Correction: On December 15, PE Week Wire incorrectly reported the amount of funding raised by HSCB’s Asian private equity arm. The fund raised $1.5 billion, which exceeded its target of $1.25 billion. .
Top Four
IndyMac Bancorp, a subprime mortgage casualty, is nearing a sale to a buyout firm consortium that includes J.C. Flowers & Co., Dune Capital Management and the hedge fund Paulson & Company, according to several reports. The deal will give PE firms ownership of a bank holding company outside of the regulation such a deal would normally require. IndyMac has 33 branches and a $176 billion loan-servicing portfolio, and had $32 billion in assets when it failed earlier this year. www.indymac.com
Bridgepoint Education Inc, a provider of post-secondary education services based in San Diego, filed with to raise up to $230 million in an initial public offering of common stock. In 2004, investor Warburg Pincus, Bridgepoint’s chief executive, Andrew Clark, and other executives launched the company.
TPG plans to exit around 32% of its its 43.4% stake in NIS Group, an Asian lender the firm invested in for $288 million earlier this year. The firm will sell its stake to reduce its voting rights to 8.5%.
GMAC LLC expects to soon announce the results of a debt exchange offer that is key to North America’s largest auto finance company’s capital levels, a spokeswoman said on Sunday.
VC Deals
SolarEdge Technologies, a stealth-mode maker of solar energy technology, has confirmed a recent $23 million round of funding to several news outlets. The B round was led by Vertex Venture Capital with participation from previous investors including Walden International, Opus Capital and Genesis Partners. Round A was for $11.8 million, according to GreenTech Media.
Xunlight Corporation, a Toledo, Ohio-based developer of silicon solar modules, has received a $7 million loan from the State of Ohio. Xunlight has received over $40 million of institutional investments from Emerald Technology Ventures, Trident Capital, NGP Energy Technology Partners, and Rabo Ventures.
Smart Destinations Inc., a Boston-based travel company, announced that it closed a $7 million Series C round of funding and added $3M in debt financing. The Series C Round was led by NewSpring Capital of Radnor, PA, with additional participation from existing investors.
Solarflare Communications, a provider of 10 Gigabit Ethernet silicon, has secured a new $32 million round in equity financing, which includes support from Oak Investment Partners, Acacia Capital, Anthem Venture Partners and others. In addition, the company will close $12 million in venture debt financing associated with the equity round.
ATS Medical, Inc., a manufacturer of cardiac surgery products and services based in Minneapolis, closed a $20 million equity financing with Essex Woodlands Health Ventures.
Motion Computing, a mobile computing business based in Austin, Texas, received funding of $6 million from New Enterprise Associates (NEA), Institutional Venture Partners (IVP), G-51 Capital, and other new investors.
Lab21, a specialist diagnostic services and products healthcare company based in Cambridge, England, has closed a £2.2 million ($3.2 million) round of financing which included commitments from Nexus Medical Partners, Rowan Dartington of the UK join Merlin Biosciences and Kreos Capital.
KaloBios Pharmaceuticals, Inc. raised $12 million for its second closing on a Series D financing. The round was led by a new investment from Baxter International Inc. The total funding for the company’s Series D is $32 million. Other investors for the San Francisco-based company include Genzyme Ventures and Mitsubishi UFJ Capital, as well as MPM Capital, Sofinnova Ventures, Alloy Ventures, GBS Ventures, Singapore Bio-Innovations, Pte., and 5AM Ventures.
Provigent, a Santa Clara, Calif-based broadband products provider, raised $10 million for its fifth-round of financing. Lightspeed Venture Partners led this round of funding with a $10 million investment. Provigent’s existing technology investors include Sequoia Capital, Pitango Venture Capital, Globespan Capital Partners, Magma Venture Partners, Ascend Technology Ventures, Delta Ventures, Stata Venture Partners, and Dr. Andrew Viterbi.
JAZD Markets, an on-line B2B marketing services business, closed an $8 Million Series A round of investment in the company. The round of investment was jointly led by Commonwealth Capital Ventures and Pilot House Ventures.
ONStor, Inc., a provider of clustered NAS products, has secured an undisclosed round of funding from existing investors, which include Mayfield Fund, Foundation Capital, and Sand Hill Capital.
