PE Hub Podcast: How PE pros are handling higher interest rates and the slowdown in dealmaking
In this first episode of the PE Hub miniseries, Private Markets and the End of Cheap Money, reporters talks to dealmakers from Corsair, OEP, Vestar and more to hear how sponsors are coping with the higher price of ‘L’ in LBOs.
Central banks around the world have been raising interest rates to combat inflation, making borrowing more expensive for everyone. That includes private equity firms, which for years have enjoyed historically low borrowing costs to finance leveraged buyouts. So how are private equity firms copying with the end of cheap money? To find out, reporters and editors across several PEI Group titles have spent the last few months speaking to dozens of industry participants to get their perspectives.
In this first episode of the five-part podcast miniseries, Private Markets and the End of Cheap Money, we look at how higher interest rates are playing out in private equity transactions and why certain areas of M&A (deals in the mid-market, in particular) may be facing outcomes different from what you might expect.
Mary Kathleen Flynn, editor-in-chief of PE Hub, spoke with a wide range of dealmakers, including private equity firm leaders, lenders and investment bankers, about the impact of high interest rates and other factors like high inflation on PE-backed transactions.
Featured in this episode: Norm Alpert, founding partner at Vestar Capital Partners; Greg Belinfanti, senior managing director of One Equity Partners; Marc Leder, co-founder and co-CEO of Sun Capital Partners; Ignacio Jayanti, CEO of Corsair Capital; Milwood Hobbs Jr, managing director and head of North American sourcing and origination at Oaktree; Michelle Handy, managing director and head of portfolio and underwriting of First Eagle Alternative Credit’s direct lending platform; and Peg Jackson, managing director, software, internet and digital media at Stifel.
Listen here on Apple Podcasts or on the PE Hub website.
Vestar VII Portfolio Company Simple Mills Named One of Fast Company’s 2022 Brands That Matter
Fast Company’s 2022 Brands That Matter list recognizes companies leading on social action, sustainability, inclusivity, and fun
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Fast Company’s Brands That Matter awards program aims to get beyond corporate vision statements and management talking points, celebrating a company’s connection with its audience through cultural relevance, social impact, and clear, authentic communication.
Now in its second year, Brands That Matter has grown from 95 honorees last year to 144 in 2022. While judging applications, editorial staff looked for a clear synthesis between how the brand presents itself and how its customers perceive it. This year’s honorees are divided between 70 brands in 22 categories and our main list, which contains 74 brands that broadly fit into five themes—Community-Minded Business, Elevating the Everyday, Fun and Fandom, Mind and Body, and Spreading the Word.
All of the honorees clearly generated enthusiasm among their customers, offering a model of what other brands should be aiming for, and what a brand, at its best, can achieve.
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Mind and Body Category
These 19 brands are helping people sharpen their minds, look good, and improve their health -- BY JEFF BEER
Need to look good, feel good, or learn a new language? These Brands That Matter winners have you covered.
The brands we trust with our physical and mental well-being play a unique role in our lives. From jeans and make-up, to fitness recovery and fertility, these companies are building relationships with customers beyond the products they’re selling. As Brands That Matter honorees, the following 20 brands demonstrated a commitment to mind and body—whether that’s fighting hunger, making food more sustainable, or preventing skin cancer.
Duolingo has gamified language learning, while also finding new ways to tap into culture. On one hand, its mascot, Duo the Owl, is a TikTok star, while on the other, the brand made a free Ukrainian phrasebook for people to help refugees from that country’s war with Russia. Abercrombie not only ditched the dark mall stores and too-cool vibe for a more inclusive brand, which it baked into its products like Curve Love jeans that take into account a much more diverse variety of body types. Kindbody has worked to take fertility healthcare from a barely whispered issue into a more accessible and inclusive service for all.
Here are the brands leading the way for our mind and body.
ABERCROMBIE & FITCH
Once the domain of shirtless models and dimly lit mall stores, Abercrombie & Fitch has gone through a more recent brand revitalization. That image lift includes combining TikTok creativity and community engagement with social issues through support for The Steve Fund and fellow Brands That Matter honoree The Trevor Project, as well as smart product moves like its Curve Love denim fits, and the launch of a new performance-active brand called YPB.
ABOUT-FACE
About-Face has become a TikTok and fan favorite for fuss-free makeup that is still plenty extra—and that’s by design. Founder Ashley Frangipane, aka singer-songwriter Halsey, developed the Technicolor, texture-forward cosmetics (think chunky glitter, buttery shimmer, and glossy shine) to be as cost conscious as they are extravagant. Most of About-face’s clean, vegan products—from liquid shadow Matte Fluid Eye Paint to the super-creamy Cheek Freak Blush Balm—are priced between $12 and $18, can be easily blended out with fingers, and are designed to offer users versatility in constructing whatever look they want. Following a solid launch in January 2021 as a direct-to-consumer brand, it hit more than 500 Ulta locations and the beauty retailer’s website in June, bringing the products to a wider audience. The company also debuted the even lower-priced but equally Gen Z-savvy AF94 by Halsey line, which launched exclusively at Walmart in July. —Rachel Kim Raczka
COURSERA
Coursera has more than 100 million registered learners, and counts as partners more than 250 leading universities and industry educators—including Yale, AWS, and Microsoft—to which it offers job-relevant courses, hands-on projects, certificates, and bachelor’s and master’s degrees. The brand’s biggest impact had been aimed at expanding access to education for underserved communities around the world, with initiatives like the American Dream Academy. Undertaken alongside the Milken Center for Advancing the American Dream, it will serve more than 200,000 underemployed people over three years. The brand has also worked with organizations in Barbados to reskill up to 120,000 pandemic-impacted workers and provide 20,000 scholarships for Barbadian women.
