JPMorgan Chase (NYSE: JPM). “We are still in early innings of a large market oppor-tunity as every organization needs visibility into what is con-necting to their network and how to mitigate against high risk devices, including non-traditional IoT and OT devices,” adds Forescout CEO Michael DeCesare. Advent manages about $57 billion in assets.

Morgan Stanley and Wilson Sonsini Goodrich & Rosati are advising Forescout. Ropes & Gray is advising Advent. Financing is being provided by Owl Rock Capital.

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Healthy capital Simple Mills backer Vestar closes new fund

Middle-market private equity firm Vestar Capital Partners has raised its seventh fund at $1.1 billion. The firm focuses on the consumer, business services and healthcare sectors, with a focus on family and founder-owned opportunities. The fund has already made two investments in IRI, a pro-vider of big data and predictive analytics for the consumer, retail and media sectors; and better-for-you food brand Simple Mills.

“Vestar’s talented investment team consistently leverages deep sector relationships to uncover overlooked opportunities, while our Vestar resources team works closely with company management to deliver operational improvement,” says Vestar CEO Dan O’Connell. Since it was founded in 1988, Vestar has in-vested $8 billion in 83 companies and made 200 add-on acquisitions.

About three-quarters of PE managers raising a fund in 2020 expect it to be larger than the prior money pool, according to an EY survey. That’s the highest share since 2013, when EY first started posing the question to firms. Almost 60 percent of managers plan to raise a fund in the coming year, the survey found. Vestar raised its last fund in 2013 at $814 million.

Kirkland & Ellis advised Vestar on the fundraise while Monument Group served as placement agent.

Protecting businesses Advent and Crosspoint buy cybersecurity firm Forescout

Advent International and Crosspoint Capital are buying cy-bersecurity company Forescout Technologies Inc. (Nasdaq: FSCT) for $1.9 billion. “As enterprises continue to shift to the cloud and decentralized networks, today’s chief information security officers are looking for secure solutions to increase visibility and provide orchestration, making their network controls more seamless,” says Crosspoint managing partner Greg Clark.

“Forescout’s platform is already ahead of the curve, and we believe we can further advance the company’s market position by applying the collective experience and exper-tise in cybersecurity software of the Advent and Crosspoint Capital team.”

Forescout offers cloud, device and network security services. The company previously worked with Aflac (NYSE: AFL), Humana (NYSE: HUM) and JPMorgan Chase (NYSE: JPM). “We are still in early innings of a large market oppor-tunity as every organization needs visibility into what is con-necting to their network and how to mitigate against high risk devices, including non-traditional IoT and OT devices,” adds Forescout CEO Michael DeCesare. Advent manages about $57 billion in assets.

Morgan Stanley and Wilson Sonsini Goodrich & Rosati are advising Forescout. Ropes & Gray is advising Advent. Financing is being provided by Owl Rock Capital.

PE firms invest in risk“The risks facing financial institutions are multiplying”

Gryphon Investors has acquired Ncontracts, a provider of risk management software for the financial services sector. Ncontracts is Gryphon’s second deal in the risk and compliance industry, following the firm’s 2018 investment in RegEd.

“The risks facing financial institutions are multiplying and becoming more complex, and no bank, regardless of size, can justify using spreadsheets today to manage the process when the stakes are so high,” says Gryphon princi-pal Jon Cheek. “Ncontracts’ software has made it easy for financial institutions of all sizes to manage the spectrum of complex risks and regulations facing them today.”

Ncontracts’ software products are designed to help companies with compliance, vendor management and en-terprise risk management. The target has more than 1,300 customers in the U.S. Gryphon invests up to $300 million in businesses that have up to $500 million in enterprise value.

“While Ncontracts has experienced tremendous growth over the last few years, there are still opportunities for expansion across this fragmented market,” says Ncon-tracts CEO Michael Berman. “With Gryphon’s resources and leadership, we are confident that we can continue to increase our market share, and we are excited to embark upon a strong partnership.”

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Future of autoBorgWarner acquires Delphi to position for auto industry shift

BorgWarner Inc. (NYSE: BWA) is buying Delphi Technolo-gies PLC (NYSE: DLPH) in a deal that values the target at $3.3 billion. The transaction brings together two auto suppliers that are positioning for the auto industry’s shift to hybrid and electric vehicles, reports Bloomberg News. Forced by governments around the world to improve fuel efficiency and cut emissions, automakers are turning to smaller, lighter engines and electrifying their lineups.

“This exciting transaction represents the next step in BorgWarner’s balanced propulsion strategy, strengthening our position in electrified propulsion as well as our com-bustion, commercial vehicle and aftermarket businesses,” says BorgWarner CEO Frédéric Lissalde.

BorgWarner makes auto parts for hybrid and electric cars, such as the electric drive module pictured on display at Automotive World in Tokyo. Delphi was one of two com-panies to split from Delphi Automotive in 2017. The other was Aptiv Plc, focused on new technology like advanced safety systems and self-driving car software. The split left the smaller Delphi Technologies to focus on supplying engine and transmission parts. BoFA Securities, Rockefeller Financial and Simpson Thacher & Bartlett are advising BorgWarner. Goldman Sachs (NYSE: GS) and Kirkland are advising Delphi.

Mining for dealsM&A opportunities in the mining sector dry up

Private equity firms lost interest in the mining world in 2019, pumping 75 percent less money into the sector as they focused more on funding existing investments.

Investments dropped to $500 million from $2 billion a year earlier, according to a report by law firm Bryan Cave Leighton Paisner. That was the lowest amount since the company started tracking the space in 2013.

Private equity poured money into the mining sector several years ago when big producers were forced to shed assets amid a collapse in commodity prices. That trend ap-pears to have ended, and the law firm said private equity is now focused on raising additional funds for existing invest-ments rather than looking for new deals. There was also a dearth of big single deals last year.

“Increases in stakes are often focused on protecting exist-ing investments from dilution where additional capital is needed to progress the project or for working capital,” Alex-ander Keepin, head of mining at BCLP, said in the report.

Gold remained the most popular commodity sector in 2019, attracting $192 million in investment, followed by lead and copper. For 2020, the law firm expects to see significant disposals by private equity.

A number of funds “are now in year seven of what is often a 10-year fund life,” Keepin said.

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Warren Buffett sheds newspapersBerkshire Hathaway sells BH Media

Berkshire Hathaway Inc. (NYSE: BRK.A agreed to sell its BH Media unit and its 30 daily newspapers to Lee Enterprises Inc., which owns papers including the St. Louis Post-Dispatch, for $140 million in cash. Lee has been managing the papers for Buffett’s company since 2018, and Berkshire is loaning Lee the money for the purchase.

Buffett, who got a job delivering papers as a teenager and invested in the industry to capitalize on its one-time lo-cal advertising stronghold, lamented last year that most newspapers are “toast.” BH Media, which owns papers across the country, has been cutting jobs for years to cope with declining ad revenue.

“We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges,” Buffett said in a statement Wednesday.

In 2018, Buffett acknowledged that he was surprised that the decline in demand for newspapers hadn’t let up and that his company hadn’t found a successful strategy to combat falling advertising and circulation.

The Lee sale will include Buffett’s hometown Omaha World-Herald and Buffalo News, a paper he’s owned for more than four decades.

It’s a rare move for the conglomer-ate as Buffett has long said that he prefers to hold onto businesses. M&A

Why investors like steaksSmith & Wollensky owner buys Strega to form new hospitality group

Irish investment firm Danu Partners has acquired upscale Italian restaurant operator the Strega Group from the Varano Group. Danu owns steakhouse chain Smith & Wol-lensky which it purchased in 2016. As a result of the deal, Danu has formed a new restaurant company called PPX Hospitality Brands. The latter will manage Smith & Wol-lensky and Strega.

“Following the successful acquisition of the Smith & Wollensky Restaurant Group in 2016, the acquisition of The Strega Group is an attractive opportunity to add highly complementary Boston-based operating businesses to our hospitality portfolio,” says Danu co-founder Leonard Ryan. In addition to PPX, Danu’s other hospitality investment is the Mercantile Group, which operates a group of restau-rants, bars and hotels along with a nightclub and a music venue in Dublin.

Strega’s restaurant group includes Strega Waterfront, Strip by Strega and Strega Prime, as well as several cafés and a catering business that are all in and around Boston.

“The Strega brand was built by my passion and determi-nation to add to Boston’s outstanding culinary scene over the past 17 years and to have this opportunity to pass on the Strega experience to a company like Danu Partners is an incredible opportunity,”adds Varano Group founder Nick Varano.

Duff & Phelps changes handsStone Point, Further Global, purchase the financial services firm

Stone Point Capital and Further Global are buying financial services firm Duff & Phelps from Permira Funds for $4.2 bil-lion. Permira is keeping a stake in the target. Duff & Phelps advises companies on valuation, corporate finance, investi-gations, disputes, cybersecurity, compliance and regulatory matters.

Duff & Phelps’ clients include 70 percent of top-tier pri-vate equity, law firms and hedge funds. The firm bought cy-bersecurity company Kroll in 2018 and claims and noticing administrator Prime Clerk in 2019. Duff & Phelps has about 3,500 professionals worldwide. “We are thrilled to have the opportunity to partner with Duff & Phelps again and par-ticipate in the next phase of growth for the company,”says Stone Point CEO Chuck Davis.

“The firm maintains a strong brand position and an out-standing entrepreneurial culture that will drive its continued success.” Duff & Phelps is not the only bank to announce a deal recently. Earlier in January, Piper Jaffray completed its merger with Sandler O’Neil to become Piper Sandler Cos. (NYSE: PIPR).

UBS Investment Bank, Goldman Sachs (NYSE: GS), Ever-core and Kirkland & Ellis are advising Duff & Phelps. Skad-den, Arps, Slate, Meagher & Flom LLP is advising Permira. Simpson Thacher & Bartlett LLP and White & Case LLP are advising the buyers. Goldman Sachs is providing financing.

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— Bloomberg News contributed to these reports.

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Warren Buffett sheds newspapersBerkshire Hathaway sells BH Media

Berkshire Hathaway Inc. (NYSE: BRK.A agreed to sell its BH Media unit and its 30 daily newspapers to Lee Enterprises Inc., which owns papers including the St. Louis Post-Dispatch, for $140 million in cash. Lee has been managing the papers for Buffett’s company since 2018, and Berkshire is loaning Lee the money for the purchase.

Buffett, who got a job delivering papers as a teenager and invested in the industry to capitalize on its one-time lo-cal advertising stronghold, lamented last year that most newspapers are “toast.” BH Media, which owns papers across the country, has been cutting jobs for years to cope with declining ad revenue.

“We had zero interest in selling the group to anyone else for one simple reason: We believe that Lee is best positioned to manage through the industry’s challenges,” Buffett said in a statement Wednesday.

In 2018, Buffett acknowledged that he was surprised that the decline in demand for newspapers hadn’t let up and that his company hadn’t found a successful strategy to combat falling advertising and circulation.

The Lee sale will include Buffett’s hometown Omaha World-Herald and Buffalo News, a paper he’s owned for more than four decades.

It’s a rare move for the conglomer-ate as Buffett has long said that he prefers to hold onto businesses. M&A

Duff & Phelps changes handsStone Point, Further Global, purchase the financial services firm

Stone Point Capital and Further Global are buying financial services firm Duff & Phelps from Permira Funds for $4.2 bil-lion. Permira is keeping a stake in the target. Duff & Phelps advises companies on valuation, corporate finance, investi-gations, disputes, cybersecurity, compliance and regulatory matters.

Duff & Phelps’ clients include 70 percent of top-tier pri-vate equity, law firms and hedge funds. The firm bought cy-bersecurity company Kroll in 2018 and claims and noticing administrator Prime Clerk in 2019. Duff & Phelps has about 3,500 professionals worldwide. “We are thrilled to have the opportunity to partner with Duff & Phelps again and par-ticipate in the next phase of growth for the company,”says Stone Point CEO Chuck Davis.

“The firm maintains a strong brand position and an out-standing entrepreneurial culture that will drive its continued success.” Duff & Phelps is not the only bank to announce a deal recently. Earlier in January, Piper Jaffray completed its merger with Sandler O’Neil to become Piper Sandler Cos. (NYSE: PIPR).

UBS Investment Bank, Goldman Sachs (NYSE: GS), Ever-core and Kirkland & Ellis are advising Duff & Phelps. Skad-den, Arps, Slate, Meagher & Flom LLP is advising Permira. Simpson Thacher & Bartlett LLP and White & Case LLP are advising the buyers. Goldman Sachs is providing financing.

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— Bloomberg News contributed to these reports.

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Record year for fundraising

By Mary Kathleen Flynn

Blackstone’s $26 billion fund marked the largest buyout fund ever raised, as appetite for the asset class grew

Private Equity Perspective

Private capital fundraising posted a ban-ner year in 2019, with $888 billion raised across 1,064 funds, the most private capital ever raised on an annual basis, according to PitchBook’s Private Fund Strategies Report. The $26 billion flagship vehicle raised by Blackstone marked the largest buyout fund ever.

“Globally, PE firms raised more money than they have in any prior year, closing on nearly half a trillion dollars with LPs plowing both freshly allocated capital and reinvested distributions into the strategy,” says the re-port. “Many GPs sought to capitalize on the favorable environment by raising substan-tially larger amounts than they had for their previously marketed funds.”

The role private funds play in institutional portfolios continued to grow. On average,

institutional investors increased their alloca-tions to private markets, generally by lower-ing their allocations to hedge funds and/or public equities.

Venture capital fundraising figures fell slightly from the previous year, but PitchBook says the fundraising outlook for VC remains bright. “U.S.-based funds in 2019 had a gar-gantuan year for investment realizations and saw exit value more than double YoY, which will eventually turn into distributions to LPs. As LPs receive their cash, we expect them to recycle it into new venture funds.”

Private debt fundraising rebounded in 2019, notching the second-highest amount of capital raised annually in the strategy’s his-tory, says the report. “As in other private mar-ket strategies, the number of funds closed fell YoY despite more capital being raised

overall. Direct lending funds, propelled by the threat of further regulation that would curtail lending from tradi-tional banks, continue to fill the void and lend heavily to middle market companies. Additionally, private debt keeps attracting investors thirsty for yield in a low-growth regime. As capital has flooded in and AUM has skyrocketed more than 350 percent in the past decade, many industry observers fear investors have taken on more risk than they realize.”

Looking ahead, the report writers were cautiously opti-mistic. “Many of the secular tailwinds remain intact, meaning fundraising should remain robust heading into 2020,” says the report. “However, the oft-discussed threat of an impending recession could finally put a meaningful dent in the fundraising totals, and LPs’ desire to co-invest and execute deals directly may reduce the need for these investors to make fund com-mitments.”

For ongoing coverage of private equity fundraising, see Mergers & Acquisitions’ weekly column on www.themiddlemarket.com. And for more analysis on 2019, turn to page 30 of this issue to read profiles of Au-dax, HarbourVest, Genstar and other top firms that were prolific throughout the year. M&A

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The Buyside

Taking a new path

By Demitri Diakantonis

XPO Logistics is selling assets and has hired a new CFO to lead the process

The transporta-tion and logistics sector is fragment-ed, and companies in the sector have been making deals as they look for growth opportuni-ties. There were $47 billion in transporta-

tion deals announced in North America in 2019, a 47 percent rise from 2018, according to Bloomberg News.

XPO Logistics Inc. (NYSE: XPO) has been very active, making 19 deals worth $7.5 bil-lion since CEO Bradley Jacobs took over in 2011.

Now XPO wants to slim down and is considering selling one or more assets. The company has not specified which units are for sale, mentioning only that it plans to hold on to its North American less-than-truckload business.

“The process is off to an excellent start. There’s a lot of good momentum more than we had expected,” Jacobs told investors.

To help lead the process, XPO named David Wyshner as chief financial officer. Wyshner most recently served as CFO of Wyndham Hotels & Resorts Inc., a spin-off of Wyndham Worldwide Corp. Wyshner led Wyndham’s $2 billion purchase of La Quinta Holdings in 2018.

“He will certainly be a key member of the team that is leading that review of strategic

alternatives,” Jacobs told CNBC. “We were looking for a CFO with good relevant experi-ences. He’s a well-rounded CFO, he’s tested, proven, lots of experience in divestitures, asset sales and spinoffs.”

