Greetings from the home office, where I’m glad to be back after a two-week respite. Just a few notes as I hop back into the saddle…
*** Last Friday, The New York Times reported that Blackstone Group executives will essentially pay no taxes on their individual IPO gains, because the executives will receive good will deductions that typically are passed on to regular shareholders. Blackstone took the unusual step (for Blackstone) of firing off a press release that characterized the NYT article as being “filled with inaccuracies, myths and misrepresentations.”
I need a few more hours to analyze the matter before passing judgment, but here’s one thing that both sides acknowledge: What Blackstone did is perfectly legal, and was disclosed in its pre-IPO filings with the SEC. So no whining from any IPO buyers who now feel they got a raw deal. All they had to do was read the prospectus. If it was too long at more than 300 pages, then just say “pass.”
More on this later today at peHUB, and perhaps a bit more Blackstone news of note…
*** Yes, that was me on CNBC during my vacation. Yes, I appeared right after a segment on workaholics. So kind of so many of you to notice the irony.
*** Thomson Financial and the National Venture Capital Association today released VC fundraising data for Q2 2007. Sixty-eight firms raised $7.2 billion, which represented a fund number decrease and dollar amount increase over Q1. Overall, 2007 is on pace to beat 2006 fundraising totals. More info and data can be found here.
*** Hillary Clinton has taken a (belated) position on the carried interest tax debate, by referring to the current system as a “glaring inequity.” She joins Democratic frontrunners Barrack Obama and John Edwards in supporting a change in tax treatment for carried interest, while GOP candidates like Rudy Giuliani and Mitt Romney say they want to maintain the status quo. Wonder how this will affect Q3 donations for the Dems from buyout pros, hedge fund managers and venture capitalists…
*** The latest Data Dump at peHUB.
*** Totally unrelated, but… A quick promotion for something called Urban Dare, which is like a one-day Amazing Race within a single city. J and I competed in the Boston version on Saturday, and it was great fun (even though we got crushed and our legs are still aching). You can get the future schedule and more info here…
*** Apologies to come and go so fast, but my West Coast colleagues will be putting together tomorrow’s Wire – as I’ll be speaking and moderating in Washington D.C., as part of the Mid-Atlantic Venture Association’s Vanguard series. The topic is private equity as an exit avenue for VC-backed and growth capital-backed companies. You can get more info here… Be back Wednesday, and will continue to post at peHUB.com in the interim.
Tudou.com, a Chinese online video sharing site, has raised $19 million in Series C funding. Capital Today and General Catalyst Partners co-led the deal, and were joined by return backers Granite Global, IDG China, JAFCO Asia, KTB Ventures and JAIC. www.tudou.com
Montagu Private Equity has sponsored a £160 million management buyout of the Jemella Group, a UK-based maker of hair styling irons, complementary wet products and other hair styling accessories sold through professional hair salons. The seller is LDC, the private equity division of Lloyds TSB, which funded a buyout of minority shareholders last year. Montagu acquired a majority stake in Jemella following the transaction, which included growth capital. Leveraged financing was provided by Barclays, Lloyds TSB Corporate Markets and HSBC. www.montaguequity.com
Cooley Godward Kronish LLP has opened an office in Boston. The office features 10 Boston-based partners from other firms, including lead partner John Hession, who previously was with McDermott Will & Emery. Donald Fagen joins from Goulston & Storrs, and will lead Cooley’s business and tech practice in Boston, and its firm-wide private equity practice. Other corporate practice attorneys include Alfred Browne III (Sullivan & Worcester), Miguel Vega (Sullivan & Worcester), Patrick Mitchell (Goulston & Storrs) and Marc Recht (McDermott Will & Emery). The litigation group will feature Thomas Meyers (Sullivan & Worcester) and Robert Tosti (Edwards Angell Palmer & Dodge), while the IP practice will include Thomas Meyers (Sullivan & Worcester) and Tosti. Cooley’s new ! Boston team all were at one point in their careers with Testa, Hurwitz & Thibeault, which dissolved in 2005. www.cooley.com
