Return to search

Private Equity Week Wire

NEW YORK — Warburg Pincus announced today that it completed the first closing of Warburg Pincus Private Equity VIII LP. An aggregate $2.8 billion was committed. The fund, which was launched in March, is expected to eventually close at its $5 billion target capitalization.

NEW YORK — ExchangeLab, a leading creator of
financial services software today announced that Salomon Smith Barney Inc.,
Madoff Brokerage & Trading Technologies, L.L.C., an associate of Bernard L.
Madoff Investment Securities LLC, and Millennium Information Technologies
are among the companies that have invested more than $6 million in

ExchangeLab is a Tribeca think tank that was founded 10 years ago by Chris
Keith, former CTO of the New York Stock Exchange. ExchangeLab develops new
technology approaches for the financial industry and has been responsible
for a variety of industry innovations. One of these was MMX, the industry’s
first multi-price auction system, run by the Chicago Stock Exchange as the
Chicago Match. Another was FAN, whose intellectual property was the initial
basis for The Primex Auction, an electronic auction market that is about
become operational through the Nasdaq.

BOSTON — Berkshire Partners LLC
announced today the first closing of the Boston-based private equity firm’s sixth
investment fund, Berkshire Fund VI LP. The Fund, which initially was targeted to total
$1.25 billion, is oversubscribed by investors and will be capped at approximately $1.5

Capital commitments were primarily drawn from the Berkshire’s prior investors and a
limited number of new institutional participants. These investors include many of the
world’s largest endowments, foundations, pension funds and insurance companies.

MOUNTAIN VIEW, CA — TeraLogic Inc., the leading
developer of integrated circuits, platforms and software for digital
television, today announced substantial renewed investments by several major
investors for a total of $17.5 million in funding. TeraLogic will use the
funds to further its leadership in digital TV design, helping its customers
deliver innovative and affordable digital consumer electronics to consumers.

The funds will be used to support the production ramp of the current second generation
chipset solution, and also to complete development of the third generation solution, a
Digital Television (DTV) System-on-a-Chip.

Citicorp, a long-time investor in TeraLogic, renewed its leading investment position. In addition to Citicorp, TeraLogic received continued commitment and support from global
consumer electronics giants Sony Corporation, Samsung Electronics and Mitsubishi
Electric as well as premier venture capital groups The Mayfield Fund, Levensohn Capital,
NY Life, Vertex and TopSpin Partners.

CAMBRIDGE, MA — On July 12, 2001, Coelacanth Corp., an MPM BioVentures I portfolio company, was acquired by Lexicon
Genetics Inc. (NASDAQ: LEXG) in exchange for 2,918,991 shares of Lexicon common stock. Based on a share price of $10.9625, the transaction was valued at $32 million. MPM
Capital made its initial investment in April of 1999 with a follow-on investment in August of 2000 and was the largest shareholder in Coelacanth.
Coelacanth, which uses proprietary chemistry technologies to rapidly discover new chemical entities for drug development, will form the core for a new division called Lexicon
Pharmaceuticals, based in Princeton, N.J. Lexicon Pharmaceuticals will combine Lexicon’s novel, functionally defined targets from the human genome with Coelacanth Corporation’s
high performance chemistry technologies to discover new drugs.

ATLANTA — Ptek Holdings (Nasdaq:PTEK) today announced that its revenue for the second quarter of 2001 was
$109.3 million, compared to $108.4 million in the first quarter of 2001. Total adjusted EBITDA (defined as operating income or loss before depreciation, amortization, restructuring
costs, equity based compensation, and net legal settlements) for the second quarter of 2001 was $17.6 million (or $.35 per basic share) compared to $15.7 million (or $.32 per basic
share) for the first quarter of 2001, a 12% increase.
The Company also took a $14.7
million (after tax) non-cash charge in the second quarter for the write-off of the remaining private investments in its PtekVentures portfolio, reflecting the Company’s decision to exit
the venture business. The restructuring charges taken in the second quarter had no impact on the reported $17.6 million in EBITDA.

SAN DIEGO — NewBiotics Inc., a developer of
breakthrough drugs targeted against cancer and infectious disease, today
announced the initial closing of a Series C preferred stock financing for
approximately $11 million. This round was led by GeneChem Therapeutics Venture
Fund and included three additional new investors: FAT Capital, Cheng Xin
Technology Development Corp. and BioVeda Capital. Previous investors
participating in this round include Inglewood Ventures, Life Science Partners,
HMCH Ventures, Timkin Trust and other individual investors.

ARLINGTON HEIGHTS, IL — Novarra Inc., the innovator of instant
wireless software connecting the mobile workforce to enterprise applications, has closed
a $20 million, Series C up-round of funding led by JK&B Capital, a venture capital firm in
Chicago with $600 million under management, and Kettle Partners, a Chicago-based
venture capital firm that focuses on emerging technology companies. Additional investors
included Colorado PERA and Fort Washington Private Equity Investors.

The funding will enable Novarra to continue aggressive sales and marketing efforts to
accelerate the adoption of its software technology in the enterprise. With Novarra’s
patent-pending software, corporations can boost employee productivity by enabling them to
use wireless handheld devices to interact with web and enterprise applications at the point
of activity — whether it is in front of a customer, in the field, within the warehouse or on the
plant floor.

TAMPA, FL — Axolotl Corp., a leading provider of high-speed communication solutions and Web-based applications that connect physicians to
the entire healthcare continuum, today closed $17.7 million in Series D financing. Led by Tudor Private Equity Fund, L.P., this financing also included Vanguard Atlantic, Ltd.,
Richland Ventures, L.P., and Gilat Satellite Networks Ltd. (Nasdaq:GILTF). As a result of strong interest from new investors Axolotl is maintaining a 120-day window to consider
additional participation.

FORT LAUDERDALE, FL — BizProLink Network, the Internet’s largest network of
industry-specific communities for business professionals, today announced the successful conclusion of its Series C funding round. The company has secured an additional $3.2
million in venture capital from West Palm Beach based CrossBow Ventures Inc.

SAN JOSECA — DragonVenture Inc. today
announced the promotion of Edwin Yeh from director of project management to vice
president of technology. His responsibilities include technical due diligence and
refinement of business development for DragonVenture’s existing and potential portfolio
companies. Yeh co-founded two high technology companies and currently serves as Board Director for
Covault Corp., a provider of billing infrastructure software for wireless data service
providers and carriers. Prior to DragonVenture, he was the first Technical Account Manager
for NetIQ Corporation, a leading e-business system management firm. While there, he
worked with some of the world’s largest server environments for companies such as Dell,
Arthur Andersen, Shell, Microsoft and Wal-Mart.