CD&R exits BCA

Clayton, Dubilier & Rice has sold British Car Auctions, a Europe-based seller of used vehicles, to Haversham Holdings for about 1.2 billion pounds. According to terms of the deal, BCA shareholders will receive 701 million pounds in cash and 104 million pounds in stock. The transaction is expected to be completed in early April. HSBC Bank plc, J.P. Morgan Limited, Rothschild and UBS Limited provided financial advice to CD&R. PRESS RELEASE New York and London – March 26, 2015 – Clayton, Dubilier & Rice today announced the sale of BCA, Europe’s largest used vehicle marketplace, to Haversham Holdings, the publicly listed investment vehicle, in a transaction valued at approximately £1.2 billion. Shareholders of BCA, which include CD&R funds, will receive £701 million in cash and £104 million in stock. The transaction is expected to close in early April. Under CD&R ownership, BCA diversified its business by adding a vehicle buying unit through the acquisition of WeBuyAnyCar.com, expanding in continental Europe and Brazil, and launching a range of new value-added service offerings. In addition, it has invested meaningfully in its technology and digital platforms to better serve its customers and adapt to the changing behaviour of the market. The result was an increase in EBITDA of approximately 85% under CD&R’s ownership. CD&R Partner David A. Novak said, “We have been delighted with our investment in BCA. The operating improvements and growth initiatives implemented with management under our ownership have transformed BCA from a traditional used vehicle physical auction business into a multi-channel marketplace. They have provided BCA with a strong foundation for continued growth and a rewarding future. We are confident that the talented group of managers at the company, under the leadership of Avril Palmer-Baunack and the Haversham team, will continue to drive strong performance in the future.” HSBC Bank plc, J.P. Morgan Limited, Rothschild and UBS Limited acted as financial advisors and Clifford Chance LLP and Debevoise & Plimpton LLP acted as legal advisors to CD&R in connection with the transaction. Ernst & Young LLP acted as accounting advisor. About Clayton, Dubilier & Rice Founded in 1978, Clayton, Dubilier & Rice is a private equity firm with an investment strategy predicated on producing financial returns through building stronger, more profitable businesses. Since inception, CD&R has managed the investment of $21 billion in 63 businesses with an aggregate transaction value of approximately $100 billion. To learn more about CD&R, please visit www.cdr-inc.com. About BCA BCA is Europe’s leading used vehicle marketplace. Operating in 13 countries, BCA remarketed approximately 1 million vehicles and bought more than 140,000 cars in 2014. To learn more about BCA, please visit www.bca-group.com.

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CD&R exits BCA

Capitala Group raises $125 mln for fourth private equity fund

Capitala Group, which provides financial solutions for lower middle-market companies, has closed its fourth private equity fund at $125 million. The limited partners for CapitalSouth SBIC Fund IV LP include public and private pensions, fund of funds and family offices. The pool will focus on making debt and equity investments in companies in various sectors with $8 million in revenue and a minimum of $2 million in EBITDA. PRESS RELEASE CHARLOTTE, N.C.–(BUSINESS WIRE)–Capitala Group, a leading provider of financial solutions for lower and traditional middle-market companies, is pleased to announce the final closing of its fourth private equity fund, CapitalSouth SBIC Fund IV, L.P. (the “CapitalSouth Growth Fund.”) The fund exceeded its initial target thanks to strong support from existing investors and new commitments from other leading institutional investors including public and private pensions, fund of funds and family offices. “We are excited to announce the final close of the Growth Fund,” said Joe Alala, Chairman and CEO. “We appreciate the interest expressed in the Fund by many long-standing relationships, as well new investors.” The CapitalSouth Growth Fund will focus on making debt and equity investments in a variety of industries with $8 million in revenue and a minimum of $2 million in EBITDA. The Growth Fund typically invests $2 million to $10 million and can complete larger transactions through syndication. Targeted industries include business services, healthcare, consumer and retail, building products, and manufacturing. About Capitala Group Capitala Group is a leading provider of capital to lower and traditional middle-market companies, through its family of credit focused funds. Since 1998, Capitala Group’s managed funds have participated in over 100 transactions, representing approximately $700 million of investments in a variety of industries throughout North America. Capitala Group manages both public capital (Capitala Finance Corp (Nasdaq:CPTA)) and private capital (including but not limited to the CapitalSouth Growth Fund) for its investors and seeks to partner with strong management teams to create value and serve as long term partners. To learn more about Capitala Group, please visit www.CapitalaGroup.com About CapitalSouth Growth Fund CapitalSouth Growth Fund provides financial solutions to lower and traditional middle-market companies, making debt and equity investments typically between $2MM and $10MM. CapitalSouth Growth Fund invests in mature companies with a history of generating positive cash flow, strong margins, and an established and defensible market position. CapitalSouth Growth Fund invests in a variety of industries throughout the United States and seeks to partner with strong management teams to create value and serve as long term partners. To learn more about CapitalSouth Growth Fund, please visit www.CapitalSouthPartners.com

