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This is Going to Be Big (I Think): A Look at Numerate
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In recent weeks, I’ve heard a few VCs talk about the promise of “biocomputational” startups, biotechs that are more quickly than ever collecting, processing, and making use of genomic data. Gene Security Network, which produces a test used to screen chromosomes during the in-vitro fertilization process is one that’s raised $10 million in the last couple of years, including from Sequoia Capital, Claremont Creek Ventures, and Alafi Capital. Another that looks to hold potentially even more promise is a drug-design technology firm called Numerate, whose technology — from what I gather — is far enough along that it will be exceedingly hard for competitors to catch up. That’s largely because the company been tinkering with that technology for seven years; it emerg... |
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Private Equity Group To FDIC: Try Again
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 Last month, the private equity lobby supported the government's requirement that buyout firms register with the SEC, even while arguing that "private equity firms do not create systemic risk." Today, however, the PEC came out against proposed FDIC guidelines for buyout firm investments in banks, saying that they go to far and would be counterproductive. "We hope that the comment period yields changes that facilitate the flow of private capital into the banking system, consistent with the Administration's other efforts to address the financial crisis," said PEC president Doug Lowenstein. To recap, the proposed rules include a minimum three-year hold time, capitalization requirements, cross-guarantees for firms with multiple banks in its portfolios, and extensive disclosures, particularly regarding ownership structures. Read more » |
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peHUB Second Opinion 7.2
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 Happy July 4th! Bloggers Gaining Steam: Goldman Sachs responds directly to blogger Zero Hedge. (Zero Hedge) Lists: Dumbest Moments in Business, Mid-Year 2009. I think we could add a few buyout moves to this list as well... (Fortune) Fighting Fund of Funds? "Private equity funds of funds are increasingly under fire. Not only do they reduce returns, but they do not minimise risks" (IP&E) Hours Versus Heads: The decline in aggregate hours worked has been frighteningly consistent over recent months. (Freakonomics) Student Loan Horror Story: How a law school grad that passed the bar is being denied admission because of his $400,000 student loan load. (Law Blog) Read more » |
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WASHINGTON (Reuters) - Private equity groups would have to meet strong capital requirements and pledge to maintain long-term investments before being allowed to buy failed banks, under controversial guidelines proposed by the Federal Deposit Insurance Corp on Thursday. The bank regulators who serve on the board of the FDIC openly clashed about the proposals, with some officials arguing the guidelines go too far and could scare away needed capital for troubled banks. The heads of the Office of the Comptroller of the Currency and the Office of Thrift Supervision both voted for the proposals, but said they need to be clarified and may need to be scaled back before final approval. “I do fear that the current articulation of the proposal has standards that go too f |
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Weekly Downgrade Wrap-Up (Two More Withdrawals)
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 Company: Yell Group PLC Sponsor: Apax Partners Downgrade: S&P lowered its long-term corporate credit ratings to 'B' from 'B+'. Highlights: "The downgrade reflects our concerns about the faster-than-expected deterioration of Yell's operating performance and liquidity profile, which is no longer commensurate with a 'B+' rating," said Standard & Poor's credit analyst Manuela Gabetta. Read more » |
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Escape from New York (Part II)
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 The latest insult to legal accountability came yesterday, when Cuomo announced that PE consultant Pacific Corporate Group had agreed to: (a) Pay $2 million, and (b) Sign Cuomo’s much-ballyhooed Code of Conduct. In exchange, PCG was promised that Cuomo would not pursue criminal or civil prosecution related to PCG’s past activities in New York or anywhere else (like, say, California – although sources say that Jerry Brown is beginning to look into that state's placement agent skeletons). What had PCG done wrong? Well, officially nothing – since PCG was required to neither confirm nor deny any of the AG’s findings. Kind of like how The Carlyle Group didn’t do anything wrong, even though it cut a $20 million check. That Cuomo must be awfully persuasive. Maybe he actually could resolve the budget mess, by squeezing cash out of every other PE firm doing business in New York, given that no actual wrongdoing is needed as a prerequisite… Unofficially, PCG was accused of helping enrich indicted “placement agent” Hank Morris. Specifically, Morris was given an undisclosed 5% ownership stake in a $750 million co-investment vehicle funded by Read more » |
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peHUB First Read