XPO’s timing is good: M&A in the logistics space is being driven by a demand for faster shipping and a race to add more fulfillment centers. More local fulfillment centers mean faster delivery times and lower last-mile costs, which are costs for the last legs of deliveries for both retailers and customers.

Some examples: C.H. Robinson World-wide Inc. (Nasdaq: CHRW) is buying Roadrunner Transportation Systems Inc.’s (NYSE: RRTS) prime distribution services

business for $225 million. The target operates five logistics warehouses. Also, J.B. Hunt Transport Services Inc. (Nasdaq: JBHT) has acquired RDI Last Mile Co., which offers logistics and delivery services.

Automation and robot-ics is also a big need in the logistics sector. E-com-merce company Shopify Inc. (NYSE: SHOP) acquired 6 River Systems for $450 million. 6 River Systems uses cloud-based software and mobile robots called “Chuck” that assist employ-ees with inventory replen-ishment, picking, sorting and packing.

XPO plans to accelerate the pace of adding automa-tion in its warehouses, and the company hopes it will be in a better position to drive future growth. M&A

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TheMiddleMarket.com

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Once venture capital-backed startups themselves, today’s tech giants know a thing or two about VC seed money. It’s fitting that many of them have created cor-porate venture capital groups of their own. These CVCs help their owners experi-ment and nurture new technologies and ideas in the early stages, without requiring the commitment of an acquisition.

The CVC strategy often augments a company’s research and development ef-forts as well as complementing its M&A strategy. Middle-market dealmakers would be wise to track the VC investments of the five companies we highlight in this story: Amazon, Google, Intel, Microsoft and Salesforce.

A CVC fund can be formed either as the independent arm of a corporation or as a dedicated fund within the same company. In the past, strategic buyers invested only in tech companies that directly fit with their core products. But as time went on, CVC funds started behaving more and more like traditional venture capital funds.

Using venture capital has advantages for strategic buyers. One is that they can gain access to new technologies while doing due diligence for potential deals.

Corporations are partnering with AI startups in particular as they look for com-panies that will help them compete with new players.

For example, Microsoft has partnered with KenSci, which developed AI software that predicts care and cost risks for patients. AI startups raised a worldwide record of $26.6 billion in 2019, compared to about $22 billion in 2018, according to CB Insights.

By Demitri Diakantonis

A look at how five of the biggest tech companies explore new territory through early-stage investments

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Cover Story

The Alexa Fund, Amazon.com Inc.’s (Nasdaq: AMZN) venture capital fund, invests up to $200 million in VC in voice technology companies. The fund focuses on hardware products both inside and outside the home, busi-nesses that deliver new services to devices enabled by Amazon’s Alexa and companies that can contribute to the science behind voice technology. That includes text to speech, natural language, automatic speech recogni-tion and artificial intelligence.

“We believe experiences designed around the human voice will funda-mentally improve the way people use technology,” Amazon’s website states.

Voice and text-assisted technology, including the Alexa device, is becom-ing ubiquitous in everyday shopping routines. Voice shopping on Alexa is catching on quickly, ranging from or-dering food to restocking refrigerators, and investors are figuring out how to take advantage.

The Alexa Fund has specific invest-ment criteria: It’s looking for compa-nies that can offer convenience via one’s voice, and businesses that solve hard problems in creative ways and are a good fit with the Alexa Skills Kit or Alexa Voice Service. Alexa Skills Kit is a set of tools that build apps for the device; Alexa Voice Service is built into Internet-connected devices that have a microphone and a speaker.

In 2020, Alexa Fund participated in a Series A round of VC funding for Dublin-based Sweepr. Sweepr’s smart technology offers technical support for Internet-connected homes without having to go through customer service. The program delivers specific instruc-tions, photographs and videos in an easy-to-understand format that are customized for each person.

Sweepr can answer everyday simple questions such as “Why won’t Netflix load?” “Customers love using Alexa to control their connected devices

and we want to continue to make the entire smart home experience even simpler and more convenient,” says Alexa Fund director Paul Bernard.

It’s not just smart home technology that Alexa Fund is interested in: The fund is targeting businesses in educa-tion software. Alexa Fund was among the investors that closed a seed fund-ing round in Bamboo Learning at the end of 2019. Bamboo Learning has developed an Alexa skill that allows families in more than 80 countries learn about historical figures, includ-ing writers, scientists, musicians, social justice activists and artists.

“Bamboo Learning is a true in-novator in developing entertaining educational Alexa skills like Bamboo Luminaries,” adds Bernard.”

Venture capital is just one prong of Amazon’s strategy for develop-ing voice-assisted technology. On its M&A prong, the company bought data analysis and search engine company Graphiq, which collects and organizes product details to make it easier for people to get verbal answers.

In research and development, Amazon has developed Alexa-powered earbuds that have a built-in voice assistant. The company has also de-veloped early-stage smart glasses that access Alexa with a push of a button.As Amazon rolls out more voice-enabled technologies, it will look for startups to help the company grow.

Businesses are monitoring cus-tomer behavior and aiming to offer better experiences through artificial intelligence, and this is creating in-vestment opportunities for technology giants. Enter Alphabet Inc.’s (Nasdaq: GOOG) Gradient Ventures, a venture capital arm that launched in 2017 and focuses on early-stage AI startups.

“While artificial intelligence has been around for a long time, most AI companies are just getting started, which is why we primarily invest in early-stage rounds,” Gradient states on its website.

Gradient led a Series A round of VC investment in 2019 in behavioral bio-metrics company Typing DNA, which uses AI to authenticate user identities based on how they type.

“With global regulation impacting face-recognition-based authentica-tion and hackers targeting SMS-based two-factor authentication, typing biometrics is the best form

Hey Alexa… Google’s trifectaAmazon formed a venture capital fund to find more technologies for Alexa devices

CapitalG, Gradient Ventures and GV allow Google to invest in AI and other technologies

“Customers love using Alexa to control their connected devices and we want to continue to make the entire smart home experience even simpler.”

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and we want to continue to make the entire smart home experience even simpler and more convenient,” says Alexa Fund director Paul Bernard.

It’s not just smart home technology that Alexa Fund is interested in: The fund is targeting businesses in educa-tion software. Alexa Fund was among the investors that closed a seed fund-ing round in Bamboo Learning at the end of 2019. Bamboo Learning has developed an Alexa skill that allows families in more than 80 countries learn about historical figures, includ-ing writers, scientists, musicians, social justice activists and artists.

“Bamboo Learning is a true in-novator in developing entertaining educational Alexa skills like Bamboo Luminaries,” adds Bernard.”

Venture capital is just one prong of Amazon’s strategy for develop-ing voice-assisted technology. On its M&A prong, the company bought data analysis and search engine company Graphiq, which collects and organizes product details to make it easier for people to get verbal answers.

In research and development, Amazon has developed Alexa-powered earbuds that have a built-in voice assistant. The company has also de-veloped early-stage smart glasses that access Alexa with a push of a button.As Amazon rolls out more voice-enabled technologies, it will look for startups to help the company grow.

Businesses are monitoring cus-tomer behavior and aiming to offer better experiences through artificial intelligence, and this is creating in-vestment opportunities for technology giants. Enter Alphabet Inc.’s (Nasdaq: GOOG) Gradient Ventures, a venture capital arm that launched in 2017 and focuses on early-stage AI startups.

“While artificial intelligence has been around for a long time, most AI companies are just getting started, which is why we primarily invest in early-stage rounds,” Gradient states on its website.

Gradient led a Series A round of VC investment in 2019 in behavioral bio-metrics company Typing DNA, which uses AI to authenticate user identities based on how they type.

“With global regulation impacting face-recognition-based authentica-tion and hackers targeting SMS-based two-factor authentication, typing biometrics is the best form

of identifying people without com-promising privacy or security,” says Gradient Ventures general partner Darian Shirazi.

Google has also expanded its AI portfolio through M&A. In 2018, the company acquired Onward, an AI-powered chat services company that helps businesses connect to custom-ers.

Google has other VC funds that back AI-related companies. For ex-ample, Google’s growth equity fund, called CapitalG, led a Series F round of VC investment in language learn-ing application Duolingo in December 2019. “Duolingo has been adding users and revenue at an impressive pace, continuing to solidify their posi-tion as the number one way to learn a language globally,” says CapitalG general partner Laela Sturdy. Since it was founded in 2013, CapitalG has invested in more than 25 companies.

Duolingo, founded in 2011, lets

people read and speak in many of the world’s most popular languages for free, along with a premium service. The company, which says has more than 30 million users, also teaches fictional languages, such as Klingon. The online language learning market will top $20 billion by 2026, predicts Verified Market Research. Duolingo has been investing in AI and machine learning so it can customize lessons to individual learners as a human teacher might.

Google’s third fund, GV (formerly known as Google Ventures), invests in enterprise and frontier tech, includ-ing AI. GV has backed more than 400 companies since it was formed in 2009, and it manages more than $4.5 billion.

GV recently invested in Viz.ai, which uses AI to help doctors and medical professionals detect early signs of stroke. Viz.ai uses deep-learning algorithms to look for stroke symptoms in a CT scan and alerts doctors. “By alerting the right doctor at the right time and synchronizing care, Viz has the potential to signifi-cantly reduce the time to treatment and greatly increase a patient’s chances of a good outcome,” Viz.ai says.

Google also has long term AI proj-ects of its own in the pipeline such as wearable sensors, real-time transla-tions and technology that detects sign language.

Looking ahead, AI will remain an important technology for Google and other startups that will seek funding.

Google’s trifectaCapitalG, Gradient Ventures and GV allow Google to invest in AI and other technologies

“Customers love using Alexa to control their connected devices and we want to continue to make the entire smart home experience even simpler.”

“Typing biometrics is the best form of identifying people without compromising privacy or security.”

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Cover Story

Intel Capital, the venture capital arm of Intel (Nasdaq: INTC), was formed in 1991. Since then, the fund has invested more than $12 billion in more than 1,500 companies, and 677 portfolio companies have either gone public or been involved in a merger. Broadcom Inc. (Nasdaq; AVGO) and VMware Inc. (NYSE: VMW) are some of Intel Capital’s past investments.

Artificial intelligence is one area that Intel Capital focuses on. The fund invested in AI company Kyndi in 2019. Kyndi helps businesses find hard-to-locate information within collections of documents without requiring large, labeled data.

“Enterprises are turning to AI to take advantage of new opportuni-ties and to solve pressing business problems, and we expect AI’s use in business will continue to grow as the technology matures,” says Nick Washburn, senior managing director of Intel Capital. “Solutions like Kyndi’s,

which remove some of the mystery of AI technology, will continue to gain importance, and we look forward to helping them accelerate AI adoption and address the need for explain-ability.”

Intel is making acquisitions to ac-celerate growth in AI. In 2019, Intel paid $2 billion for Habana Labs, a developer of AI training technology for data centers. “This acquisition advances our AI strategy, which is to provide customers with solutions to fit every performance need – from the intelligent edge to the data center,” says Navin Shenoy, executive vice president and general manager of the data platforms group at Intel.

“Intel’s AI strategy is grounded in the belief that harnessing the power of AI to improve business outcomes requires a broad mix of technol-ogy, hardware and software, and full ecosystem support. Today, Intel AI solutions are helping customers turn

data into business value and driving meaningful revenue for the company,” Intel adds in a release.

Besides AI, Intel is looking to grow in other sectors, such as real estate software. Demand for real estate tech is rising, as firms rely on technology to assist them in managing their deals and properties, driving deal activity.

Intel Capital recently backed Cherre, a Software-as-a-Service provider for the real estate industry. Cherre offers potential investment data on more than 170 million properties.

“The global real estate industry is undergoing a transformation, cata-lyzed by massive data flows and the application of artificial intelligence,” says Intel Capital senior manag-ing director Trina Van Pelt. “Despite its substantial impact on the global economy, this sector is still in its infancy when it comes to data-centric investing and underwriting decisions. We see Cherre as critical infrastruc-ture to accelerate the future of this industry.”

In other recent investments, Intel Capital and Eight Roads Ventures led a funding round in human resources technology company Gloat in De-cember 2019. Gloat’s software helps businesses retain employees through AI that compares employees’ work skills, interests and career histories to recommend potential projects and career-advancing opportunities.

Diversified investingIntel’s 30-year old VC fund focuses on AI and real estate technology

“Intel’s AI strategy is grounded in the belief that harnessing the power of AI to improve business outcomes requires a broad mix of technology.”

Founded in 2016, and formerly known as Microsoft Ventures, MI2 touts itself as having “the agility and pace of a startup, getting deals done quickly and focused on the value-add that we can bring to you as a collaborative partner, not just your investor,” according to its website. Microsoft Corp.’s (Nasdaq: MSFT) venture capital fund concentrates on AI and cloud computing.

M12 recently invested in German travel software startup Comtravo. The target’s software translates emails and other text-based requests into data, and then uses artificial intelligence to send customized travel options to custom-ers based on previous searches and bookings. Companies are implement-ing text-supported software, such as natural language processing, to improve customer experiences, and they are at-tracting investor attention as a result.

“Comtravo is disrupting the huge business travel market through deep automation and unique access to

Investing abroadMicrosoft’s MI2 opened a European office to ramp up its dealmaking in the region

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data into business value and driving meaningful revenue for the company,” Intel adds in a release.

Besides AI, Intel is looking to grow in other sectors, such as real estate software. Demand for real estate tech is rising, as firms rely on technology to assist them in managing their deals and properties, driving deal activity.

Intel Capital recently backed Cherre, a Software-as-a-Service provider for the real estate industry. Cherre offers potential investment data on more than 170 million properties.

“The global real estate industry is undergoing a transformation, cata-lyzed by massive data flows and the application of artificial intelligence,” says Intel Capital senior manag-ing director Trina Van Pelt. “Despite its substantial impact on the global economy, this sector is still in its infancy when it comes to data-centric investing and underwriting decisions. We see Cherre as critical infrastruc-ture to accelerate the future of this industry.”

In other recent investments, Intel Capital and Eight Roads Ventures led a funding round in human resources technology company Gloat in De-cember 2019. Gloat’s software helps businesses retain employees through AI that compares employees’ work skills, interests and career histories to recommend potential projects and career-advancing opportunities.

“Intel’s AI strategy is grounded in the belief that harnessing the power of AI to improve business outcomes requires a broad mix of technology.”

Founded in 2016, and formerly known as Microsoft Ventures, MI2 touts itself as having “the agility and pace of a startup, getting deals done quickly and focused on the value-add that we can bring to you as a collaborative partner, not just your investor,” according to its website. Microsoft Corp.’s (Nasdaq: MSFT) venture capital fund concentrates on AI and cloud computing.

M12 recently invested in German travel software startup Comtravo. The target’s software translates emails and other text-based requests into data, and then uses artificial intelligence to send customized travel options to custom-ers based on previous searches and bookings. Companies are implement-ing text-supported software, such as natural language processing, to improve customer experiences, and they are at-tracting investor attention as a result.

“Comtravo is disrupting the huge business travel market through deep automation and unique access to

travel providers,” says M12 partner Lior Litwak. “We were very impressed with the company’s vision of increasing ef-ficiencies for both businesses and travel agents without compromising on high-quality service and traveler experience.”

The International Air Transport Asso-ciation predicts that passenger growth will double in the next 20 years. With the rise of low-cost carriers, airlines are competing to gain more passengers and are looking for ways to make their flying experiences standout.

For M12, the firm is ramping up its investment efforts in European start-ups. The fund recently opened a new London office to seek opportunities across the AI, big data, analytics, cloud infrastructure, machine learning and Software-as-a-Service sectors.

Earlier in 2020, M12 participated in a funding round for London-based Su-perAwesome, a platform that allows for safe web browsing for kids. The com-pany’s products include kid-friendly ad-

vertising, social engagement tools and parental controls. “Making the internet safer for kids is a sector-agnostic mis-sion,” says SuperAwesome CEO Dylan Collins. “As increasing numbers of com-panies outside of the core kids sector realize that children cannot be ignored, we’ve begun to shift our horizons to the wider internet.”