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Capitala Group raises $125 mln for fourth private equity fund

Quickplay nets C$57 mln

Toronto-based Quickplay, which powers premium video to any device, has raised C$57 million in funding. The investors were Madison Dearborn Partners (which owns Quickplay), Orix Ventures and DIfference Capital Financial. PRESS RELEASE TORONTO–(BUSINESS WIRE)–Quickplay, the global expert in powering premium video to any device, today announced that it has secured $57 million (Canadian) in growth capital from private equity owner Madison Dearborn Partners, financing partner Orix Ventures and Difference Capital Financial. With more than $150M of total investment since the company’s inception in 2003, Quickplay is now the largest end to end managed service provider, powering premium video over all networks and devices. In its decade of operation, Quickplay has set several industry benchmarks, becoming the world’s largest distributor of linear over-the-top (OTT) TV distributing 700 channels, managing 2 million VOD assets, securing content connections to 250 premium content providers covering Hollywood to Bollywood and; servicing an addressable market of over 700 million subscribers worldwide. Quickplay powers premium video from leading content providers and to the largest service providers including AT&T, Bell and TELUS. The growth of OTT video is accelerating at a record rate. Quickplay is scaling its managed video platform at an unprecedented pace to meet this demand, approaching a differentiating scale that will benefit current and future customers. On March 4, 2015, the company accelerated its strategy to address the promising LTE Broadcast (eMBMS) market with the acquisition of Roundbox Inc. The acquisition will enable the monetization of engaging premium viewing experiences on any device or mobile network by using multicast (one-to-many), and unicast (one-to-one) technologies. “We have enjoyed successive years of high growth with our managed services, building a unique position that continues to disrupt the market. Quickplay is reaching a scale that makes our platform the natural choice for multichannel video programming distributors (MVPDs) and Content Providers to connect,” said Wayne Purboo, CEO and co-founder of Quickplay. “We are thrilled with the confidence shown in the potential of Quickplay with this financing – we will focus heavily on key investments that further accelerate our growth, and contribute to the success our current and future customers.” With its recent investments, Quickplay will focus its long term strategy on reducing inherent industry inefficiencies in content delivery, and the monetization of premium Live and On-demand video to the home and on-the-go, leveraging disruptive cloud economics to enable a new world of Next Generation TV. “The OTT market is poised for explosive growth, with global OTT video revenue predicted to reach $55.4 billion by year-end 2019, driven by rising consumer demand for TV Everywhere,” said David Mercer, VP and Principal Analyst at Strategy Analytics. “As OTT services become an integral part of the consumer’s entertainment space, the disruptive trends we are experiencing have demanded a fresh approach, with the widespread deployment of technologies such as LTE Broadcast holding strategic significance for many media players. Quickplay, together with its new investment and recent acquisition of Roundbox, looks set to potentially take the opportunity to strengthen and accelerate the future of Next Generation TV.” Quickplay will be exhibiting at NAB Show in Las Vegas from April 13-16, in the South Hall, booth SU9505. The company will be demonstrating its Next Generation Experience Solution and the latest capabilities in LTE Broadcast and Android TV. About Quickplay Backed by a decade of experience, Quickplay is the global expert in powering TV over any device, allowing premium video service providers to focus on growing their business. Quickplay’s proven services leverage an open platform, cloud economics, and best-of-breed partners so providers can move faster, operate leaner, and offer the best TV experience anywhere. With facilities and experts in Toronto, San Diego, Singapore, Chennai, and Frankfurt, Quickplay enables 700 million people around the globe to fast forward to a next generation of TV with over 700 live channels, 4,000 live events each year, and 2 million securely managed premium content assets. Quickplay has successfully launched multiscreen video services for the likes of Verizon, AT&T, Rogers, Bell and TELUS.

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Quickplay nets C$57 mln

Houlihan Lokey gearing up for an IPO later this year: WSJ

NEW YORK (Reuters) – Restructuring advisory firm Houlihan Lokey Inc is laying the groundwork for an initial public offering later this year, the Wall Street Journal reported on Wednesday, citing unnamed sources. The IPO could raise some $200 million and value the entire firm, which advises mid-sized companies on merger deals as well as larger firms in bankruptcy proceedings, at more than $1.5 billion, the paper said.

