The Strand 🌴 - August 12, 2019

Endeavor Group, the parent company of Hollywood's biggest talent agency, delays IPO, Genstar acquires Worldwide Facilities, and Snap issues $1.1B of convertible notes to facilitate growth.

Welcome to the thirty-ninth edition of The Strand, a weekly-ish newsletter covering venture capital, private equity, and general business news from around the Los Angeles area. My name is Brendan Boken, a native of Southern California. Feel free to connect with me on LinkedIn, send deals/news to brendanboken@gmail.com.

Venture Capital Funding

Tripalink, a Los Angeles, California-based co-living startup, has raised $10 million in Series B funding at a $100 million valuation. Investors include Calin SJG Fund, L.P, K2VC, Tekton Ventures, and Oriza Venture. Crunchbase News

Private Equity Funding

Endeavor Group, the Los Angeles, California-based parent company of Hollywood’s biggest talent agency, is closing in on the purchase of premium-hospitality and live-events company On Locations Experiences LLC for as much as $700 million. The Wall Street Journal

Newfield Capital Partners made an investment in iCONECT, an El Segundo, California-based provider of a legal document review platform. Financial terms were not disclosed. PE Hub

Liquidity / Exits / M&A

Genstar Capital will acquire Worldwide Facilities, a Los Angeles, California-based wholesale insurance brokerage, managing general agency, and program manager. Financial terms were not disclosed. PR Newswire

Pattonair Limited, a portfolio company of Beverly Hills, California-based Platinum Equity, has acquired Valencia, California-based Wesco Aircraft Holdings, Inc. for $1.9 billion. LA Business Journal

Trinity Hunt Partners acquired Wexco International, a Marina Del Rey, California-based provider of litigation-focused forensic engineering services. Financial terms were not disclosed. PE Hub

Wpromote, which is backed by Los Angeles, California-based Shamrock Capital Partners, acquired Growth Pilots, a San Francisco, California-based paid media marketing agency. Financial terms were not disclosed. PR Newswire

New Funds

No LA-based firms raised new funds this past week.

IPOs

Endeavor Group, the Los Angeles, California-based parent company of Hollywood’s biggest talent agency, plans to delay its IPO until September at the earliest. The company is likely to seek a valuation between $7 billion to $8 billion and raise in excess of $500 million in its IPO. The Wall Street Journal

On The Move

Adam Marchick, a serial entrepreneur whose last two companies include Alpine.AI and Kahuna, has joined Los Angeles-based Chernin Group as an executive-in-residence. Crunchbase

Featured Jobs

Ares Management, a global asset manager, is hiring an Investor Relations Associate in the company’s greater Los Angeles office.

Oaktree Capital Management, a leading global alternative investment management firm, is hiring a Real Estate Analyst or Associate in the company’s greater Los Angeles office.

News, Resources, & Required Reading

American Airlines expands Los Angeles footprint with Rams and Chargers stadium deal. LA Business Journal

Blackstone has snapped up a stake in private equity rival BC Partners, as buyout groups turn to unconventional ways to benefit from the industry’s boom. The Financial Times

Cannabis marketplace LeafLink raises $35M, with plans to grow LA team. Built in LA

Cerritos-based Revolve reports loss in first quarterly results since going public in June. LA Business Journal

Los Angeles-based Colony Capital sees losses widen in second quarter and expands on plans to sell multi-billion dollar industrial portfolio of 450 properties by the end of 2019. LA Business Journal

Meet the unicorn class of 2019. Pitchbook

New York-based Barney’s, which filed for Chapter 11 bankruptcy protection last week, has received $218 million in new financing from the lending arms of Beverly Hills-based B. Riley Financial Inc. and Brigade Capital Management. LA Business Journal

Snap priced $1.1 billion of convertible notes, due in 2026. This is slightly up-sized from a $1 billion offering size, reflecting how Snap has become tech’s comeback kid. The "camera company" was valued at $29 billion in its first day of post-IPO trading in early 2017 — or $26.05 per share — before bottoming out at less than $5 per share at year-end 2018. Last week it briefly regained its $17 IPO price on better-than-expected Q2 earnings, and the $1.1 billion infusion should help it invest more in both content and features. Axios