In the U.S., M12 backed Evisort, which uses AI to automate processing and tracking of corporate contracts. Evisort reviews, analyzes, approves and tracks contracts, invoices and purchase orders.

Aside from dealmaking, internally Microsoft is investing in AI research in the healthcare sector. The company recently announced plans for a five-year, $40 million AI initiative for global health challenges and research. The program is designed to help research organizations develop diagnostics, treatments and preventive measures.

“We know that putting this powerful technology into the hands of experts tackling this problem can accelerate new solutions and improve access for under-served populations,” Microsoft president Brad Smith said in a statement.

In 2019, Microsoft formed a partner-ship with health insurer Humana Inc. (NYSE: HUM) that gives Humana access to Microsoft’s cloud and AI resources. The deal is aimed at making more digi-tal health services available to seniors. Microsoft indicates that it sees addition-al similar partnerships down the road.

Investing abroadMicrosoft’s MI2 opened a European office to ramp up its dealmaking in the region

MI2 opened a new London office to seek opportunities across the AI, big data, analytics, cloud infrastructure, machine learning and Software-as-a-Service sectors.

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Cover Story

Salesforce Ventures is the venture capital arm of Salesforce.com Inc. (NYSE: CRM). Since 2009, the fund has invested in over 375 companies. Salesforce Venture’s previous invest-ments include DocuSign, GoCard-less, Guild Education, nCino, Twilio and Zoom. Salesforce Ventures says it invests in “the next generation of enterprise technology that extends the power of the Salesforce Intelligent Customer Success Platform, helping companies connect with their custom-ers in entirely new ways” and describes itself as “building the world’s largest ecosystem of enterprise cloud compa-nies and extending that technology to customers.”

Salesforce Ventures has at least seven active venture capital funds fo-cused on global regions. They include the $50 million consultant trailblazer fund, $125 million Europe trailblazer fund, $50 million Australia trailblazer fund, $100 million Japan trailblazer

fund, $100 million Canada trailblazer fund and $50 million Salesforce im-pact fund. Since 2009, Salesforce has backed over 300 technology startups across 20 countries.

One industry where Salesforce Ven-tures looks to help companies is retail, which relies intensely on technology for everything from predicting what customers want to delivering orders quickly. Retailers are under immense pressure to adapt to the rapidly changing consumer landscape, and give shoppers what they demand.

Earlier in 2020, Salesforce Ventures has invested in Omnichannel-as-a-Service provider NewStore, which helps retailers run stores from iPhones. “Retailers have long faced hurdles in offering a seamless interaction between online and brick-and-mortar,” NewStore says in a press release. “Connecting legacy systems and out-dated technologies is time-consuming and cumbersome, creating friction

behind the curtains and on the store floor. With NewStore, retailers oper-ate a seamless end to end experience across all touchpoints, unlocking in-store revenue drivers including endless aisle, mobile checkout, store inventory and clienteling.”

“Despite stores being a source of great frustration, they also represent a major opportunity,” says NewStore CEO Stephan Schambach.

“This gives customers even more choice in how they deliver omnichan-nel experiences to keep pace with the rapidly changing needs of their shoppers,” adds Salesforce Commerce Cloud CEO Mike Micucci.

Salesforce is also making acquisi-tions in the retail tech sector. In 2020, the company acquired Evergage, which was previously backed by Ar-rowroot Capital, G20 Ventures and Point Judith Capital. Evergage uses data to monitor customer behavior and helps retailers offer personalized services.

“Evergage’s mission has always been to personalize the world, and we’ve been doing that one client at a time for nearly 10 years,” says Ever-gage CEO Karl Wirth. “Now, as a part of Salesforce, we’ll be able to do what we do better and at a much greater scale and pace than we ever could before.”

In a recent similar deal from Salesforce Ventures, the fund co-led a $479 million VC growth funding round in cloud data provider Snowflake. The latter has worked with Conagra Brands Inc. (NYSE: CAG), JetBlue Air-ways Corp. (Nasdaq: JBLU) and Office Depot Inc. (Nasdaq: ODP).

“When consumer expectations change faster than the speed of busi-ness, you can’t afford to rely on frag-mented or stale data to make daily decisions that affect your bottom line,” Snowflake states on its website. M&A

Buying into new habitsSalesforce Ventures invests in retail data providers that can meet shopper demands

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VIRAL IMPACT

Feature

Analysts are already forecasting slowed growth for China, due to CO-VID-19. While the country’s economic growth was 6.0 percent in the fourth quarter of 2019, it may fall to as low as 3.5 percent in the first quarter of 2020, if the spread of the virus is not con-tained fast enough for manufacturing production to resume to normal levels, Morgan Stanley analysts wrote in a Feb. 19 report. While factories had started to come online, analysts found that production had only reached 30 to 50 percent of normal levels.

Earnings CallsWith China’s factories producing a

huge range of goods and parts, includ-ing autos, apparel, toys and smart-phones, for customers all over the world, it’s not surprising the impact is already being felt far beyond the country’s borders. The coronavirus emerged as a dominant theme in the earnings releases and conference calls of S&P 500 companies. The term “coronavirus” was used at least once in 38 percent of the 364 earnings calls that were held from Jan. 1 through Feb. 13, according to

Brian BunkerManaging Director, Commercial Growth, The Riverside Co.

How are factory closings affecting the supply chain?The virus hit over Chinese New Year when factories were closed, and the high number of migrant workers had returned to their home town/village. Fortunately, large orders are shipped prior to the holiday to cover 2-3 weeks of factory closure. However, eventually, there will be inventory shortages at overseas and domestic customers, stock-outs will, inevitably, impact 1H revenue at portfolio companies. It is still too early to scope the full impact; however, portfolio companies are implementing action plans, assessing stock levels, communicating with customers and trying to shift sourcing to other countries. Fortunately, due to the tariff dispute, this process began 18 months ago, so, in general, dependence on China has been somewhat reduced during that time. In general, extended closure of factories impacts sales as well as Ebitda; staff still have to be paid and the facility/equipment maintained.

How is the virus affecting sales of consumer goods in China? In s ome c ities, r esidents a re o nly a llowed o ut o nce e very 2 d ays t o b uy e ssentials; i n g eneral, t he p opulation i s n ot venturing out, thus consumer spending in China will be heavily impacted. This will affect our portfolio companies that sell through Chinese retail outlets. Given road transport restrictions, e-commerce sales will also be affected as goods cannot be delivered. Staff are mostly working from home and need to be paid even though they are not generating much revenue apart from essential sales. Obviously, there will be some winners such as suppliers of face masks and hand sanitizer.

BLOOMBERG NEWS

The coronavirus is already slowing down China’s growth, stalling the world’s supply chain and dampening venture capital fundraising. How are middle-market dealmakers being affected?

By Mary Kathleen Flynn

The impact of COVID-19, also known as the coronavirus, on the world’s economy is likely to be significant. How it will play out in M&A and private equity is difficult to discern this early in the spread of the virus. To get a sense of the ramifications for the middle market, Mergers & Acquisitions examines several factors, including the current impact on China’s economic growth; how the virus was discussed in the earnings calls of U.S. public companies in January and February; and the views of two prominent dealmakers who are based in Hong Kong. As this is an ongoing story, we’ll continue evaluating the economic and business effects.

First, let’s consider the impact of the earlier severe acute respiratory syn-drome virus. SARS claimed around 800 lives throughout the world and shaved 0.5 to 1 percentage points off China’s growth in 2003. Back then, China was the world’s sixth largest economy. Today, it is the second, behind only the U.S.

024_MAJ0320 24 2/24/2020 4:35:59 PM


Feature

Analysts are already forecasting slowed growth for China, due to CO-VID-19. While the country’s economic growth was 6.0 percent in the fourth quarter of 2019, it may fall to as low as 3.5 percent in the first quarter of 2020, if the spread of the virus is not con-tained fast enough for manufacturing production to resume to normal levels, Morgan Stanley analysts wrote in a Feb. 19 report. While factories had started to come online, analysts found that production had only reached 30 to 50 percent of normal levels.

Earnings CallsWith China’s factories producing a

huge range of goods and parts, includ-ing autos, apparel, toys and smart-phones, for customers all over the world, it’s not surprising the impact is already being felt far beyond the country’s borders. The coronavirus emerged as a dominant theme in the earnings releases and conference calls of S&P 500 companies. The term “coronavirus” was used at least once in 38 percent of the 364 earnings calls that were held from Jan. 1 through Feb. 13, according to

FactSet. The industrial, IT and health-care sectors accounted for the highest number of companies discussing the topic.

MarketWatch compiled a slew of the announcements in mid-February. Here are a few:

Apple Inc. (Nasdaq: AAPL) warned it would not meet second-quarter finan-cial expectations, because production had slowed or been halted in China due to the outbreak. “Work is starting to

resume around the country, but we are experiencing a slower return to normal conditions than we had anticipated,” the company said in a statement. Apple generates about 15 percent of its revenue from China, and many of its products are manufactured there.

Coca-Cola Co. (NYSE: KO) CEO James Quincey said the outbreak of se-vere acute respiratory syndrome (SARS) in 2003 and 2004 was less of a concern than the current virus. The Chinese mar-

Brian BunkerManaging Director, Commercial Growth, The Riverside Co.

How are factory closings affecting the supply chain?The virus hit over Chinese New Year when factories were closed, and the high number of migrant workers had returned to their home town/village. Fortunately, large orders are shipped prior to the holiday to cover 2-3 weeks of factory closure. However, eventually, there will be inventory shortages at overseas and domestic customers, stock-outs will, inevitably, impact 1H revenue at portfolio companies. It is still too early to scope the full impact; however, portfolio companies are implementing action plans, assessing stock levels, communicating with customers and trying to shift sourcing to other countries. Fortunately, due to the tariff dispute, this process began 18 months ago, so, in general, dependence on China has been somewhat reduced during that time. In general, extended closure of factories impacts sales as well as Ebitda; staff still have to be paid and the facility/equipment maintained.

How is the virus affecting sales of consumer goods in China? In some cities, residents are only allowed out once every 2 days to buy essentials; in general, the population is not venturing out, thus consumer spending in China will be heavily impacted. This will affect our portfolio companies that sell through Chinese retail outlets. Given road transport restrictions, e-commerce sales will also be affected as goods cannot be delivered. Staff are mostly working from home and need to be paid even though they are not generating much revenue apart from essential sales. Obviously, there will be some winners such as suppliers of face masks and hand sanitizer.

BLOOMBERG NEWS

025_MAJ0320 25 2/24/2020 4:36:14 PM


Feature

ket makes up 10 percent of Coca-Cola’s global volume. “China’s economy was in a different place when SARS happened,” he said. “It’s worth noting that China’s economy is much bigger, and this could become more connected to the rest of the world.”

Hasbro Inc. (Nasdaq: HAS) continues to have office and third-party factory closures in China as a result of the outbreak. The company said that China is responsible for about two-thirds of its global sourcing. “The biggest unknown right now is how quickly the manufac-turing factories can get their production ramp back up,” said Hasbro CFO Debo-rah Thomas. “Travel is limited, [and] places are still closed.”

Walmart Inc. (NYSE: WMT) an-ticipates a financial impact in the first quarter and potentially the second quarter to its China business. “Due to

the current sales mix slanted heavily to-ward food and consumables, as well as some increased expenses related to the outbreak, we could see a couple of cents negative impact in Q1,” Walmart CFO Brett Biggs said on an earnings call.

In addition, Bradley Jacobs, the-CEO of XPO Logistics (NYSE: XPO) told analysts during a fourth quarter earnings call in early February that the corona-virus outbreak and travel restrictions have not damped demand for logistics yet. A significant acquirer of middle-market companies, XPO, headquartered in Greenwich, Connecticut, operates 8 million square feet of warehouse space in Asia, including more than 1 million square feet in China. “We have not seen a no-ticeable impact as of now,” Jacobs said. “We are watching it. Anything that slows down the global economy is not good for the transport and logistics industry.”

The impact is already being felt in the world of venture capital, and private equity may not be far behind. Chinese startups are struggling to raise funds as the coronavirus epi-demic complicates deal talks, reports PitchBook. Since the beginning of the year, venture capital fundrais-ing in China has fallen by more than half, compared with the same period last year. It’s yet another blow to the region’s venture capital scene, which has suffered from waning confidence from investors in recent years. The backup of capital poses a threat to cash-strapped companies but could also lead to a rush of deals later in the year, predicts PitchBook.

Nevertheless, most dealmakers are taking the developments in stride, as you can see from our interviews with two middle-market professionals. M&A

Neil TorpeyPartner, Corporate Development, Paul Hastings

What is the impact of the coronavirus on middle-market deals and private equity-backed portfolio companies?There was a momentary pause in activity when travel restrictions were announced and certain transportation industry players curtailed their China-related activities, but the markets snapped back into shape fairly quickly as it has begun to appear likely that the issues relating to the coronavirus outbreak, while serious, will be manageable and (as with SARS) the situation will stabilize over the coming weeks as Spring and warmer weather approaches. I don’t expect there to be any material long-term negative impact on the markets or deal activity as a result of this outbreak.

Does the inability to travel to and from China make it difficult to close deals already underway? Not really, unless the investor is still doing due diligence involving travel to China (e.g., to visit physical facilities or meet with management teams) or needs to conduct face-to-face discussions with a portfolio company or its customers or suppliers—and even in those cases, lots can be done by phone or video conferencing. Once a deal is ready to be closed, most of the execution can be done by phone, email and wire, so the China travel restrictions would not tend to cause problems in doing a closing that cannot be worked around.

Does the possibility of China being cut off for a long period affect dealmakers’ confidence in investing in companies there? So far, this seems to be a low-probability issue. It is in everyone’s interest to have China back to ordinary course operations, and we would expect enormous efforts and resources to be applied to achieving this outcome.

What about other risks?The deluge of media coverage regarding the outbreak has put every country in the world on alert to the risks associated with the virus, and governments and enterprises are responding to the potential public health and other consequences of the situation. Different countries and companies will prioritize the issues presented by the crisis in different ways and allocate resources to detection and prevention and amelioration in accordance with their respective individual circumstances.

How are issues related to the virus affecting potential investments?As far as I can ascertain, the situation is not leading investors to make material changes in their medium- or long-term investment programs or strategies.

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By Keith Button

Some of the investment banks that closed the highest volume of U.S. private equity-backed deals in 2019 have made their own acquisitions recently

TOP 10 Investment Banks

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Houlihan Lokey, Lincoln Inter-national, Jefferies Financial Group, William Blair and Piper Sandler Cos. rank as the top five most active M&A investment banks in 2019, based on the volume of completed private equity-backed deals in the U.S., ac-cording to PitchBook. Besides advising on M&A deals, the investment banks on the top 10 list also had a busy year with acquisitions of their own in 2019, including two acquisitions by Houlihan Lokey and three by Stifel Financial. Piper Sandler Cos., was created when Minneapolis-based Piper Jaffray Cos. acquired New York-based Sandler O’Neill & Partners in a deal represent-ing more than half of Piper Jaffray’s million market capitalization. The firm also had another acquisition in 2019 and sold a company to exit the tra-ditional asset management business. Here are Mergers & Acquisitions’ pro-

files of the 10 firms that led the league tables in a robust year for dealmaking.

1. Houlihan LokeyThe bank has made recent acquisi-tions itself

Houlihan Lokey Inc. (NYSE: HLI) is an investment bank that offers M&A, capital markets, financial restructur-ing, valuation and strategic consulting services. In 2019, Los Angeles-based Houlihan Lokey agreed to acquire Freeman & Co., a New York-based independent firm advising financial institution clients on mergers and ac-quisitions and capital raising. Houlihan Lokey also made its fifth European acquisition in four years, acquiring Ma-drid-based Fidentiis Capital to grow its European corporate finance business. In 2018, the bank acquired BearTooth Advisors, a firm that provides strate-gic advisory and placement agency

services to alternative investment managers. In that same year, the firm formed HL Finance LLC to arrange senior secured leveraged loans for fi-nancial sponsor-backed, privately held and public corporate entities. Houlihan Lokey’s recent deals include advising on Givaudan’s acquisition of Ungerer & Co., TPG Growth’s acquisition of Denali Water Solutions and Lakeview Capital Inc.’s acquisition of Mochi Ice Cream Co., a portfolio company of Century Park Capital Partners. Houlihan Lokey advised on 81 U.S. PE-backed deals in 2019, according to PitchBook.

