Private Equity Week Wire for Wednesday 3-13

SOUTHFIELD, MI — SupplySolution Inc., the leading provider of supply chain execution applications for manufacturing, distribution, exchange, and supplier organizations, today announced that it has raised $28.5 million in expansion financing. Previous investors led the round, including Enterprise Partners, The Sprout Group, the venture affiliate of Credit Suisse First Boston (formerly Donaldson Lufkin and Jenrette), and Sigma Partners.

SupplySolution will invest the capital to augment its product development activities, manage a formal channel partnership program, and expand its marketing outreach program to Europe. This brings the total investment in SupplySolution to more than $55.7 million.

SUNNYVALE, CA — Blue Pumpkin, an industry leader in enterprise workforce optimization solutions, today announced it has received $9.5 million in new funding to add to its $19.2 million senior mezzanine financing late last year. The additional funding came from e-Scotia Acquisition, the e-business investment arm of Scotiabank, Canada’s most international bank, and current investors Brentwood Venture Capital, Selby Ventures and Van Wagoner Capital Management.



SUNNYVALE, CA — Barcelona Design, Inc., a leading supplier of full-custom, synthesizable analog circuits, today announced it has secured $30 million from new and existing investors in its third round of equity financing. Foundation Capital led the round and was joined by earlier investors Sequoia Capital and Crosslink Capital. Since its formation in 1999, Barcelona Design has received more than $44 million in venture funding.



NEW YORK
— Sprout Group announced today the promotion of Ron Hunt to Partner for healthcare technology investments. Mr. Hunt joined Sprout Group in January 1998.

Prior to joining Sprout Group, Mr. Hunt worked as a consultant to the pharmaceutical industry and other healthcare clients for Coopers & Lybrand Consulting and, most recently, The Health Care Group, where he held the position of Senior Consultant. Previously, Ron served for a combined eight years at Johnson & Johnson and SmithKline Beecham in a variety of sales and marketing positions.




FREMONT, CA — Neo Photonics Corp. today announced completion of an equity funding of approximately $25 million. Investors included Bay Partners, Venrock Associates, Rockport Capital Partners, Institutional Venture Partners, SBV Venture Partners, Linkmore Capital, Harris & Harris, Nth Power Technologies, Hydro Quebec CapiTech, Sands Brothers, Groupe Siparex, XR Ventures and Dow Corning Corporation.

ANN ARBOR, MI — Arbortext, Inc., the only global provider of XML-based software that enables the creation, editing and publishing of information to multiple media types from a single source of content, today announced that it completed a $13.5 million round of investment funding. Series C investors include Norwest Venture Partners, INVESCO Private Capital and North Coast Technology Investors. The new funds will be used to accelerate and expand the company’s product development, sales and marketing efforts.



NEW YORK — John Y. Sasaki has joined Morgan Lewis, one of the 10 largest U.S. law firms, as a partner in its Asia Practice. Sasaki handles mergers and acquisitions, securities, and private equity/venture capital transactions for high-tech and emerging growth companies. He is the latest addition to the firm’s growing presence in Tokyo. Within the past year, the firm’s Tokyo office has added partners Motonori Araki and Bonnie Dixon, and associate Paul Kim.

LA JOLLA, CA — Senomyx Inc. announced today the completion of a $36,837,000 private placement of Series E preferred stock. These funds will be used to expand and accelerate the Company’s research and development efforts toward developing new technologies to improve the world of taste and smell.

The financing was co-led by existing investor Rho Ventures, L.P., and new investor Merrill Lynch Ventures L.P. 2001. Other participants in the round included previous investors Bay City Capital, through its North American Nutrition and Agribusiness Fund, Domain Partners IV, L.P., and Prospect Venture Partners, L.P., as well as new investors Hambrecht & Quist Capital Management, OrbiMed Advisors, LLC and U.S. Trust’s Excelsior Venture Partners III, LLC fund.




SAN FRANCISCO — All venture capital investment for energy-related start-up companies reached
$774.5 million during 2001, the second highest level ever, it was reported
today by Nth Power LLC, the pioneering energy venture capital firm.

The total reflects a decline of 36% from the record $1.2 billion in the
prior year but was 80% higher than 1999’s funding levels of $442 million.
Overall venture capital (VC) investment in 2001 was down compared to both
prior years — off 61% from 2000’s level and 31% lower than VC funds raised in
1999. These findings are from a just-completed study of energy venture capital
funding conducted annually by Nth Power. The firm has tracked activity in
energy VC back to 1993, well before energy venture capital funding was large
enough to be broken out as a separate VC category.



NEW YORK — W. P. Carey & Co. LLC (NYSE: WPC), a leading real estate investment banking firm, announced today that it has acquired and leased-backed four facilities from Minneapolis-based PW Eagle, Inc. (Nasdaq: PWEI) for approximately $13.7 million. PW Eagle is the second largest manufacturer and distributor of polyvinyl chloride (PVC) pipe and fittings and polyethylene (PE) pipe and tubing products in the U.S. PW Eagle is controlled by principles of Spell Capital Partners, LLC, a private equity and buyout firm based in Minneapolis, Minnesota.

NEWBURYPORT, MA — Genalytics, a provider of next generation predictive modeling technology,
announced that it has raised $1.5 million in a round of financing from
Egan-Managed Capital. Genalytics will utilize the funding to significantly
expand and develop its sales and marketing capabilities.



NEWPORT BEACH, CA — Conexant Systems, Inc. (Nasdaq:CNXT), a worldwide leader in semiconductor
system solutions for communications applications, and The Carlyle Group, a
leading global private equity firm, today announced they have completed the
transaction to form a new specialty foundry company.

The process was concluded weeks ahead of schedule, following the signing of
a definitive agreement on Feb. 23, 2002. Carlyle will control and be the
majority owner, and Conexant will be a minority holder and a customer of the
new company. Further details, including the name of the new company, will be
announced within the next 60 days.




REDMONDWA — Action Engine today announces it has raised $5 million in a Series B funding round, which included participation by its existing venture investors — OVP Venture Partners of Kirkland, WA, Northwest Venture Associates of Spokane, WA, and Spangler Ventures of Seattle.
The company, which has 37 employees, has raised a total of $19 million since it was founded in February 2000.



SOUTHBOROUGH, MA — Texterity, Inc., a leading provider of electronic publishing services, today
announces its closing of $2.7 million in Series A financing. The capital
enables Texterity to increase investment in technology development and expand
its sales and marketing activities. Brook Venture Fund and Venture Capital
Fund of New England (“VCFNE”) were the lead investors.

For yesterday’s Wire, click here

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