Overbay Capital Partners

Overbay Quarterly Update Q4 2019

April 30, 2020

Overbay Capital Partners is pleased to provide its quarterly update for the fourth quarter of 2019. In total, Overbay investors benefited from over 400 liquidity events across a diverse range of industries and geographies. Buyout (146) and Venture/Growth (236) represented the most active strategies for exits. The most active regions include North America (201) and Europe (60). There was liquidity coming from a variety of vintages, with the majority coming from 2008 (82) vintage year funds.

MARKET TRENDS & INVESTMENT THEMES

Q4 was a robust quarter for exits and the year ended on a strong note.However, at the time of writing, the COVID-19 pandemic was starting to have a major effect in terms of overall health and economic impact. We anticipate the pandemic will slow down capital market activity. This quarterly update reflects upon the economic environment as it stood at the end of 2019.

Global markets rallied in Q4 as global trade deals were announced, uncertainty around Brexit faded, and high-yield debt market sentiment improved. As of December 31, 2019, the MSCI World Index is up 20.5% for the year, and up 8.2% from the end of last quarter. (At the time of writing, COVID-19’s human and economic impacts loom large in investors’ thoughts and it is expected that much of 2019’s gains will be lost).

Private markets fundraising has remained healthy in 2019, with well over $900 billion raised globally. The pace of deployment has remained steady as valuation levels remain high in global private equity, with average Q4 2019 purchase price multiples across the US, Europe, and MSCI World indices averaging above 11.5x. While exit activity increased in the quarter, overall exit activity was below the 18-year average as there were fewer IPOs and reduced M&A activity in a high-valuation environment. Global venture capital fundraising remained strong with over $46 billion raised in 2019, as venture capital valuations continued to increase across all financing stages. Venture capital exit activity broke records at over $250 billion, as several prominent IPOs hit the market with various levels of success. In the private equity secondary market, a new record global deal volume of $80 billion was achieved in 2019. While deployment was a bit slower in H2 2019, strong fundraising momentum has led to a record high of $96 billion in dry powder in the secondary market at year end.

Selected exits

  • • 5nine (Security Solutions) – Acquired by Acronis
    • Overbay acquisition date: Q4 2018
  • • Acquia (Digital Platform) – Acquired by Vista Equity Partners
    • Overbay acquisition date: Q4 2018
  • • Aprea Therapeutics (Healthcare) – IPO’d on October 3, 2019 (NASDAQ:APRE)
    • Overbay acquisition date: Q4 2018
  • • Bridgevine (Telecommunications) – Acquired by Updater Home Services
    • Overbay acquisition date: Q4 2018
  • • Cavendish Kinetics (Telecommunications) – Acquired by Qorvo
    • Overbay acquisition date: Q4 2018
  • • CrowdTwist (Marketing Cloud) – Acquired by Oracle
    • Overbay acquisition date: Q3 2018
  • • Dataxu (Marketing Software) – Acquired by Roku
    • Overbay acquisition date: Q4 2018
  • • Enteris Biopharma (Pharmaceuticals) – Acquired by SWK Holdings
    • Overbay acquisition date: Q4 2018
  • • Hospice Partners of America (Healthcare) – Acquired by Addus Homecare
    • Overbay acquisition date: Q2 2018
  • • Jaggaer (Cloud Management Software) – Acquired by Cinven
    • Overbay acquisition date: Q4 2018
  • • Joseph’s Frozen Foods (CPG) – Acquired by LaSalle Capital
    • Overbay acquisition date: Q4 2018
  • • Marshall Retail Group (Specialty Retailer) – Acquired by WH Smith
    • Overbay acquisition date: Q4 2018
  • • Meyra (Medical Equipment) – Acquired by HIG Europe
    • Overbay acquisition date: Q3 2019
  • • Ondal (Medical Devices) – Acquired by IK Investment Partners
    • Overbay acquisition date: Q3 2019
  • • Onshape (Design Software System) – Acquired by PTC
    • Overbay acquisition date: Q4 2018
  • • Outbrain (Web Advertising Platform) – Acquired by Taboola
    • Overbay acquisition date: Q4 2018
  • • Promedior (Biotech) – Acquired by Roche
    • Overbay acquisition date: Q4 2018
  • • Quest Nutrition (Nutritional Products) – Acquired by Simply Good Foods
    • Overbay acquisition date: Q4 2018
  • • Shape Security (Cybersecurity) – Acquired by F5 Networks
    • Overbay acquisition date: Q4 2018
  • • Surgent (Education) – Acquired by NexPhase Capital
    • Overbay acquisition date: Q4 2018

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

Liquidity by Strategy
Liquidity by Vintage Year
Liquidity by Geographical Focus

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