Private Equity News Review

Transcription

Private Equity News Review
May 2006
Downloadable from www.AltAssets.net
AltAssets is a service from Almeida Capital…
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May 2006
Private Equity Monthly Roundup
The AltAssets monthly news review provides the private equity industry with a roundup of the month’s most
important stories from across the globe – essential reading for all those who need to keep up-to-date with the
market’s key developments. AltAssets is a service of the research division of placement, research and advisory
firm Almeida Capital – www.AlmeidaCapital.com
Contents
(more at http://www.altassets.com/news/arc/lists/news_archive.php)
Page
People news
InnovationsKapital hires Martin Falkevall as investment director, German firm firstVentury equity appoints David Hartford as
managing partner, Brian Goffman joins US venture capital firm Madrona Venture Group as venture partner, New Enterprise
Associates names Patrick Kerins general partner, Music publishing veteran Leslie Bider joins Elevation Partners …
2
Deals news
Private equity consortium and management propose to take Kinder Morgan private, US private equity firm Hellman &
Friedman to acquire Gartmore, 3i invests in Mayborn, US private equity firm Sentinel Capital Partners acquires Interim
HealthCare, Diamond Castle to acquire NES Rentals in $850m transaction, Carlyle to sell Rexnord Corporation to Apollo for
$1.8bn …
8
Fund news
J.L. Albright Venture Partners completes second closing for Fund IV, CLSA Capital Partners closes Aria Investment Partners
III on $330m, Intersouth Partners raises $275m fund, OVP Venture Partners VII holds first closing on $207m, Clairvest
completes second closing of new $300m private equity investment pool …
14
Surveys and trends
European venture capital fundraising down on quarter and year, German private equity fundraising and investment up in Q1
compared to a year ago, European venture capital investment tops €1bn in Q1, Value of VC investments in Canadian
companies up in Q1, fundraising declines, US venture capital funds raise 69 per cent more capital in Q1 06 than in Q1 05 …
18
Firm news
SpaceVest Capital renames itself REDSHIFT Ventures, Parag Saxena, Alessandro Piol, Howard Goldstein launch Vedanta
Capital, PAMA to merge into Asian operations of EMP Global, Spire Capital Partners forms Ariston Global Partners …
1
21
May 2006
People news
(more at http://www.altassets.com/news/arc/lists/newscat_People1.php)
InnovationsKapital hires Martin Falkevall as investment director
31/05/2006 Source: AltAssets
InnovationsKapital, a start-up and early stage venture capital firm in the Nordic region, has appointed Martin Falkevall
as an investment director in their information and communication technology team based in Stockholm, Sweden.
Falkevall was previously with Capman Capital Management and with Swedestart Management. He joined Swedestart
in 1997 as an analyst and became a partner in 2000. He remained with the firm until it was acquired by Capman in
2002. He then became a partner at Capman. Staffan Ingebom, managing investment director of InnovationsKapital,
said, 'Martin brings a unique experience of successful early stage investments in the information and communication
technology sector and he compliments our team very well. 'His experience is an excellent fit with our strategic
direction and focus and he will play an important role in our current and future investment growth and value creation,'
Ingebom continued. InnovationsKapital focuses on investments within the information and communication
technology, and healthcare and life science sectors. Copyright © 2006 AltAssets
German firm firstVentury equity appoints David Hartford as managing partner
David Hartford has been named a managing partner of Heidelberg, Germany-based venture capital firm firstVentury
Equity. In his new role Hartford will be responsible for managing firstVentury's US portfolio companies. He will be
based in San Francisco. Hartford is taking over from Michael W Kelly, who earlier this spring became CEO of ViaLogy
Corporation, a firstVentury portfolio company. Hartford most recently served as founding CEO of Ravenflow, where he
continues as a member of the board of directors. Previously, Hartford has been general partner of Technology
Funding, president of Converging Partners Europe, the manager of the Pioneer Poland Fund, and founding partner of
Strategic Partners International. Hartford was also elected to four terms as a board member of the European Venture
Capital Association between 1995 and 1999. Hartford previously held various management positions with companies
such as Rockwell International, and worked as a corporate lawyer in the Silicon Valley office of Brobeck, Phleger &
Harrison. Hartford has been an active angel investor, and has taught venture finance and entrepreneurship in the
California State University - East Bay and UC Berkeley MBA programmes. firstVentury focuses on investing in firms
which have the potential to scale into international markets. The firm has 15 active investments in its portfolio, with
more than $80m under management. Copyright © 2006 AltAssets
Brian Goffman joins US venture capital firm Madrona Venture Group as venture partner
Brian Goffman has joined Seattle, Washington-headquartered venture capital firm Madrona Venture Group as a
venture partner. Madrona is a firm focused on building emerging technology companies in the Pacific Northwest.
Goffman was most recently an executive at Microsoft and a principal at Austin Ventures. At Microsoft, Goffman led
business development and marketing efforts for the Unified Communications Group, where he was responsible for
market development and strategic partnerships related to the company's entry into enterprise instant messaging, web
conferencing and voice-over internet-protocol services. Before Microsoft, Goffman worked at Texas-based venture
capital firm Austin Ventures. Prior to Austin Ventures, he was at PointCast, an internet advertising pioneer, where he
led the business development team. Goffman also worked for Reuters and McKinsey & Company. Matt McIlwain,
managing director at Madrona, said, 'Brian brings a deep understanding of important trends in consumer services,
online advertising, software as a service and mobile applications. He has helped to build market-leading firms as a
venture capitalist, and has held key roles in both start-up and large companies.' Madrona recently closed Madrona
Venture Fund III. Including the new fund the firm has approximately $400m under management. The firm's
geographic focus is on the Pacific Northwest. Copyright © 2006 AltAssets
New Enterprise Associates names Patrick Kerins general partner
US-based firm New Enterprise Associates has appointed Patrick Kerins as general partner. Kerins joins NEA's
technology team focusing on information technology investments with particular emphasis on enterprise software,
network infrastructure and internet companies. He will work primarily from the firm's Virginia office. NEA managing
general partner Peter Barris said, 'Pat is an exceptional addition to the NEA team, bringing with him an incredibly
strong knowledge of the industry and an instinctive ability to detect budding companies that have significant upside
potential.' Kerins was most recently general partner of Grotech Capital Group in Baltimore, Maryland where he
specialised in high tech investments. Prior to that, he was an investment banker with Alex. Brown & Sons for nearly
ten years, and also worked as a consultant at McKinsey & Co. NEA has $6bn under management. Copyright © 2006
AltAssets
2
May 2006
Music publishing veteran Leslie Bider joins Elevation Partners
Leslie E Bider, former chairman and CEO of Warner/Chappell Music, has joined Elevation Partners as their new
executive-in-residence. Bider will assist the firm in evaluating investments, primarily in the music industry and related
areas, and he may become involved in the management of any investments the firm makes in this sector. Prior to
Warner Bros. Music's 1987 merger with the Chappell and Intersong Music Group, Bider was the chief operating officer
of Warner Bros. Music. While at Warner Bros. Music, Bider was responsible for all operations and a driver of the
company's expansion. He started at Warner Bros. Music as chief financial officer in 1981. Before working at Warner
Bros. Music Bider had founded and managed Bider & Montgomery, an accounting practice that serviced the media and
entertainment industry. He will continue to serve as the chairman of the Musicares Foundation for the Recording
Academy. Bider will also continue his roles at other organisations including the Jewish Foundation of Greater Los
Angeles, the Wallis Anenberg Cultural Center of Beverly Hills, the TJ Martell Foundation and the Bogart Pediatric
Cancer Research Programs. Elevation Partners targets large-scale investments in media, entertainment and
consumer-related businesses. It primarily focuses on investing in intellectual property and content-oriented
businesses. The firm has $1.9bn of capital to be invested over the next few years. Copyright © 2006 AltAssets
Christopher Perriello joins Paul Capital Partners
Christopher Perriello has joined Paul Capital Partners as a principal in the firm's New York Office. Perriello will focus on
investing in private equity firms, contributing to all aspects of manager selection, due diligence and the structuring of
investments. He will also work with the underlying managers of the portfolios to provide assistance to their partners,
funds and portfolio companies. In addition, Perriello will assist Paul Capital in the exploration and analysis of
additional fund of funds product offerings. These will include investments in US and European middle-market buy-out
funds. Perriello brings to Paul Capital more than five years of experience in the private equity industry. He was
previously a principal with Invesco Private Capital in their New York office, where he made both buy-out and venture
fund investments, and direct investments in technology companies. At Invesco he also spent time investing in public
equities. Prior to Invesco, Perriello worked at Fischer Scientific, Morgan Stanley and Focus Consulting. Copyright ©
2006 AltAssets
State of Maryland Venture Fund names Christopher McCleary to board of advisors
The State of Maryland Venture Fund has appointed Christopher McCleary, director at Ohio-based venture capital firm
Blue Chip Venture Company, to its board of advisors and investment committee. Prior to Blue Chip, McCleary founded
and served as CEO of Evergreen Assurance, co-founded and was chairman of the board of directors and chairman of
the executive committee of USinternetworking. Prior to co-founding USi, McCleary was chairman and CEO of DIGEX.
