NAIC Market Update: Opportunities in Today’s Markets

Technology, healthcare and business services are among the sectors where resilient businesses are creating great investment opportunities. In this NAIC Market Update video, Mina Pacheco Nazemi, Managing Director, Private Equity, Barings, discusses these opportunities, as well as the disruption COVID-19 has caused many smaller businesses. She also explains how those well-capitalized enterprises with strong business models have taken advantage of this disruption by acquiring smaller players and gaining market share to leapfrog competitors.

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SAVE THE DATE! Mellody Hobson Joining NAIC for Industry Insights Live on February 24th

NAIC is excited to announce that Mellody Hobson, Co-CEO & President of Ariel Investments, will join us on February 24th for Industry Insights Live! Set for 3:00 PM ET, Hobson will share her perspectives on diversity in the asset management industry, discuss her top-of-mind issues amid the COVID-19 pandemic, detail the lessons learned throughout her remarkable professional journey, and much more in a virtual fireside chat.

One of the most widely-recognized and respected professionals in the asset management industry, Hobson is responsible for the management, strategic planning and growth for all areas of Ariel Investments outside of research and portfolio management. Additionally, she serves as Chairman of the Board of Trustees of the Ariel Investment Trust, the firm’s publicly traded mutual funds. Before her promotion to Co-CEO, Hobson spent nearly two decades as Ariel’s President.

NAIC’s Chief Operating Officer, Carmen Ortiz-McGhee, will join Hobson in what is sure to be a highly engaging conversation. RSVP now for this must-see live stream!

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REGISTRATION ENDS TODAY for the 2021 NAIC NextGen Symposium

Time has almost run out to sign up for the 2021 NAIC NextGen Symposium!

Register no later than the end of today to participate in the popular series where instructors representing the best-of-class in Private Equity will deliver customized virtual training sessions. Each immersive module features actionable information and enhanced content – everything required for a young firm to succeed in this ultra-competitive industry. Sessions begin on February 19th.

NextGen is a series of six intensive virtual training sessions dedicated to educating and empowering a new generation of ethnically diverse and female general partners. These immersive sessions are ideal for anyone who has recently launched a firm or is seeking to establish a new firm within the next 12 months. Participants will walk away with a 360-degree view of what is required to structure the firm and the team effectively and gain a broader toolset covering everything needed to launch and grow a new firm. Attendees will also be prepared financially for the journey, ready to address back office, reporting and compliance issues properly, and learn to navigate the process of raising capital expertly.

Leading industry experts from Aon, Barings, Ernst & Young, GCM Grosvenor, Kirkland & Ellis, Mintz, Park Hill, Stellex Capital Management, and more will deliver the content modules on six consecutive Fridays from 3:00 p.m. – 5:00 p.m. ET. Attendance during all six modules is required.

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NAIC Seeks High-Performing Women for PARADIGM CHANGERS Undergraduate and Graduate Internship Program!

We are excited to announce the NAIC PARADIGM CHANGERS Undergraduate and Graduate Internship Program is now accepting applications! This groundbreaking program was created to address the lack of female participation, particularly diverse women, in alternative investments by providing education, career development programming, mentoring, and summer internships at leading NAIC and American Investment Council (AIC) member firms.

Made possible through a partnership between Key Partners AIC, the Robert Toigo Foundation, IMB Partners, Palladium Equity Partners, LLC and TPG, this innovative program is specifically designed to give undergraduate and graduate women the necessary tools to lead and succeed in the fields of Private Equity and Hedge Fund investing.

The NAIC PARADIGM CHANGERS Undergraduate and Graduate Internship Program is seeking diverse women across a broad range of complementary academic disciplines, including business, law, healthcare, technology, mathematics, engineering, among others. We invite everyone in our network to share this and encourage high-performing female candidates to apply for this transformative initiative.

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NAIC PE Member Firms: We Need Your Participation for our 2021 Performance Study

As we begin work on the NAIC 2021 Performance Study, we ask our Private Equity Member Firms for their active engagement before the February 26th deadline.

Published biennially, the NAIC Performance Study is a critical tool in our ongoing efforts to educate the institutional investor community about the expertise and value created by diverse investment managers and drive greater capital allocations to these firms. It provides data-driven evidence that diverse managers continue to outperform their general market counterparts over short- and long-term periods, in good times and in times of great challenge.

Despite generating significant media and industry attention, we realize that with NAIC’s growth in membership, some member firms may be unaware of this report’s scope and importance. Our most recent Performance Study, published in 2019, can be viewed and downloaded from the NAIC website: https://naicpe.com/wp-content/uploads/2020/04/2019-NAIC-ExaminingTheResults-FINAL.pdf.

If you have any questions about the report or process, please contact NAIC Programs & Initiatives Manager David Smith at dsmith@naicpe.com.

NAIC Welcomes Six New Member Firms to Our Network!

NAIC is excited to announce that our network continues to grow in 2021 with the addition of six new member firms!