Neoconix Inc., a Sunnyvale, Calif.-based provider of electrical interconnect solutions, has raised $16 million in Series C funding. VentureTech Alliance led the deal, and was joined by return backers JPMorgan Partners, U.S. Venture Partners, Venrock Associates and Walden Ventures. The company has raised nearly $40 million in total VC funding since 2003. www.neoconix.com
Mark Logic Corp., a San Mateo, Calif.-based provider of XML content servers, has raised $15 million in third-round funding. Return backers include Sequoia Capital and Lehman Brothers. The company has raised nearly $30 million in total VC funding since 2003. www.marklogic.com
Apparent Networks Inc., a provider of network performance diagnostic solutions, has raised $13.6 million in Series B funding. Bain Capital Ventures and JMI Equity co-led the deal, and were joined by Business Development Bank of Canada and Aden Investments. Apparent Networks has offices in both Vancouver and Seattle. www.apparentnetworks.com
SchemaLogic Inc., a Kirkland, Wash.-based provider of enterprise metadata and taxonomy management software, has raised $12.7 million in Series C funding. Goldman Sachs led the deal, and was joined by Artis Capital and return backers Madrona Venture Group, Phoenix Partners and SchemaLogic co-founder and chairman Trevor Traina. www.schemalogic.com
Pacific Star Communications Inc., a Portland, Ore.-based maker of communications equipment for use in remote locations, has raised $12.3 million in Series D funding, according to VentureWire. Steelpoint Capital Partners led the deal, and was joined by Chart Venture Partners and return backers Benaroya Capital, Fluke Venture Partners and InvestAmerica Venture Group. www.pacstar.com
DynaPump Inc., a Northridge, Calif.-based manufacturer of surface mounted artificial lift systems for the oil and gas industry, has raised $12 million in Series C funding. DFJ Element led the deal, and was joined by NGP Energy Technology Partners and return backer Chevron Technology Ventures. www.dynapumpinc.com
Adomo Inc., a Cupertino, Calif.-based provider of enterprise voice messaging solutions, has secured $11.5 million of a $15 million Series A-1 recap round. Return backers include Storm Ventures and Menlo Ventures. The company previously raised around $29 million over three rounds of VC funding. www.adomo.com
BroadSoft Inc., a Gaithersburg, Md.-based provider of VoIP application software, has raised $10 million in Series D funding, according to a regulatory filing. Meritech Capital Partners was joined by return backers Bessemer Venture Partners, Charles River Ventures, Columbia Capital, Crescendo Ventures, Grotech Capital Group, RRE Ventures. BroadSoft last raised VC funding in 2003, and has raised a total of around $76 million since its late 1998 inception. www.broadsoft.com
InMage Systems Inc., a Santa Clara, Calif.-based provider of data protection software, has raised $10 million in Series B funding. Brocade Communications led the deal, and was joined by return backer Hummer Winblad Venture Partners. www.inmage.net
GlycoVaxyn, a Switzerland-based developer of conjugated vaccines that target bacterial infections, has raised CHF 11.5 million ($9.3m) in Series A funding from seed backers Sofinnova Partners and Index Ventures. www.glaxovaxyn.com
Skyhook Wireless Inc., a Boston–based provider of WiFi positioning systems, has raised $8.5 million in Series C funding. RRE Ventures led the deal, and was joined by return backers Bain Capital Ventures, Intel Capital and CommonAngels. Skyhook has raised $16.8 million in total VC funding. www.skyhookwireless.com
Inovawave Inc., an Austin, Texas-based maker of virtualization performance and management software, has raised $7.2 million in Series B funding. Matrix Partners led the deal, and was joined by return backer Silverton Partners. www.inovawave.com
RockeTalk Inc., a San Diego-based developer of software that combines all mobile phone messaging tools into a single application, has raised around $7.1 million in Series A funding, according to a regulatory filing. Backers include iSherpa Ventures, EDF Ventures and Mission Ventures. RockeTalk CEO Rajiv Kumar previously was co-founder of bluetooth softwarecompany Widcomm.www.rocketalk.com
Valens Semiconductor Ltd., a Hertzlia, Israel-based maker of chips for transmitting audio and video in a home networking environment, has raised $7 million in Series A funding. Genesis Partners led the deal, and was joined by Magma Venture Partners. www.valens-semi.com
