PE Week Wire — 10/13/06

Morphotek Inc., an Exton, Pa.-based drug company focused on therapeutic monoclonal antibodies, has raised $40 million in Series D funding. Investor Growth Capital led the deal, and was joined by MDS Capital, Hunt BioVentures and return backers Forward Ventures, Morgenthaler Ventures, SR One, Flagship Ventures, Burrill & Co., CB Health Ventures and Rock Maple Ventures. The company has raised nearly $90 million in total VC funding since its 2000 inception. www.morphotek.com

Arcap Partners has formed the first private equity fund focused on Afghanistan. To date, it has raised $20.3 million in capital commitments from LPs like The Asian Development Bank and CDC (UK-government-backed fund-of-funds). The fund is led by former McKinsey & Co. consultant Pierre Van Hoeylandt, who previously worked with the Afghan Ministry of Finance in designing Afghanistan's private sector development strategy.

Mark Warner, co-founder of Columbia Capital and former Virginia governor, said that he will not run for president in 2008.

    VC Deals

Reflex Security Inc., an Atlanta