2. Lincoln InternationalThe bank focuses on business services, consumer, energy and healthcare

Lincoln International is a middle-market investment bank that provides M&A, growth equity, debt advisory, restructuring, joint ventures and valua-

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its sale to Tooling Tech Group, a port-folio company of GenNx360 Capital Partners; and advising St. Matthews Imports on its sale to Joe Hudson’s Collision Centers, a portfolio company of Carousel Capital. Baird Business Owner Solutions also recently was the sellside advisor for the sale of Boutique Design New York from ST Media Group International and Hospitality Media Group to Emerald Expositions Events Inc. (NYSE: EEX). Baird advised on 53 U.S. PE-backed deals in 2019, accord-ing to PitchBook.

7. Raymond James FinancialThe firm provides investment banking and wealth management services

Raymond James Financial Inc. (NYSE: RJF) is a financial services firm that provides investment banking and wealth management services. The firm, based in St. Petersburg, Florida, was founded in 1962 by Bob James, and went public 1983. Raymond James focuses on the consumer and retail, financial services, healthcare and industrial sectors, among others. The company reported record net income of $268 million for its fiscal quarter ended Dec. 31, 2019, but its $60 mil-lion in investment banking M&A and advisory revenues for the quarter was down 35 percent from the previous quarter and down 29 percent from one year before. That was despite a healthy pipeline for M&A deals, said CEO Paul Reilly. In recent deals, Ray-mond James advised Gryphon Inves-tors on its acquisition of Ncontracts, a provider of risk management software for the financial services sector; and Campus Management and Edcentric college student information systems on their sale from Leeds Equity Partners to Veritas. Raymond James advised on 52 U.S. PE-backed deals in 2019, the same number as Harris Williams, ac-cording to PitchBook.

Top 10 Investment BanksTop 10 Investment Banks

tion services. The firm was founded in 1996 and has more than 570 employ-ees across 20 offices in 16 countries. Among the sectors that Lincoln focuses on are business services, con-sumer, energy, healthcare, industrials and technology media and telecom. Lincoln, headquartered in Chicago, advised on 225 deals globally in 2019 and more than 200 in 2018. Almost half of the firm’s transactions are cross-border. Among its recent deals, Lincoln advised Orland, Florida-based Micross Components, a portfolio com-pany of Insight Equity, on its merger with Corfin Industries, a portfolio company of Behrman Capital. It also advised Acorn Growth Cos. on its sale of UK-based Aerospheres to FDH, a portfolio company of Audax Private Equity and advised LogiNext Solutions on raising growth capital from Tiger Global and Steadview Capital. Lincoln advised on 67 U.S. PE-backed deals in 2019, according to PitchBook.

3. Jefferies Financial GroupThe bank has completed more than 650 transactions since 2016

Jefferies is a diversified financial services company involved in invest-ment banking, capital markets, asset management and direct investing. On the M&A side, Jefferies has completed more than 650 transactions valued at over $600 billion since the beginning of 2016. About 70 percent of its M&A deals were sellside transactions and 60 percent involved strategic buyers. More than 20 percent were cross-border deals. Earlier in 2020, Jefferies advised RS Energy on its sale from Warburg Pincus to Genstar-backed Enverus. It also advised West Der-matology on its sale to Sun Capital Partners from Enhanced Healthcare Partners, XCessories & Services LLC on its sale to Clearlake Capital from Olympus Partners, and Gilat Satellite

Networks Ltd. (Nasdaq: GILT) on its $533 million sale to Comtech Telecom-munications Corp. (Nasdaq: CMTL). Jefferies advised AmeriLife Group on the sale of a majority stake in the firm from J.C. Flowers & Co. to Thomas H. Lee Partners. Jefferies advised on 61 U.S. PE-backed deals in 2019, accord-ing to PitchBook.

4. William BlairThe investment bank offers buyside and sellside services

William Blair is global boutique with expertise in investment banking, investment management and private wealth management. The employee-owned firm was founded in 1935 by William McCormick Blair and has 1,500 employees worldwide. William Blair’s investment banking group of-fers buyside and sellside services for publicly traded and privately held companies. From 2015 through 2019, the firm completed 593 M&A transac-tions representing about $233 billion in value. In 2019, William Blair advised on deals including the J2 Acquisi-tion Limited acquisition of APi Group Inc. for $2.9 billion; Sealed Air Corp.’s (NYSE: SEE) acquisition of Automated Packaging Systems Inc. (APS), maker of automated bagging systems, for $510 million; the Perrigo Co. plc (NYSE: PRGO) acquisition of Ranir Global Holdings LLC for $750 million; pharma company Catalent Inc.’s (NYSE: CTLT) acquisition of gene therapy company Paragon Bioservices Inc. for $1.2 billion; and Carbonite Inc.’s (NASDAQ: CARB) acquisition of Webroot Inc. for $618.5 million. William Blair advised on 58 U.S. PE-backed deals in 2019, accord-ing to PitchBook.

5. Piper Sandler Cos.Piper Jaffray bought Sander O’Neill & Partners, creating a powerhouse.

Minneapolis-based Piper Sandler

Cos. (NYSE: PIPR) was formed in January 2019 when Piper Jaffray Cos., a middle-market investment bank, acquired Sandler O’Neill & Partners, a New York-based boutique investment banking boutique focused on financial services. Piper Jaffray was dominant in the healthcare sector and the deal was a bid to become a leader in the financial services sector. The deal represented more than half of Piper Jaffray’s $930 million market cap, and it followed a pattern from recent years: to fuel expansion in some sectors through acquisition. To grow its busi-ness in financial services in 2015, the firm acquired River Branch Holdings LLC and BMO Capital Markets GKST Inc. In 2016, to grow in the energy sec-tor, Piper Jaffray bought Simmons & Company International. Later in 2019, Piper Sandler acquired Weeden & Co., a broker-dealer, and exited its tradi-tional asset management business with the sale of Advisory Research Inc. Piper Sandler advised on 55 U.S. PE-backed deals in 2019, according to PitchBook.

6. Baird Business Owner SolutionsThe M&A advisory arm of R.W. Baird advises lower mid-market companies

Louisville, Kentucky-based Baird Business Owner Solutions is an M&A advisory arm of R.W. Baird, an employ-ee-owned investment bank, private eq-uity firm and wealth management firm with about 3,500 employees. Baird Business Owner Solutions advises lower middle-market and emerging growth companies and their owners on business sales, mergers, acquisitions, employee stock ownership plans, valu-ations and transition planning. In 2019, the firm’s deals included advising the Dental Care Plus Group on its sale to GroupDentaQuest; advising specialty manufacturer Alpha Integration Inc. on

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its sale to Tooling Tech Group, a port-folio company of GenNx360 Capital Partners; and advising St. Matthews Imports on its sale to Joe Hudson’s Collision Centers, a portfolio company of Carousel Capital. Baird Business Owner Solutions also recently was the sellside advisor for the sale of Boutique Design New York from ST Media Group International and Hospitality Media Group to Emerald Expositions Events Inc. (NYSE: EEX). Baird advised on 53 U.S. PE-backed deals in 2019, accord-ing to PitchBook.

7. Raymond James FinancialThe firm provides investment banking and wealth management services

Raymond James Financial Inc. (NYSE: RJF) is a financial services firm that provides investment banking and wealth management services. The firm, based in St. Petersburg, Florida, was founded in 1962 by Bob James, and went public 1983. Raymond James focuses on the consumer and retail, financial services, healthcare and industrial sectors, among others. The company reported record net income of $268 million for its fiscal quarter ended Dec. 31, 2019, but its $60 mil-lion in investment banking M&A and advisory revenues for the quarter was down 35 percent from the previous quarter and down 29 percent from one year before. That was despite a healthy pipeline for M&A deals, said CEO Paul Reilly. In recent deals, Ray-mond James advised Gryphon Inves-tors on its acquisition of Ncontracts, a provider of risk management software for the financial services sector; and Campus Management and Edcentric college student information systems on their sale from Leeds Equity Partners to Veritas. Raymond James advised on 52 U.S. PE-backed deals in 2019, the same number as Harris Williams, ac-cording to PitchBook.

7. Harris Williams The PNC subsidiary specializes in M&A advisory services

Harris Williams, a subsidiary of PNC Financial Services Group Inc. (NYSE: PNC), is an investment bank specializing in M&A advisory services. The Richmond, Virginia-based firm concentrates on the aerospace and defense, building products, business services, consumer, energy and power, healthcare, industrials, specialty dis-tribution, technology-media-telecom and transportation sectors. Harris Williams, founded in 1999, recently advised Kronos Foods Inc., a portfolio company of Grey Mountain Partners, on its sale to Entrepreneurial Equity Partners; Integrated Global Services Inc., a portfolio company of Industrial Growth Partners, on its sale to an investment affiliate of J.F. Lehman & Co.; and Elliott Aviation on its major-ity recapitalization by Summit Park. It also advised Specialty Welding and Turnarounds, a portfolio company of Hastings Equity Partners, on its sale to Orix Capital Partners. Harris Williams advised on 52 U.S. PE-backed deals in 2019, the same number as Raymond James, according to PitchBook.

9. Goldman Sachs GroupThe firm offers a wide range of servic-es, including middle-market investing

Goldman Sachs Group (NYSE: GS) is an investment and investment man-agement firm that offers a range of services including: M&A and invest-ment banking, consumer banking, asset management, private wealth management, direct private invest-ing and middle-market financing and investing. Its M&A services include advice on mergers, sales, acquisitions, leveraged buyouts, joint ventures, raid defenses, spin-offs, divestitures and other restructurings; its M&A services clients include businesses, private in-

vestors, government agencies, private individuals and families. Goldman Sachs has nine investment banking groups dedicated to certain industry sectors: consumer retail, financial in-stitutions, financial and strategic inves-tors, healthcare, industrials, municipal finance, natural resources, real estate and technology, media and telecom. The firm, through its special situations group, lends and invests up to $150 million directly to mid-sized compa-nies. The special situations group pro-vides lending, mezzanine and growth capital to mid-market businesses in the U.S. and in Europe. Goldman Sachs advised on 44 U.S. PE-backed deals in 2019, according to PitchBook.

10. Stifel FinancialThe firm made several acquisitions of its own recently

Stifel Financial Corp. (NYSE: SF) is a diversified wealth management and investment bank. The firm’s middle-market investment banking division focuses on the consumer and retail, healthcare, gaming and leisure, real estate and technology sectors. The firm’s closed deals since 2000 have averaged $388.8 million, and its 178 cross-border transaction since 2000 have totaled $130 billion. St. Louis-based Stifel owns Eaton Partners, Keefe, Bruyette & Woods and Miller Buckfire. In December 2019, the firm acquired the capital markets business of GMP Capital Inc., a Toronto-based independent investment bank. In 2019, a Stifel subsidiary acquired MainFirst Bank AG, an independent European investment bank, and Stifel acquired George K. Baum & Co., an underwriter and financial advisor. Recent deals have include: advising Richard Barasch on its acquisition of AdaptHealth Holdings. Stifel advised on 37 U.S. PE-backed deals in 2019, according to PitchBook. M&A

Top 10 Investment BanksTop 10 Investment Banks

Cos. (NYSE: PIPR) was formed in January 2019 when Piper Jaffray Cos., a middle-market investment bank, acquired Sandler O’Neill & Partners, a New York-based boutique investment banking boutique focused on financial services. Piper Jaffray was dominant in the healthcare sector and the deal was a bid to become a leader in the financial services sector. The deal represented more than half of Piper Jaffray’s $930 million market cap, and it followed a pattern from recent years: to fuel expansion in some sectors through acquisition. To grow its busi-ness in financial services in 2015, the firm acquired River Branch Holdings LLC and BMO Capital Markets GKST Inc. In 2016, to grow in the energy sec-tor, Piper Jaffray bought Simmons & Company International. Later in 2019, Piper Sandler acquired Weeden & Co., a broker-dealer, and exited its tradi-tional asset management business with the sale of Advisory Research Inc. Piper Sandler advised on 55 U.S. PE-backed deals in 2019, according to PitchBook.

6. Baird Business Owner SolutionsThe M&A advisory arm of R.W. Baird advises lower mid-market companies

Louisville, Kentucky-based Baird Business Owner Solutions is an M&A advisory arm of R.W. Baird, an employ-ee-owned investment bank, private eq-uity firm and wealth management firm with about 3,500 employees. Baird Business Owner Solutions advises lower middle-market and emerging growth companies and their owners on business sales, mergers, acquisitions, employee stock ownership plans, valu-ations and transition planning. In 2019, the firm’s deals included advising the Dental Care Plus Group on its sale to GroupDentaQuest; advising specialty manufacturer Alpha Integration Inc. on

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lion directly in operating companies mostly in communications, consumer, financial, healthcare, industrial and information technology sectors. It invests in buyout, growth equity and mezzanine stages. HarbourVest has more than 600 employees, including more than 125 investment profession-als. The firm is based in Boston with offices also in Beijing, Bogotá, Dublin, Hong Kong, London, Seoul, Tel Aviv, Tokyo and Toronto. Earlier in 2020 HarbourVest closed its flagship US fund, HarbourVest Fund XI, at $2.6 bil-lion. The fund invests mostly in primary partnerships in US buyouts, comple-mented by secondary investments and direct co-investments. Among its deals in 2019, HarbourVest, along with JMI Equity, sold software developer Intelex to Industrial Scientific, a subsidiary of Fortive Corp. (NYSE: FTV). HarbourVest closed 64 U.S. deals in 2019, according to PitchBook.

3. Genstar CapitalThe firm partners with management teams and a network of strategic advisors

Genstar Capital is a San Francisco PE firm that has been investing in middle-market companies since 1988. Genstar partners with its management teams and a network of strategic advisors, including current and former C-level executives from the industries in which it invests. The firm employs more than 35 professionals and man-ages funds with total capital commit-ments of $17 billion. Genstar invests in targeted segments of only four sectors: financial services, software, industrial technology and healthcare, and focuses on global companies headquartered in North America. It is currently managing its ninth fund and is seeking investment opportunities in founder-owned companies, public company orphans, corporate carve-

By Keith Button

Top 10 Private Equity Firms

The PE firms that closed the highest volume of U.S. deals in 2019 focused on software, technology, healthcare, financial services and consumer services

Audax, HarbourVest and Genstar ranked as the top three most active private equity firms in 2019, based on the volume of completed deals in the U.S., according to PitchBook. Three companies tied for fourth place: Abry, Carlyle and Shore Capital.

Where were these PE firms looking for deals? Eight of the firms on our list name the software and technology sector among their top investment targets, and seven put healthcare companies on their priority list. Finan-cial services and consumer services are each named by five of the firms as industries they focus on, with four naming business services companies. Fundraising from investors in 2019 led to two notable fund launches earlier in 2020: KKR’s $1.3 billion KKR Global Impact Fund and HarbourVest’s $2.6 billion HarbourVest Fund XI.

Here are Mergers & Acquisitions’ profiles of the top 10 firms.

1. Audax GroupThe private equity unit takes a buy-and-build approach

Audax Group, founded in 1999, invests in middle-market companies through Audax Private Equity and Au-dax Private Debt. Audax Private Equity, based in Boston and San Francisco, takes a buy-and-build investment approach, partnering with established companies to create larger entities through acquisitions and organic growth. The firm has invested more than $6 billion in 130 platform invest-ments and 825 add-on acquisitions. New York-based Audax Private Debt invests through first lien, stretch senior, unitranche, second lien, subordi-nated debt and equity co-investment solutions, with more than $19 billion invested since 2000. The private equity team has more than 100 investment professionals. Audax Private Equity’s investments are headquartered in

the U.S. and Canada, with operations in 21 countries. The companies are in business and consumer services, healthcare, software and technol-ogy, chemicals, energy, engineered products and materials industries. Earlier in 2020, Audax Private Equity acquired a controlling interest in Kofile Inc., a Dallas company that provides records management systems. Audax closed 87 U.S. deals in 2019, according to PitchBook.

