Overbay Capital Partners

Overbay Quarterly Update Q2 2019

September 15, 2019

Overbay Capital Partners is pleased to provide its quarterly update for the second quarter of 2019. Overbay investors benefited from well over 400 liquidity events across a diverse range of industries and geographies. The largest number of liquidity events occurred through Buyout (217) and Venture (207) strategies. The most active regions include North America (382) and Europe (78). There was liquidity coming from a variety of vintages, with the majority coming from 2006 (144) and 2007 (108) vintage year funds.

MARKET TRENDS & INVESTMENT THEMES

Global markets made a strong rebound in H1 2019, after markets bottomed at the end of 2018. As of June 30, 2019, the MSCI World Index was up 13.1% from the end of 2018, and was up 2.5% over the quarter. Increasing yield in the debt markets and escalating trade tensions between the USA and China have led to periodic volatility.

Global private markets fundraising was strong in H1 2019 and is expected to be on pace to meet 2018 levels at around $800 billion. In global private equity, buyers have become more wary of high valuation levels while sellers have become more motivated. Average Q2 2019 purchase price multiples across the US and MSCI World indices remaining above 11x EBITDA, while European multiples have declined to the 10x levels. Investment and exit activity picked up relative to the first quarter, driven by record levels of dry powder and a rebound in global markets. Global venture capital fundraising has picked up despite a slightly slower first quarter, alongside the strong pace of venture capital investing. Exits maintained strong momentum through several high-profile venture-backed IPOs, while private company valuations continue to increase across all financing stages.

In the private equity secondary market, global deal volume reached $42 billion in the first half of the year. Global deal volume is expected to surpass 2018’s record-breaking results of $73 billion, as deployment sees no signs of slowing with the high levels of dry powder in the secondary market.

Selected exits

  • NGM Biopharmaceuticals (Pharmaceuticals) – IPO’d April 4, 2019
    • OCP acquisition date: Q3 2017
  • Vyze (Payment Tech) – Acquired by MasterCard
    • OCP acquisition date: Q3 2017
  • Fieldbrook Foods (Frozen Desserts) – Acquired by Wells Enterprises
    • OCP acquisition date: Q3 2017
  • Looker Data Sciences (Software) – Acquired by Google
    • OCP acquisition date: Q3 2017
  • Uber (Software) – IPO’d May 10, 2019
    • OCP acquisition date: Q3 2017
  • DOSE Medical Corp (Healthcare) – Acquired by Glaukos
    • OCP acquisition date: Q3 2017
  • Protean Electric Limited UK (Automotive) – Acquired by NEVS
    • OCP acquisition date: Q3 2018
  • LiveU (Video Streaming) – Acquired by Francisco Partners
    • OCP acquisition date: Q3 2018
  • JIBE, Inc. (Software) – Acquired by iCIMS
    • OCP acquisition date: Q3 2018
  • Hotel Tonight (Travel and Hospitality) – Acquired by Airbnb
    • OCP acquisition date: Q3 2018
  • Antelliq (Technology) – Acquired by Merck
    • OCP acquisition date: Q3 2018
  • Masternaut (Telematics) – Acquired by Michelin
    • OCP acquisition date: Q3 2018
  • CheMes (Industrials) – Acquired by Innova Capital
    • OCP acquisition date: Q3 2018
  • EG (Software) – Acquired by Francisco Partners
    • OCP acquisition date: Q3 2018
  • MultiView Inc. (B2B Digital Marketing) – Acquired by the Stagwell Group
    • OCP acquisition date: Q3 2018
  • Quantenna Communications (Wi-Fi Tech) – Acquired by ON Semiconductor
    • OCP acquisition date: Q3 2018
  • Care Fertility (Fertility Clinic) – Acquired by Silverfleet
    • OCP acquisition date: Q3 2019
  • Core Power Yoga: (Yoga Studios) – Acquired by TSG
    • OCP acquisition date: Q3 2019
  • SteelSeries (Manufacturer of Gaming Equipment) – Acquired by Axcel
    • OCP acquisition date: Q1 2019
  • US Renal Care (Healthcare) – Acquired by a private investor group
    • OCP acquisition date: Q1 2019

OCP acquisition date is the quarter in which OCP acquired exposure to the company through a secondary purchase. Select companies listed are held within one or more fund structures in which OCP is a limited partner.

Liquidity by Strategy

Liquidity by Vintage Year

Liquidity by Geographical Focus

Overbay Capital Partners is a Toronto-based private equity secondaries firm. Overbay’s funds provide its investors with accelerated exposure to diversified private market investments and sellers with a variety of liquidity solutions. More about Overbay can be found at www.overbaycapital.com.

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