Academy Investor Network (https://academyinvestor.com/) is a pre-seed through Series A stage investment syndicate that backs top-tier veteran-led startups and civilian-led startups focused on the GovTech/DefenseTech Space.

Black Dragon Capital, LLC (https://blackdragoncap.com/) is a minority-founder-led private equity firm focused on growth companies in industries disrupted by digitization, including digital commerce, financial services, healthcare, and technology and content management for sports, media, and entertainment.

Empowerment & Inclusion Capital I Corp. (https://www.empowermentandinclusion.com/) is a special-purpose acquisition company (SPAC) with the unique, purpose-driven mission to acquire a diverse led business or one focused on promoting an inclusive economy and society and support its ongoing growth and success to create enduring shareholder value.

Knox Lane (https://www.knoxlane.com/) is a San Francisco-based middle-market investment firm focused on the Consumer and Services Sectors. Formed by a team of investors and operators, Knox Lane’s professionals have a long history of working together, an investor-operator mindset, and a passion for partnering with companies to create long-term value through transformational engagement.

Recast Capital (https://www.recastcapital.com/) is a 100% woman-owned platform that supports and invests in emerging managers in venture capital with a focus on diverse partnerships. The firm is built on the belief that a thoughtful venture portfolio includes exposure to emerging managers for outsized returns and that fund performance improves when led by diverse investment teams.

Red Arts Capital (http://www.redartscapital.com/) is a leading investment firm focused on North American-based supply chain and industrial businesses. The firm invests in privately-owned, primarily family-owned, and multi-generational businesses with solid fundamentals and a strong track record and reputation.

Please join us in welcoming these firms to the NAIC!

Connect with NAIC on Social Media!

Stay up-to-date on the latest news from diverse-owned private equity firms and hedge funds, news-making deals, NAIC announcements, interviews with high-profile insiders and other industry happenings by following us on social media.

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MEMBERS NEWS

Bracket Capital Raises $450 Million for Private Market Investing Strategy

Bracket Capital announced the successful close of its oversubscribed second fund, Bracket Capital Fund II, LP at the Fund’s hard cap of $150 million, exceeding its original $100 million target. Bracket raised an additional $300 million in co-investment vehicles to invest alongside Fund II for a total of at least $450 million in equity to deploy. Consistent with Bracket’s investment strategy for Fund I, Fund II will invest in private companies through primary funding rounds and secondary market purchases from employees and early investors at these businesses seeking liquidity. Bracket’s differentiated and proven approach positions the firm to capitalize on long-term macro tailwinds as value increasingly accrues to companies within private markets.

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GenNx360 Capital Partners Announces Sale of Appalachian Railcar Services

GenNx360 Capital Partners announced it sold Appalachian Railcar Services (ARS) to Cathcart Rail. One of the largest railcar repair companies in the U.S., ARS provides a range of industrial logistics services, including certified tank and freight car repair, railcar cleaning, coating and lining services, mobile repair, on-site customer repair operations, switching operations, and railcar storage. GenNx360 invested in ARS in March 2017 as part of a sector-focused, proactive sourcing strategy targeting investments in the railcar services sector. Over the past three years, GenNx360, in partnership with management, transformed ARS into a highly strategic industry leader through a number of initiatives that drove revenue and margin growth.

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Empowerment & Inclusion Capital I Corp. Closes Upsized $276M IPO

Empowerment & Inclusion Capital I Corp. (NYSE: EPWR.U) announced the closing of its initial public offering of 27,600,000 units, including 3,600,000 units issued pursuant to the full exercise by the underwriters of their over-allotment option. The offering was priced at $10.00 per unit, resulting in gross proceeds of $276,000,000. The units began trading on the New York Stock Exchange under the symbol “EPWR.U” on January 8, 2021. The company is a special-purpose acquisition company with the mission to acquire a diverse-led business or a business focused on promoting an inclusive economy and society.

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Wind Point Portfolio Company Acquires Paleteria La Michoacana

WM Partners announced that HPH II Investments Master Fund, LP, together with its parallel and feeder funds (HPH II), through its wholly-owned entity, has acquired Jade Leaf, LLC, the category leader for matcha green tea products in the United States. Terms of the transaction were not disclosed. Headquartered in Seattle, WA, Jade Leaf sells premium quality, organic Japanese matcha tea in a range of pure grades, as well as blended products. Jade Leaf’s matcha is plant-based, organic, non-GMO, keto and paleo-friendly, and Whole30 approved.