DUOLINGO
Duolingo brings a sense of humor to TikTok with the antics of its owl mascot, but data show it’s serious about language learning. The language learning platform finds ways to tap into culture, with a 56% boost in users studying Italian in the two days after Italy’s song won Eurovision 2021, and 40% more interest in learning Korean in the two weeks after Squid Game’s debut than in the week prior. With the Russian invasion of Ukraine driving interest in learning Ukrainian—and a 577% increase in users learning Ukrainian—Duolingo donated that ad revenue to relief organizations.
ELTAMD SKIN CARE
Long trusted as one of the best sunscreen brands under the, uh, sun, EltaMD has worked over the past year to create brand work that highlight’s lesser-known skin cancer risk. While skin cancer is often associated with fair skin, survival rates for Black Americans who contract it is much lower, and one of the most common sites of skin cancer is the bottom of the foot. Now you know.
IMPOSSIBLE FOODS
A name synonymous with plant-based meat products, Impossible has further expanded its footprint over the past year by releasing faux sausage, chicken nuggets, and pork products, while also appealing to meat eaters. According to Chicago-based analytics company Numerator, nearly 100% of Impossible Foods buyers also buy animal-derived products.
JUST EGG
The brand’s plant-based egg is made from mung beans that use 83% less land, 98% less water, and produces 93% fewer carbon emissions than conventional eggs. This year, Just Egg launched with chains like Caribou Coffee and Peet’s Coffee, and in New York City delis through fellow Brands That Matter honoree Plantega—bringing its plant-based message to breakfast sandwiches across the country.
KINDBODY
The fertility benefits provider aims to help fertility healthcare in the U.S. evolve from fragmented, inequitable, expensive, and inaccessible to the most accessible. This year, Kindbody launched at-home fertility tests for women and men, further expanding access, and more than 10,000 people attended fertility education events hosted by the brand.
LITTLE SPOON
Healthy baby-food-meets-celebrity cult brand Little Spoon has found a way to charm both parents and their little ones. Kids love the food enough to boost sales by 110% in the past year and see the company expand into older kids’ meals and snacks. Its pop cultural cache includes celeb supporters like Serena Williams, Bobbi Brown, Arianna Huffington, and Rebecca Minkoff, as well as a board game called Is This Normal that sold out with zero advertising.
OLAY
Olay has leaned into its brand muscle by helping to get more BIPOC—especially women of color—into STEM fields. Projects in the past year have included the #DecodeTheBias campaign, which sent 1,200 girls to code camp with Black Girls CODE, and a Million Women Mentors partnership, which mentored 1,000 girls interested in STEM. The brand also has committed to having no retouching or distortion of the skin in any of its U.S. ads, including content created by influencers for the brand.
POSHMARK
With more than 80 million global users, the secondhand clothing platform was acquired by South Korean tech company Naver Corp in October for $1.2 billion. In the year preceding the acquisition, the brand built out new features that allow users to shop by trends and repost items they’ve purchased, as well as giving sellers tools for real-time data on their sales and inventory. The brand also partnered with Snap to launch Poshmark Mini, a social shopping experience inside of Snapchat.
SIMPLE MILLS
This is a brand that takes the planet’s health seriously by making regenerative agriculture a central part of its supply chain in an effort to make it more mainstream. Simple Mills designed products like its Sweet Thins and Organic Seed Flour Crackers to include a diverse variety of ingredients—watermelon seed flour, for example—that create market demand for underrepresented crops to enhance agricultural biodiversity. Also, it’s building direct farmer contracts that include technical assistance and financial incentives for adopting regenerative principles.
SUMMERSALT
Summersalt has made its mission dismantling the toxic imagery around swimsuit marketing (and the negative ways it can affect body image). The brand’s products prioritize non-sexualized designs and body-positive advertising. Its “Every Body is a Summersalt Body” campaign focused on body positivity and self-confidence, featuring a diverse set of inspiring women. Participants included Olympian and registered nurse Ilona Maher, models and podcast cohosts Michaela and Hunter McGrady, best-selling novelist Candace Bushnell, WNBA All-Star Betnijah Laney, and others.
THE BODY SHOP
On the heels of the #BlackTikTokStrike, the brand launched its rejuvenated line of Body Butter in North America by engaging a diverse and talented group to develop its ad campaign, which created an original dance aimed at spreading love, body positivity, and joy. The viral dance shone a bright light on creators whose creativity and talents had been marginalized on the platform—and a month after launch, TikTok creator and campaign creative Laila Mohammad won the first-ever VMA award for best viral dance.
THE NORTH FACE
Read our cover story on how filmmaker and adventurer Jimmy Chin is helping the North Face explore important new terrain: a more diverse outdoors.