QuatRx Pharmaceuticals, based in Ann Arbor, Mich., has raised $7.88 million in debt funding, according to VentureWire. The funding has a $10 million potential. The firm previously raised $44 million in a Series E round in 2007 from Bio Fund Management, BioMedical Ventures, Catella Healthcare Investments, Frazier Healthcare Ventures, H&B Capital, Hercules Technology Growth Capital, InterWest Partners, MPM Capital, Stockwell Capital, T. Rowe Price, Thomas Weisel Healthcare Ventures, TL Ventures, Twilight Venture Partners and Venrock.
Positive Energy, a, Arlington, Va.-based energy start-up, raised $14 million from New Enterpise Associates, Washington Business Journal reported.
Buyout Deals
Dmatek Ltd, which sells technologies that monitor people remotely, said on Monday it had agreed to be bought for 52.9 million pounds ($77.6 million) by an investor group led by private equity fund Francisco Partners. Venture firm Sequoia Capital is working the Israel-based Francisco Partners.
Centerplate, Inc. and buyout firm Kohlberg & Co. have agreed to a reduced merger price for the previously announced take-private of the Stamford, CT-based concessions company. The price for each IDS will be reduced from $4.00 to $2.50.
Sorenson Capital, a Salt Lake City-based private equity firm, acquired a minority interest in Jet Set Sports, a New Jersey-based corporate hospitality services provider for the Olympic Games. Terms were not disclosed.
Cyalum Technologies, a West Springfield, Mass. -based provider of military safety training products, has received approval to merge with Vector Intersect Security Acquisition Corporation, a SPAC. Cyalum Technologies is backed by venture firm Kline Hawkes and buyout firm Columbus Nova.
GE Capital, a middle-market lender, has provided $270 million in senior secured credit to Bradco Supply Corp., a portfolio company of Boston buyout firm Advent International.
Audax Group, a mid-market private equity firm, has backed the recapitalization of Maryland-based debt collection agency Kaulkin Ginsberg. Deal terms were not disclosed.
Nelson Peltz’ investment business, Trian Fund Management, has purchased a 7.18% stake in Dr Pepper Snapple, a company with which the activist shareholder has previous ownership experience. In 1997 Peltz purchased Snapple from Quaker Oats for $300 million, selling it three years later for $1.5 billion.
Palm Inc said on Monday that private equity firm Elevation Partners agreed to boost its investment in the struggling smartphone maker by $100 million, sending its shares surging 24 percent.
Morgan Stanley’s private equity unit said on Tuesday it had invested 1.82 billion rupees ($37.5 million) in unlisted Indian castor oil maker Biotor Industries, to mark its first private equity investment in India. Morgan Stanley, which raised $1.5 billion for an Asia dedicated fund last year, said it would get a “significant minority” stake for its investment.
Standard & Poor’s lowered its corporate credit rating on Chrysler LLC after the company said it will likely seek concessions from secured lenders as part of the $4 billion in emergency loans it received from the government on Friday. S&P cut the rating by three notches to “CC,” a speculative grade that is just two notches above “D”, or default. Chrysler is backed by Cerberus Capital Management.
Private equity firm Cerberus said on Friday it would use the first $2 billion of proceeds from Chrysler’s auto financing arm Chrysler Financial to backstop the government loan allocated to its struggling Chrysler car making unit.
Cerberus Capital issued a statement regarding its investment in Chrysler LLC, following President Bush’s authorization of $17.4 billion in emergency loans to U.S. automakers (although Ford said it won’t need the help). It said that it would put $2 billion from Chrysler Financial into the troubled automaker, alongside the $4 billion in federal funds. It also reiterated its pledge to not take any profits that may emerge, which a spokesman says includes both carried interest and fees.
North American Industries, a provider of overhead cranes, has sold to Boulder Brook Partners LLC and Tonka Bay Equity Partners LLC for an undisclosed amount. Cobblestone Advisors, a specialty group of Harris Williams & Co., advised on the deal.
Tom Cat Bakery, Inc., an artisan bread and commercial bakery based in New York, sold to Ancor Capital Partners and Merit Capital Partners. Transaction terms were not disclosed.
