PE Week Wire — Wednesday 10/2

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MicroMed Technology Inc., a Houston-based cardiac medical device company, announced today that it has raised $23 million in a private placement of its Series D Preferred Stock. Existing investors participating in the round included Essex Woodlands Health Ventures, Charterhouse Group International, Oxford BioScience Partners and Schroder Ventures Life Sciences. New investors participating in the round included Mitsui & Co. Venture Partners, C.E. Unterberg, Towbin Private Equity Partners II, and Datascope Corp. C.E. Unterberg Towbin also represented the company as placement agent for a portion of the financing.

ArcLight Capital Partners LLC, a Boston-based private equity firm, today announced the final closing of its $950 million debut fund, ArcLight Energy Partners Fund I LP. ArcLight established the fund to capitalize on attractive investment opportunities in the rapidly evolving power, utility, and energy industry. The Fund attracted more than 20 institutional investors, including John Hancock Life Insurance Company, WestLB AG, Stanford University, and CDP Capital-Americas, a member of CDP Capital. Lehman Brothers served as global placement agent.

Progress-Putnam Lovell Advisors LLC announced an investment under the California Public Employees’ Retirement System Manager Development Program (CalPERS MDP). The CalPERS MDP is making an equity investment in Smith Graham & Co. Investment Advisors L.P. (Smith Graham), one of the nation’s largest African American-owned money management firms, specializing in domestic and global fixed-income assets. CalPERS MDP has also agreed to allocate to Smith Graham $100 million in assets to manage in Smith Graham’s first Large-Cap Equity mandate.

Pasadena Capital Partners opened shop yesterday to lead control equity investments in small middle-market buyouts, with an emphasis on Southern California-based companies. The new firm is the brainchild of Gregory Annick, formerly a partner at Leonard Green & Partners LP. Annick initially plans to lead stand-alone investments while raising a middle-market buyout fund.

The Wall Street Journal is reporting that Carlyle Group today will announce the closing of the $600 million Carlyle Venture Partners II. It is the largest venture fund raised so far in 2002, although it fell short of its $750 million target cap.

Bway Corp., an Atlanta-based maker of steel containers, has agreed to be acquired by Kelso & Co for a total value of $330 million, $155 million of which is equity. Company management is also reinvesting as part of the deal, which is expected to close during the first quarter of next year.

Apex Learning Inc., a Bellevue, Wash.-based provider of online courses and instructional materials to high schools, today announced it has secured an additional $7.4 million in financing from Warburg Pincus, which gives Warburg a majority interest. Earlier this year, Warburg Pincus purchased outstanding shares in the company held by Paul Allen, Vulcan Inc., Maveron LLC and Kaplan Inc.
News From Tuesday 10/1
NetLogic Microsystems Inc., a Mountain View, Calif.-based developer of network data plane packet classification and forwarding solutions, today announced it has secured $32 million from new corporate investors, including Mitsubishi International Corp. This brings total investment in the company to $90 million from key venture capitalists, private and corporate investors.

RF Micro Devices Inc. (Nasdaq: RFMD) and Jazz Semiconductor yesterday announced they have agreed to enter into a strategic relationship for silicon manufacturing and development. The two companies also announced that RFMD has agreed to invest $60 million in Jazz for a minority equity position in the company.

Portfolio Advisors LLC announced that it has been selected by the Pennsylvania Public School Employees’ Retirement System (PSERS), to provide investment advisory and administrative services with regard to the Retirement System’s $6 billion alternative investment portfolio.

De Novo Ventures, a venture capital firm focused on the life sciences industry, announced today the addition of Jay Watkins as its fifth managing director. Watkins will be responsible for identifying new investment opportunities in medical technology companies and supporting De Novo’s current portfolio companies. Most recently, Watkins was a vice president of Guidant Corporation and president of Compass, Guidant’s corporate business development and new ventures group.

DigitalNet Inc., a private enterprise network solutions company backed by GTCR Golder Rauner LLC, today announced that it has entered into a definitive agreement to acquire Getronics Government Solutions (GGS) from a subsidiary of GetronicsNV. The transaction is valued at approximately $223 million and is expected to close in November following regulatory approval. DigitalNet will initially focus on delivering enterprise network solutions to the U.S. Government.

Onward Healthcare (OH), a Norwalk, Conn.-based provider of interim staffing services to health-care facilities, today announced that it has partnered with Welsh, Carson, Anderson & Stowe (WCAS). WCAS, which specializes in health-care-related enterprises, has committed $50 million of equity financing to the company.

Permeo Technologies Inc., a Dallas-based creator of an integrated platform that completely secures all business applications, announced today that it has secured its second round of private financing from Austin Ventures.

Opus Media Group Inc., (OTCBB:OPUS), formerly ID Inc. (former OTCBB stock symbol:IDMD), announced today that it has retained an exclusive financial advisor to assist Opus Media in raising up to $35 million, primarily for the funding of a joint business venture to form a record label with a high-profile multi-media entertainer.

Bluefly Inc. (NASDAQ SmallCap: BFLY), an e-tailer of designer brands at discount prices, announced today that affiliates of Soros Private Equity Partners had invested an additional $3 million in the company. As a result of the financing, Soros’ stake in Bluefly increased from approximately 83% to approximately 87% (excluding the effect of any conversion of debt purchased by Soros in this round) of the company’s outstanding equity. Inc. (NASDAQ: RCOM) announced today that Mitchell I. Quain, a Director at the Company, has been appointed Chairman of the Board, effective September 29, 2002. Quain has served as a Director for since April 2001 and is a Principal at Charterhouse Group, a private equity firm.

PicoChip Designs Ltd.,