Weekly refresh: Big fundraises from Sidecar Health, LeafLink, Mira, and more. Built in LA

Take a Break

Matthew Perry’s gorgeous L.A. penthouse is on sale for $35 million. Town & Country

See the 1980s Ferraris, Lancias, and Porsches that will star at Pebble Beach. Bloomberg Pursuits

Surf through the city on Audi’s 4-wheeled e-tron electric scooter. HICONSUMPTION

What I’m Listening To

@OverheardLA Posts of the Week

Unsplash Photos of the Week

@sebastiandumitru

@mackiec

@uripdunker

@itsbluestudio

The Strand 🌴 - August 5, 2019

ServiceTitan acquires CUC Software, James Murdoch and Robert De Niro partner up, Leonard Green and Ares acquire Press Ganey, and Ordermark raises $18M Series B.

Welcome to the thirty-eighth edition of The Strand, a weekly-ish newsletter covering venture capital, private equity, and general business news from around the Los Angeles area. My name is Brendan Boken, a native of Southern California. Feel free to connect with me on LinkedIn, send deals/news to brendanboken@gmail.com.

Venture Capital Funding

Ordermark, a Culver City, California-based provider of online ordering management solutions for restaurants, has raised $18 million in Series B funding. Foundry Group led the round, and was joined by investors including Los Angeles-based TenOneTen Ventures, Vertical Venture Partners, Los Angeles-based Mucker Capital, Act One Ventures, and Nosara Capital. Los Angeles Business Journal

Stackin’, a Los Angeles, California-based text-message-based financial platform, has raised $4 million in Series A funding. Experian Ventures, Dig Ventures, and Cherry Tree Investments led the round, and were joined by investors including Social Leverage, Los Angeles-based Wavemaker Partners, and Los Angeles-based Mucker Capital. Los Angeles Business Journal

Trueface, a Los Angeles, California-based computer vision company that augments existing camera data into so-called “actionable data” using machine learning and AI, raised $3.7 million in seed funding. Lavrock Ventures led the round, and was joined by investors including Scout Ventures and Monroe Capital. TechCrunch

Private Equity Funding

No Los Angeles-based investors or companies were involved in private equity transactions this past week.

Liquidity / Exits / M&A

A consortium of investors led by Los Angeles-based Leonard Green & Partners and Ares Management acquired Press Ganey Associates, a South Bend, Indiana-based maker of workforce engagement solutions for healthcare organization, from EQT. Financial terms were not disclosed. Business Wire

CVC Capital Partners agreed to acquire Ontic, a Chatsworth, California-based provider of parts for aerospace platforms for $1.37 billion, from BBA Aviation plc. Reuters

ServiceTitan, a Glendale, California-based software platform for home service businesses, acquired CUC Software, a Billings, Montana-based provider of service business software. PR Newswire

New Funds

Gron Ventures, a Newport Beach, California-based venture capital firm, has raised more than $117 million for its debut fund, with a target of $150 million. PE Hub

Powerplant Ventures, a Hermosa Beach, California-based growth equity firm, has raised $165 million for its second fund. Crunchbase News

IPOs

Beyond Meat ($BYND), an El Segundo, California-based vegetarian burger maker, filed for a secondary offering of 3.23 million shares at $160 / share, six times the price of its IPO. Shares of the company skidded almost 11% last Thursday, a day after the company priced the secondary offering. CNBC

On The Move

No Los Angeles-based firms gained notable new employees this past week.

Featured Jobs

Snap, a camera company, is hiring a Content Marketing Manager in the company’s greater LA office.

Tinder, a dating app that brings people together, is hiring an International Director of Product in the company’s greater LA office.