2. HarbourVest Partners The firm invests in buyout, growth equity and mezzanine

HarbourVest Partners is global private markets investment firm with more than $68 billion in assets under management as of yearend 2019, including primary fund investments, secondary investments and direct co-investments. The firm, founded in 1982, has invested more than $17 bil-

TOP 10 Private Equity Firms

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lion directly in operating companies mostly in communications, consumer, financial, healthcare, industrial and information technology sectors. It invests in buyout, growth equity and mezzanine stages. HarbourVest has more than 600 employees, including more than 125 investment profession-als. The firm is based in Boston with offices also in Beijing, Bogotá, Dublin, Hong Kong, London, Seoul, Tel Aviv, Tokyo and Toronto. Earlier in 2020 HarbourVest closed its flagship US fund, HarbourVest Fund XI, at $2.6 bil-lion. The fund invests mostly in primary partnerships in US buyouts, comple-mented by secondary investments and direct co-investments. Among its deals in 2019, HarbourVest, along with JMI Equity, sold software developer Intelex to Industrial Scientific, a subsidiary of Fortive Corp. (NYSE: FTV). HarbourVest closed 64 U.S. deals in 2019, according to PitchBook.

3. Genstar CapitalThe firm partners with management teams and a network of strategic advisors

Genstar Capital is a San Francisco PE firm that has been investing in middle-market companies since 1988. Genstar partners with its management teams and a network of strategic advisors, including current and former C-level executives from the industries in which it invests. The firm employs more than 35 professionals and man-ages funds with total capital commit-ments of $17 billion. Genstar invests in targeted segments of only four sectors: financial services, software, industrial technology and healthcare, and focuses on global companies headquartered in North America. It is currently managing its ninth fund and is seeking investment opportunities in founder-owned companies, public company orphans, corporate carve-

outs and traditional buyouts. Among its recent deals, Genstar-backed Enverus, an energy data analytics company, acquired RS Energy Group, an oil-and-gas-focused technology firm; Genstar sold plastic container maker Pretium Packaging to Clear-lake Capital Group; and Genstar sold ECM Industries, provider of electrical products, to Sentinel Capital Partners. Genstar closed 58 U.S. deals in 2019, according to PitchBook.

4. Abry PartnersThe firm backs companies in a wide range of industries with four funds

Abry Partners, a PE firm head-quartered in Boston, focuses on investments in media, communica-tions, insurance, business and in-formation services, with industry expertise in broadband, business services,communications, cybersecu-rity, healthcare information technol-ogy, information services, insurance services, Internet of Things, logistics, media and Software-as-a-Service. Since its founding in 1989, Abry has completed more than 550 transac-tions. The firm has $12.8 billion under active management in four fund strategies. Its flagship private equity fund is the $2.1 billion Abry Partners IX, targeting investments of $20 million to $200 million. The $525 million Abry Heritage Partners fund focuses on lower middle-market companies with investments of $20 million to $50 mil-lion. Its $1.05 billion structured equity investment fund, Abry Senior Equity V, targets investments of $20 million to $75 million, and its $1.5 billion senior debt securities fund, Abry Advanced Securities Fund IV, focuses on first and second lien bank debt securities raised to support leveraged buyouts. Abry closed 45 U.S. deals in 2019, the same number as Carlyle and Shore Capital, according to PitchBook.

4. The Carlyle GroupThe firm has invested $106 billion in equity in 650 transactions since 1990

The Carlyle Group (Nasdaq: CG) is a global investment firm with $224 billion under management. The firm’s corporate PE business, with 272 in-vestment professionals in 22 offices, is invested in 181 portfolio compa-nies through 35 buyout and growth capital funds. The buyout teams invest through funds with $79 billion under management that focus on the U.S. and other geographic areas globally, as well as technology and financial services. The growth teams invest through funds with $7 billion under management focused on middle-market and growth companies in the U.S., Asia and Europe. Since 1990, the corporate PE unit has invested $106 billion in equity in 650 transactions and generated more than $85 billion in gains. Among its recent deals, Car-lyle sold its majority stake in Golden Goose sneakers to a company backed by Permira funds and a company controlled by Carlyle and Stellex Capi-tal Management, Titan Acquisition Holdings, acquired Huntington Ingalls’ San Diego Shipyard. Carlyle closed 45 U.S. deals in 2019, the same number as Abry and Shore Capital, according to PitchBook.

4. Shore Capital PartnersThe lower mid-market firm backs companies in healthcare and food and beverage

Chicago-based PE firm Shore Capi-tal Partners has about $1 billion under management. The firm invests through two microcap focused funds: Shore Capital Healthcare Partners, which invests in healthcare companies, and Shore Capital Food Beverage Part-ners, which invests in food, beverage and related companies. Shore raised Healthcare Partners, its third health-

By Keith Button


The PE firms that closed the highest volume of U.S. deals in 2019 focused on software, technology, healthcare, financial services and consumer services

the U.S. and Canada, with operations in 21 countries. The companies are in business and consumer services, healthcare, software and technol-ogy, chemicals, energy, engineered products and materials industries. Earlier in 2020, Audax Private Equity acquired a controlling interest in Kofile Inc., a Dallas company that provides records management systems. Audax closed 87 U.S. deals in 2019, according to PitchBook.

2. HarbourVest Partners The firm invests in buyout, growth equity and mezzanine

HarbourVest Partners is global private markets investment firm with more than $68 billion in assets under management as of yearend 2019, including primary fund investments, secondary investments and direct co-investments. The firm, founded in 1982, has invested more than $17 bil-

TOP 10 Private Equity Firms

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care fund, at $293 million and Food Beverage Partners, its first food and beverage fund, at $148 million, both in 2019. The healthcare fund invests in platform companies with $5 million to $100 million in annual revenue and add-on companies with more than $1 million in annual revenue. The food and beverage fund targets companies with $10 million to $100 million in an-nual revenue. Among its deals in 2019, Shore Capital invested in Main Street Gourmet, a wholesale bakery, and it made a platform investment by form-ing Southern Ear, Nose, Throat and Allergy Partners and partnering with Northwest ENT and Allergy Center in Georgia. Shore Capital closed 45 U.S. deals in 2019, the same number as Abry and Carlyle, according to PitchBook.

7. Kohlberg Kravis RobertsThe firm invests in management buy-outs and growth capital

KKR & Co. (NYSE: KKR) manages private equity, energy, infrastructure, real estate and credit investments, plus it has partners that manage hedge funds and it provides financ-ing and investments through a capital markets business. KKR was founded in 1976, and through Sept. 30, 2019, the firm had $208.4 billion under manage-ment, 109 portfolio companies with $157 billion in annual revenues, and 21 private equity funds raised since in-ception. Those funds have completed PE transactions with about $615 billion of total enterprise value. KKR’s PE business invests in management buy-outs and build-ups, minority positions, public company toe-hold investments and growth capital opportunities. Its Americas PE teams focus on indus-trials, financial services, retail and consumer, energy, technology, media and communications, healthcare, and hospitality and leisure industries. Ear-

lier in 2020, KKR raised the $1.3 billion KKR Global Impact Fund to make PE investments in lower middle-market companies that provide commercial solutions to environmental and social challenges. KKR closed 42 U.S. deals in 2019, according to PitchBook.

8. Insight PartnersThe firm invests in high-growth tech-nology and software companies

Insight Venture Partners is a New York-based global venture capital and private equity firm with more than $20 billion under management. The firm invests in high-growth technology and software companies. Since Insight was founded in 1995, it has invested in more than 300 companies, com-pleted more than 200 M&A transac-tions for its portfolio companies and made more than 200 strategic exits, with more than 40 initial public of-ferings. The firm advises its portfolio companies through its Insight Onsite program, providing advice targeted at product and technology, market-ing, sales, strategy and M&A, talent, business development and customer success functions. Among recent deals, Insight Venture invested in Lakeside Software, developer of workplace data analytics software, and it invested $500 million in cloud data manage-ment company Veeam Software, with Canada Pension Plan Investment Board investing alongside the PE firm. Insight closed 41 U.S. deals in 2019, the same number as Summit, according to PitchBook.

9. Summit PartnersThe firm invests in technology, health-care, consumer and financial services

Boston-based Summit Partners is a global alternative investment firm fo-cused on growth equity, fixed income and public equity opportunities. With more than $19 billion under manage-

ment, the firm has invested in more than 500 companies in technology, healthcare, consumer, financial and business services and other growth industries. Since its start in 1984, Summit Partners has completed more than 190 strategic sales and mergers and more than 140 public offerings. The firm maintains offices in North America and Europe, and invests in companies around the world. In 2019, Summit invested in $2.5 billion in 50 companies, made more than 70 acquisitions through its portfolio com-panies and made 19 strategic sales and public offerings. Among its recent deals, Summit has invested in Akemo, a Software-as-a-Service provider to brands and retailers; EClinical Solu-tions, provider of data services to life sciences organizations; and gamified cybersecurity trainer Immersive Labs; Summit closed 41 U.S. deals in 2019, according to PitchBook.

10. Harvest PartnersHarvest focuses on healthcare, indus-trials and manufacturing

Harvest Partners is a middle-market PE firm headquartered in New York that invests through private equity and structured capital arms. The private equity business focuses on investments in the business services and con-sumer, healthcare, industrial services, and manufacturing and distribution industries. It targets companies with annual revenues of $100 million to $1 billion. Among its recent deals, Harvest invested in Integrity Marketing Group, distributor of life and health insurance for seniors; bought outsourced railroad yard manager Lazer Spot Inc.; invested in MRI Software, provider of real estate management software; and bought Service Express, provider of mainte-nance and hardware support for data centers. Harvest closed 38 U.S. deals in 2019, according to PitchBook. M&A

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Women on board

By Belinda Martinez Vega

Gender diversity on corporate boards is good for performance and for shareholders

Guest Article

Pushed by a groundbreaking Califor-nia law mandating it, more companies are putting women on their public cor-porate boards. The law faces pressure in court and may not stand, but its rippling effect has already started to increase the visibility and awareness of the important benefits of board di-versity. Investors are taking notice and trying to get ahead of the curve. Here’s where the issue stands, and why com-

panies and shareholders are getting the message that, mandated or not, gender diversity on corporate boards makes good business sense.

Women on public corporate boards is good for shareholders. According to a study published by MSCI in March 2018, having three or more women on a company’s board of directors trans-lates to a 1.2% median productivity above competitors. In contrast, those

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with mostly male boards saw growth in employee productivity 1.2 percentage points below industry medians.

Having a more diverse workforce and board of directors leads to a greater diversity of ideas, MSCI found. But it’s not just greater diversity of ideas which leads to innovation; greater board diversity also sets the tone for a more inclusive workplace culture from the top of the organization. According to MSCI, strong talent management prac-tices have long been proven to lead to growth in revenue by employees.

Wall Street is starting to get the pic-ture. The share of female board mem-bers in the Russell 3000 index, which includes most public companies on major U.S. stock exchanges, increased to 20% in the second quarter of 2019

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from 19% the previous quarter, accord-ing to Equilar Inc., a governance-data firm. When Equilar began tracking the measure in late 2016, 15% of board seats were filled by women.

This increase in diver-sity is partly as a result of California pushing for action. On September 30, 2018, former Gover-nor Jerry Brown signed a law, Senate Bill 826, making California the first state to mandate female representation on corporate boards.

What does the California bill do?

SB 826 requires public companies with principal executive offices in Cali-fornia to meet certain gender-inclusion requirements on their boards, based on a tiered system. All publicly held corporations had to have at least one woman director by December 31, 2019. By the end of 2021 companies must meet the following requirements:

1. If the number of directors is six or more, it must have a minimum of three female directors;

2. If the number of directors is five, it must have a minimum of two female directors; and

3. If the of directors is four or fewer, it must have a minimum of one female director.

The California Secretary of State will publish names of compliant and non-compliant companies annually. Failure to comply with the new law by the end of 2019 (or 2021 for larger boards) will lead to fines of $100,000 for each first violation and $300,000 per violation in subsequent years.

As of September 2019, 68% of the 94 public companies in California with all-

male boards when the law passed have added at least one woman, according to Athena Alliance, a nonprofit that helps women land board directorships.

The law faces an uphill legal battle

On August 9, 2019, Judicial Watch, a Wash-ington-based conserva-tive activist group, filed a lawsuit, Crest v. Alex Padilla, in California state court on behalf of three California taxpayers seek-ing to prevent implemen-tation and enforcement of SB 826. They allege that

spending taxpayer money enforcing SB 826 is illegal under the California constitution. They further al-lege that the legislation’s quota system for female representation on corporate boards employs express gender classi-fications. As a result, they claim, SB 826 is immediately suspect and presump-tively invalid under the equal protection provisions of the California Constitution and triggers strict scrutiny review.

California is not aloneBut SB 826 is not alone. It mirrors

requirements that European countries have previously passed to increase women’s representation in business governance. France, Spain, Norway and Iceland already require public compa-nies to have at least 40 percent female board representation. Similar require-ments exist in Italy (one-third), Germany (30 percent), the Netherlands (30 per-cent, nonbinding) and other countries.

In addition, Illinois’s governor, in late August 2019, signed a bill requiring public companies based in the state to report on the composition of their boards, by gender and ethnicity, as well

as on how they promote diversity at the board and executive level. Other states are likely to follow.

What can Wall Street do to change the landscape?

Whether SB 826 survives judicial scrutiny or not, some public and private investors are starting to take independent action towards including more women on board seats. Black-Rock, the world’s largest asset man-ager with $6.3 trillion of assets under management, stipulated in its Proxy Guidelines for 2018 that it “expects to see at least two women directors on every board.” Vanguard, with more than $5 billion in assets under man-agement, did not assign a metric, but nevertheless advocated for gender board diversity, noting in its Open Let-ter to Directors of Public Companies Worldwide that its position on board diversity is “an economic imperative, not an ideological choice.”

Based on these high-profile ex-amples, even if California’s law is struck down, it looks like companies are recognizing that gender diversity on boards is a smart financial move. While this trend is just beginning to gather momentum and more action will be needed both from Wall Street and the government, you as a company inves-tor, advisor or decision makers should consider getting ahead of the curve and putting a plan in place for more gender diversity on your company’s corporate board. M&A

Belinda Martinez Vega, partner, Venable LLP

Guest article

Belinda Martinez Vega

Investors are starting to take independent action towards including more women on board seats.