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Clearlake Announces Strategic Investment and Several Portfolio Company Acquisitions

Clearlake Capital Group announced it has signed an agreement for a strategic investment in Web.com Group, Inc. Affiliates of Siris Capital Group, which acquired the company in 2018, will remain significant equityholders in the platform together with Clearlake. The financial terms of the transaction were not disclosed. Headquartered in Jacksonville, Florida, Web.com is a leading platform that enables businesses to establish, maintain, promote, and optimize their online presence. https://clearlake.com/clearlake-to-make-strategic-investment-in-web-com/

In addition, Ivanti, Inc., which is backed by affiliates of Clearlake Capital and TA Associates, announced it signed a definitive agreement to acquire Cherwell Software. Cherwell is a leading provider of IT service management and enterprise service management solutions focused on medium and large enterprises. Ivanti automates IT and Security Operations to discover, manage, secure and service from cloud to edge. The terms of the transaction were not disclosed. https://clearlake.com/clearlake-capital-and-ta-associates-backed-ivanti-to-acquire-cherwell-software/

Separately, symplr, a leading global healthcare governance, risk management, and compliance software-as-a-service platform, backed by Clearlake Capital and SkyKnight Capital, announced that it signed a definitive agreement to acquire Phynd Technologies. Phynd is an industry-leading solution for a centralized enterprise provider data management at scale. Terms of the transaction were not disclosed. https://clearlake.com/clearlake-backed-symplr-to-acquire-phynd/.

Ironhack Secures $20M in Funding Round Led by Lumos Capital Group

Ironhack, the global tech school, announced that it secured $20 million in a Series B round led by Lumos Capital, with participation from Endeavor’s Catalyst Fund, as well as existing investors, including Brighteye and Creas. Co-founded by Ariel Quiñones and Gonzalo Manrique in 2013, Ironhack is an internationally renowned global tech school offering intensive boot camps and immersive courses in Web Development, UX/UI Design, Data Analytics and Cybersecurity. Ironhack helps some of the world’s best companies hire, train and retain top tech talent, including brands like Microsoft, Visa, Capgemini, Siemens and Santander.

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IMB Partners Invests in Richmond Wholesale Meat Company

IMB Partners announced a recapitalization and growth equity investment in Richmond Wholesale Meat Company. Founded in Richmond, California, in 1959, Richmond Wholesale is a leading food manufacturer and global exporter to the U.S. military. Richmond is led by the second generation of the founding Doellstedt family with 55 employees and is supported by a deep, experienced management team that has had longevity at the company.

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Avante Capital Partners Announces Unitranche Financing in SSI Strategy Holdings

Avante Capital Partners announced the completion of a unitranche debt and equity investment in SSI Strategy Holdings LLC to support a growth investment by Amulet Capital Partners. Headquartered in Parsippany, NJ, SSI is an industry-leading provider of strategic consulting services for scientific functions within Life Sciences companies. The SSI team supports critical initiatives for Life Sciences companies ranging in size from emerging biotechs to global leaders.

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Smartronix Announces the Acquisition of Datastrong

Smartronix, LLC, a leader in next-generation cloud, C5ISR, and advanced engineering and IT solutions, announced the acquisition of Datastrong, a technology solution provider focused on data architecture, design and business analytics for government and commercial clients. OceanSound Partners completed the recapitalization of Smartronix in December 2019. Datastrong’s advanced technology offerings will enhance Smartronix’s position as a cloud leader and expand the company’s comprehensive solutions with additional capabilities in enterprise analytics, data science, and data engineering and management.

CareMetx, General Atlantic and The Vistria Group Announce Strategic Growth Partnership

CareMetx, a leading technology-enabled hub services company improving patient access to specialty medications, General Atlantic, a global growth equity firm, and The Vistria Group announced a strategic partnership to further accelerate CareMetx’s growth. With the transaction, General Atlantic will become the majority owner of CareMetx. The Vistria Group, an existing majority shareholder in CareMetx since 2017, will maintain a significant position in the company by reinvesting through Vistria Fund III, LP. Co-founded in 2011 by Bob Dresing and Mark Hansan, hub services pioneers, CareMetx is leading the transformation of the industry from traditional call center services to a “Digital Hub,” which integrates the company’s proprietary technology platform with award-winning patient and provider support.

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Grain Management Announces New Addition to its Investment Committee and Other Promotions

Grain Management announced that deal team member Jenny Zhang has been promoted to Principal and appointed as the seventh member of the Firm’s Investment Committee. Ms. Zhang has 10 years of experience in the financial industry, including underwriting investments, managing strategic growth initiatives, board leadership, and driving value creation across portfolio investments. In addition, Grain made two promotions on its Investment Team, including one Vice President, Diya Berger, and one Senior Associate, Sida He.

ICV Partners Names Kristie Goodman as Director of Investor Relations & Strategic Partnerships

ICV Partners announced that Kristie Goodman has joined the firm in a newly-created role as Director of Investor Relations & Strategic Partnerships. Ms. Goodman will lead and manage ICV’s global investor relations function from the firm’s Atlanta office. Prior to launching Inner City Consulting in 2017, where she served as an independent consultant assisting minority-led funds and startups, Ms. Goodman was Director of Investor Relations, Marketing, and Communications at Wind Point Partners where she led all aspects of the firm’s business development efforts. Ms. Goodman is a graduate of Georgia State University with a BBA in Finance and received her MBA degree from DeVry University, Keller Graduate School of Management.