News, Resources, & Required Reading

ABC Chief Karey Burke made an impassioned pitch for broadcast television, arguing her company has the muscle to compete with streaming services like Netflix that have stolen so many viewers from conventional networks. Bloomberg

Banned from sports and dropped by sponsors, Lance Armstrong is back with a hit podcast, a new athletic brand, and a venture capital firm. Bloomberg Businessweek

Dow dives 760+ points as US-China trade war escalates, sparking sell-off in the stock market. CNN

Facebook has approached Netflix, Disney, and other media companies about putting their streaming services on a new Facebook device for making video calls from televisions. The Information

Hobbs and Shaw spins into top spot at the weekend box office. Los Angeles Business Journal

How tech is helping sweetgreen serve better food - and do more good. Built in LA

James Murdoch acquires majority stake in Robert De Niro’s Tribeca Film Festival. LA Times

LAX passenger traffic was up 1% in the first half of 2019 as 43 million passengers went through the nine terminals from January through June. Los Angeles Business Journal

Los Angeles tech companies soak up $205 million in funding for July. Built in LA

The Carlyle Group is moving to a “one share, one vote” model, meaning that each investor has a proportional say in how the company is run. As a result, Carlyle now has the opportunity to be included in the major stock indexes run by S&P Dow Jones and FTSE Russell. Carlyle has also converted to a “C corporation”, joining private equity rivals KKR and Blackstone. New York Times

The LA Dodgers pitch $100 million stadium renovation plan. Los Angeles Business Journal

Take a Break

Equinox is betting superfans can cut through the New York hotel glut as the company opens its first luxury hotel at Hudson Yards. Bloomberg Pursuits

Fast & Furious stars complicated demand - I never want to lose a fight. Wall Street Journal

Marriott jumps into all-inclusive resorts with Ritz-Carlton deal. Bloomberg Pursuits

The 10 best drinks for summer. Bloomberg Pursuits

What I’m Listening To

@OverheardLA Posts of the Week

Unsplash Photos of the Week

@upmanis

@danialmsb

@raflia

@zekedrone

The Strand 🌴 - July 29, 2019

The Boring Company raises first outside capital, Disney beats its own box office record, and SoftBank is raising Vision Fund II to the tune of $108 billion.

Welcome to the thirty-seventh edition of The Strand, a weekly-ish newsletter covering venture capital, private equity, and general business news from around the Los Angeles area. My name is Brendan Boken, a native of Southern California. Feel free to connect with me on LinkedIn, send deals/news to brendanboken@gmail.com.

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Also, two lucky listeners will receive a $10,000 growth hacking package for leaving a review and a rating on Apple Podcasts.

Venture Capital Funding

Ethic Inc, a New York, New York-based asset management platform, raised $13 million in Series A funding. Nyca Partners led the round, and was joined by investors including Fidelity Investments, Los Angeles-based Sound Ventures, ThirdStream Partners, Urban Innovation Fund, and Kapor Capital. Spotlight Growth

Tapcart, a Santa Monica, California-based SaaS platform that allows Shopify brands to create mobile shopping apps, raised $4 million in seed funding. Greycroft led the round, and was joined by investors including Los Angeles-based Amplify.LA, Act One Ventures, and Luma Launch. Los Angeles Business Journal

Tile, a San Mateo, California-based developer of small square-shaped tags and other technology to keep track of physical belongings, raised $45 million in funding. Francisco Partners led the round and was joined by investors including GGV Capital, Bessemer Venture Partners, Los Angeles-based Bryant Stibel, and SVB Financial Group. Venture Beat

Private Equity Funding

Radiology Partners, an El Segundo, California-based radiology practice in the U.S., raised approximately $700 million in funding, from Starr Investment Holdings. Los Angeles Business Journal

Liquidity / Exits / M&A

Philippine food giant Jollibee Foods Corporation acquired Los Angeles-based Coffee Bean & Tea Leaf for $350 million. Los Angeles Business Journal

Los Angeles-based Colony Capital acquired Digital Bridge, an investor in firms focused on mobile and internet connectivity, for $325 million. Business Wire

New Funds

Morpheus Ventures, a Sherman Oaks, California-based early-stage VC firm, is raising $200 million for its second fund, per an SEC filing. PE Hub

IPOs

No Los Angeles-based companies filed for public offerings or went public this past week.