The Maryland Venture Fund is a seed and early stage equity fund that is managed and part of the Maryland
Department of Economic Development. The fund is an evergreen fund that receives annual allocations from the
Maryland State Legislature. It makes direct investments in technology and life science companies. Approximately 60
per cent of the fund is invested in technology companies in the areas of software, communications and IT security,
and 40 per cent of the fund is invested in life sciences companies in the areas of therapeutics, medical devices and
diagnostics. Blue Chip has $600m under management and investments in over 100 companies. Blue Chip invests in
and helps develop investment and business-building programs for privately owned growth companies. Blue Chip
focuses on investments in the enterprise software, technology infrastructure, healthcare and media and marketing
industries. Investments are made in companies that are in the early and growth stages as well as in companies that
are more established and require expansion or acquisition capital. Copyright © 2006 AltAssets
Updata Partners appoints Greg Olear as vice president, finance
US technology venture capital firm Updata Partners has appointed Greg Olear as vice president, finance. Olear joins
Updata Partners from Digital 5, where he served as vice president of finance. Earlier in his career, as director of
financial accounting and treasury operations at Sarnoff Corporation, Olear managed a portion of the finance
department including accounting and reporting for technology spin-offs. Prior to Sarnoff, he held various leadership
positions with KPMG, focusing on assurance, accounting and financial advisory services including public offerings,
compliance filings, private offerings, bank funding, revenue recognition and tax reporting for clients in the high tech
industry. Updata Partners has $250m under management. The firm also provides recapitalisation and management
buy-out financing. Copyright © 2006 AltAssets
3
May 2006
Ron Heinz and Brandon Tidwell to join Canopy Ventures Investments
Ron Heinz and Brandon Tidwell have joined Canopy Ventures. Canopy Ventures has appointed Ron Heinz as executive
manager and Brandon Tidwell will act as general counsel and director of finance. Canopy Venture Partners, a Lindon,
Utah-based venture capital firm announced today that it has hired Ron Heinz as executive manager and Brandon
Tidwell as general counsel and director of finance. Heinz and Tidwell will work with the Canopy board of managers and
are responsible for managing the Canopy Ventures I portfolio of companies. Heinz is currently chairman of Helius, Inc.
a Canopy portfolio company. Prior to joining Helius, Heinz was the CEO of Phobos Corporation; an acquisition by
SonicWALL of Sunnyvale, California. While at SonicWALL Heinz, served as chief operating officer and senior vice
president. Prior to Phobos, Heinz spent 12 years at Novell Inc., serving as a corporate officer and senior vice
president his last four years. Tidwell has counselled numerous entrepreneurs throughout the start-up company
process, first as an associate in the Silicon Valley office of Latham & Watkins and more recently with Ballard Spahr
Andrews & Ingersoll in Salt Lake City, Utah. Having advised on venture capital financings, mergers and acquisitions,
and public offerings in his career, Tidwell brings a broad base of start-up experience to Canopy's portfolio companies.
Canopy will continue to manage and monitor its existing portfolio of companies, as well as evaluate future
investments. Heinz will continue to serve as executive chairman of Helius in addition to his responsibilities with
Canopy. Copyright © 2006 AltAssets
Peter Bell joins Highland Capital Partners as venture partner
Venture capital firm Highland Capital Partners has appointed Peter Bell as a venture partner. In his new role, Bell will
identify investment opportunities and lead investments in the technology sector. Prior to joining Highland, Bell was
the founder and managing director of Stowe Capital. At Stowe he invested in and worked with companies in the
information security, e-commerce, data centre infrastructure, enterprise software and communications sectors. Before
starting Stowe, Bell was the co-founder and chairman of StorageNetworks, a Waltham, Massachusetts-based
information storage software and services company. Dan Nova, managing general partner with Highland, said, 'We
have known Peter for years and are very excited to have an individual of such exceptional calibre join the Highland
team. 'Peter's depth of operational and investment experience will be instrumental in helping to guide and transform
Highland-backed companies into market leaders,' Nova continued. Highland has approximately $2.6bn of committed
capital. Copyright © 2006 AltAssets
Venture capital firm Truffle Venture hires Mark Bivens as investment manager
Mark Bivens has joined European venture capital firm Truffle Venture as investment manager. Bivens will work with
general partner Bernard-Louis Roques on venture investments in the IT sector. Bivens previously worked for Air
Liquide Ventures, where he specialised in software investments, followed by a short stint at Paris-based mezzanine
fund IDI Asset Management. Prior to that, Bivens founded three companies in the US, including software company
BirdView Technologies, which he sold in 1998. Truffle Venture focuses on technology growth ventures, and on spinoffs and buy-outs. The firm has €250m under management. Truffle Venture invests in the IT, life science and energy
sectors throughout Western Europe. Copyright © 2006 AltAssets
Natural Gas Partners hires Mark Doering as venture partner
Private equity firm Natural Gas Partners has appointed oil and gas entrepreneur Mark A Doering as a venture partner.