THE REALREAL
The luxury fashion consignment platform launched its Circular ReSource Lab last year to create impactful solutions to this fashion waste crisis, including the ReCollection upcycling program, in partnership with brands like Balenciaga and Stella McCartney, which turns damaged items into one-of-a-kind pieces.
THERABODY
Though it’s been around since 2009, Therabody (née Theragun) has had a transformative past couple years. The company has expanded its roster of products beyond its flagship massage gun to include everything from new devices to a CBD line. Therabody also has been opening brick-and-mortar retail stores, as well as several Reset locations, billed as “whole-body wellness centers” that feature signature massage and other therapeutic treatments, offering customers a chance to test out the latest products. These include compression therapy boots, designed for massage and post-workout recovery; a handheld facial health tool with micro-current and LED functionality, as well as cold and hot therapy; and a burgeoning period pain relief program delivered via the company’s PowerDot Device. Therabody also has been giving back, including partnerships with Red, to donate 2% of the purchase price of special red devices and certain CBD products to health-focused programs. —Danica Lo
VIRGIN PULSE
People rarely get excited about a health management and benefits navigation platform, but Virgin Pulse has managed to buck that trend and get users engaged. Used by leading companies and national health plans, the company is focused on helping people build health behaviors via its Homebase for Health, which offers live coaching and programs on everything from mindfulness and nutrition to musculoskeletal health and quitting tobacco. By Virgin Pulse’s accounting, 73% of users developed positive daily habits in 2021, and its use of behavioral science, incentives, and personalization led to sustained, continuous engagement of 50%, compared with the industry average of about 5%.
QUAKER
The PepsiCo-owned brand worked over the past year to expand its Quaker Qrece program, which targets malnutrition in Latin America through donations of oat-based food products, and has helped more than 10,000 children in Mexico and Guatemala, aiming to reach 50,000 kids by 2025. The work also has attracted more than 22 million media impression and 340 million unique visitors to its website.
This article is part of Fast Company’s 2022 Brands That Matter awards. Explore the full list of brands whose success has come from embodying their purpose in a way that resonates with their customers.
Simple Mills Reports Significant Post-Pandemic Growth, Doubling Retail Sales Since 2019
CHICAGO--(BUSINESS WIRE)--Simple Mills, the company on a mission to advance the holistic health of the planet and its people through delicious, better-for-you foods, today announced it experienced its most momentous growth in company history from 2019 to 2022. Simple Mills more than doubled retail sales during this timeframe. The brand was originally founded to help make clean, nutrient-dense foods easy and accessible, but evolved its mission in 2021 to include planetary health as an equally critical component, making a promise that all future innovation will advance regenerative agriculture.
“I started Simple Mills in 2012 with a brazen vision of helping people feel better through purposeful, nutrient-dense food that easily fit into their lives and didn’t ask them to sacrifice flavor for health,” said Simple Mills founder and CEO, Katlin Smith. “But as the business grew, I realized human health can’t truly exist without considering the health of our planet. I became interested in regenerative agriculture and how we can use food as a force for both human and planetary health. We took a significant leap in evolving our mission and making a commitment that 100% of product innovation moving forward will help advance regenerative farming principles – but what’s most exciting is how consumers and retailers are responding. We’re experiencing growth and recognition unlike anything we’ve seen since our founding and are excited to continue amplifying our people and planet-forward mission in 2023 and beyond.”
As consumers increasingly recognize the impact their food choices have on their own health as well as that of the planet, Simple Mills has become a staple in millions of American households. To pioneer the way the world eats through revolutionary food design, Simple Mills created three product innovation pathways: 1) design for diverse ingredients, 2) direct trade with farmers, and 3) invest in regional adoption of regenerative agriculture principles for key ingredients. One hundred percent of its product innovation now advances regenerative agriculture through at least one of these pathways. The brand’s evolved mission and commitment to personal and planetary health is evident in new product launches, including new Nut Butter Stuffed Sandwich Cookies, smartly sweetened with organic coconut sugar from perennial trees that thrive within agroforestry systems and Organic All Purpose Baking Mix, which features a diverse, nutrient-dense mix of chestnut, almond, buckwheat, and flax flours.
The company is also strengthening its work with farmers and suppliers to provide greater transparency to on-farm practices through a new Regenerative Agriculture Engagement Tool. This proprietary interactive platform gathers farm-level data from suppliers about specific practices used by farmers throughout the supply chain. It also helps visualize trends across regions and crops, while serving as a farmer-forward resource by prompting reflection on ways growers are already implementing regenerative principles on their land and highlighting opportunities to expand their approach in the future.
“Our commitment to a product design framework that connects our regenerative agriculture initiatives to our innovation pipeline is at the heart of our vision,” said Christina Skonberg, Director of Sustainability & Mission. “The three innovation pathways guide our product development process, and our programming allows us to gain visibility to the farm-level practices and associated impacts to our value chains, which is critically important for creating products that are better for consumers and the planet. We’re especially excited about our improved Regenerative Agriculture Engagement Tool, as it’s an incredible way to gain insight and visibility into ingredients throughout our supply chain, identify partnership opportunities to scale regenerative principles, and serve as a resource to farmers and suppliers who are interested in deepening their commitment to the health of the land.”