NexGenix Pharmaceuticals Holdings Inc., a New York-based developer drugs to treat neurofibromatosis and related sporadic tumors, has raised $3.9 million in Series B funding. No investor information was disclosed. www.nexgenixpharm.com
Immune Targeting Systems Ltd., a London-based developer of synthetic vaccines for mutating viruses, has raised £3.5 million in Series A funding. Participants included Novartis Venture Fund, Truffle Capital, HealthCap and the London Technology Fund. ITS also has received a £500,000 research grant from The London Development Agency. www.its-innovation.co.uk
ConnectBeam Inc., a Redwood City, Calif.-based provider of enterprise social bookmarking, has raised $3.5 million in Series A funding, according to a regulatory filing. Backers include Gabriel Venture Partners and Startup Capital Partners. The company is run by former CourseCafe CEO Puneet Gupta. www.connectbeam.com
Talend, a Palo Alto, Calif.–based provider of open source data integration software, has raised $3.5 million in Series B funding from return backers AGF Private Equity and Galileo Partners. www.talend.com
Weblo, a Montreal-based company that allows users to buy virtual domain names, has raised $3.3 million in second-round funding led by VantagePoint Venture Partners. www.weblo.com
Arkeia Software, a Carlsbad, Calif.-based provider of data protection software, has raised $3 million in Series B funding from SPEF Ventures (Banque Populaire) and Crédit Agricole private equity. www.arkeia.com
Way Systems Inc., a Woburn, Mass.-based provider of wireless transaction services for merchants, has secured $3 million of a $9 million Series CC-1 round, according to a regulatory filing. It had raised a $15 million Series C round back in 2005. Return backers include Bessemer Venture Partners and GIV Venture Partners. www.waysystems.com
Tevet Process Control Technologies Ltd., a Yoknea’m, Israel-based supplier of high-throughput semiconductor integrated metrology, has raised $2.75 million in fourth-round funding. Eurofund led the deal, and was joined by Cipio Partners and Intel Capital. Tevet has raised $13 million in total VC funding. www.tevet-pct.com
Edvert Inc., a Belmont, Calif.-based matchmaker for online advertisers and website operators, has raised $1.04 million in Series A funding led by Draper Fisher Jurvetson. Edvert is still in stealth mode, but an early overview of the company can be found here.
Chesspark.com, a West Palm Beach, Fla.-based online chess community, has raised $1 million in seed funding. Backers include Burnt Norton Inc., Eaglebrook School and angel Jon Callaghan of True Ventures. www.chesspark.com
AllTranz Inc., a Lexington, Ky.-based developer of patches and gels for delivering pain medications, has raised $860,000 in first-round funding. Participants included the Kentucky Seed Capital Fund, Commonwealth Seed Capital Fund, Bluegrass Angels Venture Fund and undisclosed angels. AllTranz is a spinout from the University of Kentucky. www.alltranz.com
myShape, a Pasadena, Calif.-based online apparel retailer, has raised an undisclosed amount of Series B funding led by Draper Fisher Jurvetson. www.myshape.com
Formation Capital and JER Partners have completed their $63.35 per share buyout of Genesis HealthCare Corp. (Nasdaq: GHCI), a Kennett Square, Pa.-based long-term care provider with over 200 skilled nursing centers and assisted living residences in 13 eastern states. The total deal is valued at approximately $2 billion. www.genesishcc.com
Lindsay Goldberg & Co. has invested $283 million to acquire a “significant” minority stake in Brightstar Corp., a Miami, Fla.-based wireless distributor and provider of supply chain solutions. Cicerone Capital advised Brightstar on the deal, while Lindsay Goldberg was advised by Morgan Stanley and Gabriel Advisors. www.brightstarcorp.com
Och-Ziff Capital Management has sponsored a recapitalization of Noodles & Co., a Broomfield, Colo.-based operator and franchisor of 151 quick-service noodle restaurants. No financial terms were disclosed. www.noodles.com
Thoma Cressey Bravo has agreed to acquire Hyland Software Inc., a Cleveland-based provider of enterprise content management software. The deal is valued at around $265 million, including $150 million of equity, according to Standard & Poor’s. www.onbase.com
KBC Private Equity has invested an undisclosed amount into Belgian lighting group Wever & Ducre.
This week’s IPO calendar includes expected pricings Dice Holdings Inc., Netezza Corp., MF Global Ltd., Limco-Piedmont Inc., Orbitz Worldwide Inc. and Hhgregg Inc.