On The Move

Thomas Barrack, Chief Executive Officer of Los Angeles-based Colony Capital, will step down from his role as CEO to be succeeded by Digital Bridge co-founder Marc Ganzi. Los Angeles Business Journal

Featured Jobs

Clutter, an on-demand, physical storage and moving technology company, is hiring a Growth Associate in the company’s greater LA office.

Simplistic, an e-commerce web design, development, and consulting firm, is hiring an Associate Project Manager in the company’s Santa Monica office.

News, Resources, & Required Reading

Disney has made $7.67 billion at the 2019 global box office - and it’s not even August. This broke the previous record of $7.61 billion set by Disney in 2016. Three Disney titles have crossed $1 billion worldwide, with Avengers: Endgame surpassing Avatar to become the top-grossing film of all time. Hollywood Reporter

Edison’s utility subsidiary, Southern California Edison, has agreed to pay $2.4 billion in nonratepayer funds by a state deadline of September 10th as its contribution toward the wildfire fund that’s intended to reach $21 billion. Los Angeles Business Journal

Elizabeth Warren proposes bill targeting private equity ‘vampires’. Pitchbook

Elon Musk’s Boring Company just raised $120 million in outside investment. The company previously relied on internal investments and less conventional methods of funding. The outside capital came from notable VC firms including 8VC, Vy Capital, Craft Ventures, Valor Capital, and DFJ. Built in LA

SoftBank is raising its second Vision Fund. The company is reportedly investing $40 billion of its own capital into the fund alongside commitments from Apple, Goldman Sachs, and Kazakhstan’s sovereign wealth fund. Wall Street Journal

The Fortune Global 500. Fortune

Where will limited partners allocate their money in the near future - private equity, real assets, hedge funds, or public equities? Pitchbook

Take a Break

Lil Nas X’s ‘Old Town Road’ sets record for longest run at #1. Bloomberg Pursuits

Sugar Ray Leonard eyes a $52-million prize in Pacific Palisades. Los Angeles Times

The $30,000 desk clock that’s also a model race car. Bloomberg Pursuits

What’s so special about a Rolex Submariner? Bloomberg Pursuits

What I’m Listening To

@OverheardLA Posts of the Week

Unsplash Photos of the Week

@aranprime

@justdazzzed

@purlzbaum

@hdp

The Strand 🌴 - July 22, 2019

100 Thieves gets a $35 million investment from Artist Capital Management, Fifth Wall Ventures raises new $503M fund focused on proptech, and Bird is seeking more money.

Welcome to the thirty-sixth edition of The Strand, a weekly-ish newsletter covering venture capital, private equity, and general business news from around the Los Angeles area. My name is Brendan Boken, a native of Southern California. Feel free to connect with me on LinkedIn, send deals/news to brendanboken@gmail.com.

Venture Capital Funding

Berbix, a San Francisco, California-based provider of hosted user verifications for online platforms, has raised $2.5 million in seed funding. Investors include Y Combinator, Initialized Capital, Los Angeles-based Fika Ventures, Dream Machine, and Liquid 2 Ventures. PE Hub

DEARhealth, a Los Angeles, California-based AI health tech startup, has raised $6.8 million in funding. Investors include Philips Health Technology Ventures, Vesalius Biocapital III and Health Innovations. PR Newswire

Jane Technologies, Inc., a Santa Cruz, California-based retail software company that created an online cannabis marketplace, has raised $21 million in Series B funding. Investors include Arcadia, Queens Court Venture Partners, and Tran Ventures. Forbes

Mahmee, a Los Angeles, California-based provider of personalized, ongoing postpartum support to new moms, has raised $3 million in seed funding. Investors include Mark Cuban and Serena Williams. Forbes

Ready, Set, Food!, a Los Angeles, California-based developer of a food allergy prevention system, has raised $2.2 million in pre-seed funding. Investors include Los Angeles-based Amplify.LA and Los Angeles-based PLG Ventures. LA Tech Watch

Tökr, a Marina Del Rey, California-based cannabis e-commerce and recommendation platform, has raised $1 million in funding. Merida Capital Partners led the round. PE Hub