To support its robust innovation pipeline, Simple Mills recently opened a new innovation hub, called Sunworks, in Mill Valley, Calif. The space sits in a geographical epicenter for innovation and disruptive design, and serves as a new destination for creativity. It houses the Innovation, R&D, and Sustainability teams alongside Smith. Many of the brand’s farm partners and agricultural thought partners are also located in California, giving the team opportunities to learn from leaders in the agricultural movement on a regular basis while also providing a place to host farmers, media, and industry events. In addition to the Sunworks office, Simple Mills has seen powerful growth across its workforce, with 100% growth between 2020 and 2022, reaching nearly 100 employees. With 62% of employees having been hired since the start of COVID-19, the brand has fostered an inclusive hybrid work environment with employees spanning 17 additional states across the country.
Simple Mills crackers, cookies, bars and baking mixes are sold in more than 28,000 natural and conventional stores across the country. This includes national distribution with top U.S. retailers, including Whole Foods, Sprouts, Target, Walmart, and Costco. In the last five years alone, Simple Mills has entered more than 20,000 new stores, increasing its brick-and-mortar availability by more than 300%. Aside from significant retailer growth, the brand also has a strong e-commerce presence both on Amazon and its own website.
To learn more about Simple Mills, its commitment to advancing regenerative agriculture through innovations, and to find a retailer near you, please visit www.simplemills.com.
About Simple Mills
Founded in 2012, Simple Mills is a leading provider of better-for-you crackers, cookies, snack bars and baking mixes made with clean, nutrient-dense ingredients and nothing artificial, ever. Celebrating its tenth anniversary this year, the company has disrupted center-aisle grocery categories to become the #1 baking mix brand, #1 cracker brand, #1 cookie brand in the natural channel1 with distribution in over 28,000 stores nationwide. Its mission is to advance the holistic health of the planet and its people by positively impacting the way food is made. For more information, visit www.simplemills.com.
1. SPINS Data, $ Sales, Latest 52 Weeks Ending 9/4/22
Contacts
Rachel Kay Public Relations
Nikole Norin
949-433-9570
[email protected]
360training Announces Equity Recapitalization from GreyLion and Vestar Capital Partners
AUSTIN, Texas, July 19, 2022 /PRNewswire/ — 360training (or "the Company"), a leading provider of online training and continuing education to regulated industries, today announced an equity recapitalization from GreyLion Partners LP ("GreyLion") and Vestar Capital Partners ("Vestar") to support the Company's rapid growth and accelerate acquisition activity. Terms of the investment were not disclosed.
The new investment will help 360training pursue large and small strategic acquisitions within its core markets and in new markets and geographies. 360training helps organizations develop their workforces and remain compliant with labor regulations and industry certification mandates, with a content library offering more than 6,000 courses across five major verticals: Environmental Health & Safety, Food & Beverage, Real Estate, Healthcare and Financial Services.
"We are thrilled to welcome Vestar as a strategic investment partner," said 360training CEO Tom Anderson. "360training now enjoys the substantial backing of two proven investors, both of which pride themselves on partnering with portfolio companies to help accelerate growth. We are looking forward to scaling our platform within existing and new markets through continued investment in strategic acquisitions and product development."
"360training's outstanding management team, differentiated content, and focused go-to-market strategy have allowed the Company to capitalize on attractive, sustainable long-term trends in regulatory-driven online education and training," said Jake Olson and Nikhil Bhat, Managing Directors at Vestar. "We're excited to partner with GreyLion and the 360training team to fuel the Company's continued expansion and product development."
GreyLion first invested in 360training in 2018 and remains a significant owner of the Company. The firm is committed to 360training's long-term growth and success while ensuring that the Company is well positioned to further execute against its strategic business plan.
Henry Heinerscheid, Partner of GreyLion, stated, "Since our investment four years ago, 360training has grown its management team, strengthened its employee base, and invested significant capital in its technology and marketing capabilities. Those investments have enabled growth into new verticals like Healthcare and Financial Services while increasing market share in Environmental Health & Safety, Food & Beverage, and Real Estate. We are proud of the many add-on acquisitions completed to date, and we are thrilled to have Vestar join GreyLion and management to continue driving 360training's industry leadership and support the Company's expansion."
As part of the investment, Mr. Bhat and Mr. Olson of Vestar will join 360training's Board of Directors alongside existing Board members Chip Baird and Mr. Heinerscheid of GreyLion; Mr. Anderson of 360training; and Independent Director Kirk Wortman.
Harris Williams served as the exclusive financial advisor to 360training and Latham & Watkins was its legal advisor. Houlihan Lokey served as exclusive financial advisor, and Kirkland & Ellis LLP provided legal counsel, to Vestar.
About 360training
360training is an integrated digital training and compliance platform for highly regulated industries. Through a unique combination of differentiated technology and deep regulatory expertise, 360training enables professionals to attain jobs and maintain industry-mandated requirements while helping organizations develop their workforces and remain compliant. 360training's robust, proprietary content library offers over 6,000 courses across major business verticals: Environmental Health & Safety, Food & Beverage, Real Estate, Healthcare, Financial Services and more.
Since 1997, 360training.com, Inc. has delivered over 11 million training plans across multiple brands, including HIPAA Exams, Meditec, AgentCampus, VanEd, TIPS, OSHAcampus, OSHA.com, and Learn2Serve. Please visit www.360training.com or their social media accounts on Facebook, Twitter, and LinkedIn to learn more.