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Key Middle-Market M&A Deals Completed in January 2020

01/24/20 F5 Networks Inc Shape Security Inc Prepackaged Software 1,000.001/24/20 Sonangol Sociedade Nacional PT Ventures SGPS SA Telecommunications 1,000.001/02/20 CIT Bank NA Mutual of Omaha Bank Savings and Loans, Mutual Savings Banks 988.101/22/20 Dubai Islamic Bank PSJC Noor Bank PJSC Commercial Banks, Bank Holding Companies 960.901/31/20 FCF Fishery Co Ltd Bumble Bee Foods LLC Food and Kindred Products 928.001/24/20 VICI Properties Inc JACK Cleveland Casino Hotels and Casinos 843.301/28/20 Shinhan Financial Group Ltd Orange Life Insurance Co Ltd Insurance 817.801/02/20 China Lodging Hldg Singapore Steigenberger Hotels AG Hotels and Casinos 803.801/02/20 Northern Star Resources Ltd Kalgoorlie Lake View Pty Ltd Mining 800.001/20/20 Yanlord Invest (Singapore) United Engineers Ltd Real Estate; Mortgage Bankers and Brokers 767.201/10/20 HomeStar InvestCo AB Hembla AB Real Estate; Mortgage Bankers and Brokers 737.401/14/20 Northland Power Inc Empresa de Energia de Boyaca Electric, Gas, and Water Distribution 735.301/15/20 OVO Energy Ltd SSE PLC-Hsehld Energy & Svcs Electric, Gas, and Water Distribution 616.601/14/20 Partners Group AG Imfarr-Property Portfolio Real Estate; Mortgage Bankers and Brokers 612.301/03/20 Olympus Partners LP Soliant Health Business Services 612.001/10/20 Savon Voima Oyj Fortum Oyj-District Heating Electric, Gas, and Water Distribution 589.401/30/20 Raytheon Co Forcepoint LLC Prepackaged Software 588.001/29/20 CNX Midstream Partners LP CNX Midstream GP LLC Oil and Gas; Petroleum Refining 577.801/07/20 HML Holdings PLC Leasehold Management Ltd Real Estate; Mortgage Bankers and Brokers 576.701/31/20 IOOF Holdings Ltd Australia & New Zealand Bkg-On Insurance 574.301/08/20 Assicurazioni Generali SpA Seguradoras Unidas SA Insurance 572.401/15/20 Investor Group Digital Realty-Data Centers Real Estate; Mortgage Bankers and Brokers 557.001/15/20 Mapletree Investments Pte Ltd Digital Rlty Tr Inc-Powered Real Estate; Mortgage Bankers and Brokers 557.001/08/20 Cresco Labs Inc CannaRoyalty Corp Investment & Commodity Firms,Dealers,Exchanges 532.301/02/20 ReAssure Group PLC Old Mutual Wealth Life Assur Investment & Commodity Firms,Dealers,Exchanges 516.501/06/20 Piper Jaffray Cos Sandler O’Neill Partners LP Investment & Commodity Firms,Dealers,Exchanges 485.001/16/20 Sealink Travel Group Ltd Transit Systems Pty Ltd Transportation and Shipping (except air) 472.401/02/20 Allianz Holdings PLC LV-General Insurance Business Insurance 460.101/21/20 Arcline Investment Management Fairbanks Morse LLC Wholesale Trade-Durable Goods 450.001/31/20 Sandoz International GmbH Aspen Japan KK Drugs 440.601/23/20 CVC Capital Partners DMV-Fonterra Excipients GmbH Drugs 425.901/02/20 Wellbore Integrity Solutions Schlumberger-Drilling Assets Prepackaged Software 400.001/30/20 Banco Santander(Brasil)SA Banco Ole Bonsucesso Credit Institutions 395.301/08/20 CITIC Ltd Dah Chong Hong Holdings Ltd Transportation Equipment 385.301/06/20 ADT Inc Defenders Inc Business Services 381.001/20/20 Steel Reef Infrastructure Corp Crescent Point Energy Corp-Cer Oil and Gas; Petroleum Refining 377.401/31/20 RELX PLC ID Analytics Inc Prepackaged Software 375.001/31/20 Towa Pharmaceutical Co Ltd Pensa Investments SL Drugs 364.501/03/20 Charles River Labs Intl Inc Hemacare Corp Business Services 359.901/01/20 Investor Group SPM Argentina SA Oil and Gas; Petroleum Refining 355.001/21/20 Jewel Bidco Ltd Charles Taylor PLC Business Services 344.401/31/20 Domo Chemicals GmbH Solvay SA-Polyamid Bus Chemicals and Allied Products 335.101/08/20 Banque Des Territoires JMB Solar Nogara SASU Electric, Gas, and Water Distribution 334.501/22/20 Grain Management LLC Summit Broadband Inc Radio and Television Broadcasting Stations 332.501/03/20 Kaman Corp Bal Seal Engineering Inc Wholesale Trade-Durable Goods 330.001/09/20 Cording Real Estate Group Ltd The Holborn Links Estate Real Estate; Mortgage Bankers and Brokers 320.9

Date Acquirer Target Target Industry Value ($mil)

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N/A Boubyan Bank K.S.C.P. Bnk of Lndn & The Middle East Commercial Banks, Bank Holding Companies 151.201/09/20 Guardian Life Ins Co Hanover Cambridge Park Real Estate; Mortgage Bankers and Brokers 150.001/31/20 Momentum Metro Strategic Ltd Alexander Forbes Grp Hldg-Insu Insurance 146.9N/A Flotonic Ltd AFI Development PLC Real Estate; Mortgage Bankers and Brokers 145.001/13/20 TAG Beteilgungs und Imbil GmbH Vantage Development SA Real Estate; Mortgage Bankers and Brokers 144.901/11/20 Oak Coast Properties LLC The Courtyards at Buckley,CO Real Estate; Mortgage Bankers and Brokers 143.001/31/20 Momentum Metro Strategic Alexander Forbes Ltd-Alexander Insurance 139.701/27/20 Halma PLC NovaBone Products LLC Measuring, Medical, Photo Equipment; Clocks 137.001/31/20 First State Investments Ltd Vopak Terminal Algeciras SA Transportation and Shipping (except air) 136.901/12/20 Junshi Educ Consulting Shuren Educ Mgmt Co Ltd Educational Services 135.301/02/20 Abcam PLC Expedeon-Immo & Proteomics Drugs 132.201/02/20 Curtiss-Wright Corp 901D LLC Measuring, Medical, Photo Equipment; Clocks 132.001/09/20 Pavilion Energy Trading Iberdrola SA-LNG Oil and Gas; Petroleum Refining 129.101/01/20 John Wiley & Sons Inc MThree Corporate Consult Ltd Educational Services 129.001/16/20 Investcorp Bank BSC 535-545 Boylston Street,MA Real Estate; Mortgage Bankers and Brokers 128.001/13/20 Alvogen Inc Assertio Therapeutics-Gralise Drugs 127.501/06/20 Taehun Lee Fiber Tech Co Ltd Textile and Apparel Products 123.901/19/20 Gold Cup Elec Apparatus Co Wuhan No.2 Elec Wire & Cable Metal and Metal Products 122.301/21/20 Union Invest RE GmbH Thompson Washington DC Hotel Hotels and Casinos 120.0


01/07/20 Hostess Brands Inc Voortman Cookies Ltd Food and Kindred Products 320.201/13/20 Tian Jin Global Magnetic Card Tianjin Bohai Petrochem Co Oil and Gas; Petroleum Refining 308.801/31/20 Jost Werke AG Alo Holding AB Machinery 306.001/02/20 Allianz Holdings PLC Legal & General Insurance Ltd Insurance 305.101/16/20 GeoPark Colombia SA Amerisur Resources PLC Oil and Gas; Petroleum Refining 300.601/13/20 Tsentr Khraneniia Dannykh DataLine LLC Business Services 286.801/16/20 Kinross Gold Corp Third Mining Expl Co LLC Mining 283.001/02/20 Allianz SE LV-General Insurance Business Insurance 279.801/02/20 Quetzal Capital Pte Ltd PACC Offshore Svcs Hldg Ltd Transportation and Shipping (except air) 277.401/08/20 Investor Group ARTESP-Road Concession PiPa Construction Firms 270.401/09/20 Blackstone Group Inc Sheraton Grand Hotel,Phoenix Hotels and Casinos 268.001/07/20 KKR & Co Inc Riata Corporate Pk Amusement and Recreation Services 258.001/23/20 Helen of Troy Ltd Drybar Holdings LLC Personal Services 255.001/02/20 Americold Realty Trust Nova Cold Logistics Transportation and Shipping (except air) 253.301/30/20 Faurecia SA SAS Autosystemtechnik Transportation Equipment 248.401/31/20 France Air Management SA Sig Air Handling Netherlands Wholesale Trade-Durable Goods 244.401/14/20 Clearwater U.S. Multi-Family Starlight US-Portfolio Construction Firms 239.601/10/20 Jinushi Pte REIT Invest Corp Nippon Coml Dvlp Co Ltd-Ppty Real Estate; Mortgage Bankers and Brokers 239.201/07/20 Zeus Investments Peru SRL Hermes Transportes Blindados Business Services 236.401/14/20 Alexandria RE Equities Inc Hines Global REIT-Riverside Real Estate; Mortgage Bankers and Brokers 235.001/02/20 Scandinavian Tobacco Group A/S Agio Beheer BV Tobacco Products 232.501/09/20 Ingka Centres Holding BV Kings Mall Shopping Centre Ltd Real Estate; Mortgage Bankers and Brokers 222.601/09/20 Siemens Gamesa Renewable Senvion Hldg Gmbh-Svcs & Electric, Gas, and Water Distribution 221.501/13/20 Inphi Corp eSilicon Corp Electronic and Electrical Equipment 216.001/20/20 Hefei Urban Constr Dvlp Co Ltd Hefei Industrial Invest Real Estate; Mortgage Bankers and Brokers 212.401/01/20 First Financial Bankshares Inc TB&T Bancshares Inc Commercial Banks, Bank Holding Companies 210.101/23/20 Singapore Exchange Ltd Scientific Beta Pte Ltd Investment & Commodity Firms,Dealers,Exchanges 206.401/02/20 China Resources Sanjiu Med & Aonuo (China) Pharms Co Ltd Drugs 202.001/02/20 Varta AG VARTA Consumer Batteries GmbH Electronic and Electrical Equipment 201.801/07/20 Revolution Resources LLC Jones Energy II Inc Oil and Gas; Petroleum Refining 201.501/07/20 Zhenjiang Xingxin Electn Tech Jiangsu Acetec Semiconductor Business Services 198.901/06/20 AEA Investors LP Univar Solutions Inc- Envi Agriculture, Forestry, and Fishing 195.001/09/20 Housing Dvlp Fin Corp Ltd Apollo Munich Health Ins Co Insurance 193.501/02/20 Sonoco Products Co Thermoform Engineered Quality Rubber and Miscellaneous Plastic Products 187.001/06/20 Colony Capital Inc Databank Ltd Business Services 185.001/01/20 OceanFirst Financial Corp Two River Bancorp Commercial Banks, Bank Holding Companies 183.101/20/20 Hood Packaging Corp Transcontinental Inc-Paper & Rubber and Miscellaneous Plastic Products 180.001/31/20 PAC Carveout LLC NMP Advisors LLC Investment & Commodity Firms,Dealers,Exchanges 179.001/31/20 PAC Carveout LLC Preferred Apartment Advisors Investment & Commodity Firms,Dealers,Exchanges 179.001/15/20 Tikehau Investment Management Covivio SA-500 Lots Real Estate; Mortgage Bankers and Brokers 178.001/14/20 Wujiang Econ & Tech Dvlp Zone Chunghwa Picture Tubes Electronic and Electrical Equipment 177.501/09/20 Equinix Inc Axtel SAB de CV-Data Centers(3 Telecommunications 175.001/22/20 Brookfield Business Partners Teekay Offshore Partners LP Transportation and Shipping (except air) 170.201/15/20 HIG Capital LLC Portopiccolo Residence Srl Hotels and Casinos 166.901/01/20 Momq Hldg Co Momentive Performance Chemicals and Allied Products 165.601/27/20 K12 Inc Galvanize LLC Investment & Commodity Firms,Dealers,Exchanges 165.001/02/20 Konecranes Abp MHE-Demag (S) Pte Ltd Machinery 162.801/31/20 Amalgamated Bank,New York,NY Renew Finl Grp-PACE Assets Business Services 160.001/15/20 Cadence Design Systems Inc AWR Corp Prepackaged Software 160.001/14/20 Blackstone RE Partners LP Invesco Re Ltd-Office Bldg Real Estate; Mortgage Bankers and Brokers 155.701/31/20 Tailim Paper Co Ltd Tailim Packaging Co Ltd Paper and Allied Products 155.1


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N/A Boubyan Bank K.S.C.P. Bnk of Lndn & The Middle East Commercial Banks, Bank Holding Companies 151.201/09/20 Guardian Life Ins Co Hanover Cambridge Park Real Estate; Mortgage Bankers and Brokers 150.001/31/20 Momentum Metro Strategic Ltd Alexander Forbes Grp Hldg-Insu Insurance 146.9N/A Flotonic Ltd AFI Development PLC Real Estate; Mortgage Bankers and Brokers 145.001/13/20 TAG Beteilgungs und Imbil GmbH Vantage Development SA Real Estate; Mortgage Bankers and Brokers 144.901/11/20 Oak Coast Properties LLC The Courtyards at Buckley,CO Real Estate; Mortgage Bankers and Brokers 143.001/31/20 Momentum Metro Strategic Alexander Forbes Ltd-Alexander Insurance 139.701/27/20 Halma PLC NovaBone Products LLC Measuring, Medical, Photo Equipment; Clocks 137.001/31/20 First State Investments Ltd Vopak Terminal Algeciras SA Transportation and Shipping (except air) 136.901/12/20 Junshi Educ Consulting Shuren Educ Mgmt Co Ltd Educational Services 135.301/02/20 Abcam PLC Expedeon-Immo & Proteomics Drugs 132.201/02/20 Curtiss-Wright Corp 901D LLC Measuring, Medical, Photo Equipment; Clocks 132.001/09/20 Pavilion Energy Trading Iberdrola SA-LNG Oil and Gas; Petroleum Ref ning 129.101/01/20 John Wiley & Sons Inc MThree Corporate Consult Ltd Educational Services 129.001/16/20 Investcorp Bank BSC 535-545 Boylston Street,MA Real Estate; Mortgage Bankers and Brokers 128.001/13/20 Alvogen Inc Assertio Therapeutics-Gralise Drugs 127.501/06/20 Taehun Lee Fiber Tech Co Ltd Textile and Apparel Products 123.901/19/20 Gold Cup Elec Apparatus Co Wuhan No.2 Elec Wire & Cable Metal and Metal Products 122.301/21/20 Union Invest RE GmbH Thompson Washington DC Hotel Hotels and Casinos 120.0


01/07/20 Hostess Brands Inc Voortman Cookies Ltd Food and Kindred Products 320.201/13/20 Tian Jin Global Magnetic Card Tianjin Bohai Petrochem Co Oil and Gas; Petroleum Ref ning 308.801/31/20 Jost Werke AG Alo Holding AB Machinery 306.001/02/20 Allianz Holdings PLC Legal & General Insurance Ltd Insurance 305.101/16/20 GeoPark Colombia SA Amerisur Resources PLC Oil and Gas; Petroleum Ref ning 300.601/13/20 Tsentr Khraneniia Dannykh DataLine LLC Business Services 286.801/16/20 Kinross Gold Corp Third Mining Expl Co LLC Mining 283.001/02/20 Allianz SE LV-General Insurance Business Insurance 279.801/02/20 Quetzal Capital Pte Ltd PACC Offshore Svcs Hldg Ltd Transportation and Shipping (except air) 277.401/08/20 Investor Group ARTESP-Road Concession PiPa Construction Firms 270.401/09/20 Blackstone Group Inc Sheraton Grand Hotel,Phoenix Hotels and Casinos 268.001/07/20 KKR & Co Inc Riata Corporate Pk Amusement and Recreation Services 258.001/23/20 Helen of Troy Ltd Drybar Holdings LLC Personal Services 255.001/02/20 Americold Realty Trust Nova Cold Logistics Transportation and Shipping (except air) 253.301/30/20 Faurecia SA SAS Autosystemtechnik Transportation Equipment 248.401/31/20 France Air Management SA Sig Air Handling Netherlands Wholesale Trade-Durable Goods 244.401/14/20 Clearwater U.S. Multi-Family Starlight US-Portfolio Construction Firms 239.601/10/20 Jinushi Pte REIT Invest Corp Nippon Coml Dvlp Co Ltd-Ppty Real Estate; Mortgage Bankers and Brokers 239.201/07/20 Zeus Investments Peru SRL Hermes Transportes Blindados Business Services 236.401/14/20 Alexandria RE Equities Inc Hines Global REIT-Riverside Real Estate; Mortgage Bankers and Brokers 235.001/02/20 Scandinavian Tobacco Group A/S Agio Beheer BV Tobacco Products 232.501/09/20 Ingka Centres Holding BV Kings Mall Shopping Centre Ltd Real Estate; Mortgage Bankers and Brokers 222.601/09/20 Siemens Gamesa Renewable Senvion Hldg Gmbh-Svcs & Electric, Gas, and Water Distribution 221.501/13/20 Inphi Corp eSilicon Corp Electronic and Electrical Equipment 216.001/20/20 Hefei Urban Constr Dvlp Co Ltd Hefei Industrial Invest Real Estate; Mortgage Bankers and Brokers 212.401/01/20 First Financial Bankshares Inc TB&T Bancshares Inc Commercial Banks, Bank Holding Companies 210.101/23/20 Singapore Exchange Ltd Scientif c Beta Pte Ltd Investment & Commodity Firms,Dealers,Exchanges 206.401/02/20 China Resources Sanjiu Med & Aonuo (China) Pharms Co Ltd Drugs 202.001/02/20 Varta AG VARTA Consumer Batteries GmbH Electronic and Electrical Equipment 201.801/07/20 Revolution Resources LLC Jones Energy II Inc Oil and Gas; Petroleum Ref ning 201.501/07/20 Zhenjiang Xingxin Electn Tech Jiangsu Acetec Semiconductor Business Services 198.901/06/20 AEA Investors LP Univar Solutions Inc- Envi Agriculture, Forestry, and Fishing 195.001/09/20 Housing Dvlp Fin Corp Ltd Apollo Munich Health Ins Co Insurance 193.501/02/20 Sonoco Products Co Thermoform Engineered Quality Rubber and Miscellaneous Plastic Products 187.001/06/20 Colony Capital Inc Databank Ltd Business Services 185.001/01/20 OceanFirst Financial Corp Two River Bancorp Commercial Banks, Bank Holding Companies 183.101/20/20 Hood Packaging Corp Transcontinental Inc-Paper & Rubber and Miscellaneous Plastic Products 180.001/31/20 PAC Carveout LLC NMP Advisors LLC Investment & Commodity Firms,Dealers,Exchanges 179.001/31/20 PAC Carveout LLC Preferred Apartment Advisors Investment & Commodity Firms,Dealers,Exchanges 179.001/15/20 Tikehau Investment Management Covivio SA-500 Lots Real Estate; Mortgage Bankers and Brokers 178.001/14/20 Wujiang Econ & Tech Dvlp Zone Chunghwa Picture Tubes Electronic and Electrical Equipment 177.501/09/20 Equinix Inc Axtel SAB de CV-Data Centers(3 Telecommunications 175.001/22/20 Brookf eld Business Partners Teekay Offshore Partners LP Transportation and Shipping (except air) 170.201/15/20 HIG Capital LLC Portopiccolo Residence Srl Hotels and Casinos 166.901/01/20 Momq Hldg Co Momentive Performance Chemicals and Allied Products 165.601/27/20 K12 Inc Galvanize LLC Investment & Commodity Firms,Dealers,Exchanges 165.001/02/20 Konecranes Abp MHE-Demag (S) Pte Ltd Machinery 162.801/31/20 Amalgamated Bank,New York,NY Renew Finl Grp-PACE Assets Business Services 160.001/15/20 Cadence Design Systems Inc AWR Corp Prepackaged Software 160.001/14/20 Blackstone RE Partners LP Invesco Re Ltd-Off ce Bldg Real Estate; Mortgage Bankers and Brokers 155.701/31/20 Tailim Paper Co Ltd Tailim Packaging Co Ltd Paper and Allied Products 155.1


