25/9/2019 M&A wrap: Roark, Jimmy John's, Landry's, Adams Street, Balance Point, Carlyle, VSS | Mergers &

VSS | Mergers & Acquisitions

M&A wrap: Roark, Jimmy John's,

Landry's, Adams Street, Balance
Point, Carlyle, VSS
By Demitri Diakantonis September 25, 2019, 1:48 p.m. EDT

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The private equity model has held up very well over the decades, continuing to outperform
the public markets, even as economic cycles come and go. But the rate of growth has slowed,
leading PE firms to seek adjacent areas of business to expand. As PE firms face increased
pressure to produce higher returns on their investments, many of them are turning to a familiar
area of business: lending. Middle-market loans offer a potential growth path for PE firms,
Including Adams Street, Balance Point. Carlyle Group (Nasdaq: CG) and VSS , many of whom
view credit as a natural extension of their bread-and-butter operations. One of the largest
private equity fund-of-funds managers in the world, Adams Street Partners hired Bill Sacher
(pictured) and Shahab Rashid in 2016 to build a private credit platform and open a New York
office. The firm said there was a good opportunity to generate attractive returns while providing
capital to their general partner sponsors, who had seen banks pull back from middle-market
lending. The firm set out to offer everything from first-lien loans and unitranche facilities to
second-lien loans, mezzanine debt and preferred equity. “Our long-term private equity GP
relationships give us an important edge in a competitive market,” says Sacher, partner and head
of private credit at Adams Street. The firm sources its deals primarily from its general partners.
“The vast majority of our deals come from sponsors in our private equity fund-of-funds portfolio.
There are few debt providers that have the connection to private equity firms that we have. It’s
one of the reasons a private credit strategy was such a natural fit for the firm.” In May 2019, the
firm completed fundraising for its inaugural private credit program with approximately $1.1 billion
of capital. The firm garnered investment from new and existing investors in the U.S., Europe and
Asia. Read our full coverage: Private equity firms are becoming lenders. Here’s why.

At Mergers & Acquisitions, we've begun work on one of our most popular projects of the year:
the Most Influential Women in Mid-Market M&A. The deadline for nominations is Oct. 14. Last
year, we honored 36 women, including Marilyn Adler (Medley Capital), Jennifer Cotton
(Madison Capital Funding), Nishita Cummings (Kayne Anderson), Venita Fields (Pelham S2K),
Jeri Harman (Avante Mezzanine Partners), Pam Hendrickson (the Riverside Co.), Gretchen
Perkins (Huron Capital) and Trisha Renner (Baird). Who will make it on this year's list? To be
considered, candidates must be women who are outstanding dealmakers both inside and
outside of their firms. Evidence of influence in the broader M&A industry is essential. When
nominating a candidate, please explain how she outperforms her colleagues at her firm and in
the industry. Please provide examples of deals she has led, initiatives she has launched and other

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instances that show evidence of her influence in the middle market. An important guide to what
we're looking for can be found in the dealmakers we've honored in previous years. See profiles of,
and Q&As with, past honorees here.

TO NOMINATE A CANDIDATE, CLICK HERE.

DEAL NEWS
Morton's steakhouse owner Landry's Inc. is buying Del Frisco's Double Eagle Steakhouse and
Del Frisco's Grill from L Catterton-backed Del Frisco's Restaurant Group. The deal does not
include the Bartaco and Barcelona Wine Bar brands. L Catterton recently completed its $650
million acquisition of Del Frisco's. The advisors to Landry's include: Jefferies, Deutsche Bank and
North Point Advisors.

Roark Capital-backed Inspire Brands is buying the stake it does not own in sandwich shop chain
Jimmy John's Sandwiches. Roark originally invested in Jimmy John's in 2016. Inspire Brands owns
Arby's, Buffalo Wild Wings and Sonic Drive-In.

EQT-backed Kodiak Gas Services is buying Pegasus Optimization Managers from Apollo
Natural Resource Partners, a fund managed by affiliates of Apollo Global Management (NYSE:
APO). The target offers contract compression services for the oil and gas industry. Kirkland &
Ellis is advising the buyers. The sellers are being advised by Jefferies and Vinson & Elkins.

Halifax Group has invested in Prairie Industries and Nu-Pak Inc., a contract packager and
manufacturer of consumer products and ready-to-eat food. “As consumer product companies
continue to outsource their increasingly complex packaging and manufacturing needs, there is a
growing demand for the high-quality services offered by Prairie Industries and Nu-Pak," says
Halifax partner Scott Plumridge.

