PE Week Wire — 9/29/06

Athenagen Inc., a South San Francisco-based drug company focused on neurovascular diseases, has raised $50 million in Series B funding. Sanderling Ventures and Clarus Ventures co-led the deal, and were joined by Index Ventures and return backers Charter Life Sciences and Astellas Venture Management.

Sun Capital Partners has made a $9 per share bid for Talk America Holdings Inc. (Nasdaq: TALK), a New Hope, Pa.-based telecom company in which it already holds a 13.9% stake. Talk America last week had agreed to be acquired by Richmond, Va.-based Cavalier Telephone LLC for $8.10 per share. The Sun bid values Talk America at around $274.3 million.

Bare Escentuals Inc., a San Francisco-based cosmetics company, priced 16 million common shares at $22 per share ($15-$17 range), for an IPO take of approximately $352 million. It will trade on the Nasdaq under ticker symbol BARE, while Goldman Sachs and CIBC World Markets served as co-lead underwriters. Shareholders Berkshire Partners and JH Partners hold post-IPO positions of 38.2% and 25.8%, respectively.

    VC Deals

CoAxia Inc. has signed a term sheet for an $11 million Series C funding round. Return backers include Canaan Partners, Prism Venture Partners, Affinity Capital Management and Baird Venture Partners. The Maple Grove, Minn.-based company develops perfusion augmentation therapies to improve outcomes for patients with cerebral ischemia resulting from stroke.

Twisted Pair Solutions Inc., a Seattle developer of IP-based communications software, has raised $9 million in its first round of institutional VC funding. Ignition Partners and Core Capital Partners co-led the deal, and were joined by Chart Venture Partners.

Group IV Semiconductor, an Ottawa-based developer of “silicon light-bulbs,” has raised Cnd$9.1 million from Khosla Ventures, BDC Capital, EnCana Corp. and the Sustainable Development Technology Canada initiative.

ObjectVideo Inc., a Reston, Va.-based provider of video processing software for physical security applications, has raised $8 million in Series E funding, according to a regulatory filing. Backers include ABS Ventures, CMGI @Ventures, Novak Biddle Venture Partners and Updata Partners.

Fotolog Inc., a New York-based photo blogging community, has raised $4.1 million in Series C funding, according to a regulatory filing. Return backers include 3i Group and BV Capital.

Kurtosys Systems Inc., a New York-based provider of financial reporting software and services, has secured $3.4 million of a $5.15 million Series A deal led by True Ventures, according to a regulatory filing.

DoublePositive Marketing Group Inc., a Baltimore-based provider of sales lead generation solutions, has raised $2.7 million in Series B funding. The Grosnevor Funds led the deal, and were joined by return backers WWC Capital Group, Inner Harbor Brothers ( founders) and Stein Kretsinger (former senior executive).

ForteMedia Inc., a Cupertino, Calif.-based provider of voice processing technology for automobile, PC and portable devices, has raised an undisclosed amount of strategic funding from Intel Capital. Existing ForteMedia shareholders include iGlobe Partners, Marvell Semiconductor, Pac-Link Management and UMC Capital.

    Buyout Deals


GATX Corp. (NYSE: GMT) has agreed to sell most of its aircraft leasing business to Och Ziff Capital Management and Macquarie Bank for approximately $1.5 billion.

Lone Star Funds has agreed to acquire Japanese lender Korakuen Finance Co. from Tokyyo Dome Corp. for approximately $429 million.

The Riverside Co. has acquired It's Just Lunch International, a Palm Desert, Calif.