Doering's relationship with NGP started with Classic Resources, a company formed by Doering and NGP in 1998 and
sold in January 2001. Alongside NGP, Doering then launched, built and sold two subsequent companies, Classic
Petroleum and Classic Petroleum Resources, between 2001 and 2005. Prior to 1998, Doering worked for several
companies in the industry. Ken Hersh, managing partner of NGP, said, 'We feel that Mr Doering's entrepreneurial and
technical talents are superb as exemplified by his eight-year relationship with NGP that, over the span of three
ventures, yielded equity proceeds of over $233m on an invested equity base of $42m. 'NGP feels that Mr Doering will
add immediate value by offering advice and counsel to NGP and our portfolio companies, including the possibility of
being involved at a management and/or director level,' Hersh continued. NGP is a $2.9bn family of funds that invest
private equity capital in oil and gas production, midstream and oilfield service companies. The firm also manages
$350m in two co-investment funds that invest in direct oil and gas property interests alongside NGP portfolio
companies. NGP is an affiliate of NGP Energy Capital Management, a $3.6bn firm based in Irving, Texas that invests
across the energy industry. Copyright © 2006 AltAssets
4
May 2006
PPF Investments appoints new CEO
PPF Investments has appointed Michal Šušák as its new CEO. Šušák joins from Credit Suisse where he was a
managing director in its investment banking division. Šušák will sit on the board of PPF Investments and will be its
most senior executive. He will work closely with Tomáš Brzobohatý who will remain chairman of the board.
Brzobohatý said, 'It is a great pleasure to invite Michal to the PPF Investments team. We strongly believe that his
leadership and broad experience in the investment banking area will bring a new dynamic to our business and help us
to focus on developing markets.' Šušák added, 'It is fascinating to witness the success of PPF's brand and the growth
of its investments. I intend to add value to PPF Investments by combining my investment banking experience and PPF
Investment's highly professional team.' PPF Investments was set up in 2005 as an independent private equity firm
focused on transitional economies. PPF is the brand name of the Czech financial group, which has awarded PPF
Investments the right to use the 'PPF' trademark, but PPF Investments and PPF Group are independent groups in
terms of assets and business activities, PPF Investments clarified. Copyright © 2006 AltAssets
CMEA Ventures hires John Haag as CFO and COO
CMEA Ventures, a US venture capital firm focusing on information technology, life sciences and alternative energy
companies, has appointed John L Haag as chief financial officer and chief operating officer. Haag comes to CMEA from
Burrill & Company, a San Francisco-based life sciences merchant bank and venture capital fund, where he served as
chief financial officer and chief operating officer. Previously, Haag was the chief financial officer of early stage
enterprises in alternative energy and media. He also served as vice president of finance and administration for
Softbank Emerging Markets, a $200m joint venture between Softbank Corporation and the International Finance
Corporation, chartered to invest in early stage information technology companies in various emerging markets. Faysal
Sohail, managing director of CMEA, said, 'John brings our team the perfect combination of an extensive finance
background as well as heavy operational experience, which will help CMEA Ventures as we continue to expand.' CMEA
invests in early and late stage companies. The firm manages six funds and has $771m of capital. Its current portfolio
includes Alexza, Alien Technology, Altus, Ambrx, Bayhill Therapeutics, BioMimetic, Codexis, Entropic, Intermolecular,
iSuppli, Perlegen, Predix, and XenoPort. Copyright © 2006 AltAssets
European venture capital firm GLSV hires Dr McCormack and Dr Jung
Global Life Science Ventures has hired Dr Stephen McCormack as principal and Dr Kuno Jung as investment manager.
Both served as CEOs of biotech and medtech companies immediately before joining GLSV. Dr McCormack and Dr Jung
will be based in Zug, Switzerland. Dr McCormack joins GLSV from California-based biotech company NeuroSystec
Corporation, a company that he co-founded as president and CEO in 2003. Previously, he co-founded Allecure
Corporation in 2000 Dr Jung most recently was CEO of Timaq medical imaging, a Swiss clinical research company.
Prior to this he co-founded Aravis Ventures, a life science-specific venture capital fund, where he served as
investment manager specialising in early stage biotech investments located primarily in Europe. Dr Peter Reinisch,
partner at GLSV, said, 'We are delighted to welcome Stephen and Kuno to our investment team. The in-depth
knowledge of the biotech/medtech industries which they bring, gained in part by successfully heading innovative
start-up companies, will be a strong asset for GLSV as we select new promising companies for our investment
portfolio.' Dr Hans Küpper, also partner at GLSV, added, 'These two additions further strengthen our team following
our hiring of Dr Holger Reithinger, an experienced venture capitalist who joined us in 2004 from 3i. GLSV has from
the very beginning been building a team with strong operational experience. Our present team brings together a
broad skill set of complementary hands-on industry expertise, venture capital know-how, and management
experience, both in big pharma and bio/medtech.' GLSV focuses exclusively on the life sciences sector. The firm
supports early stage companies originating from universities, scientific institutions or industry, and also invests in
selected later stage companies, including buy-outs. GLSV currently advises and manages funds totalling about
€200m. Copyright © 2006 AltAssets
AGF Private Equity hires Thierry Laugel
AGF Private Equity, a subsidiary of the AGF insurance company, member of the Allianz Group, has appointed Thierry
Laugel as partner within the venture capital team where he will work in the field of life sciences. Previously Laugel
was investment manager responsible for healthcare with CDC Entreprises Innovation and managing director of
PharmaVent Partners. AGF Private Equity manages an investment portfolio of €1,5bn for institutional and private
investors through its fund of funds and venture capital investment activities. A few days ago AGF Private Equity
announced the appointment of Jean Plamondon as investment director within the fund of funds team. Plamondon will
be active in primary and secondary fund investments and co-investments in LBOs. Copyright © 2006 AltAssets
5
May 2006
Mark Barrenechea to join US firm Garnett & Helfrich Capital
US firm Garnett & Helfrich Capital has appointed Mark J Barrenechea, executive vice president and chief technology
officer for technology company Computer Associates, as a director. In his new role Barrenechea will help expand the
firm's investments into Europe and Asia in the emerging segment of venture buy-outs. Venture buy-outs involve
partnering with large technology companies to spin out business lines and then grow the businesses. Barrenechea
previously worked for CA and Oracle. At CA, Barrenechea oversaw product development, worldwide support, product
management and information technology. Barrenechea also served as senior vice president of applications
development at Oracle and was a member of the Oracle executive management committee. Terry Garnett, managing
director, Garnett & Helfrich Capital, said, 'Mark has the ideal combination of senior operating experience and financial
transaction skills, having defined technology strategy and acquisition activities for industry leaders such as CA and
Oracle. He exemplifies the capabilities and knowledge needed to expand our fund and help grow the newly formed
companies in our portfolio globally.' Garnett & Helfrich Capital is a $350m private equity fund focused exclusively on
the emerging venture buy-out segment for mid-sized technology spin-outs. The firm has completed three venture
buy-outs to date including thin-client computing specialist Wyse Technology; Ingres Corporation, the business open
source database company out of CA, and Blade Network Technologies, a supplier of network infrastructure divested
from Nortel Networks. Barrenechea currently serves as a board member for Ingres Corporation, which Garnett &
Helfrich Capital divested from CA in 2005. He also serves on the board of directors for Overland Storage. Copyright ©
2006 AltAssets
UK private equity firm Gresham appoints Mike O'Brien as investment executive
UK mid-market private equity firm Gresham has appointed Mike O'Brien as an investment executive in the investment
team. Gresham has separate investment and portfolio teams. Prior to joining Gresham, O'Brien worked for
Computacenter in the strategy and corporate development teams. At Computacenter, O'Brien supported a variety of
mid-market transactions in the IT hardware and services sectors. He started his career as a strategy consultant
initially with Kaiser Associates, and then he joined OC&C Strategy Consultants. Mike Henebery, head of the Gresham
investment team in London, said, 'We are delighted to welcome Mike to Gresham. Both his strategic consultancy skill
set and his recent IT services industry experience will be beneficial to our London investment team. Given the
competition for talent, we are pleased to have recruited someone of Mike's calibre.' Gresham focuses on the
consumer, pharmaceuticals/healthcare, industrial products, business/support services, and financial services sectors.