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01/02/20 ConnectOne Bancorp Inc Bancorp of New Jersey Inc Commercial Banks, Bank Holding Companies 118.501/29/20 Sony Life Insurance Co Ltd SA Reinsurance Ltd Insurance 116.101/02/20 Avon Rubber PLC 3M Co-Ballistic Protection Textile and Apparel Products 116.001/19/20 Wenshi (Shenzhen) Eq Invest Henan Xinda Animal Husbandry Agriculture, Forestry, and Fishing 115.201/29/20 Gisla Sp z o o Develia SA-Wola Center Real Estate; Mortgage Bankers and Brokers 111.701/23/20 BNP Paribas REIM SGR SpA Buildings Portfolio, Milan Real Estate; Mortgage Bankers and Brokers 110.901/17/20 Tokyo Tr Capital Co Ltd Savanna Invest Mgmt LLC-434 Real Estate; Mortgage Bankers and Brokers 103.501/17/20 HJ Capital (Intl) Hldg Co Ltd Concord Bright Hldg Ltd Investment & Commodity Firms,Dealers,Exchanges 103.501/13/20 Perial Assets Management SASU Fortress Invest Grp Llc-Adam Real Estate; Mortgage Bankers and Brokers 103.401/17/20 Nihon Restaurant Holdings Coco’s Japan Co Ltd Retail Trade-Eating and Drinking Places 102.701/01/20 OceanFirst Financial Corp Country Bank Holding Co Inc Commercial Banks, Bank Holding Companies 102.201/07/20 Dehua TB Invest Mgmt Co Ltd Qingdao Yufeng Hantang Wood Wood Products, Furniture, and Fixtures 102.201/08/20 Assicurazioni Generali SpA Advancecare Gestao de Servicos Insurance 101.001/03/20 Carolina Financial Corp Carolina Trust BancShares Inc Commercial Banks, Bank Holding Companies 100.301/27/20 Columbia Property Trust Inc Normandy Real Estate Partners Investment & Commodity Firms,Dealers,Exchanges 100.001/14/20 Gulf Capital PJSC Ivi Rma Global Sl-Middle E Health Services 99.901/27/20 Divitias Bidco Ltd Nasstar PLC Business Services 98.101/20/20 CNT Israel Hldg Ltd 6 Over 6 Vision Ltd Business Services 97.401/13/20 San Tai Investment Co Ltd Hillview Golf Dvlp Co Ltd Amusement and Recreation Services 96.701/15/20 Hillview Hldg Ltd Hillview Golf Dvlp Co Ltd Amusement and Recreation Services 96.301/06/20 Sim Lian - Metro Capital Pte Rockworth (Australia) Pty Ltd Investment & Commodity Firms,Dealers,Exchanges 96.101/07/20 ELF 3 Barings LLC-Distn Ctr Transportation and Shipping (except air) 93.801/08/20 Savills IM Barings LLC-Prime Grade A Transportation and Shipping (except air) 93.401/16/20 Swiss Prime Site AG Re Ppty (04) Real Estate; Mortgage Bankers and Brokers 93.401/21/20 Multiplan Empreendimentos Atletico Mineiro-Diamond Mall Real Estate; Mortgage Bankers and Brokers 93.201/10/20 Brother S Africa Proprietary LANXESS CISA Proprietary Ltd Chemicals and Allied Products 93.001/21/20 S Lew & Assoc Inc The Conam Grp-401 Unit Real Estate; Mortgage Bankers and Brokers 90.001/01/20 Getinge AB Applikon Biotechnology BV Business Services 89.101/29/20 Rfr Holding GmbH Avignon Capital Ltd-Ampere Real Estate; Mortgage Bankers and Brokers 88.201/16/20 Jiangsu Leike Defense Tech Co Xi’an Hengda Microwave Tech Electronic and Electrical Equipment 87.101/04/20 Shenzhen Harmony Invest Funds Shenzhen Tongxin Small Reloan Credit Institutions 85.301/09/20 CIE Automotive SA Somaschini SPA Transportation Equipment 84.901/03/20 Lassonde Industries Inc Sun-Rype Products Ltd Food and Kindred Products 84.501/29/20 Orange Capital Partners BV Belgrave II Collection Investment & Commodity Firms,Dealers,Exchanges 82.701/29/20 The Peterson Cos Regency Centers-Gainesville Real Estate; Mortgage Bankers and Brokers 82.601/02/20 Clark Equipment Co Schiller Grounds Care-Mower Machinery 81.701/14/20 Retelit Digital Services SpA Partners Associates SpA Business Services 81.401/14/20 Barings LLC Kennedy Wilson-Retail Real Estate; Mortgage Bankers and Brokers 81.001/23/20 Manulife Invest Mgmt EQ8 Multifamily Buildings,QC Real Estate; Mortgage Bankers and Brokers 79.901/06/20 DVP Hotel Development LP Toronto Don Valley Hotel Hotels and Casinos 77.901/21/20 3i Eurpn Opl Prjcts Fnd Sociedad Concesionaria Autovia Construction Firms 77.501/09/20 ANI Pharmaceuticals Inc Amerigen Pharms Ltd-Coml And Drugs 77.501/03/20 XP Malls Fundo de Investimento IRB Intl FII Insurance 76.501/30/20 Employee Stock Ownership Plan Iec Corp Electric, Gas, and Water Distribution 75.001/10/20 Entegris Inc Sinmat Inc Electronic and Electrical Equipment 75.001/09/20 Tryggingamidstodin hf Lykill Fjarmognun hf Credit Institutions 74.101/06/20 XP Ppty Fundo de Investimento Noctus Empreendimentos Real Estate; Mortgage Bankers and Brokers 74.001/17/20 Fossa Holdco Ltd Agregtd Mcro Pwr Hldg PLC Electric, Gas, and Water Distribution 73.701/14/20 Perion Network Ltd Content IQ Prepackaged Software 73.101/04/20 Guangxi Xinze Huanfeng Invest Guangxi Huanjiang Yuanfeng Food and Kindred Products 71.301/07/20 Avic Airborne Systems Co Ltd Shaanxi Baocheng Aviation Measuring, Medical, Photo Equipment; Clocks 68.4


01/02/20 Prologis Inc Ravenside Retail Park,Edmont Real Estate; Mortgage Bankers and Brokers 68.101/02/20 Level One Bancorp Inc Ann Arbor State Bank Commercial Banks, Bank Holding Companies 67.801/01/20 Genesco Inc Togast Llc Wholesale Trade-Nondurable Goods 67.701/31/20 Pandox AB Maritim Hotel GmbH-Nuernberg Hotels and Casinos 67.301/27/20 Harbor Group International LLC Luxe Scottsdale Apartments Real Estate; Mortgage Bankers and Brokers 65.501/27/20 Jrk Property Holdings Inc RLJ Lodging Tr-Marriott Hotels Hotels and Casinos 65.001/23/20 POP NPLs 2019 SRL NPL Portfolio. Italy Credit Institutions 64.401/30/20 Solucoes em Software Consinco SA Prepackaged Software 62.101/09/20 Vingroup JSC Saidong Urban Dvlp & Invest Real Estate; Mortgage Bankers and Brokers 62.101/08/20 TA Associates Management LP Netrisk.Hu Elso Online Business Services 61.901/24/20 Consolidated-Tomoka Land Co Crossroads Towne Ctr Real Estate; Mortgage Bankers and Brokers 61.801/21/20 Iguatemi Empresa de Shopping Praia de Belas Shopping Center Real Estate; Mortgage Bankers and Brokers 61.001/02/20 AirBoss of America Corp-Defens Critical Solutions Transportation Equipment 60.001/11/20 ACNB Corp Frederick County Bancorp Inc Commercial Banks, Bank Holding Companies 57.601/21/20 Golfzon Newdin Holdings CO LTD Namyang Leisure Co Ltd Amusement and Recreation Services 56.101/09/20 Americold Realty Trust Newport-St. Paul Cold Storage Transportation and Shipping (except air) 56.001/21/20 Aberdeen Standard European Logistics Asset Transportation and Shipping (except air) 55.501/31/20 ESG Eko Agro Group AG ESG Technology Investments AG Investment & Commodity Firms,Dealers,Exchanges 54.701/29/20 Sony Life Insurance Co Ltd Aegon Sony Life Insurance Co Insurance 54.601/22/20 Pingtan Xinzhi Asts Mgmt Co Gu’an Huiyuan Supply Chain Business Services 54.301/06/20 Bright World Investment Ltd Alpha Youth Ltd Stone, Clay, Glass, and Concrete Products 52.901/28/20 Db Fin No.6 Special Purpose Neon Tech Co Ltd Machinery 52.201/24/20 Twin River Worldwide Holdings Affinity - Casinos(3) Amusement and Recreation Services 51.001/06/20 Covivio Hotels SCA Hilton Hotels (Ireland) Ltd Hotels and Casinos 50.801/01/20 Momentive Performance Wuxi Momentive Performance Paper and Allied Products 50.701/17/20 Sprott Inc Tocqueville Asset Mgmt LP-Tocq Investment & Commodity Firms,Dealers,Exchanges 50.001/20/20 Primus Valor AG Ibh Funds Investment & Commodity Firms,Dealers,Exchanges 49.901/31/20 Northwest Pipe Co Geneva Pipe Inc Stone, Clay, Glass, and Concrete Products 49.401/30/20 Cerved Credit Management Group Quaestio Cerved Credit Mgmt Investment & Commodity Firms,Dealers,Exchanges 47.601/30/20 Linx Pay Meios De Pagamento Esmeralda Servicos Digitais Business Services 47.301/16/20 Hindustan Foods Ltd Avalon Cosmetics Pvt - CMB Soaps, Cosmetics, and Personal-Care Products 47.101/21/20 Kanglim Co Ltd NAMYEUNG VIVIEN CORP Textile and Apparel Products 46.201/22/20 Truking Asset Mgmt (Changsha) Romaco Pharmatechnik GmbH Machinery 45.501/15/20 AI Global Invests (C) Pcc Ltd DFM Foods Ltd Food and Kindred Products 43.401/30/20 Custodia Valore SpA Creval SpA-InPegno Credit Institutions 42.601/09/20 Proteon Therapeutics Inc Artara Therapeutics Inc Business Services 42.501/30/20 Jones Lang LaSalle Income Milford Crossing Real Estate; Mortgage Bankers and Brokers 42.001/15/20 Killam Apartment REIT Christie Point Apartments,BC Real Estate; Mortgage Bankers and Brokers 41.301/03/20 Guilin Wuzhou Tourism Co Ltd Guilin Coml Co Ltd Wholesale Trade-Durable Goods 41.101/22/20 Henan Tian Lun Gas Group Ltd Shenqiu Huixin Natural Gas Co Electric, Gas, and Water Distribution 40.601/10/20 Community First Bancshares Inc Abb Financial Group Inc Commercial Banks, Bank Holding Companies 40.301/09/20 Vinci Energies Portugal SA Novabase Digital SA Business Services 40.201/15/20 Hokkaido Airports Co Ltd Hakodate Airport Terminal Bldg Business Services 40.101/02/20 Enghouse Systems Ltd Dialogic Group Inc Telecommunications 40.001/09/20 Regal Petroleum PLC NVK UkrNaftInvest PrAT Aerospace and Aircraft 40.001/17/20 CCL Industries Inc ID&C World Holdco Ltd Business Services 40.001/07/20 Farmers National Banc Corp Maple Leaf Financial Inc Commercial Banks, Bank Holding Companies 39.601/22/20 Mirae Asset Daewoo SPAC 2 Aniplus Inc Radio and Television Broadcasting Stations 39.601/31/20 BWREFI Royal Palm Way LLC Palm Beach Park Centre,FL Real Estate; Mortgage Bankers and Brokers 38.501/02/20 Reliant Bancorp Inc Tennessee Cmnty Bk Hldg Inc Commercial Banks, Bank Holding Companies 38.001/14/20 WP Carey Inc Moorfield Logistics Partner-Di Transportation and Shipping (except air) 37.7


