Newsletter Edition 58
Feb 20, 2025
Private Equity Giants Compete in $8.5 Billion Battle for Japan’s Trend Micro
Private equity heavyweights Bain Capital, Advent International, EQT AB, and KKR are competing to acquire Japanese cybersecurity firm Trend Micro in a potential JPY1.32 trillion ($8.54 billion) buyout, according to Reuters.
Reports of private equity interest sent Trend Micro’s shares soaring by 16.05% to JPY10,860 during Tokyo’s Thursday trading session, making it the top gainer on the Nikkei 225 index. However, sources caution that no deal is guaranteed, and Trend Micro could opt to remain independent.
If the acquisition proceeds, it would rank among the largest leveraged buyouts in recent months, signaling a resurgence in private equity dealmaking following a slowdown caused by rising interest rates and inflation.
Founded in 1988 by Steve Chang, Jenny Chang, and Eva Chen, Trend Micro began as an antivirus software company before expanding into cloud computing, network security, and endpoint protection.
The company reported strong financial performance in its latest earnings release, with third-quarter net sales rising 6% to JPY68.1 billion and operating income surging 42% to JPY14.8 billion, resulting in an operating margin of 24%.
Trend Micro competes with leading US cybersecurity firms, including CrowdStrike, Microsoft, Palo Alto Networks, and McAfee.
The reported interest in Trend Micro reflects growing investor appetite for cybersecurity firms, driven by increasing global demand for digital security solutions. The company has been exploring strategic options since last year, but neither Trend Micro nor the private equity firms have commented on the matter.
With multiple bidders in play, the battle for Trend Micro could intensify in the coming weeks, potentially setting the stage for one of Japan’s largest tech buyouts.
https://www.privateequitywire.co.uk/buyout-firms-in-8-5bn-battle-for-japans-trend-micro/
Neuberger Berman Closes $1.6 Billion Specialty Finance Fund III
Neuberger Berman has successfully closed its NB Specialty Finance Fund III with over $1.6 billion in total capital commitments, surpassing its original $1 billion target. The fund is already 45% deployed, reinforcing strong investor demand for specialty finance strategies.
The NB Specialty Finance team operates a high-yield, short-duration investment strategy within asset-based finance. Key focus areas include receivables, small business, consumer lending, and hard assets.
With a global presence in New York, Redwood City, London, and Tel Aviv, the team sources most of its investments directly through an extensive network of sponsors, corporate management teams, and entrepreneurs.
NB Specialty Finance Fund III has attracted commitments from over 40 institutional investors worldwide, including public and private pensions, insurance companies, foundations, and registered investment advisors (RIAs). Investors hail from the U.S., Canada, the Middle East, and East Asia.
The fund’s successful close underscores growing investor confidence in Neuberger Berman’s specialty finance expertise and its ability to generate strong risk-adjusted returns in a rapidly evolving credit market.
https://www.privatedebtinvestor.com/nb-specialty-finance-iii-holds-final-close-on-1-6bn/
Silver Lake in Talks to Acquire Majority Stake in Intel’s $9 Billion Altera Unit
Private equity giant Silver Lake is in exclusive discussions to acquire a majority stake in Intel’s programmable chip unit, Altera, in a deal that could value the business at approximately $9 billion, according to Bloomberg.
Intel, which bought Altera for nearly $17 billion in 2015, has been exploring ways to raise capital as part of its cost-cutting and restructuring efforts. The company is seeking external investment in Altera ahead of a potential IPO, with discussions expected to conclude by early 2025, as previously stated by former Intel CEO Pat Gelsinger.
Silver Lake is finalizing investment details, though the exact size of its stake remains uncertain. Sources caution that given the complexity of the deal, discussions could face delays. Neither Silver Lake nor Intel has commented on the matter.
The potential investment comes as Intel faces financial pressures and increased competition from Taiwan Semiconductor Manufacturing Co (TSMC) and Broadcom. Reports suggest Intel may consider splitting into two entities as it repositions its business.
Silver Lake had previously been part of a group of private equity firms, including Bain Capital and Francisco Partners, that expressed interest in acquiring a minority stake in Altera, Reuters reported.
If successful, the deal would mark another major technology investment for Silver Lake, reinforcing its presence in the semiconductor industry as demand for AI-driven computing solutions continues to grow.