Austin Ventures has agreed to acquire Asset International, a financial information provider, including PLANSPONSOR, PLANADVISER, and Global Custodian publications. Deal terms were not disclosed.
CHAMP Private Equity, an Australian affiliate of New York firm Castle Harlan, has acquired two lease-financing companies for an undisclosed amount.
Black Diamond Capital Management, a hedge fund and private equity firm, had been authorized by the court to purchase Hines Horticulture out of bankruptcy.
Metalmark Capital, a buyout firm based in New York, has purchased Schafer Corporation, a government intelligence systems business, for an undisclosed amount.
MML Capital Partners, a buyout firm based in London and Stamford, Conn., has acquired the assets of Houston-based Americrane LLC through its portfolio company, TNT Crane & Rigging, Inc., for an undisclosed amount.
Two banks that were to finance the now-collapsed $6.5 billion buyout of chemicals firm Huntsman Co. provided funding to the buyer, Hexion Specialty Chemicals, to cover payment of a $325 million deal breakup fee, Hexion said. The deal was backed by Apollo Management.
Brinker International Inc (EAT.N) said on Friday it completed the sale of a majority stake in its Romano’s Macaroni Grill business, helping to send the restaurant operator’s shares up nearly 28 percent. The final sale price for buyer Golden Gate Capital was nearly 40 percent less than the figure first announced in August.
Entertainment Rights, home to children’s TV characters Basil Brush and Postman Pat, said on Monday it was in early stage talks over a possible bid for the company, as it also seeks to secure funding. The Daily Telegraph newspaper said Britain’s Hit Entertainment, Canada’s Cookie Jar Entertainment, Israeli-American media-mogul Haim Saban, hedge fund Och-Ziff and leisure tycoon Trevor Hemmings, who already owns a stake in the business, might be interested.
Bain Capital and Clessidra SGR have agreed to purchase Centrale dei Bilanci, for 535 million euros ($747.5 million) from shareholders that include large banks in Italy. www.centraledeibilanci.com
PE Exits
The shareholders of The PNC Financial Services Group and National City Corporation voted to approve the firms’ deal to merge. New York investment firm Corsair Capital Partners had invested $785 million in publicly traded, Cleveland, Ohio-based National City.
FIR Capital Partners, a Brazilian Venture Capital firm, its stake in Prodimol Biotecnologia S.A., a Belo Horizonte, Brazil-based company that manufactures and distributes medical products and pharmaceuticals, to Orgenics, a division of Iverness Medical Innovations of Waltham, Massachusetts.
St. Jude Medical Inc said on Monday it acquired Israel’s MediGuide Inc, a maker of technology used to guide catheters in minimally invasive medical procedures, for $283 million in cash, its second deal in as many days.
Rehrig-United Inc will convert its Chapter 11 filing to a Chapter 7 liquidation. The shopping cart manufacturer, backed by Woodside Capital Partners, filed for bankruptcy protection in September. www.rehrig.com
European Capital has received a repayment of €10 million of junior mezzanine bonds from Newglass, parent company of portfolio company Devglass, a French manufacturer of dual-pane insulated glass.
ECI Partners has sold Racal, a UK provider of military communications equipment, to Esterline Technologies, for around 115 million pounds ($170.4 million).
Deltapoint Capital Management, a private equity firm based in Rochester, N.Y., has sold DynaBil Industries, an aerospace parts company, to Ducommun Inc, for $46.5 million. Deltapoint invested in Dynabil alongside HSBC Capital and New York State Common Retirement Fund in March 2006.
PE-Backed IPOs
Eyeblaster, a VC-backed provider of digital marketing services and technology, has withdrawn its planned $115 million IPO. The company raised $30 million in second-round funding last year from individuals Eli Barkat (managing director of BRM Capital), Jonathan Kolber and board member Guy Gamzu. Insight Venture Partners had led the company’s Series A round in 2003, but did not participate on the Series B. It retained a minority position. Sycamore Technology Ventures is also listed as a shareholder.
NameMedia Inc., a Waltham, Mass.-based online marketplace for domain names, has withdrawn its $100 million IPO. The company has raised $43.1 million in VC funding from Highland Capital Partners and Summit Partners, for pre-IPO positions of 50.5% and 22.7%, respectively.