038_MAJ0320 38 2/24/2020 4:33:52 PM



01/02/20 ConnectOne Bancorp Inc Bancorp of New Jersey Inc Commercial Banks, Bank Holding Companies 118.501/29/20 Sony Life Insurance Co Ltd SA Reinsurance Ltd Insurance 116.101/02/20 Avon Rubber PLC 3M Co-Ballistic Protection Textile and Apparel Products 116.001/19/20 Wenshi (Shenzhen) Eq Invest Henan Xinda Animal Husbandry Agriculture, Forestry, and Fishing 115.201/29/20 Gisla Sp z o o Develia SA-Wola Center Real Estate; Mortgage Bankers and Brokers 111.701/23/20 BNP Paribas REIM SGR SpA Buildings Portfolio, Milan Real Estate; Mortgage Bankers and Brokers 110.901/17/20 Tokyo Tr Capital Co Ltd Savanna Invest Mgmt LLC-434 Real Estate; Mortgage Bankers and Brokers 103.501/17/20 HJ Capital (Intl) Hldg Co Ltd Concord Bright Hldg Ltd Investment & Commodity Firms,Dealers,Exchanges 103.501/13/20 Perial Assets Management SASU Fortress Invest Grp Llc-Adam Real Estate; Mortgage Bankers and Brokers 103.401/17/20 Nihon Restaurant Holdings Coco’s Japan Co Ltd Retail Trade-Eating and Drinking Places 102.701/01/20 OceanFirst Financial Corp Country Bank Holding Co Inc Commercial Banks, Bank Holding Companies 102.201/07/20 Dehua TB Invest Mgmt Co Ltd Qingdao Yufeng Hantang Wood Wood Products, Furniture, and Fixtures 102.201/08/20 Assicurazioni Generali SpA Advancecare Gestao de Servicos Insurance 101.001/03/20 Carolina Financial Corp Carolina Trust BancShares Inc Commercial Banks, Bank Holding Companies 100.301/27/20 Columbia Property Trust Inc Normandy Real Estate Partners Investment & Commodity Firms,Dealers,Exchanges 100.001/14/20 Gulf Capital PJSC Ivi Rma Global Sl-Middle E Health Services 99.901/27/20 Divitias Bidco Ltd Nasstar PLC Business Services 98.101/20/20 CNT Israel Hldg Ltd 6 Over 6 Vision Ltd Business Services 97.401/13/20 San Tai Investment Co Ltd Hillview Golf Dvlp Co Ltd Amusement and Recreation Services 96.701/15/20 Hillview Hldg Ltd Hillview Golf Dvlp Co Ltd Amusement and Recreation Services 96.301/06/20 Sim Lian - Metro Capital Pte Rockworth (Australia) Pty Ltd Investment & Commodity Firms,Dealers,Exchanges 96.101/07/20 ELF 3 Barings LLC-Distn Ctr Transportation and Shipping (except air) 93.801/08/20 Savills IM Barings LLC-Prime Grade A Transportation and Shipping (except air) 93.401/16/20 Swiss Prime Site AG Re Ppty (04) Real Estate; Mortgage Bankers and Brokers 93.401/21/20 Multiplan Empreendimentos Atletico Mineiro-Diamond Mall Real Estate; Mortgage Bankers and Brokers 93.201/10/20 Brother S Africa Proprietary LANXESS CISA Proprietary Ltd Chemicals and Allied Products 93.001/21/20 S Lew & Assoc Inc The Conam Grp-401 Unit Real Estate; Mortgage Bankers and Brokers 90.001/01/20 Getinge AB Applikon Biotechnology BV Business Services 89.101/29/20 Rfr Holding GmbH Avignon Capital Ltd-Ampere Real Estate; Mortgage Bankers and Brokers 88.201/16/20 Jiangsu Leike Defense Tech Co Xi’an Hengda Microwave Tech Electronic and Electrical Equipment 87.101/04/20 Shenzhen Harmony Invest Funds Shenzhen Tongxin Small Reloan Credit Institutions 85.301/09/20 CIE Automotive SA Somaschini SPA Transportation Equipment 84.901/03/20 Lassonde Industries Inc Sun-Rype Products Ltd Food and Kindred Products 84.501/29/20 Orange Capital Partners BV Belgrave II Collection Investment & Commodity Firms,Dealers,Exchanges 82.701/29/20 The Peterson Cos Regency Centers-Gainesville Real Estate; Mortgage Bankers and Brokers 82.601/02/20 Clark Equipment Co Schiller Grounds Care-Mower Machinery 81.701/14/20 Retelit Digital Services SpA Partners Associates SpA Business Services 81.401/14/20 Barings LLC Kennedy Wilson-Retail Real Estate; Mortgage Bankers and Brokers 81.001/23/20 Manulife Invest Mgmt EQ8 Multifamily Buildings,QC Real Estate; Mortgage Bankers and Brokers 79.901/06/20 DVP Hotel Development LP Toronto Don Valley Hotel Hotels and Casinos 77.901/21/20 3i Eurpn Opl Prjcts Fnd Sociedad Concesionaria Autovia Construction Firms 77.501/09/20 ANI Pharmaceuticals Inc Amerigen Pharms Ltd-Coml And Drugs 77.501/03/20 XP Malls Fundo de Investimento IRB Intl FII Insurance 76.501/30/20 Employee Stock Ownership Plan Iec Corp Electric, Gas, and Water Distribution 75.001/10/20 Entegris Inc Sinmat Inc Electronic and Electrical Equipment 75.001/09/20 Tryggingamidstodin hf Lykill Fjarmognun hf Credit Institutions 74.101/06/20 XP Ppty Fundo de Investimento Noctus Empreendimentos Real Estate; Mortgage Bankers and Brokers 74.001/17/20 Fossa Holdco Ltd Agregtd Mcro Pwr Hldg PLC Electric, Gas, and Water Distribution 73.701/14/20 Perion Network Ltd Content IQ Prepackaged Software 73.101/04/20 Guangxi Xinze Huanfeng Invest Guangxi Huanjiang Yuanfeng Food and Kindred Products 71.301/07/20 Avic Airborne Systems Co Ltd Shaanxi Baocheng Aviation Measuring, Medical, Photo Equipment; Clocks 68.4


01/02/20 Prologis Inc Ravenside Retail Park,Edmont Real Estate; Mortgage Bankers and Brokers 68.101/02/20 Level One Bancorp Inc Ann Arbor State Bank Commercial Banks, Bank Holding Companies 67.801/01/20 Genesco Inc Togast Llc Wholesale Trade-Nondurable Goods 67.701/31/20 Pandox AB Maritim Hotel GmbH-Nuernberg Hotels and Casinos 67.301/27/20 Harbor Group International LLC Luxe Scottsdale Apartments Real Estate; Mortgage Bankers and Brokers 65.501/27/20 Jrk Property Holdings Inc RLJ Lodging Tr-Marriott Hotels Hotels and Casinos 65.001/23/20 POP NPLs 2019 SRL NPL Portfolio. Italy Credit Institutions 64.401/30/20 Solucoes em Software Consinco SA Prepackaged Software 62.101/09/20 Vingroup JSC Saidong Urban Dvlp & Invest Real Estate; Mortgage Bankers and Brokers 62.101/08/20 TA Associates Management LP Netrisk.Hu Elso Online Business Services 61.901/24/20 Consolidated-Tomoka Land Co Crossroads Towne Ctr Real Estate; Mortgage Bankers and Brokers 61.801/21/20 Iguatemi Empresa de Shopping Praia de Belas Shopping Center Real Estate; Mortgage Bankers and Brokers 61.001/02/20 AirBoss of America Corp-Defens Critical Solutions Transportation Equipment 60.001/11/20 ACNB Corp Frederick County Bancorp Inc Commercial Banks, Bank Holding Companies 57.601/21/20 Golfzon Newdin Holdings CO LTD Namyang Leisure Co Ltd Amusement and Recreation Services 56.101/09/20 Americold Realty Trust Newport-St. Paul Cold Storage Transportation and Shipping (except air) 56.001/21/20 Aberdeen Standard European Logistics Asset Transportation and Shipping (except air) 55.501/31/20 ESG Eko Agro Group AG ESG Technology Investments AG Investment & Commodity Firms,Dealers,Exchanges 54.701/29/20 Sony Life Insurance Co Ltd Aegon Sony Life Insurance Co Insurance 54.601/22/20 Pingtan Xinzhi Asts Mgmt Co Gu’an Huiyuan Supply Chain Business Services 54.301/06/20 Bright World Investment Ltd Alpha Youth Ltd Stone, Clay, Glass, and Concrete Products 52.901/28/20 Db Fin No.6 Special Purpose Neon Tech Co Ltd Machinery 52.201/24/20 Twin River Worldwide Holdings Affinity - Casinos(3) Amusement and Recreation Services 51.001/06/20 Covivio Hotels SCA Hilton Hotels (Ireland) Ltd Hotels and Casinos 50.801/01/20 Momentive Performance Wuxi Momentive Performance Paper and Allied Products 50.701/17/20 Sprott Inc Tocqueville Asset Mgmt LP-Tocq Investment & Commodity Firms,Dealers,Exchanges 50.001/20/20 Primus Valor AG Ibh Funds Investment & Commodity Firms,Dealers,Exchanges 49.901/31/20 Northwest Pipe Co Geneva Pipe Inc Stone, Clay, Glass, and Concrete Products 49.401/30/20 Cerved Credit Management Group Quaestio Cerved Credit Mgmt Investment & Commodity Firms,Dealers,Exchanges 47.601/30/20 Linx Pay Meios De Pagamento Esmeralda Servicos Digitais Business Services 47.301/16/20 Hindustan Foods Ltd Avalon Cosmetics Pvt - CMB Soaps, Cosmetics, and Personal-Care Products 47.101/21/20 Kanglim Co Ltd NAMYEUNG VIVIEN CORP Textile and Apparel Products 46.201/22/20 Truking Asset Mgmt (Changsha) Romaco Pharmatechnik GmbH Machinery 45.501/15/20 AI Global Invests (C) Pcc Ltd DFM Foods Ltd Food and Kindred Products 43.401/30/20 Custodia Valore SpA Creval SpA-InPegno Credit Institutions 42.601/09/20 Proteon Therapeutics Inc Artara Therapeutics Inc Business Services 42.501/30/20 Jones Lang LaSalle Income Milford Crossing Real Estate; Mortgage Bankers and Brokers 42.001/15/20 Killam Apartment REIT Christie Point Apartments,BC Real Estate; Mortgage Bankers and Brokers 41.301/03/20 Guilin Wuzhou Tourism Co Ltd Guilin Coml Co Ltd Wholesale Trade-Durable Goods 41.101/22/20 Henan Tian Lun Gas Group Ltd Shenqiu Huixin Natural Gas Co Electric, Gas, and Water Distribution 40.601/10/20 Community First Bancshares Inc Abb Financial Group Inc Commercial Banks, Bank Holding Companies 40.301/09/20 Vinci Energies Portugal SA Novabase Digital SA Business Services 40.201/15/20 Hokkaido Airports Co Ltd Hakodate Airport Terminal Bldg Business Services 40.101/02/20 Enghouse Systems Ltd Dialogic Group Inc Telecommunications 40.001/09/20 Regal Petroleum PLC NVK UkrNaftInvest PrAT Aerospace and Aircraft 40.001/17/20 CCL Industries Inc ID&C World Holdco Ltd Business Services 40.001/07/20 Farmers National Banc Corp Maple Leaf Financial Inc Commercial Banks, Bank Holding Companies 39.601/22/20 Mirae Asset Daewoo SPAC 2 Aniplus Inc Radio and Television Broadcasting Stations 39.601/31/20 BWREFI Royal Palm Way LLC Palm Beach Park Centre,FL Real Estate; Mortgage Bankers and Brokers 38.501/02/20 Reliant Bancorp Inc Tennessee Cmnty Bk Hldg Inc Commercial Banks, Bank Holding Companies 38.001/14/20 WP Carey Inc Moorfield Logistics Partner-Di Transportation and Shipping (except air) 37.7


039_MAJ0320 39 2/24/2020 4:33:53 PM



01/03/20 Amazon.com Inc Net Insight AB-Sye Business Business Services 37.401/06/20 Sirius Real Estate Ltd Otto Immobilien GmbH-Neuruppin Real Estate; Mortgage Bankers and Brokers 37.301/06/20 Clal Insurance Entrp Hldg Ltd Haarbaa Towers 4 Floors Real Estate; Mortgage Bankers and Brokers 37.101/10/20 NeoGenomics Inc Human Longevity Inc-Oncology Drugs 37.001/13/20 Corporate Travel Management Corporate Travel Planners Inc Transportation and Shipping (except air) 36.001/16/20 Progress Realty Partners Marketfair Shopping Center,NC Real Estate; Mortgage Bankers and Brokers 36.001/02/20 US Solar Fund PLC Greenbacker Renewable-39 MWDC Electric, Gas, and Water Distribution 36.001/31/20 Montana Ave Capital Partners Castilian Technical Center Real Estate; Mortgage Bankers and Brokers 35.701/14/20 If Skadeforsakring Holding AB Viking Redningstjeneste TopCo Investment & Commodity Firms,Dealers,Exchanges 35.501/17/20 Shanghai Jielong Group Co Ltd Shanghai Jielong Pudong Color Printing, Publishing, and Allied Services 35.201/24/20 Anika Therapeutics Inc Parcus Medical LLC Rubber and Miscellaneous Plastic Products 35.001/03/20 Yap Kian Peng Jackspeed Corp Ltd Leather and Leather Products 34.901/30/20 Plymouth Industrial REIT Inc Five-Bldg Industrial Real Estate; Mortgage Bankers and Brokers 34.701/12/20 Junshi Educ Consulting Ganzhou Meizhi Educ Investment & Commodity Firms,Dealers,Exchanges 34.401/30/20 Employee Stock Ownership Plan Turelk Inc Construction Firms 34.001/06/20 Hao Zhi Intl (Hong Kong) Ltd Infranor Holding SA Measuring, Medical, Photo Equipment; Clocks 33.501/01/20 Momq Hldg Co Momentive Performance Mining 33.301/22/20 Dws Investment GmbH Sebel Canberra Hotel Hotels and Casinos 32.901/13/20 RBB Bancorp PGB Holdings Inc Commercial Banks, Bank Holding Companies 32.501/29/20 ARA US Hospitality Trust AC Hotel Raleigh, North Caroli Real Estate; Mortgage Bankers and Brokers 32.201/24/20 Ocean Bidco Ltd AdCityMedia AB Advertising Services 32.001/02/20 Employee Stock Ownership Plan Andesa Services Inc Business Services 31.501/13/20 MPG Funds Management Ltd Bunnings Centre Transportation and Shipping (except air) 30.001/03/20 Adapthealth Corp Mckesson Patient Care Retail Trade-Food Stores 30.001/14/20 Arcplus Group PLC Shanghai Jingyu Landscape Agriculture, Forestry, and Fishing 29.601/17/20 Osung Advanced Materials Co Lumi Tech Endabu Co Ltd Electronic and Electrical Equipment 29.001/08/20 Westinghouse Air Brake Tech RELCO Locomotives Inc Transportation and Shipping (except air) 29.001/01/20 Siebert Financial Corp StockCross Financial Services Investment & Commodity Firms,Dealers,Exchanges 28.501/02/20 Summit Financial Group Inc,WV Cornerstone Financial Services Commercial Banks, Bank Holding Companies 28.501/13/20 Shanghai AEG Entrp Dvlp Co Ltd Shanghai ABB Switch Co Ltd Electronic and Electrical Equipment 28.401/06/20 China Merchants Ind Invest Ltd AVIC Intl Maritime Hldg Ltd Transportation Equipment 28.101/10/20 Fleury SA Diagmax Participacoes Health Services 26.901/06/20 Avesoro Jersey Ltd Avesoro Resources Inc Mining 26.801/15/20 M&G Investment Management Ltd Prologis-Logistic Asset Transportation and Shipping (except air) 26.701/07/20 Employee Stock Ownership Plan JCS Family Co Inc Electronic and Electrical Equipment 26.001/14/20 Interpump Group SpA Transtecno Srl Transportation Equipment 25.901/06/20 Imdex Ltd Flexidrill Ltd Machinery 25.401/03/20 Daekyo Co Ltd Tn Hldg Co Ltd Business Services 25.101/07/20 Crocker Partners LLC 5600 Glenridge Real Estate; Mortgage Bankers and Brokers 25.001/09/20 Weyland Tech Inc Push Hldg Inc Business Services 25.001/21/20 ITS Participations SASU ITS Group SA Business Services 24.801/08/20 Securitas AB Techco Security Espana SLU Business Services 24.501/02/20 Zhuhai Hengqin Xuanyuan No. 8 Shenzhen Belter Health Measuring, Medical, Photo Equipment; Clocks 24.201/22/20 Brno Technology Park Brno As Real Estate; Mortgage Bankers and Brokers 23.601/08/20 SMC Fulham Ltd CLS Holdings PLC-Quayside Lodg Hotels and Casinos 23.601/02/20 Shenzhen Keli Invest Hldg Co Shenzhen Keli Motor Co Ltd Electronic and Electrical Equipment 23.401/29/20 Comtech Telecommun Corp CGC Technology Ltd Wholesale Trade-Durable Goods 23.2


Editor’s note: To measure activity in the middle market, Mergers & Acquisitions looks at transactions that fulfill several requirements: Deals must have a value of roughly $1 billion or less; they must be completed (not just announced) within the timeframe designated; the coverage is global. Excluded from our charts are: recapitalizations; self-tenders; exchange offers; repurchases; stake purchases; and transactions with undisclosed buyers or sellers. Our data provider is Refinitiv, which updates its databases continuously. We use the data available at press time. Data for this table was collected on February 13, 2020.Source: Refinitiv

040_MAJ0320 40 2/24/2020 4:33:54 PM

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A look at how ﬁ ve of the biggest tech companies probe new