About GreyLion Partners LP
GreyLion focuses on investing in high-growth businesses in the lower middle market. We seek to partner with existing owners and management teams across the consumer, industrial, healthcare, software and services sectors to deliver capital in tailored and flexible minority and control structures. GreyLion invests $25-$125 million of capital per investment, primarily within the United States. We currently manage private equity funds with aggregate commitments of approximately $1.7 billion. For more information on GreyLion, please visit http://www.greylion.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services and Healthcare. Since inception in 1988, Vestar funds have invested $11 billion in 89 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $52 billion. For more information on Vestar, please visit http://www.vestarcapital.com.
SOURCE GreyLion Partners LP; Vestar Capital Partners
IRI and NPD to Merge and Create a Leading Global Technology, Analytics and Data Provider
Combines leading CPG, general merchandise, foodservice and food consumption data capabilities to offer innovative view of total retail purchasing and consumption trends
CHICAGO and PORT WASHINGTON, NY, April 7, 2022 – Information Resources, Inc. ("IRI"), a fast-growing global leader in innovative solutions and services for consumer, retail and media companies, and The NPD Group ("NPD"), a global provider of market information and advisory services in more than 20 industries, today announced the signing of a definitive agreement through which IRI and NPD will merge. The combination will create a leading global technology, analytics and data provider that offers clients a view of total retail purchasing and consumption trends powered by advanced, predictive analytics on the industry-leading IRI Liquid Data® technology platform. The transaction, which is subject to customary closing conditions, is expected to close in the second half of 2022. Terms of the agreement were not disclosed.
By bringing together complementary leading data assets across a broad range of industries on the most innovative, sophisticated data visualization platform, the combined business will empower brands and retailers to collaborate, better service their customers, respond to trends and leverage more powerful insights to drive growth. NPD provides market information and advisory services for general merchandise, including softlines, technology and retail, as well as foodservice and food consumption. This will be combined with IRI's unparalleled market measurement, supply chain and media optimization solutions, technology platform, retail relationships and data assets for the CPG industry, which encompasses the grocery, convenience and over-the-counter healthcare categories.
Kirk Perry, president and CEO of IRI, said, "This combination is a win for IRI, NPD, our clients and our teams as we bring together two industry leaders to offer a total store view. We look forward to joining forces with the NPD team, which brings expertise in parts of the store that IRI does not cover today. As the global retail landscape continues to evolve, IRI and NPD will have innovative technology, analytics, data resources, talent and geographic reach to best support the growth of the world's leading brands and retailers. Our combined organization will be well-positioned for continued innovation and success, backed by the expertise and resources of our new majority investor, Hellman & Friedman ("H&F"), alongside our long-term partners at Vestar Capital and New Mountain Capital."
NPD CEO Karyn Schoenbart added, "We are excited about the prospect of combining our companies to give clients the tools and information they need to succeed amid changing consumer behavior. Both NPD and IRI share similar client-focused, innovative and collaborative cultures, making this combination a natural fit."
H&F, a premier global private equity firm, will acquire a majority stake in IRI and merge IRI with H&F portfolio company NPD. H&F will lead an ownership group consisting of existing long-term IRI investors Vestar Capital Partners ("Vestar") and New Mountain Capital ("NMC"), which will both retain significant investments in the combined company. Following the close of the transaction, H&F, Vestar and NMC will each have representation on the combined company's board of directors. Kirk Perry will become CEO of the combined company and serve on the board. NPD Executive Chairman Tod Johnson will be chairman of the combined company's board, and Karyn Schoenbart also will join the board. Jeff Ansell, current chairman of IRI's board, will continue on the combined company's board as well. Johnson and Schoenbart will continue to lead NPD until closing and will remain investors in the combined company.
Evercore, Goldman Sachs & Co. LLC and Guggenheim Securities LLC are serving as financial advisors to IRI, and Kirkland & Ellis LLP is serving as legal counsel. Jefferies Group LLC is serving as exclusive financial advisor to NPD and H&F, and Simpson Thacher & Bartlett LLP is serving as legal counsel. Kramer Levin is serving as legal counsel to Johnson and Schoenbart.
ABOUT IRI
IRI unifies technology, analytics and data to reinvent how people and companies make decisions, take action and optimize performance. With the largest repository of purchase, media, social, causal and loyalty data, all integrated into an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their quests to capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.
ABOUT THE NPD GROUP
NPD offers data, industry expertise and prescriptive analytics to help clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on NPD to help them measure, predict and improve performance across all channels, including brick-and-mortar, e-commerce and B2B. NPD has services in 19 countries worldwide, with operations spanning the Americas, Europe and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys and video games. For more information, visit www.npd.com.
ABOUT HELLMAN & FRIEDMAN
Hellman & Friedman is a preeminent global private equity firm with a distinctive investment approach focused on large-scale equity investments in high-quality growth businesses. H&F seeks to partner with world-class management teams where its deep sector expertise, long-term orientation and collaborative partnership approach enable companies to flourish. H&F targets outstanding businesses in select sectors, including software and technology, financial services, healthcare, consumer and retail, and other business services.
