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Arcline Buys Pacific Avenue’s Unitec Elevator

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Arcline Investment Management has acquired Unitec Elevator from Pacific Avenue Capital Partners.

Unitec Elevator is a provider of elevator maintenance, modernization, and code compliance services in New York City, Northern New Jersey, Long Island, and Westchester County.

The company has over 3,400 elevators under maintenance contract and is involved with more than 55 active modernization projects. Unitec has over 170 service technicians and is headquartered in the Ozone Park neighborhood of New York City.

“Unitec has an excellent reputation, strong management team, best-in-class capabilities, and a high-quality portfolio of elevators under maintenance,” said Arcline in a released statement. “We are excited to partner with the company to support its next phase of growth through investments in technology and acquisitions.”

Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include industrials, technology, life sciences, and specialty chemicals. The firm closed its first fund, Arcline Capital Partners LP, with $1.5 billion of committed capital in March 2019. Arcline was founded in September 2018 and has offices in San Francisco and New York.

The elevator services sector has been active in the past year. In October 2019, Carroll Capital acquired Elevator Service, a Grand Rapids, Michigan-based provider of maintenance and testing, repair, and elevator modernization services in the Michigan cities of Grand Rapids, Lansing, Ann Arbor, Kalamazoo and Battle Creek; in September 2019, Align Capital Partners acquired Fort Worth, Texas-based Southwest Elevator Company; and in May 2019 CIVC formed Specialized Elevator Services to acquire San Francisco Elevator, Ascent Elevator, and Specialized Elevator. All three companies are providers of elevator maintenance and repair services in San Francisco, Los Angeles, and San Diego.

Pacific Avenue acquired Unitec Elevator from United Technologies (NYSE: UTX) in September 2019.

Pacific Avenue Capital Partners makes control investments in companies that have up to $750 million in revenue and positive or negative EBITDA. Sectors of interest include manufacturing and distribution; business and government services; technology, software, and IT services; healthcare; consumer products and services; building products; transportation and logistics; and automotive. The firm was founded in 2017 by its managing partner Chris Sznewajs (formerly with the Gores Group) and is headquartered in El Segundo, California.

Private Equity Professional | May 8, 2020

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Source: https://peprofessional.com/2020/05/arcline-buys-pacific-avenues-unitec-elevator/

Private Equity

What should startup founders know before negotiating with corporate VCs?

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Corporate venture capitalists (CVCs) are booming in the startup space as large companies look to take advantage of the fast-paced innovation and original thinking that entrepreneurs offer.

For startups, taking funding from CVCs can come with many benefits, including new opportunities for marketing, partnerships and sales channels. Still, no founder should consider a corporate investor “just another VC.” CVCs come with their own set of priorities, strategic objectives and rules.

When it comes to choosing a CVC with which to enter negotiations, the most important step is doing your own diligence beforehand. An entrepreneur’s goal is to find the perfect match to partner with and guide you as you grow your business. So before you start discussing terms, you’ll want to understand what’s driving the CVC’s interest in venture investing.

While traditional VCs are purely financially driven, CVCs can be in the venture game for a variety of reasons, including finding new technology that might generate marketplace demand for their products. An example is Amazon’s Alexa fund, which invested into emerging companies that drive use and adoption of Alexa. Alternatively, a CVC’s parent company may be looking to invest in tech that will help them operate their own products more efficiently, such as Comcast Ventures investing in DocuSign.

As a rule of thumb, the bigger CVC funds like GV and Comcast tend to be financially driven, meaning they’ll be approaching negotiations through a financial lens. As such, the negotiating process more closely resembles an institutional fund. You as a founder have to do the work to figure out what’s driving your CVC — is this a customer acquisition or distribution opportunity? Or are they seeking to find a source of knowledge transfer and/or bring new tech into their parent company?

“Before negotiating, always look at a CVC’s existing portfolio,” says Rick Prostko, managing director at Comcast Ventures. “Have they made a lot of investments, at what stage, and with whom? From this information you’ll see the strategic thinking of the CVC, and you can determine how best to position yourself when you begin negotiations.”

Source: https://techcrunch.com/2020/05/26/what-should-startup-founders-know-before-negotiating-with-corporate-vcs/

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Private Equity

Sterling Group files to raise $1.75bn for fifth flagship fund

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Mid-market Texas buyout house The Sterling Group has filed to raise up to $1.75bn for its fifth flagship fund.
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Source: https://www.altassets.net/private-equity-news/by-pe-sector/buyout/sterling-group-files-to-raise-1-75bn-for-fifth-flagship-fund.html

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Private Equity

Biotech continues strong PE, VC investment run in 2020

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The biotech sector has continued its robust start to the year for private equity and venture capital dealmaking, despite

Source: https://www.altassets.net/knowledge-bank/by-pe-focus/large-buyouts/biotech-continues-strong-pe-vc-investment-run-in-2020.html

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