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Houlihan Lokey gearing up for an IPO later this year: WSJ

Metrix Capital invests in Superior Water Technologies

Metrix Capital Group said Thursday it has provided a growth capital investment to Superior Water Technologies Inc. Financial terms weren’t announced. Irvine, California-based Superior Water makes equipment for the municipal water industry throughout the Western U.S. PRESS RELEASE Anaheim Hills, CA (PRWEB) March 26, 2015 METRIX Capital Group, LLC, an Orange County based Venture Capital firm, has closed a transaction that provides Superior Water Technologies, Inc. the growth capital needed to increase their footprint in the Municipal water disinfection and treatment industry. “We take water for granted, but the things that Mark and SWT are doing are cutting edge and I’m not sure that anyone in the industry has the reputation and quality of work that SWT has in So Cal.”, said Jeff Brannon, Managing Director of METRIX Capital Group, LLC. “We are thrilled to be a part of this journey.” “These are exciting times here at Superior Water. Growth is robust, and our partnership with METRIX will allow us to continue the pace.” , said Mark Malmquist, President of SWT. “Together, we have the technology and financial strength to bring products to an industry hungry for solutions to the challenges of improving drinking water quality” The superior performance of our products allows us to compete with, and out-pace, even the largest of the industry’s manufactures. SWT’s patented VORTEX water reservoir mixing and purification systems have proven to be the highest performing products available. Our water treatment chemical storage and metering systems are fast at becoming a ‘no equal’ specified product in the industry. Water disinfection is one of the most important chemical processes on earth and required by law in every state. Superior Water Technologies provides expert services to this industry, and now, with METRIX as a partner, will be introducing new OSG products to this marketplace allowing SWT to become an industry leader in this technology. “With the partnership of METRIX and SWT now in place, we expect to bring additional high performing products to market at a rapid pace. Yes, these truly are exciting times here at SWT, we are thrilled to be a new member of the METRIX family” About Superior Water Technologies, Inc. – SWT manufactures premier quality equipment for Municipal water industry customers’ throughout the western US, with a goal of growth in to the full US marketplace and beyond. Our customers include many of the large and small agencies of our region, as well as other global industry manufacturers. Our recent sale of a pipeline chemical injection and mixing system to Orange County WD is one of the largest of its kind and replaced the equipment of a world leader in the industry. SWT also partners with Parkson and MIOX Corporations to provide one of the most important technologies ever to come to the water industry. On-site Hypochlorite Generation, known in the industry as OSG, is a truly ‘green’ technology that replaces very toxic and dangerous chemicals used in water disinfection with a non-regulated and environmentally friendly process of making chlorine with only salt, water and electricity. This technology will eventually replace virtually all of the thousands of existing systems utilizing chlorine gas and concentrated liquid chlorine.http://www.superiorwatertechnologies.com

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Metrix Capital invests in Superior Water Technologies

LSE sends out 50-plus books for Russell Investments

The London Stock Exchange is conducting a “broad sales process” for Russell Investments, four sources said. The LSE has sent out more than 50 books — some say as many as 70 — to potential bidders in the Russell Investments auction, the sources said. First-round bids are due in early April, said one of the persons, a private equity executive. “This will be a free for all,” a banker said. “It will be wild. People in China and Japan got books.” The LSE said in February that it had tapped JP Morgan and Goldman Sachs to run the Russell auction. Seattle-based Russell has $275.09 billion in assets under management as of Sept. 30. Russell Investments produces $125 million EBITDA and has been expected to fetch from $1.3 billion to $1.4 billion, peHUB has reported. Those price expectations have dropped, the banker and PE source said. Russell is now expected to sell for $800 million to $1 billion, they said.  “This is an 8x kind of company,” the banker said. But a different source said the lowered valuations were off. Last year, Northwestern Mutual Life Insurance Co. put Frank Russell Co., including the investment management and index businesses, up for sale. The Russell sale was limited to large buyout shops, peHUB reported. The LSE, which mainly wanted Russell’s large index business, in June beat out a handful of PE firms and bidders such as the Canadian Imperial Bank of Commerce to buy the company, Reuters said. The LSE said in February it would sell Russell Investments, the asset management unit of Frank Russell Co., after receiving expressions of interest, Reuters said Private equity is expected to dominate the auction of Russell Investments. Large buyout shops such as the Carlyle Group, Kohlberg Kravis Roberts & Co, TPG Capital and Warburg Pincus could be interested, sources said. The sources also said the lower price expectations may mean the business could draw interest from middle-market firms such as Aquiline Capital Partners, Friedman Fleischer & Lowe, Genstar Capital, Stone Point Capital, TA Associates and Thoma Bravo. (Hal Strong, part of Genstar’s strategic advisory board, is the former vice chairman of Russell Investments.) A London Stock Exchange spokesman declined to comment beyond the February announcement. Executives for Genstar, J.P. Morgan, FFL, Thoma Bravo, TPG and Warburg declined to comment. Spokespersons for Carlyle, FFL, KKR, Stone Point and TA could not immediately be reached for comment. Photo courtesy of Shutterstock

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LSE sends out 50-plus books for Russell Investments