Thoma Bravo Exits Cybersecurity Firm Imperva for $3.6B, Blackstone's $2.3B Buyout of Pet Care App Rover

Thoma Bravo Exits Cybersecurity Firm Imperva for $3.6B, Blackstone's $2.3B Buyout of Pet Care App Rover

Private equity news the week of December 4th, 2023.

Recent Insights

Chart of the Week: Labor-intensive industries could benefit the most from AI technologies, which makes them more appealing to private equity investors. This could be why we are seeing an uptick in buyouts in healthcare, education, and consulting. For example, healthcare (the second-largest sector by labor cost) has witnessed a 6x increase in PE buyouts over the past 10 years, and we saw one of the few big consulting buyouts recently when Bain acquired Guidehouse for $5 billion. (Read More)

More Insights

  • AI in Private Equity Report (Read More)
  • The Profile of a Private Equity-backed CEO (Read More)
  • Meet KKR’s Portfolio Operations Group (Read More)
  • Healthcare Private Equity Buyouts Remain Strong Amid Pan-European Consolidation (Read More)
  • Private Equity Firms Keep Buying Tech Companies — and They’re Not Selling (Read More)

Deal News

Thoma Bravo has completed the sale of cybersecurity company Imperva to French conglomerate Thales at a $3.6 billion valuation. It’s a solid exit for Thoma Bravo which acquired the company for $2.1 billion in 2018. The buyout firm’s value creation plan included growing revenue through new product offerings and three acquisitions. Leaders behind the value creation plan included Thoma Bravo’s Chip Virnig, Richard Northing, and Andrew Almeida, as well as Imperva CEO Pam Murphy, who joined the company in 2020. (Source)

KKR is acquiring the remaining stake in insurer Global Atlantic that it doesn’t currently own for $2.7 billion. The buyout firm originally acquired 60% of the company in 2021 at a $4.7 billion valuation. Global Atlantic was founded from within Goldman Sachs before being spun-off into a separate company. Today, Global Atlantic manages about $158 billion in assets under management, largely in the form of retirement annuities. Private equity firms are increasingly looking at annuities providers as a source of LP capital, similar to how they would a pension fund. (Source)

Blackstone has agreed to acquire pet services provider Rover for $2.3 billion. The company operates an online marketplace for pet owners to find dog walkers, pet sitters, and other pet-related services. The deal is yet another example of how traditional buyout firms are increasing their exposure to the tech sector. Sachin Bavishi and Tushar Gupta helped lead the investment for Blackstone. (Source)

Brad Jacobs, the billionaire founder of XPO Logistics, has invested $1 billion in SilverSun Technologies, through his buyout firm Jacobs Private Equity with a group of co-investors. Jacobs appears to be using SilverSun to launch his next venture — a company which he told Transport Topics will likely involve applying technology to the industrial services space. (Source)

The United States SailGP sailing team has been acquired by a group of high-net worth individuals including former-Uber executive Ryan McKillen and Milwaukee Bucks owner Marc Lasry. The deal reportedly exceeds the $40 million that was paid for the UK’s Emirates GBR sail team. (Source)

Industry News

Norway’s sovereign wealth fund, the largest in the world, is considering allocating $70 billion to private equity (approximately 5% of the fund’s assets). A decision will be made by the country’s parliament next year. (Reuters

Ares Management CEO Michael Arougheti said the firm will open its first office in Japan next year. Although Ares is best known for its private credit strategy, Arougheti says he believes “there is probably a more robust private equity and real estate opportunity [in Japan] than credit. (Nikkei)

KKR is raising $20 billion for an infrastructure fund, with about half of that capital going toward digitization and decarbonization. Raj Agrawal, KKR’s global head of infrastructure, told Bloomberg he expects deal activity in the sector to pick up next year as investors seek exposure to companies with “entrenched customer bases, strong market positions, and contractual and regulatory protections.” (Bloomberg)

Blackstone raised $2.6 billion for a real estate secondaries fund to help institutional investors exit their positions. Verdun Perry, Blackstone’s head of strategic partners, says the firm is only targeting strong-performing real estate assets, and won’t touch distressed properties. (Wall Street Journal)

People News

Warburg Pincus has named Vishal Mahadevia head of its Asia private equity group. Previously he ran the firm’s activities in India.

KKR announced two big promotions in its operating group, KKR Capstone. Anne Arlinghaus has been named Partner, becoming only the fourth partner in KKR Capstone. She’s been with the firm since 2008. Suveer Sin has been promoted to Managing Director. He’s a former McKinsey partner who joined KKR about two years ago.

Alantra has hired two new operating partners for its private equity group. Ana Rivero joins from Santander Asset Management, where she was global head of ESG; and, Juan Lorenzo de Navascués joins from conglomerate SaarGummi Group, where he was global president of the operations steering committee. 

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