Graham Partners has invested in Vpet USA LLC, a manufacturer of custom and stock plastics for
the food and beverage sector. Dechert represented Graham.

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Arosa+LivHome is buying LifeLinks, a provider of life care services in Raleigh, North Carolina and
Nashville.

PEOPLE MOVES
James Clyne has joined law firm K&L Gates as a partner, where he is focusing on M&A in the
minerals and oil and gas sectors. He was previously with Allens.

Mark Birkett and Mike Jenny have been named partners in Livingstone's debt advisory group.
They both joined the firm in 2016.

Natalya Michaels has joined middle-market private equity firm MidOcean Partners as a
managing director. She is focusing on marketing, investor relations and business development
across MidOcean's private equity and credit businesses. Michaels was most recently with Artisan
Partners.

Sue Rechner has been named CEO at Huron Capital-backed WD Lab Grown Diamonds. She
previously held positions at Merrell and Confluence Outdoor.

Adam Neumann, the charismatic entrepreneur who led WeWork to become one of the world’s
most valuable startups, stepped down as chief executive officer after a plan to take the company
public hit a wall. Read the full story by Bloomberg News: WeWork’s Neumann steps down as
CEO, with IPO on the line.

FEATURED CONTENT
It’s a milestone year for the Blackstone Group Inc. (NYSE: BX), which transitioned from a
publicly-traded partnership to a corporation on July 1. Most recently, the New York firm
announced on Sept. 11 the final close of its latest global real estate fund. With $20.5 billion of
total capital commitments, Blackstone Real Estate Partners IX is the largest real estate fund
ever raised. Mergers & Acquisitions spoke with Stephen A. Schwarzman, the firm’s co-founder,
chairman and CEO, on the occasion of his new book, What It Takes: Lessons in the Pursuit of
Excellence, published by Avid Reader Press/Simon & Schuster, and released on Sept. 17.
Schwarzman, who is speaking at the Economic Club of New York on Sept. 18, shared his

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perspective on the private equity model, its resilience during recessions and how the industry has
evolved over three decades. Read the full story: "Complete control" is the beauty of private
equity, says Blackstone's Stephen A. Schwarzman.

Bank M&A has been soaring, creating the perfect backdrop for Piper Jaffray’s announced
acquisition of Sandler O’Neill & Partners LP. “There has been a lot of consolidation in the bank
space,” Piper Jaffray CEO Chad Abraham told Mergers & Acquisitions. “But there are still 5,000
banks, and we expect the pace of consolidation to continue.” Piper Jaffray is determined to be
the market leader in all the industries it does business in. The Minneapolis-based boutique
investment bank currently dominates some of the sectors it serves, especially healthcare. With
the acquisition of New York-based Sandler the renamed firm Piper Sandler will instantly become
a leading investment bank in financial services, a sector Piper has sought to expand in for several
years. For analysis of the deal, see Counting on bank M&A: Why Piper Jaffray bought Sandler
O'Neill.

That the payments landscape is dynamic is news to no one but the paradox at the core of it may
escape the average observer. The demand for simplicity by consumers and businesses is making
things more complex. More payment end points, payment types and disruptive innovation on the
front end means a greater challenge in the back where the work is done to approve, clear and
settle transactions. There have been a number of developments that have supported as well as
attempted to mitigate the effects of this paradox. Read the full story: Payments M&A, mobile
wave make negotiations harder.

Activity and urgency characterize the current dealmaking environment, say investment
bankers and other M&A advisors interviewed by Mergers & Acquisitions. After a record-
breaking 2018, forecasts for 2019 remain bullish. Advisors point to a lot of cash that must be
deployed by strategic buyers and private equity firms alike; a healthy U.S. economy; and low
interest rates. Competition for high-quality targets has never been more intense, especially for
technology providers, they report, which means sellers are commanding high prices. It all adds
up to a sellers' market. Read the story: 8 M&A advisors urge closing deals now, while economy
stays strong.

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The New York Yankees are in first place in the American League East division and have one of
the best overall records in Major League Baseball. Alex Rodriguez is best known as the former
Yankees star who hit 696 home runs over the course of his 22-year baseball career, but today
he’s making a name for himself as an investor as the founder and CEO of A-Rod Corp. One
recent example: While serving as a guest judge on CNBC’s Shark Tank, Rodriguez backed Ice
Shaker, an insulated bottle maker founded by former National Football Leaguefullback Chris
Gronkowski. Rodriguez talked about his life off the field at EisnerAmper’s 4th annual Alternative
Investment Summit. Among the topics discussed: Rodriguez’ childhood as the son of a single
mom; his investment thesis, which shares much with other middle-market investors; how he’s
helping singer/dancer/actress Jennifer Lopez (to whom he became engaged in March) transition
her business initiatives from licensing her brands to owning them; and how one day he just might
buy a baseball team. Read the full story: A-Rod talks Ice Shaker, NRG eSports, J. Lo & maybe
buying a baseball team.