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 * David Callaway: Time to worry. Banks are recommending each other's shares again. * Q2 data dump: 32 pages of M&A and private equity deal data, league tables, etc. * Morning Call: U.S. futures lower ahead of June jobs data, London falls early, European shares drop, the Nikkei closes down 0.6% and Chinese stocks hit 13-month high. * New photos of the Madoffs at play. Could be worse, I guess. At least they're not nude photos of the Madoffs at play. * The EVCA has released a new code of conduct for placement agents. Here you go. * Kip Kirkpatrick's decision to run for Illinois State Treasurer won't trigger a keyman vote at Water Street Healthcare Partners, the private equity shop he co-founded and is now leaving. Apparently the only listed keyman is fellow co-founder Tim Dugan. Kinda odd, but ok. Still doesn't mean all LPs are thrilled that Read more » |
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NEW YORK (Reuters) - The U.S. Treasury Department is expected to name as many as nine fund managers to operate the long-awaited Public-Private Investment Program (PPIP) to cleanse banks of toxic assets, a person familiar with the plan said on Wednesday. An announcement from Treasury could come as soon as Thursday, the person said, adding that the roster of firms is likely to include Allianz SE’s (ALVG.DE) Pacific Investment Management Co, or Pimco, BlackRock Inc (BLK.N), billionaire investor Wilbur Ross and pri |
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The Woburn, Massachusetts, company’s shares opened at a 25 percent premium over the IPO price, and rose as much as 31 percent on Nasdaq before ending 2 cents above the $20 start price. LogMeIn, whose backers include chipmaker Intel Corp (INTC.O), sold 6.7 million shares for $16, the top of the e |
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Six Quick Questions with Navin Chaddha of Mayfield
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 The 38-year-old got his start as an entrepreneur at the age of 25 and successfully co-founded three VC-backed companies that were eventually acquired or went public: VXtreme, a VC-backed streaming media software company; iBeam Broadcasting, an Internet streaming media provider; and Rivio, which provided Web-based services to optimize operations for small businesses. Chaddha made the shift to venture in 2003, joining Mobius Venture Capital as an EIR, then transitioning to venture partner. A year later, he became a general partner at Gabriel Venture Partners, then joined Mayfield as a managing director in September 2006. Read more » |
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NEW YORK (Reuters) - A U.S. bankruptcy judge on Wednesday denied a request from auto supplier Delphi Corp (DPHIQ.PK) to pay private equity firm Platinum Equity up to $30 million in expense reimbursements if its bid for the company is topped. At a U.S. Bankruptcy Court hearing in Manhattan, Judge Robert Drain said $30 million was “not reasonable or appropriate,” but that his ruling would not preclude Platinum from seeking another kind of expense reimbursement later. Delphi, which was spun off from General Motors Corp (GMGMQ.PK) in 1999 and filed for bankruptcy in 2005, said last month that it had reached a deal to sell most of its global operations to private equity firm Platinum Equity, in a plan that with the participation of GM would allow Delphi emerge from |
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PCG Pays $2 Million To Escape New York Probe
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 PCG also has agreed not to use placement agents to solicit business from public pension funds, although it can continue to use placement agents when securing fund commitments for public pension clients (except when banned by a client, like the New York State Common Retirement Fund). In exchange, NY Attorney General Andrew Cuomo said that he has ended the investigation into PCG, although did not specify if the termination was to all of PCG's activities or only to its New York dealings (PCG has major business with state and municipal pension systems in California, and word is that Cuomo was taking a look via The Martin Act). In a statement, PCG said: "We are taking these steps to make the public whole for the improper actions of a former executive, to put this episode behind us and to move our business forward." That former executive is Steve Moseley, who in late 2006 helped form a $750 million co-investment vehicle funded by the New York State Common Retirement Fund. It was done in partnership with hedge fund The Clinton Group (where Moseley later went to work), and allegedly included an undisclosed participation by indicted "placement agent" Hank Morris. The vehicle also included a partial ownership, and investment committee seat, for Barrett Wissman, a Texas hedge fund manager who has plead guilty to securities fraud. Read more » |
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Cleantech: What GE’s Skillern Said
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 GE has also been active in investing alongside venture capitalists in promising startups, backing 33 companies over the past five years, according to Thomson Reuters (publisher of peHUB). Among the more notable is A123 Systems, the battery maker that recently filed to go public. It's easy to understand why GE would be excited about the company, especially if you talk with Kevin Skillern, the managing director of GE's venture capital operations. Kevin Skillern, managing director of GE's venture capital operations, last week spoke at VCJ's Financing the Cleantech Vision event in Palo Alto last week. He talked about how best to approach his corporate parent, and was kind enough to send over his notes, which you can get after the jump. Read more » |
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