100 Thieves, a Los Angeles, California-based lifestyle brand e-sports company, has raised $35 million in Series B funding. Artist Capital Management led the round. PE Hub

Private Equity Funding

Healthcare Financial Resources, which is backed by Housatonic Partners, acquired PARA Healthcare Financial Services, an Anaheim, California-based provider of market-based pricing tools, analytic products, and consulting services for healthcare organizations. Financial terms were not disclosed. Crunchbase

Liquidity / Exits / M&A

Los Angeles, California-based Colony Capital, is considering a sale of warehouse unit Colony Industrial, which could fetch over $5 billion, per Bloomberg. Los Angeles Times

New Funds

Fifth Wall Ventures, a Venice, California-based venture capital firm, has raised a $503 million fund that the firm plans to invest in real estate technology, or “proptech” companies. The fund is more than double the size of the three-year-old venture capital firm’s first fund, which closed at $212 million in 2017. Fortune

IPOs

No Los Angeles-based companies filed for public offerings or went public this past week.

On The Move

No Los Angeles-based companies gained notable new employees this past week.

Featured Jobs

Medely, the largest and fastest growing on demand platform for healthcare professionals, is hiring an Enterprise Sales Representative in the company’s Santa Monica office.

Snap Inc., a camera company reinventing the way people live and communicate, is hiring a Head of US Head of Ads Partnerships in the company’s greater LA office.

News, Resources, & Required Reading

A surge in seed capital - the Q2 2019 Los Angeles Seed Deal Report. Medium - Amplify LA

Beyond the headset: Headspace’s VP of customer experience on building customer devotion and more. Built in LA

Dry powder in the private equity industry has reached all-time highs. I recently wrote a piece on the state of PE and why the middle market buyout space can be an attractive place for limited partners to allocate their capital. Penn Mutual Asset Management

Los Angeles-based e-scooter company Bird is targeting $250 million for its Series D funding, per multiple sources. The Information

Los Angeles has the third largest pool of tech workers on the West Coast, and the average tech worker in LA earns a salary of $104,000. Curbed LA

Netflix tanks after whiffing on global paid subscriber numbers. CNBC

Techstars has launched two new programs in Los Angeles: the third Techstars Los Angeles Accelerator and the inaugural Techstars Starburst Space Accelerator. Los Angeles Business Journal

Weekly refresh: Drake and Serena Williams contribute to the growing LA tech scene. Built in LA

WeWork co-founder Adam Neumann has cashed out at least $700 million via sales and loans ahead of the company’s IPO. Wall Street Journal

Take a Break

Better than a PGA win? Owning Jack Nicklaus’s Gold Rolex. Bloomberg Pursuits

‘Lion King’ delivers for Disney with $191.8 million opening weekend. Bloomberg Pursuits

The most (and least) popular spots for U.S. vacation homes. Bloomberg Pursuits

What I’m Listening To

@OverheardLA Posts of the Week

Unsplash Photos of the Week

@joshuafuller

@mak_jp

@danedeaner

@alicekat

The Strand 🌴 - June 30, 2019

I'm back after a few weeks off! SpaceX gets an investment from the Ontario Teachers' Pension Plan, Sound Ventures invests in Alma, and Clearlake Capital raises $1.4B for its newest opportunities fund.

Welcome to the thirty-fifth edition of The Strand, a weekly-ish newsletter covering venture capital, private equity, and general business news from around the Los Angeles area. My name is Brendan Boken, a native of Southern California. Feel free to connect with me on LinkedIn, send deals/news to brendanboken@gmail.com.