Since its founding in 1984, H&F has invested in over 100 companies. The firm is currently investing its tenth fund, with $24.4 billion of committed capital, and has over $90 billion in assets under management as of December 31, 2021. Learn more about H&F’s defining investment philosophy and approach to sustainable outcomes at www.hf.com.
ABOUT VESTAR CAPITAL PARTNERS
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services and Healthcare. Since inception in 1988, Vestar funds have invested $11 billion in 88 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $52 billion. For more information on Vestar, please visit www.vestarcapital.com.
ABOUT NEW MOUNTAIN CAPITAL
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity and credit funds, with over $35 billion in assets under management. New Mountain seeks out what it believes to be the highest-quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit www.newmountaincapital.com.
Media Contacts:
IRI
Shelley Hughes
[email protected]
Phone: +1 312-731-1782
The NPD Group
Leslie Singer
[email protected]
Phone: +1 516-316-1583
Hellman & Friedman
Winnie Lerner
Finsbury Glover Hering
[email protected]
Phone: +1 917-375-5652
Vestar Capital Partners
Jennifer Hurson / Caroline Luz
Lambert
[email protected] / [email protected]
Phone: +1 845-507-0571
New Mountain Capital
Dana Gorman / Matthew Butler
Abernathy MacGregor
[email protected] / [email protected]
Phone: +1 212-371-5999
As Consumers Play Larger Role in Healthcare Choices, Deal Opportunities Abound for Vestar
As Consumers Play Larger Role in Healthcare Choices, Deal Opportunities Abound for Vestar
PE Hub
By Aaron Weitzman
Published March 7, 2022
"Telehealth will increasingly become an integrated component of how care is delivered," Vestar's Mike Vaupen said.
PE Hub’s ongoing series on private equity firms investing in healthcare continues with insights from Mike Vaupen, who joined Vestar Capital Partners as managing director and co-head of healthcare in September. Previously, Vaupen was an investment professional at Welsh, Carson, Anderson & Stowe. Prior to that, he worked at Pamplona Capital Management, where he helped to establish the firm’s healthcare vertical, and also previously worked in the healthcare group at Oak Hill Capital Partners. Vaupen began his career in the healthcare investment banking division at Morgan Stanley. He outlined Vestar’s approach to healthcare investing.
Investment Strategy
“We identify the long-term mega trends that we believe will continue to shape and drive the healthcare sector over the next five, 10-plus years. We then work to target specific themes, sub-sectors, and business models that are aligned with these trends and are a good fit with our investment criteria,” Vaupen told PE Hub. “As one example, we identified consumerization as a key theme, as patients continue to act more like consumers of healthcare and play an increasingly active and informed decision-making role in their healthcare choices. That led to our investment in Friday Health Plans last year.”
Two main areas of focus for the firm are life sciences and virtual care. “We think both virtual care and life sciences have staying power and lasting implications for how these sectors will evolve, which creates investment opportunities,” he said.
“In the life sciences market, we are focused on technology that streamlines research and development of new drugs and enables digital engagement with patients and providers,” Vaupen explained.
“Virtual care has shown enormous promise and has become more widely accepted. Going forward, telehealth will increasingly become an integrated component of how care is delivered,” Vaupen said. “There will be less of a distinction between virtual care and in-person care. Patients will look to find convenient and tech-enabled ways to receive care. Providers will look for ways to reach more patients and solve their staffing challenges – virtual care addresses both of those issues.”
Merger of Tech and Healthcare
Vestar spends a lot of time at the intersection of technology and data in healthcare, as a number of the firm’s investments have been aligned to those themes, like Quest Analytics and Press Ganey.
Healthcare still has a long ways to ago when it comes to technology adoption, Vaupen explained.
“Electronic medical records, for example, were primarily designed to be digital versions of paper charts, so that was version 1.0 of moving healthcare from a paper-based industry to one that is digital,” he said. “As a result, the systems that were designed and implemented don’t interact well with each other, and that creates complications when trying to standardize data sets. There are structural challenges that prevent healthcare from moving faster in adopting technology and being able to harness the full value. We will get there, but it will take time.”
Standing Out From Competition
Longevity is a differentiating feature, Vaupen said.
"We have invested in the healthcare space for 20+ years, over multiple business and economic cycles and periods of technology innovation," he said. “More specifically, we aim to seek out opportunities where we are uniquely qualified to add value through a combination of our prior investment experience, domain expertise, industry relationships and creative approaches to growth. We also focus on being good partners to management teams and working alongside them to scale and build lasting and sustainable growth strategies.”
Regulatory Roadblocks
One of the reasons healthcare is different from other sectors is that it is highly regulated. Recently, the Department of Justice blocked the mega deal merger between United Health and Change Healthcare – which serves as a reminder that there can be regulatory roadblocks when investing in this space.
DOJ's blocking the deal serves as "a good reminder that the other aspect of healthcare that makes it challenging and complex, but also full of opportunity and potential, is the regulatory overlay,” Vaupen said. “As investors, we are always thinking about the regulatory environment, and we monitor it closely. Sometimes our investment themes are specifically designed to capitalize on regulatory trends and tailwinds. Where there are challenges, there is also opportunity.”
