S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity is embracing the disruption occurring in the cybersecurity sector.
The announced value of private equity and venture capital investments in cybersecurity vendors between Jan. 1 and May 5 totaled $8.51 billion, jumping 91% from $4.46 billion during the same period in 2023, according to S&P Global Market Intelligence data.
The sector is racing to adapt as data once corralled in corporate networks migrates to the cloud. The need for completely new cybersecurity strategies and tools is drawing investment as new vendors surge into the marketplace.
"As long as that's the dynamic, you'll see continued investments in innovation, particularly at the venture capital end of the spectrum," said Alex Doll, Ten Eleven Ventures' founder and general partner.
Read more about recent private equity and venture capital investments in cybersecurity.
CHART OF THE WEEK: Venture capital boosts bets on AI
⮞ The top 35 venture capital firms actively funding AI announced 51 rounds for startups in the space during the first quarter, up from 31 rounds in the year-ago period, according to Market Intelligence data.
⮞ AI funding rounds also made up a larger share of those venture capital firms' investments, accounting for one in five rounds between Jan. 1 and March 31, up from one in 10 rounds over the same period in 2023.
⮞ Venture capital focus is shifting from general-purpose AI models to companies that leverage those models for targeted consumer or business applications, according to S&P Global Market Intelligence 451 Research.
TOP DEALS AND FUNDRAISING
– London-based video game services company Keywords Studios PLC is in discussions to be taken over by EQT AB (publ) for $2.58 billion, according to The Wall Street Journal. EQT has until June 15 to either submit a formal takeover bid or withdraw.
– An investor group including Arch Venture Partners LP, Monograph Capital, Jeito Capital SA and Arkin Bio-Capital entered into an agreement to sell biotechnology company Human Immunology Biosciences Inc. to Biogen Inc. for approximately $1.8 billion.
– The Carlyle Group Inc. intends to acquire the operator of KFC fried chicken restaurants in Japan from Mitsubishi Corp. in an $835 million deal, Nikkei Asia reported. The tender offer period will run through July 9.
– Carlyle raised ¥430 billion at the final close of its fifth Japanese buyout fund. The Carlyle Japan Partners V LP fund will focus on upper middle-market investments in Japan across the technology, media and telecom; consumer; retail; healthcare; and general industries.
– Paceline Equity Partners LLC raised $780 million in total commitments for Paceline Equity Partners Opportunity Fund II LP at final close. The fund seeks opportunistic, value-oriented and special situations investments across corporate debt, private equity and real asset opportunities.
– Eir Partners Capital LLC, a middle-market private equity firm that invests in healthcare technology and technology-enabled services, secured $496 million at the final close of its Eir Partners Investment Program II fund.
– Riata Capital Group LLC raised $285 million at the close of RCG Equity Fund II LP. The fund will target six platform companies within the business services, consumer and healthcare service sectors.
MIDDLE-MARKET HIGHLIGHTS
– CORE Industrial Partners LLC finalized the take-private transaction of digital manufacturing services provider Fathom Digital Manufacturing Corp.
– San Francisco Equity Partners invested in food service brokerage companies Sales Concepts Inc. and Donovan Food Brokerage Inc. to form Xceed Foodservice Group.
– Renovus Capital Partners bought a majority stake in technology-enabled legal services provider Case Works LLC.
FOCUS ON: HEALTHCARE TECHNOLOGY
– London-based drug discovery company LabGenius Ltd. raised £35 million in a series B financing round led by Merck & Co. Inc.'s venture capital arm, M Ventures.
– SamaCare Inc., a cloud-based patient access platform for specialty drugs, obtained $17 million in a series B round led by Questa Capital Management LLC.
– Substance use disorder-focused care company Wayspring secured a minority investment from an investor group led by CVS Health Ventures.
– The Riverside Co. added Crio Inc., a clinical trial technology provider, to its portfolio.
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For further private equity deals, read our latest In Play report, which looks at potential private equity-backed M&A, including rumored transactions, each week.
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