The Abraaj Group was once the leading private equity firm in the Middle East with AUM of $13.6 billion dollars. At the start of 2018, the firm misappropriated funds and lost investors’ trust, leading to its provisional liquidation that May. As a result, Abraaj’s fall has instigated fears in investing in the Middle East.
FEMTECH EXPECTED TO REACH $50B BY 2025
In the next decade, technology geared towards women’s health will receive more funding than it ever has. “Femtech,” a term coined by female entrepreneur Ida Tin, describes technological software, diagnostics and products focused on improving and monitoring women’s health. In 2016, Ida Tin created Clue, a menstrual tracking application now used by millions of women. Most mainstream healthcare options are geared towards men, not women. However, femtech firms combine technological innovation and women’s health issues to design products that target aging & menopause, fertility management, period cares and more. More generally, these firms address taboo topics specific to women’s health. According to Forbes, only 10% of global investment is allocated to female-led startups, and even less directly funnels into women’s healthcare start-ups. Further, women’s health is traditionally only thought of in conjunction with pregnancy, birth and babies. However, the healthcare industry is finally beginning to change with growing attention focused on the femtech sector.
VISTA ACQUIRES APPTIO
On November 11, 2018, Vista Equity Partners announced its intention to take software company Apptio private for $1.94 billion, at approximately $38 per share. Apptio stockholders were certainly happy with the deal, receiving a 53% price premium per share as a result of the buyout. Apptio’s price skyrocketed after the announcement, past $40 a share. The deal is expected to pass regulatory hurdles and consummate in 1Q19, but Apptio does hold the right to engage other offers for the thirty days following their agreement with Vista. The high premium, however, makes it extremely unlikely that another buyer would produce a more competitive price.
IBM ACQUIRES RED HAT
On October 28, IBM (NYSE: IBM) and Red Hat (NYSE: RHT) announced that they reached a deal where IBM would acquire Red Hat for $190 per share, representing more than a 60% premium over Red Hat’s closing price of $116.68 on October 26. In after-hours trading, Red Hat’s stock price jumped nearly 50% to $172.98, while IBM’s stock price fell approximately 4.3% from 124.75 to $119.84. The deal is expected to close in 2H19, and represents the largest software acquisition since Microsoft’s $26 billion purchase of LinkedIn in 2016.
SALAD CHAIN SWEETGREEN SHOWS UNICORN POTENTIAL FOR IMPACT INVESTMENTS
The value of social impact is often perceived as an expense more than an asset among investors. However, sweetgreen has proven that a social mission can drive growth and serve as a differentiating factor in the competitive food industry. Their success counters beliefs about the scalability of social impact, showing how one impact-driven restaurant can develop into a chain that maintains its values even when it spans the country.The value of social impact is often perceived as an expense more than an asset among investors. However, sweetgreen has proven that a social mission can drive growth and serve as a differentiating factor in the competitive food industry. Their success counters beliefs about the scalability of social impact, showing how one impact-driven restaurant can develop into a chain that maintains its values even when it spans the country.