Firm Facts
Founded in 1988 and based in New York City, Vestar is a US mid-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests in and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on consumer; business and technology services; and healthcare. The firm has invested over $8 billion in 84 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $50 billion.
Recent Investments
Vestar invested in Friday Health Plans in 2021.
Recent Exits
Vestar partially exited Healthgrades in 2021 after investing in 2010. Vestar exited Civitas Solutions in 2019. Vestar exited Press Ganey in 2016. Vestar exited StayWell in 2016.
Vestar’s Healthcare Portfolio Highlights:
(Dates refer to initial investments.)
Accanto Health: A national healthcare company specializing in eating disorders and related disorders, with two nationally known brands, The Emily Program and Veritas Collaborative. (2015)
Friday Health Plans: A disruptive health insurer servicing the individual and small group markets. (August 2021)
Mercury Healthcare: A technology platform used by healthcare organizations to enable a frictionless healthcare journey through data-driven consumer and provider engagement. (2010)
Quest Analytics: Provides commercial software development and consulting services for hundreds of health plans, consultants and government agencies in the healthcare industry. (2017)
Vestar Capital Partners Promotes Kimberly Lu to Vice President
NEW YORK, Feb. 15, 2022 /PRNewswire/ -- Vestar Capital Partners, a leading U.S. middle-market private equity firm, today announced that Kimberly Lu has been promoted to Vice President, effective immediately.
Ms. Lu joined Vestar in 2021 as a Senior Associate supporting the firm's Investor Relations activities. Prior to Vestar, she was an Associate at BlackRock, where she focused primarily on product strategy and business development. Ms. Lu graduated magna cum laude from the University of Pennsylvania with a BA in International Relations & Affairs.
"Kimberly has had an immediate impact on the firm since joining last year, and we know she's only getting started," said Dan O'Connell, Founder and CEO of Vestar. "She is a creative, high-energy executive who has already elevated our investor relations and marketing activities. We congratulate Kimberly, and we look forward to her ongoing contributions to Vestar."
Vestar also announced that Alyssa Stropoli has joined the firm as a Senior Associate, supporting the Investor Relations team. Most recently, she was an Associate in Investor Relations at BC Partners, and previously she was an Associate on BlackRock's High Yield Portfolio Management team. Ms. Stropoli holds a BSc in Civil Engineering from Macaulay Honors College at CUNY, City College.
PetHonesty Appoints Consumer Products Executive Richard Greenberg as CEO
AUSTIN, Texas, Jan. 13, 2022 /PRNewswire/ -- PetHonesty, a trusted leader in premium pet health products and a portfolio company of Vestar Capital Partners, today announced it has named consumer products executive Richard P. Greenberg as CEO effective February 14. PetHonesty founder and CEO Ben Arneberg will continue to serve as a Director on the Company's Board, and he and his family will retain their significant ongoing investment in the Company.
"Rich is an inspirational leader with a track record of achieving breakthrough results and driving organizational capability," said Jeffrey Ansell, PetHonesty Chairman and Vestar Senior Advisor. "I've seen the impact of Rich's leadership first-hand, and I'm confident his principle-based and inclusive leadership approach will enable the Company to achieve its next phase of exciting growth. I'd also like to thank Ben Arneberg for his tireless efforts launching and building PetHonesty into a high-growth, high-potential business. We look forward to his continued contributions as a Board member."
A more than 20-year CPG executive, Mr. Greenberg most recently served as Chief Commercial Officer of Sovos Brands, which launched its IPO in the fall of 2021. Sovos Brands includes leading brands Rao's Homemade, Noosa Yoghurt, Birch Benders, and Michael Angelo's. Prior to Sovos, he held key leadership positions in the household products sector, initially at the Sun Products Corporation, which was acquired by Henkel Consumer Goods in 2016, where Mr. Greenberg ultimately served as General Manager and Chief Customer Officer. Mr. Greenberg was recruited to Sun from Kellogg's Kashi Foods division. He currently serves on the Board of Vestar's Roland Foods, and he earned a bachelor's degree in business from Penn State University.
"I'm honored to join PetHonesty and serve as its next CEO as we build upon the Company's strong foundation at a time when the pet products industry is experiencing record growth and strong tailwinds," said Mr. Greenberg. "With the Company's leadership team, I look forward to partnering with Vestar and leveraging their industry relationships and resources as we drive the PetHonesty brand, launch meaningful innovation, and delight pets and pet parents with products that make a difference to pet health and well-being."
"Bringing Vestar on was a significant step in fueling PetHonesty's growth trajectory, and the addition of Rich will further accelerate the Company's strategic expansion plans," said Mr. Arneberg. "I'm proud of the innovative company we've built to address the needs of pets and pet parents, and am energized by the tremendous talent and resources we have been able to attract to help the Company unlock its enormous potential."
About PetHonesty
PetHonesty is a trusted leader in premium pet health products. Founded in 2018 and headquartered in Austin, TX, the company provides a natural and noticeable boost to pet health through natural, science-backed products that demonstrate effectiveness pet parents can truly see. PetHonesty's products are formulated to help address a plethora of common pet ailments, including immobility, digestive issues, and allergies. The company's world-class customer service provides personalized guidance and education to help light the way to more joyful, healthy years for pets and pet parents. PetHonesty products are available via its website as well as through Amazon and Chewy. For more information, please visit www.pethonesty.com.