Copyright © 2006 AltAssets
US Tennenbaum Capital Partners hires Stephen Moyer
Santa Monica, California-based firm Tennenbaum Capital Partners has appointed Stephen G Moyer as a director.
Moyer was previously director of research at Imperial Capital, where he focused on high yield, distressed, convertible,
bank debt and equity securities. Prior to Imperial Capital, Moyer was a principal at Banc of America Securities, and
before that he held the positions of director of fixed income research and director of debt capital markets at Kemper
Securities (now Wachovia). Michael E Tennenbaum, founder and senior managing partner, Tennenbaum, said, 'Steve
has over 20 years of experience and a particularly deep knowledge of distressed debt and special situation investing;
he will work closely with both our hedge fund, Tennenbaum Multi-Strategy Fund, and with our Opportunity Funds.
'Steve is a perfect fit for Tennenbaum Capital. Steve shares our research-driven, team-based approach, which is
critical as we identify opportunities in complex situations and create lasting value for our partner companies and
investors,' Michael Tennenbaum continued. Tennenbaum manages over $3.8bn in assets through private funds.
Germany's VCM Capital Management hires Peter Schwanitz
Germany and US-based fund of funds manager VCM Capital Management has appointed Peter Schwanitz as a
managing director. Schwanitz will be responsible for the buy-out segment and, due to his institutional background,
will also work on institutional marketing and client relationships. Schwanitz previously managed Colonia Nordstern
Group's private equity investments, was a member of AXA's first European private equity fund of funds investment
committee, and helped build Sal Oppenheim's private equity holding. Since 2004 he has worked as an investment
director for German fund of funds manager CAM Private Equity. Dr Hellmut Kirchner, founding partner of VCM, said,
'We are very pleased to have won such a highly experienced partner for our team. Together with him, we will expand
our market coverage of buy-out funds and of our institutional investor base in Germany and abroad.' Schwanitz will
join VCM's existing management team of five directors. VCM currently manages more than €1bn of capital
commitments. Copyright © 2006 AltAssets
6
May 2006
3i hires Akshaya Bhargava to head new focus on outsourcing
3i has appointed Akshaya Bhargava to build a new team to focus on a two-pronged strategy of identifying investment
opportunities and leverage offshore business process outsourcing for its portfolio companies. 3i will focus initially on
companies with minimum revenues of €100m mainly in the financial services sector in the UK, Germany, the US and
India. Akshaya spent 22 years with Citibank in a variety of senior positions in India, the Czech Republic and the UK.
Until recently he was the CEO of Progeon, the BPO subsidiary of Infosys. Chris Rowlands, head of group markets, 3i,
said, 'There are many exciting opportunities in the BPO market internationally. We are delighted that Akshaya has
joined 3i to lead this new sector focus across our private equity business.' Akshaya added, 'We believe that BPO is a
major global trend that can have a transformational impact across several industries. 3i has an enviable reputation as
a private equity innovator and I think we are very well placed to take advantage of this trend, drawing on our direct
BPO management expertise and global footprint.' 3i focuses on buy-outs, growth capital and venture capital. The firm
invests across Europe, in the US and in Asia Pacific. Copyright © 2006 AltAssets
US firm ComVentures appoints Rodi Guidero as chief counsel
US early stage communications venture capital firm ComVentures has appointed Rodi Guidero as chief counsel.
Guidero will be responsible for managing the structure and execution of ComVentures' investments and investment
liquidity. He will also oversee the firm's general legal affairs. Guidero joins ComVentures from VantagePoint Venture
Partners, where he served as the firm's general counsel and was responsible for the execution of investments and
management of legal affairs, and also served on several private company boards. Prior to VantagePoint, Guidero
served as associate general counsel for E*TRADE. Michael Rolnick, partner of ComVentures, said, 'Rodi and I had the
opportunity to work closely together at E*TRADE and have known each other for over a decade. 'We look forward to
tapping Rodi's deep venture capital and legal experience as we continue to fund and help grow the next generation of
leading communications companies,' Rolnick continued. ComVentures has $1.5bn under management. The firm's
current investments include Firefly Mobile, Fabrik, MarketTools, Zantaz, Azul, Caymas Systems, FyreStorm,
OpSource, Vyatta, and FilmLoop. Copyright © 2006 AltAssets
AGF Private Equity hires Jean Plamondon as investment director
Jean Plamondon has joined AGF Private Equity, a subsidiary of the AGF insurance company, member of the Allianz
Group, as investment director within the fund of funds team. Plamondon will be active in primary and secondary fund
investments and co-investments in LBOs. Plamondon was previously at ING Parcom Private Equity and Caisse de
Dépôt et Placement du Québec in Paris. In 1991, at Acland, he took part in the raising and the investment of a €60m
mid-cap MBO fund invested in France with HSBC as sponsor. He began his career in private equity in 1985 at Citicorp
Venture Capital France. The AGF Private Equity fund of funds team now consists of 12 people including eight
investment professionals. AGF Private Equity manages an investment portfolio of €1,5bn for institutional and private
investors through its funds of funds and venture capital investments. Copyright © 2006 AltAssets
Candover expands team to develop its pan-European business
European buy-out specialist Candover has appointed Humphrey Cobbold, currently director of strategic development
at Trinity Mirror, as origination director, with responsibility for coordinating Candover's deal sourcing activities.