Venture Capital Funding

Alma, a New York, New York-based co-practicing community of therapists, coaches, and wellness professionals, raised $8 million in Series A funding. Tusk Venture Partners led the round with participation from Los Angeles-based Sound Ventures, First Round Capital, Primary Ventures, Box Group, and Able Partners. Built in NYC

Metropolis Technologies, a year-old, Los Angeles, California-based mobility startup focused on building integrated networks to enable the future of mobility, has raised $17.5 million in seed funding. New York-based Zigg Capital led the round with participation from Los Angeles-based Slow Ventures and RXR Realty. Business Glitz

Miss Grass, a two-year-old, Venice, California-based cannabis brand with a content and e-commerce platform, has raised $4 million in funding. Investors in the round include Listen Ventures, Los Angeles-based Casa Verde Capital, Advancit Capital, Firstminute Capital, Third Kind Venture Capital, and Muse Capital. Forbes

Paloma Health, a one-year-old, New York, New York-based vertically integrated healthcare company focused on hypothyroidism, has raised $2.5 million in seed funding led by Los Angeles-based Crosscut Ventures, with participation from Human Ventures and FJ Labs. Alley Watch

Restaurant365, an eight-year-old, Irvine, California-based maker of restaurant-specific accounting, back office, and reporting software, has raised $88 million in new funding led by ICONIQ Capital. Orange County Business Journal

Wondery, a Los Angeles, California-based podcast publisher, has raised $10 million in Series B funding. Waverley Capital and Powerhouse Ventures led the round with participation from return backers Lerer Hippeau, Greycroft, BDMI, Advancit Capital, and Water Tower Ventures. Wall Street Journal

Private Equity Funding

Cortec Group acquired Aspen Medical Products, an Irvine, California-based designer and manufacturer of upper and lower spinal orthopedic bracing products. Financial terms were not disclosed. PE Professional

Ontario Teachers’ Pension Plan invested in Los Angeles-based SpaceX, the maker and operator or rockets and spacecraft. Financial terms were not disclosed. Space News

Liquidity / Exits / M&A

Swander Pace Capital led an acquisition of Bragg, a Santa Barbara, California-based maker of apple cider vinegar. Other participating investors include Dragoneer, Katy Perry, and Orlando Bloom. SP Capital - Press Release

New Funds

Clearlake Capital Group, L.P., a Santa Monica, California-based private investment firm, raised $1.4 billion for its new fund, Clearlake Opportunities Partners II. Los Angeles Business Journal

IPOs

ConversionPoint, a Newport Beach, California-based SaaS platform for marketing and e-commerce, formally withdrew its $40 million IPO registration. The company had previously postponed the offering last month. NASDAQ

On The Move

Ann Sarnoff, former BBC executive, will be the new CEO of WarnerMedia, replacing Warner Bros. chief Kevin Tsujihara. Hollywood Reporter

Teddy Citrin, investor at Greycroft, has been promoted to principal. Greycroft

Featured Jobs

Gimbal, a marketing and advertising automation platform, is hiring a Sales Development Representative in the company’s greater LA office.

Rex, a company utilizing artificial intelligence and big data to disrupt the traditional real estate brokerage model, is hiring a Chief of Staff in the company’s greater LA office.

Flexport, a global logistics company, is hiring a Global Customs Associate in the company’s greater LA office.

News, Resources, & Required Reading

Busloads of tourists used to visit Los Angeles luxury stores - not anymore. LA Times

Jony Ive, designer of the Mac, iPod, and iPhone, is leaving Apple after more than two decades to start his own design firm. Financial Times

Santa Monica street vendors struggle amid new licensing rules after the city passed an emergency ordinance establishing its Comprehensive Sidewalk Vending Program in April. LA Times

Social Capital co-founder Chamath Palihapitiya is spinning out a company from his venture capital fund-turned-family-office. The new entity, temporarily dubbed CaaS (short for capital-as-a-service) Technologies, will focus on providing data-driven insights to VC firms. TechCrunch

Tesla is developing the means to manufacture its own battery cells, according to current and recent employees. The car company has previously relied on Panasonic to manufacture battery cells in the past since the two companies previously signed a partnership deal back in 2014. CNBC

There’s no turning back: Los Angeles is a tech town now. Brittany Walker and Nick Kim wrote about why LA is having a moment - and why they are betting their careers that LA is the tech hub of the future. Medium

Take a Break

Home of the Week: Beverly Hills estate boasts a full cast of Hollywood players. LA Times

How to bring Old Hollywood into your home.

What I’m Listening To

@OverheardLA Posts of the Week

Unsplash Photos of the Week

@hngstrm

@angelacompagnone

@startdig

@hansonlujx

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