Vestar Capital Partners Promotes Three to Managing Director
NEW YORK, Jan. 6, 2022 /PRNewswire/ — Vestar Capital Partners, a leading U.S. middle-market private equity firm, today announced the promotions of Jake Olson, Diya Talwar, and Mike Vaupen to Managing Director.
"Jake, Diya, and Mike have played integral roles in Vestar's success, both on the investment side and within the firm," said Dan O'Connell, Founder and CEO of Vestar. "Vestar had an active 2021, investing in five new platform companies, among other accomplishments. We expect this momentum to continue into the new year, with our new Managing Directors helping to lead this activity. On behalf of the firm, we congratulate Jake, Diya, and Mike on their well-deserved promotions."
Mr. Olson is a member of Vestar's Business & Technology Services team and serves as a Director on the Board of Stratus, a Vestar portfolio company. Prior to joining Vestar, he was a Vice President at Tailwind Capital, and began his career at Lehman Brothers and Barclays Capital. Mr. Olson holds a BA from Columbia College, Columbia University, and an MBA from Columbia Business School.
Ms. Talwar is a member of Vestar's Consumer team and serves as a Director on the Boards of Dr. Praeger's and PetHonesty, Vestar portfolio companies. Prior to joining Vestar, she served as SVP, Business Development & Strategy at High Ridge Brands, a private equity-backed personal care company. Previously, Ms. Talwar served as VP, Corporate Development at Jarden Corporation, a publicly traded Fortune 500 diversified consumer products company where she spent 10 years involved in the completion of over 30 acquisitions. She began her career in investment banking at Dresdner Kleinwort Wasserstein and Banc of America Securities, and holds a BS in Economics from The Wharton School, University of Pennsylvania.
Mr. Vaupen is a member of Vestar's Healthcare team and serves as a Director on the Board of Quest Analytics, a Vestar portfolio company. Prior to joining Vestar, he was an investment professional at Welsh, Carson, Anderson & Stowe, focused on healthcare technology and services investing. He previously worked at Pamplona Capital Management, where he helped to establish the firm's healthcare vertical, and prior to that, in the healthcare group at Oak Hill Capital Partners. He began his career in the investment banking division at Morgan Stanley. Mr. Vaupen holds a BS in Economics from The Wharton School, University of Pennsylvania, and an MBA from Harvard Business School.
About Vestar Capital Partners
Vestar Capital Partners is a leading U.S. middle-market private equity firm specializing in management buyouts and growth capital investments. Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on Consumer, Business & Technology Services and Healthcare. Since inception in 1988, Vestar funds have invested $11 billion in 88 companies – as well as more than 200 add-on acquisitions – with a total value of approximately $52 billion. For more information on Vestar, please visit www.vestarcapital.com.
PetHonesty Appoints Dr. Greg Reinhart as Vice President of Research and Development
AUSTIN, Texas, Nov. 11, 2021 /PRNewswire/ — PetHonesty, a trusted leader in premium pet health products and a portfolio company of Vestar Capital Partners, today announced the addition of Greg Reinhart, PhD, to its executive team as Vice President of Research and Development.
Dr. Reinhart joins PetHonesty from General Mills, where he spent the last five years as Senior Vice President of Research and Development for the Blue Buffalo pet food brands. His previous experience spans 17 years at the Iams Company and Procter & Gamble Pet Care, including serving seven years as the Vice President of Strategic Research and Communication. He also held other positions of increasing responsibility in Research & Development within the company.
"Dr. Reinhart's expertise in pet health is unparalleled, and we are extremely excited for the elevated level of sophistication he brings to our product development initiatives," said Ben Arneberg, CEO of PetHonesty. "In addition to strengthening our Research & Development team, Dr. Reinhart's wealth of knowledge in pet nutrition uniquely positions PetHonesty to bring world-class education and guidance to pet parents around the world."
Dr. Reinhart is the author of over 250 scientific publications and 14 patents, and he is a Fellow of the American College of Nutrition. He received his Bachelor of Science degree in Animal Science, his Master of Science degree in Non-Ruminant Nutrition (Animal Science), and his Doctor of Philosophy degree in Nutritional Biochemistry (Animal Science) all from The Ohio State University. In 2014, Ohio State inducted Dr. Reinhart into the Animal Sciences Hall of Fame for his leadership in the animal nutrition sector and his efforts to combat human malnutrition.
"I am thrilled to be joining the PetHonesty team," said Dr. Reinhart. "The company's commitment to providing a natural and noticeable boost to pet health is inspiring, and I'm excited to help develop new products that will allow pet parents to enjoy more joyful, healthy years with their pets."
About PetHonesty
PetHonesty is a trusted leader in premium pet health products. Founded in 2018 and headquartered in Austin, TX, the company provides a natural and noticeable boost to pet health through natural, science-backed products that demonstrate effectiveness pet parents can truly see. PetHonesty's products are formulated to help address a plethora of common pet ailments, including immobility, digestive issues, and allergies. The company's world-class customer service provides personalized guidance and education to help light the way to more joyful, healthy years for pets and pet parents. PetHonesty products are available via its website as well as through Amazon and Chewy. For more information, please visit www.pethonesty.com.
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SOURCE: PetHonesty