Humphrey joined Trinity Mirror in 2003, prior to which he spent 16 years as a management consultant at McKinsey &
Company, where he became a partner in 1997. Candover has also announced that Piers Dennison, currently
Candover's investor relations director, will add the newly created role of head of operations, with responsibility for all
of Candover's non-investment activities such as recruitment and training, finance, and compliance, to his existing
responsibilities. Dennison has also been promoted to managing director. Colin Buffin, managing director, said, 'The
new roles that we have created are a reflection of the need to develop our investment and support processes in line
with the growth in our fund size, and the increasingly competitive market environment. Humphrey's job will be to
focus on our deal sourcing activities to generate more off-market transactions, and his corporate and strategic
consulting experience will make him an important addition to the team. 'In addition to Aldo Maccari and Bertrand
Finet who joined Candover earlier this year to focus on Italy and France respectively, we have recruited a further four
executives who will be joining us in the autumn. Our executive team will then be 30 strong. Further selective
recruitment will continue, to allow us to strengthen our presence across Europe,' Buffin continues. Within the
investment team, John Arney, Ian Gray, Charlie Green and Simon Leefe have been promoted to managing director,
and Gerard Conway, Eric-Joost Ernst and Nils Stoesser have been promoted to director. Copyright © 2006 AltAssets
7
May 2006
Deals news
(more at http://www.altassets.com/news/arc/lists/newscat_Deals1.php)
Private equity consortium and management propose to take Kinder Morgan private
Goldman Sachs Capital Partners, American International Group, The Carlyle Group and Riverstone Holdings, together
with members of Kinder Morgan's management team, have submitted a proposal to acquire all of the outstanding
common stock of Kinder Morgan at a price of $100 per share in cash. Kinder Morgan is a large energy transportation,
storage and distribution company in North America. The value of the purchased equity, together with the debt that
would be either refinanced or remain outstanding, is approximately $22bn. The proposal represents a premium of
approximately 18.5 per cent over the closing price of KMI stock on 26 May, of $84.41. Copyright © 2006 AltAssets
US private equity firm Hellman & Friedman to acquire Gartmore
San Francisco-based private equity firm Hellman & Friedman and members of Gartmore's fund management and
executive team have agreed to acquire Gartmore Investment Management from Nationwide Mutual Insurance
Company. Financial details were not officially disclosed but various reports suggested that the deal was worth just
under £500m. The acquisition includes Gartmore's UK, European, Japanese and Latin American businesses, while
Nationwide will retain the US part of Gartmore Group. Under the new structure there will be no change to clients,
Gartmore said in a statement. Patrick Healy, managing director and European head of H&F, said, 'This is an exciting
day for Gartmore and H&F. We are thrilled to help the management of Gartmore buy their business. Gartmore has
evolved into one of the most innovative investment management firms in the industry, offering a broad array of
highly regarded High Alpha and Absolute Return products.' Allen Thorpe, managing director of H&F, added, 'H&F will
work closely with Gartmore management to support its strategic objectives as a premier investment organisation
focused on alpha creation. The transaction will enhance stability and serve as a catalyst to enable the company to
realise its full potential.' Gartmore's board of directors will include three employees from Gartmore, three from H&F,
and one independent director. Gartmore's representatives will be CEO Jeff Meyer, investment director Roger Guy and
Paul Feeney, head of distribution. H&F's representatives will be Patrick Healy, managing director and head of Europe;
Allen Thorpe, managing director; and Blake Kleinman, principal. In addition, the responsibilities of Gartmore's chief
operating officer Les Aitkenhead will be expanded to include legal, compliance and human resources. Copyright ©
2006 AltAssets
3i invests in Mayborn
European private equity and venture capital company 3i has agreed a recommended offer for Mayborn Group, a
manufacturer and distributor of baby and household products. The offer values Mayborn's equity at £116.3m
(enterprise value: £137m). As part of the investment, 3i will introduce Nish Kankiwala as the new chief executive of
Mayborn. Kankiwala was previously president of Burger King International and spent nine years at PepsiCo following
15 years at Unilever. 3i partners Alan Giddins and Jennifer Dunstan said, 'We identified Mayborn as a strong business
with exceptional growth potential and our investment in this business fits perfectly with 3i's commitments to investing
in brands with strong core values.' 3i focuses on buy-outs, growth capital and venture capital, and invest across
Europe, in the US and Asia. Copyright © 2006 AltAssets
US private equity firm Sentinel Capital Partners acquires Interim HealthCare
Sentinel Capital Partners has acquired Interim HealthCare, a Sunrise, Florida-based provider of home healthcare and
supplemental healthcare staffing services. Financial details of the transaction were not disclosed. Interim provides
diverse services including home care, facility medical staffing, occupational health staffing for business and retail
companies, teaching and pharmaceutical use for patients at home and in physician offices, and medical device
training. The company is an organisation with about 300 service locations in 39 states and Puerto Rico, $620m in
annual system-wide sales, and a workforce of 75,000 employees. Jim Coady, partner at Sentinel, said, 'Key
demographic trends are fuelling growth in the home healthcare sector, and industry experts expect home healthcare
to grow more than 40 per cent in the next five years. 'With its solid business model, excellent management team and
devoted franchisees and employees, few companies are better positioned than Interim to capitalise on this trend,'
Coady continued. Sentinel focuses on smaller middle-market companies in the US and Canada. The firm targets
service businesses, consumer products, food and restaurants, franchising and manufacturing businesses. Sentinel
invests in management buy-outs, recapitalisations, corporate divestitures and going-private transactions of
established businesses with operating profit of between $5m and $20m. Copyright © 2006 AltAssets
8
May 2006
Diamond Castle to acquire NES Rentals in $850m transaction
New York-based private equity firm Diamond Castle Holdings has agreed to acquire NES Rentals Holdings, an aerial
and general equipment rental and traffic safety services provider, in a transaction valued at approximately $850m
including the assumption of certain liabilities. NES Rentals focuses on renting specialty and general equipment to
industrial and construction end-users. It rents about 750 types of machinery and equipment, and distributes new
equipment for equipment manufacturers. In addition to the rental business, NES Rentals is a supplier of traffic and
safety services to the construction industry. Under the terms of the agreement, Diamond Castle will acquire all of the
outstanding common stock of NES Rentals for $18.75 per share in cash. Diamond Castle expects to retain NES
Rentals' company name, management team and product lines, according to a statement. The private equity firm
focuses on investments in the power, financial services, media and telecom, healthcare, and industrial sectors.
PAI partners to acquire AMEC SPIE in €1bn transaction
European private equity firm PAI partners has agreed to acquire AMEC SPIE from AMEC for an equity value of
approximately €1.04bn. AMEC SPIE provides electrical engineering, communications services and specialist activities
in the energy and rail industries, predominantly in France. It has 23,000 employees and operates from 380 European
locations. PAI senior partner Bertrand Meunier said, 'We are very pleased to have agreed on the terms of the
acquisition of AMEC SPIE, a very well positioned company with a strong company spirit, an excellent business model
and an outstanding management team. We consider that the company has excellent growth prospects and is a strong
platform for acquisitions.' The transaction will comprise the AMEC SPIE Continental European Multitechnical Services
business, the French rail business and 50 per cent of rail activities in the UK, together with AMEC SPIE's oil and gas
activities, excluding pipelines. PAI manages and advises buy-out funds with an aggregate equity value of over €7bn.
The firm has offices in Paris, London, Madrid and Milan. Copyright © 2006 AltAssets
Carlyle to sell Rexnord Corporation to Apollo for $1.8bn
US private equity giant The Carlyle Group and the management of Rexnord Corporation have agreed to sell
Milwaukee, Wisconsin-headquartered Rexnord to Apollo Management for $1.825bn. The transaction is expected to
close in the third calendar quarter of 2006. Rexnord is a manufacturer of precision motion technology products,
primarily focused on power transmission. The company manufacturers gears, couplings, industrial bearings, flattop
chain and modular conveyor belts, a variety of special components, industrial chain and aerospace bearings and seals.
Rexnord's products are used in plants and equipment in a various industries including aerospace, aggregates and
cement, air handling, construction equipment, chemicals, energy, food and beverage, forest and wood products,
mining, material and package handling, marine, natural resource extraction and petrochemical. Carlyle managing
director Praveen Jeyarajah said, 'Rexnord has been an extraordinarily successful investment for us and we have
enjoyed the opportunity to partner with George Sherman, Bob Hitt and the Rexnord management team.' Larry Berg, a
senior partner at Apollo Management, added, 'Rexnord is a very attractive business platform, which combines strong
market positions and exciting growth opportunities together with highly motivated and dedicated employees and an
outstanding and proven management team. We look forward to working with all the people at Rexnord in continuing
to grow the company.' Carlyle bought Rexnord Corporation from UK engineering company Invensys for approximately
$880m in the second half of 2002. Copyright © 2006 AltAssets
UK firm Doughty Hanson to acquire Ireland's TV3
UK-based private equity firm Doughty Hanson & Co has agreed to acquire 100 per cent of Ireland's commercial
television channel TV3 from existing shareholders CanWest, ITV and a consortium of private investors. The
transaction values TV3 at €265m. Doughty Hanson will invest €140m of equity. Steven Bone, principal, Doughty
Hanson, said, 'TV3 is a high quality broadcast business with an excellent market position and strong growth potential.
