Private Equity Week Wire for Wednesday 1/16

MONTREAL — Maximum Throughput Inc., an emerging leader in the networked storage market, today announced the completion of a $7 million Series A round of funding, bringing the total venture capital raised by the company to $11 million.
Participants in the round were new investors GTI Capital, The Business Development Bank of Canada (BDC) Venture Capital and NB Capital Venture Partners.

BOCA RATON, FL — Brockway Moran & Partners, Inc., a Florida-based private equity firm, announced today that Patrick J. Boroian, a former General Partner at Donaldson Lufkin & Jenrette’s venture capital affiliate, the Sprout Group, and more recently a Managing Director at DLJ Merchant Banking Partners, joined the firm as its fifth Partner.

Mr. Boroian joined Donaldson Lufkin & Jenrette’s venture capital affiliate, the Sprout Group, as a Vice President in 1993 from Odyssey Partners where he was a Principal. In 1996 he was appointed a General Partner at Sprout, and in early 2000 became a Managing Director at DLJ Merchant Banking Partners, the firm’s flagship buyout fund.

NEW YORK — JPMorgan Partners posted Q4 private equity losses of $385 million, much wider than a year-earlier loss of $93 million. The results included unrealized losses of $504 million, including downward valuation adjustments of $144 million on third-party fund investments and mark-to-market losses of $137 million on public securities and hedges.

PALO ALTO, CA — Apax Partners Inc. recently invested $2 million into Web services company Corporate Oxygen. This is the issuer’s first institutional round of venture funding.

ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI) today announced that in support of its focused efforts to achieve profitability and operating excellence at all levels, the Company will reduce its corporate workforce by approximately 95 employees, which represents less than 4 percent of the total workforce of CMGI and its majority-owned subsidiaries. The workforce reduction is a part of the Company’s broader cost reduction effort to trim corporate expenses and is expected to be completed during the third fiscal quarter ending April 30, 2002.

— Keystone Helicopter Corp., one of the largest helicopter services and air-medical firms of its type in the Eastern USA, has been acquired by an aviation venture capital group assembled as a holding company called Keystone Ranger Holdings Inc.The venture group includes Ranger Aerospace LLC, Meridian Venture Partners, CD Ventures, and other private investors. Senior financing for the private stock acquisition was provided by First Union Bank/Wachovia.

Other institutional investors are expected to join the group as follow-on acquisitions become available and the holding company expands its equity base. Exact terms of the private investment will not be disclosed.

IRVINE, CA — Foundstone Inc., a premier provider of managed and professional security assessment services, today announced an extension of its existing commercial relationship with Motorola, Inc. (NYSE:MOT). Motorola made a significant investment in Foundstone through Motorola Ventures, the global venture capital arm of Motorola, Inc. The investment will enable Foundstone to enhance wireless security technology in FoundScan, its innovative, managed vulnerability assessment service (MVAS). Foundstone will use a substantial amount of the investment to extending its FoundScan product to address wireless networks and intends to work with Motorola, a recognized leader in wireless technology.

For yesterday’s Wire, click here

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