Anacor Pharmaceuticals, a Palo Alto-based small-molecule therapeutics company, withdrew its IPO plans after 16 months in registrationk The company is backed by Rho Ventures and Venrock Associates, along with Care Capital and Aberdare Ventures. www.anacor.com
PE-Backed M&A
EAG Inc, a Sunnyvale, Calif.-based provider of surface analysis and materials characterization services, has agreed to acquire Nano Integrated Solutions for an undisclosed amount. EAG is backed by Odyssey Investment Partners, a deal struck in September 2008.
PixelFish, a provider of video advertising products based in Torrance, Calif., has acquired Eyespot Corporation, a venture-backed company which shuttered itself earlier this year, for an undisclosed sum. PixelFish is backed by angel investors.
MyMedicalRecords.com, a consumer-facing web site with $10 million in venture backing, plans to close its merger with publicly traded Favrille Inc in January. MyMedicalRecords is based in Los Angeles and has not disclosed the names of its venture backers.
Cavium Networks, a publicly traded semiconductor company, has acquired VC-backed W&W Communications, a video compression company, for $19.3 million. According to Venturewire, the company raised $1.2 million from Nueva Ventures and Hi-Tech Venture Capital in 2005.
Glass Lewis & Co., a proxy advisory firm backed by Ontario Teachers Plan, has closed its deal to buy Washington Analysis Corp., a political and economic advisory firm backed in Washington, D.C.
Firms & Funds
LRG Capital Group, a San Francisco-based boutique advisory firm, has launched a new fund to invest in early stage hospitality companies. The effort is called LRG Capital Hospitality Fund.
AXA Private Equity, a global PE house headquartered in Paris, has announced the opening of an 8th office in Vienna, to be led by Thomas Wilfling and supported by Marton Hunek and Dimiter Tschawow.
Blackstone Group plans to liquidate two hedge funds, consolidating its distressed securities fund with GSO Capital Partners and spining off Blackstone Kailix advisers, the investment manager of its long/short equities fund, to a management team led by Manish Mittal, who plans to form a new fund as an independent entity.
Cerberus Capital Management plans to pay 20 percent of year-end withdrawals in cash and suspend the remaining withdrawals for investors in its Cerberus Partners fund, Reuters reported. Cerberus plans to suspend year-end withdrawals for up to one year, founder Stephen Feinberg said in a letter to the investors of the fund.
GMAC LLC may have applied for up to $6 billion in funds from the government’s financial bailout program, and could potentially sell $17.5 billion in government-backed debt to shore up its capital position, Reuters reported.
Blue Point Capital Partners, a U.S. private equity fund which helps mid-sized firms in the United States invest in China, is eyeing new opportunities to help Chinese companies invest abroad. Blue Point aims to spend a quarter of its newly-raised, $400 million fund in China, helping local manufactures acquire U.S. companies, Reuters reported.
TPG Capital will allow clients to reduce their pledges to its $20 billion fund by as much as 10 percent, or a total of $2 billion, the Wall Street Journal reported. According to the paper, TPG, which has more than $50 billion under management, will also cut annual management fees by about 10 percent.
CIT Group has been approved by the Federal Reserve to covert itself into a bank holding company.
CIT Group it raised $1.15 billion of regulatory capital through a swap of notes as part of its plan to get access to government funding.
Huntington Capital, a San Diego-based private equity firm, has closed on $78 million for its second mezzanine fund. The target size for Fund II is $100 million, with the first round of funding completed in May 2008. The firm anticipates a final close in early 2009.
Britain’s Barclays is considering selling its private equity arm to a management consortium in a move to raise capital for the bank, the Mail on Sunday newspaper reported.
The Pension Benefit Guaranty Corporation (PBGC) has retained firms BlackRock, Goldman Sachs and J.P. Morgan to manage $2.5 billion in assets and provide support to PBGC’s in-house investment staff.
Human Resources
President-Elect Barack Obama has nominated Karen Gordon Mills to head the Small Business Administration. Mills is president of MMP Group, a private equity investor and adviser, a former founding partner and managing director of Solera Capital, a New York based venture capital firm.
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