Since its launch, which was independently judged to have been the most successful launch of a new television
channel in Western Europe, TV3 has created an attractive proposition for both viewers and advertisers. 'We believe
our offer to acquire TV3 provides good value for all its current shareholders,' Bone continued. This is the seventh
investment made from Doughty Hanson & Co Fund IV. The fund is now 60 per cent invested, according to Doughty
Hanson. Doughty Hanson operates private equity funds for Europe and North America, a European real estate fund
and a European technology ventures fund. Copyright © 2006 AltAssets
9
May 2006
3i sells stake in Tensar to US-based Tensar Corp.
3i has sold its minority stake in engineering solutions provider Tensar, to US-based Tensar Corp. in a £68m deal. 3i
will receive proceeds of £22m which represent a three times money multiple, according to the firm. Tensar is a
specialist in the provision and manufacture of best value civil engineering solutions for soil reinforcement and ground
stabilisation, and installations in roads, railways, runways and embankments across the globe. Formerly the Netlon
Group, Tensar International was founded in Blackburn, UK, in 1952. 3i originally backed the MBO of Tensar in 1994
when it invested £7.2m alongside Electra Private Equity. 3i investment director Ian Brown said, 'Tensar has been a
good investment for us, generating a three times return. Putting Tensar UK and Tensar Corp. together is the next
logical step in the company's expansion and will create a global business with production operations in the US, UK and
China. We wish the management well in further developing the business.' Tensar International is a worldwide leader
with over 20 years experience in the provision and manufacture of best value civil engineering solutions for soil
reinforcement and ground stabilisation, and installations in roads, railways, runways and embankments across the
globe. Copyright © 2006 AltAssets
Private equity consortium buys VNU
Valcon Acquisition, a company controlled by AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman &
Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners, has declared its public offer for media giant
VNU unconditional after 78.70 per cent of VNU's share capital was tendered or committed during the acceptance
period that ended on 19 May 2006. Valcon will pay an amount of €29.50 in cash for each validly tendered (or
defectively tendered provided that such defect has been waived by Valcon) and delivered ordinary share and an
amount of €21.00 for each validly tendered (or defectively tendered provided that such defect has been waived by
Valcon) and delivered preferred share. Haarlem, the Netherlands and New York, US-headquartered VNU is an
information and media company with brands such as ACNielsen in marketing information, Nielsen Media Research in
media measurement and information and Adweek, Billboard, The Hollywood Reporter, Computing, Intermediair in
business information. VNU employs nearly 41,000 people. Total revenues were €3.5bn in 2005 The private equity
consortium recently increased its offer price from €28.75 to €29.50 per common share, and from €13 to €21 per
preferred share. Copyright © 2006 AltAssets
Advent International acquires RWE Solutions Group from RWE
Mid-market buy-out firm Advent International has agreed with RWE Energy to acquire RWE Solutions Group. Financial
details of the transaction were not disclosed. The deal comprises SAG, Nukem, RWE Industrie-Lösungen, RWE Space
Solar Power and Lahmeyer International. These companies collectively employ about 9,500 staff and generated net
sales of approximately €1.7bn in 2005. Ralf Huep, managing director at Advent, said, 'The diversity and international
profile of the RWE Solutions portfolio is characteristic of the type of investment which Advent is so strongly positioned
to support. It is in-sector, leverages our international footprint and requires a high level of Advent involvement and
value-add support. There are some exciting growth opportunities in the energy space, which the portfolio is
particularly well-placed to respond to.' Copyright © 2006 AltAssets
Carlyle, Oranje-Nassau Groep to acquire Dutch Stahl Holdings
US private equity giant The Carlyle Group and Dutch investment firm Oranje-Nassau Groep, wholly owned by the
French-listed investment group WENDEL Investissement, have agreed to acquire Netherlands-headquartered Stahl
Holdings from Investcorp. The value of the transaction is approximately €520m. The equity invested by ONG, Carlyle
and the Stahl management team amounts to about €160m. Carlyle and ONG will invest on an equal basis. Stahl, with
€307m of consolidated revenues, is a surface effects specialist, providing a range of formulated products and services
in both leather chemicals and non-leather coatings. The company operates through nine manufacturing sites and 26
technical service laboratory facilities. In total the company employs approximately 1,400 people. Robert Easton,
managing director, Carlyle, said, 'We are delighted to be able to acquire Stahl Holdings in partnership with WENDEL
Investissement. We look forward to working closely with Frank Policky and his outstanding management team to help
continue to build the company on a global basis.' Bernard Gautier, of the management board of WENDEL
Investissement, added, 'We are thrilled by this acquisition carried out by Oranje-Nassau which, following the recent
investment in the waste management company AVR, confirms the subsidiary's strategy towards a diversification of its
activities supported by WENDEL Investissement in order to accede to more international opportunities.' Besides its
private equity activities, ONG also invests in and manages energy and real estate assets. Carlyle invests in buy-outs,
venture and growth capital, real estate and leveraged finance. Copyright © 2006 AltAssets
10
May 2006
Industri Kapital acquires Minimax from Investcorp
European private equity firm Industri Kapital has agreed with Investcorp to acquire Minimax, a Germanyheadquartered full service provider of fire protection systems and services. Financial details of the transaction were
not disclosed. Minimax's product portfolio comprises water-based systems (sprinkler systems), special water systems
(eg mist and foam), gas systems, special solutions, service and industrial detection. The company generated
revenues of approximately €443m in 2005, and its EBITDA in 2005 was €48m. Investcorp acquired Minimax from
Barclays Private Equity in 2003. Detlef Dinsel, partner at Industri Kapital, said, 'We are delighted to have acquired
Minimax and we are looking forward to working with the management team. Minimax benefits from its leading market
position and from the steadily and growing nature of the market for fire protection. 'We together with management
will continue to grow the business organically as well as to further internationalise the business and implement
Industri Kapital's successful buy-and-build strategy via add-on acquisitions. The final goal will be to significantly grow
the business and bring it to a different size category of a billion euro plus of sales,' Dinsel continued. Investcorp has
four lines of business: private equity, real estate investment, hedge funds and venture capital. The firm manages
total investments in alternative assets of approximately $9.5bn and has offices in London, New York and Bahrain.
