financial media

Leeds Builds on Financial Info Platform

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Covenant Review, a portfolio company of Leeds Equity Partners, has acquired CapitalStructure, a provider of news and information on the European sub-investment grade credit market.

Covenant Review, acquired by Leeds in September 2014, provides institutional investors and other bond and loan market participants with an understanding of the legal documentation governing their securities investments.  Customers include hedge funds, mutual funds, insurance companies, broker-dealers, pension funds and endowments.  Covenant Review was founded in 2006 and is based in New York (www.covenantreview.com).

The customers of CapitalStructure include asset managers, private equity sponsors, investment bankers, restructuring advisors, lawyers, and accountants.  The company was founded in 2008 by Sarah Goodchild (CEO) and Minaxi Kesra (Global Head of Special Situations). CapitalStructure is headquartered in London (www.capital-structure.com).

As part of Covenant Review, both Ms. Goodchild and Ms. Kesra will continue to operate the business, and will expand the company’s coverage of the sub-investment grade credit market into the US. “For the past seven years, CapitalStructure has forged deep relationships with the buyside and sellside in Europe,” said Ms. Goodchild.  “Our sources know that we can be reliable partners and our customers know us as the most trusted information source in the space because of our strict editorial policy of multiple sourcing of key information to ensure accuracy.  This transaction positions us to bring that same level of service to the US market.”

“The CapitalStructure deal is a big part of why we chose to bring in Leeds Equity as partners last year – for their capacity to support us in our strategic initiatives,” said Covenant Review CEO Adam Cohen. “We are delighted to have partnered with Sarah and Minaxi.  They have created a phenomenal business from the ground up, just as my partner Paul Ciasullo and I did in developing Covenant Review.  Our team is thrilled to be working with such passionate people to continue building the world’s most trusted authority in fixed income research, data, and analytics.”

Leeds Equity Partners invests in the education, information services, software, technology-enabled business services and training industries.  The firm was founded by Jeffrey Leeds and Robert Bernstein in 1993 and has raised and managed more than $1.1 billion of capital across five funds.  Leeds Equity Partners is headquartered in New York (www.leedsequity.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-19-15

The Carlyle Group to Acquire Dealogic

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The Carlyle Group and its co-investors have agreed to acquire Dealogic, a provider of financial data and analytics, for approximately $700 million from the company’s management and its founders, who will re-invest equity into the transaction.  The purchase of Dealogic is expected to close by the end of 2014.

Carlyle is partnering with co-investors Randall Winn, co-founder and former CEO of Capital IQ from 2004 to 2011, and Euromoney Institutional Investor, one of Europe’s largest business and financial magazine publishers with interests in financial publishing and event organization. Euromoney is headquartered in London (www.euromoneyplc.com).  Carlyle’s equity will come from Carlyle Partners VI, a $13 billion fund which had a final close in November 2013.

“Partnering with Carlyle and Dealogic is a great opportunity,” said Mr. Winn.  “Dealogic’s existing solutions are best-in-class for certain critical banker workflows and the company has developed exciting new products which are very compelling and broadens their addressable market.”

Dealogic is a financial software company that provides a platform for investment banks to conduct transactions in the areas of fixed income, equity capital markets, mergers and acquisitions, institutional sales and equity research, as well as FINRA, SEC and FTSE regulatory and investment banking strategies.  Dealogic sells its products to more than 500 clients globally including each of the world’s top 50 investment banks.  The company also works with other firms, such as the Wall Street Journal, to create financial leader boards.  Dealogic competes with Bloomberg, Mergermarket, Thomson Reuters, and smaller financial services information providers such as the Sovereign Wealth Fund Institute and Preqin.  The company was founded in 1983 and employs over 600 people.  Dealogic is headquartered in New York and London with additional offices in Hong Kong, Budapest, Tokyo, Mumbai, Sydney, Beijing, and São Paulo (www.dealogic.com).

“Dealogic is a globally recognized and trusted brand and its software and data platform is the de facto standard for the investment banking industry,” said Cam Dyer, Managing Director of The Carlyle Group.  “Through its 30-year history, Dealogic has invested heavily in developing its technology to create solutions that drive productivity and profitability for its customers and has become an increasingly important part of its customers’ critical work flows. We believe that Dealogic, with its talented management and employee base, will build on that success by introducing newly developed SaaS solutions and growing via acquisition to expand its relationships with customers.”

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation.  The firm employs approximately 1,600 people in 38 offices across six continents and is based in Washington, DC (www.carlyle.com).

“Dealogic is a growth company and we have been investing heavily in our technology and information to create new, innovative products and enhanced services,” said Tom Fleming, the CEO of Dealogic.  “We are excited to partner with Carlyle and will benefit enormously from their significant experience in the financial services technology sector and deep relationships across the financial community. Given our strong, long-standing relationships with our customers and excellent staff, Dealogic fits perfectly with the Carlyle model of investing in strong businesses and helping them considerably accelerate their growth and development.”

Barclays Capital and JPMorgan are acting as financial advisors to The Carlyle Group, which has secured committed debt financing from JPMorgan Chase Bank, Barclays Capital, and Deutsche Bank Securities.

Investec (www.investec.com) is acting as financial advisor to Dealogic and Gleacher Shacklock (www.gleachershacklock.com) is acting as financial advisor to Euromoney Institutional Investor.

2014 PEPD • Private Equity’s Leading News Magazine • 11-5-14