Renewable Energy Group Inc., a Ralston, Iowa-based biodiesel producer, has filed for a $150 million IPO. It plans to trade on the NYSE under ticker symbol RWE, with Credit Suisse serving as lead underwriter. REG last year raised a $100 million Series A round led by Natural Gas Partners, with Bunge North America, ED&F Man Holdings and West Central Cooperative also participating. www.renewable-energy-group.com
Genpact Ltd. (f.k.a. Gecis Global), a global business process outsourcing company, has set its proposed IPO terms to around 35.29 million common shares being offered at between $16 and $18 per share. It would be valued at over $3.7 billion, if it were to price at the high end of its range. Genpact plans to trade on the NYSE under ticker symbol G, with Morgan Stanley, Citi and JPMorgan serving as co-lead underwriters. General Atlantic and Oak Hill Capital Partners acquired a 62.63% stake in Gepact from General Electric in 2005, for approximately $500 million (including $375 million in equity). www.genpact.com
MercadoLibre Inc., a Buenos Aires, Argentina-based online trading platform for Latin America, has set its proposed IPO terms to around 16.07 million common shares being offered at between $16 and $18 per share. If the company prices at the high end of its range. MercadoLibre would be valued at around $789 million. It plans to trade on the Nasdaq under ticker symbol MELI, with Merrill Lynch and JPMorgan serving as co-lead underwriters. MercadoLibre raised $54.3 million over two rounds of VC funding in 1999 and 2000, from firms like JPMorgan Partners, Flatiron Partners, Hicks Muse Tate & Furst, Goldman Sachs, Capital Riesgo Internet and GE Capital. Mercadolibre also lists eBay as a significant shareholder, deriving from a strategic partnership signed in 2001. www.mercadolibre.com
McKesson Corp. (NYSE: MCK) has agreed to acquire Awarix Inc., a Birmingham, Ala.–based developer of patient care visibility systems that are designed to indentify delays and improve hospital waiting times. No financial terms were disclosed. Awarix raised $3.5 million last year from New Capital Partners and Stonehenge Capital. www.awarix.com
Landmark Communications Inc. has acquired Digital Envoy Inc., a Norcross, Ga.–based provider of IP intelligence and geolocation technology. No financial terms were disclosed. Digital Envoy had raised around $13 million in VC funding since 2001, from firms like Cordova Ventures, Crossbow Ventures, Frontier Capital, H&Q Asia Pacific, Siemens Venture Capital and Time Warner. www.digitalenvoy.com
Abrisa Glass & Coatings, a Santa Paula, Calif.-based portfolio company of Graham Partners, has acquired ZC&R Coatings for Optics of Torrance, California. No financial terms were disclosed. www.abrisa.com www.zcrcoatings.com
Aspen Surgical Products, a Caledonia, Mich.-based portfolio company of RoundTable Healthcare Partners, has acquire Colby Manufacturing Corp., a Tullytown, Penn.-based provider of fluid waste management and patient labeling systems. No financial terms were disclosed.
Firms & Funds
Northgate Capital is raising up to $200 million for its fifth general fund-of-funds, according to a regulatory filing. It already has secured around $57 million in capital commitments from LPs like The Broad Foundation. The Danville, Calif.-based firm also features dedicated VC, buyout and emerging markets funds-of-funds. www.northgatecapital.com
Pacific Equity Partners of Australia is raising up to US$2.27 billion for its fourth fund, according to a regulatory filing. It already has secured more than $963 million. The firm focuses on buyouts and late-stage growth financings in Australia and New Zealand. www.pep.com.au
Fang Fenglei, chairman of Goldman Sachs Gao Hua Securities, is planning to launch a $790 million buyout fund in China, according to Bloomberg. It is unclear whether or not he’ll he able to obtain regulatory approval.
Barbara Dalton has joined Pfizer Inc. as head of its in-house venture capital arm. She previously was a general partner with EuclidSR Partners and, before that, was president of S.R. One, the venture arm of GlaxoSmithKline. The Pfizer venture program does not invest in drug companies, but instead focuses on medical devices, healthcare IT and healthcare services. www.pfizer.com
Daniel Schellenberg has joined consultancy Arthur D. Little as a New York-based manager in the firm’s private equity practice. He previously was with Droege & Company. www.adl.com