Industri Kapital manages close to €4bn in fund commitments. The firm invests mainly in mid-sized companies,
operating in mature industries with fundamental underlying growth. Previous IK investments in Germany include
Sport Group, Gardena, Dywidag Systems International, Poggenpohl (via Nobia) and Pfaff Haushaltsnähmaschinen (via
VSM Group). Copyright © 2006 AltAssets
Willis Stein & Partners to sell Baker & Taylor for $455m
Chicago-based Willis Stein & Partners has sold its portfolio company Baker & Taylor to a company organised by Castle
Harlan. The transaction is valued at approximately $455m. Baker & Taylor is a distributor of books, video, music and
electronic games products to the global institutional (library) and retail markets. Daniel Blumenthal, managing partner
of Willis Stein & Partners, said, 'Baker & Taylor is a very successful investment for our firm. Working closely with
management, we were able to build on the outstanding Baker & Taylor legacy by improving and streamlining the
company's overall operations, delivering new and innovative products and services to customers, and gaining market
share through organic growth and strategic acquisitions.' Baker & Taylor was acquired by Willis Stein & Partners in
July 2003. Willis Stein & Partners focuses on the manufacturing, consumer products and services, business services,
media and publishing and healthcare sectors. Copyright © 2006 AltAssets
Industri Kapital sells Enermet Group to Bayard Group
Industri Kapital, Fortum Oyj and MB Funds have agreed with Bayard Group to sell Finland-headquartered Enermet
Group for an enterprise value of approximately €90m. Enermet is a supplier of automatic meter reading and load
management systems. The company offers customers a range of AMR systems and software deploying GSM/GPRS,
power line carrier and LAN communication technologies. Michael Rosenlew, partner at Industri Kapital, said, 'Under
our ownership the company has grown from being a component supplier to one of the world's leading system
companies in the area of automatic meter reading and load management solutions.' Industri Kapital manages close to
€4bn in fund commitments. Copyright © 2006 AltAssets
PAMA to merge into Asian operations of EMP Global
Washington, DC-based emerging markets specialist EMP Global has acquired a stake in the PAMA Group. EMP will
merge the PAMA organisation with its own to develop a new pan-Asian private equity business in the buy-out and
growth capital areas, focusing on the middle market. Michael Kwee, CEO and chairman of PAMA, will direct EMP's
business in Asia and will be vice chairman of EMP Asia with EMP's chairman, Moeen Qureshi, acting as chairman.
Moeen Qureshi, chairman of EMP, said, 'We are delighted with the merger of our Asian business with the PAMA Group.
PAMA is one of the pioneers in the Asian private equity business and under Michael's leadership has a long history of
successful investments. 'The PAMA team's skills in the buy-out and growth capital business will complement our own
team and allow EMP Asia to aggressively position itself to develop new business in Asia,' Qureshi continued. Don Roth,
managing partner of EMP, added, 'While the Asian macro environment is currently very conducive to the private
equity, there is a real dearth of seasoned Asian private equity professionals. Michael and his team complements EMP's
own experience in Asia and should allow us to offer private equity opportunities and experience that are unique in the
market today.' EMP manages eight private equity funds totalling over $6.5bn invested in Africa, Asia, Latin America,
Europe and the Middle East. The firm began activities in Asia in 1994. Following the transaction, the management of
EMP's existing funds in Asia will not change. PAMA, established in 1986 under the name Prudential Asset Management
Asia, has managed private equity funds in Asia totalling over $1.3bn in more than 100 investments. In September
2005, PAMA closed a $155m middle-market buy-out fund in Japan in partnership with NIF-SMBC Ventures. Copyright
© 2006 AltAssets
11
May 2006
Rutland floats H&T Group on AIM with enterprise value of £91.9m
UK private equity firm Rutland Partners has realised its investment in H&T Group for cash through an AIM listing. The
enterprise value of H&T on flotation is £91.9m and the market capitalisation is £54.2m. H&T is a pawnbroker with 69
outlets across the UK. In recent years the group has also diversified into other services including pay day advances,
cheque cashing and pre-paid debit cards. H&T reported earnings before interest, tax and amortisation of £6.7m in
2005. Rutland acquired H&T in September 2004 from Cash America International for £49m, of which £15.4m was
provided from The Rutland Fund. The proceeds received by the fund, after costs and management's equity, are
approximately £44.5m, representing a multiple of 2.9 times the fund's original investment and an IRR of 89 per cent,
according to a statement. The Rutland Fund closed on £210m in March 2001. The fund is now approximately two
thirds invested. Copyright © 2006 AltAssets
Synesis Life secures backing from Warburg Pincus, RBS, JPMorgan
Synesis Life, a provider of solutions to the pension and annuity liabilities marketplace, has secured financial backing
from Warburg Pincus, Royal Bank of Scotland and JPMorgan. Synesis plans to acquire medium to large annuity
portfolios from UK insurance companies and pension funds. Initially, the company will target insurance annuities.
Financial backing from the three investors would allow Synesis to accept £7-10bn worth of liabilities over the medium
term. Peter Wilson, a managing director at Warburg Pincus, said, 'Warburg Pincus is pleased to be co-leading the
investment in Synesis. Given the strong underlying macro trends, we believe that this market will grow significantly,
and that the Synesis team is well positioned to continue to be a leading pioneer in this industry. 'As an experienced
financial services investor, Warburg Pincus is focused on partnering with proven management teams to build
businesses of real, sustainable value that will benefit from strong market trends. To this end, we find Synesis and this
market opportunity to be a compelling combination,' Wilson continued. Warburg Pincus currently has approximately
$13bn under management and invests in a range of sectors including financial services, energy, real estate,
information and communication technology, LBOs and special situations, healthcare and media and business services.
Private equity consortium ups bid for Dutch media giant VNU
The private equity consortium trying to buy Haarlem, the Netherlands and New York, US-headquartered media giant
VNU has increased its offer price from €28.75 to €29.50 per common share. The offer price per preferred share has
been increased from €13 to €21. The new aggregate value of the transaction is approximately €8.7bn, including net
indebtedness. Private equity investors AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman &
Friedman, Kohlberg Kravis Roberts & Co. and Thomas H. Lee Partners have formed Valcon Acquisition as the
acquisition vehicle for this transaction. VNU is an information and media company with brands such as ACNielsen in
marketing information, Nielsen Media Research in media measurement and information and Adweek, Billboard, The
Hollywood Reporter, Computing, Intermediair in business information. VNU employs nearly 41,000 people. Total
revenues were €3.5bn in 2005. A group of shareholders rejected the private equity consortium's previous offer as too
low. Copyright © 2006 AltAssets
HgCapital sells Travelsphere for £144m
HgCapital, the European sector-focused private equity investor, and other shareholders, have sold Travelsphere
Holdings to Electra Partners Europe for a total consideration of £144m. Following the sale, HgCapital's investment in
Travelsphere will have returned £50.1m to clients, according to HgCapital. Travelsphere, a UK tour operator serving
the over 45 age group, operates under the Travelsphere, Page & Moy and Just You brands. HgCapital originally
acquired a 40 per cent stake in Travelsphere in November 2000 for a total consideration of £20.2m. It subsequently
supported Travelsphere's acquisition of Page & Moy in November 2004. Ben Hewetson, director and head of leisure
investments at HgCapital, said, 'Travelsphere is an exceptional business and has grown considerably since our initial
investment just over five years ago. The group has extended its product range and now offers escorted travel to over
70 countries. It is firmly established as the market leader in the escorted travel segment to its target audience. With
its strong presence in the longer haul markets, the group is now well positioned to take advantage of the growing
trends in the travel sector.' HgCapital was founded in 2000 as a successor to Mercury Private Equity. Its latest private
equity fund, HgCapital 5, closed on £950m earlier this year. Copyright © 2006 AltAssets
12
May 2006
Nautic Partners acquires Big Train company
Nautic Partners, in partnership with Big Train management, has acquired Big Train, a Foothill Ranch, Californiaheadquartered manufacturer and distributor of powdered and liquid beverage products. Financial details of the
transaction were not disclosed. Big Train's products include chai teas, blended ice coffees, blended fruit teas, hot
cocoas, smoothie mixes, and flavoured syrups. The company has manufacturing facilities in Rancho Santa Margarita,
California. Fraser Preston, principal of Nautic, said, 'With their broad product suite and successful distribution
strategy, Big Train is an excellent investment opportunity with attractive growth prospects. In addition, we expect to
leverage Nautic's prior experience in the flavours and beverage industries to help the company achieve its goals.'