Looking for a glimpse of what’s to come in the private equity industry? Meet Mergers &
Acquisitions' 2019 Rising Stars of Private Equity. As the PE industry undergoes a generational
shift, and many firm founders retire, it’s well worth getting to know these emerging leaders,
including Branford's Austin Collier, Sterling Partners' Shawn Domanic and Summit Partners'
Sophia Popova. For profiles and video interviews, see Meet Mergers & Acquisitions' 2019 Rising
Stars of Private Equity For Q&As, see 10 Rising Stars of Private Equity tell their tales.

To celebrate deals, dealmakers and dealmaking firms, Mergers & Acquisitions produces three
special reports every year: the M&A Mid-Market Awards; the Rising Stars of Private Equity; and
the Most Influential Women in Mid-Market M&A. For more on the timeline and nomination
process for each, see Special reports overview: M&A Mid-Market Awards, Rising Stars, Most
Influential Women.

EVENTS
The Virginia Capital Conference is being held on Oct. 2 at the Jefferson Hotel in Richmond,
Virginia.

Exponent Women is hosting a fall rooftop networking session at RSM in New York on Oct. 7.

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M&A East is taking place at the Pennsylvania Convention Center in Philadelphia Oct. 22-23.

ACG Charlotte is hosting Deal Crawl at the Mint Museum in Charlotte, North Carolina Nov. 6-7.

Third Annual Women in Alternative Investments Career Forum is taking place at the New York
Hilton on Nov. 8.

ACG New York is hosting Middle Market Week in New York from Nov. 11-15.

Demitri Diakantonis Managing Editor, Mergers & Acquisitions

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Restaurant industry Most Influential Women in Mid-Market M&A

Private equity firms Roark Capital L Catterton

TRENDING

P R I VAT E E Q U I T Y F I R M S

M&A wrap: Most Powerful Women in Banking, Cathy Bessant, Bank

of America, Thomas Cook, Hyundai, Aptiv
American Baker names BofA's Cathy Bessant the No. 1 Most Powerful Women in Banking. Mergers &
Acquisitions seeks nominations for the Most Influential Women in Mid-Market M&A, due Oct. 14. Hyundai, Aptiv
team for self-driving car joint venture.
By Mary Kathleen Flynn September 24
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P R I VAT E E Q U I T Y F I R M S

M&A wrap: Adams Street Partners, Balance Point Capital, Carlyle,

VSS, Vista, Clearlake
PE firms seeking growth, like VSS, led by Jeffrey Stevenson, turn to lending. Enhanced Healthcare raises new
fund. Mergers & Acquisitions seeks nominations for the Most Influential Women in Mid-Market M&A, due Oct.
14.
By Demitri Diakantonis September 24

LENDING

Private equity firms are becoming lenders. Here’s why.

With banks in retreat, and interest rates falling, PE firms, including Adams Street Partners, Balance Point
Capital, Carlyle and VSS, are moving into the lending business.
By Danielle Fugazy September 20

M O R E F RO M M E RG E R S & AC Q U I S I T I O N S

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P R I VAT E E Q U I T Y F I R M S

M&A wrap: KeyCorp, Beth Mooney, Most Influential Women, Lovell

Minnick, Wind Point
By Mary Kathleen Flynn September 20

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C-SUITE

KeyCorp's Beth Mooney to retire; Gorman named successor

By Laura Alix September 19

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FOOD AND BEVERAGE INDUSTRY

M&A wrap: Grupo Nutresa, Cameron's Coffee, Stripe, Gamut,

Riverside
By Demitri Diakantonis September 19

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COMMUNITY BANKING

Illinois leads nation in bank M&A. Here's why.

By Jim Dobbs September 18

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E R P S O F T WA R E

M&A wrap: TA, Genstar, Insightsoftware, Bizview, Rockefeller

Capital, L Squared
By Demitri Diakantonis September 18

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P R I VAT E E Q U I T Y F I R M S

M&A wrap: Stephen A. Schwarzman, Blackstone, Oak Hill, Mercer,

Genstar
By Mary Kathleen Flynn September 17

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