Earlier this year Nautic acquired Oasis Outsourcing, a large professional employer organisation in the US; invested in
Curtis Industries Holdings, a manufacturer of cabs and enclosures for utility vehicles, compact tractors, and golf carts;
and invested in 1105 Media Holdings, a company formed to acquire and operate companies in the business-tobusiness information industry. Nautic has $1.8bn under management and is currently investing its $1.1bn Nautic
Partners V fund. It targets control investments of between $25m and $75m in middle-market companies. Areas of
focus include manufacturing, business services, healthcare, and media and communications. Copyright © 2006
AltAssets
Montagu Private Equity to acquire LOGSTOR from Axcel, Polaris and FIH
Pan-European buy-out firm Montagu Private Equity has agreed to acquire Denmark-headquartered LOGSTOR from
Danish industrial investment company Axcel, Danish private equity firm Polaris Private Equity and Danish bank FIH.
Financial details of the transaction were not disclosed. The acquisition has been made in partnership with the
company's incumbent management team. Preben Tolstrup will continue as CEO of LOGSTOR and Ole Andersen as
chairman of the board. LOGSTOR is a manufacturer of pre-insulated pipe systems for transportation of gases and
liquids to the district heating and cooling, oil and gas, marine and industrial sectors. LOGSTOR was formed through
the merger of Løgstør Rør and Alstom Power FlowSystems in August 2005. The company has sales of €250m in
approximately 50 countries, and EBITDA of more than €25m, according to a statement. It has 1,300 employees in
eight European production facilities and eleven sales offices. In addition, it has distributors in 28 countries and joint
ventures in Korea and China. Montagu currently has about €5bn under management. The firm focuses on investing in
management buy-outs in partnership with the incumbent management team. Copyright © 2006 AltAssets
Lazard Private Equity withdraws support for Waterstone's bid
HMV Group has confirmed that Lazard Private Equity 'has withdrawn its support for Tim Waterstone's attempt to
acquire Waterstone's'. Lazard Private Equity and Tim Waterstone offered to pay £280m (equivalent to approximately
70p per HMV share) for the books retailer. Waterstone's, founded by Tim Waterstone in 1982, became part of HMV
Group in 1998. The £280m offer was made on the condition that HMV would not acquire or offer to acquire Ottakar's,
the British book chain. A few weeks ago Permira walked away from its bid for HMV, having had their initial and
revised offer rejected by the board of HMV. HMV recently suffered from poor sales results. Copyright © 2006
AltAssets
13
May 2006
Fund news
(more at http://www.altassets.com/news/arc/lists/newscat_Funds1.php)
J.L. Albright Venture Partners completes second closing for Fund IV
Toronto and Montreal-based venture capital firm J.L. Albright Venture Partners' new fund, J.L Albright IV Venture
Fund, has held a second closing on Can$108.5m. The final closing is scheduled for September 2006, the firm said in a
statement. The majority of the commitments to Fund IV come from investors that have previously invested in J.L.
Albright funds. These investors include the Caisse de depot et placement du Quebec, CIBC, OMERS, RBC Capital
Partners and The Bank of Nova Scotia. New investors include BDC Capital, Export Development Canada, National
Bank Financial and TD Capital/CFOF Private Equity Investors, Teachers' Private Capital. J.L. Albright primarily focuses
on communications and systems, internet and media, and software and services companies in Canada. The firm
typically invests a total of Can$5m to Can$15m in each portfolio company, and invests in all stages of growth - from
see to expansion. J.L. Albright's past and current portfolio companies include Triple G Systems (acquired by General
Electric), Pixstream (acquired by Cisco), Isolation Systems (acquired by Shiva), Quickplay Media, MusicIP and
Planeteye. Copyright © 2006 AltAssets
CLSA Capital Partners closes Aria Investment Partners III on $330m
CLSA Capital Partners, the private equity arm of Asia's brokerage and investment bank CLSA, has closed its third
domestic consumption fund, Aria Investment Partners III, on $330m. Initially, the firm targeted a fund size between
$250m and $300m. Funded by US, European and Japanese institutions, Aria III will provide growth and expansion
capital for companies with investment sizes in the range of $10m to $60m. Josephine Price, deputy CEO and
managing director of Aria Investment Partners, added, 'The successful closing of Aria III is a testament to investor
confidence in our investment approach. Over the past few years we have invested in well managed, high growth
companies providing capital and a lot of value add.' CLSA Capital Partners manages four funds focused on domestic
demand, asset reflation, Japan recovery and leveraged finance. The funds are Aria Investment Partners, Fudo Capital
($430m, investing in Asian Property), CLSA Sunrise Capital ($325m, investing in growth and mid-market buy-out
opportunities in Japan), and MezzAsia Capital ($200m, providing mezzanine debt financing for Asian buy-outs).
Intersouth Partners raises $275m fund
US venture capital firm Intersouth Partners has raised its seventh fund, Intersouth VII, totalling $275m. The firm said
that this was the fund's first and final closing. Financing for the fund came primarily from existing limited partners,
which include corporations, endowments and pension funds. With its new fund, Intersouth will continue its long-term
strategy to invest in seed and early stage companies in the life sciences and information technology sectors, primarily
in the Southeast of the US. Intersouth typically invests between $500,000 and $8m in a first round and up to a total
of $20m in each of its portfolio companies. Intersouth VII's predecessor, Intersouth VI, closed on $205m in February
2003. The new fund brings Intersouth's total capital under management to $775m. Copyright © 2006 AltAssets
OVP Venture Partners VII holds first closing on $207m
US early-stage venture capital firm OVP Venture Partners has held a first closing on OVP Venture Partners VII with
$207m of committed capital. The original target of the fund was $200m. A final closing is expected later this year.
Lead commitments for OVP VII came from returning investors Oregon Public Employees Retirement Fund and the
Washington State Investment Board. New investors include GKM Generation Funds (for the New York State Common
Fund), the Alfred I. duPont Testamentary Trust in Jacksonville, FL and the endowment for the Olin College of
Engineering in Needham, MA. OVP general partner Gerry Langeler said, 'The opportunities for early stage technology
investing are growing strongly in the Pacific Northwest. We are continuing to expand our partnership's capital
resources to take advantage.' OVP general partner and National Venture Capital Association board member Chad
Waite added, 'We were pleased to see the strong support we got not only from existing investors, but from new ones.
It appears the word on the strength of the technology start-up environment in the Pacific Northwest is spreading.'
OVP usually leads or co-leads the first round in a start-up, putting in $1-5m initially, and $8-15m to work over the life
of each portfolio company. OVP VII is expected to invest in 20-25 companies. The investment focus will continue to
be on pre-revenue firms in the Northwest, with selected investments in California and elsewhere. OVP will continue to
focus on the communications and network infrastructure, digital biology, semiconductors and electronics, software
and nanotechnology sectors. Including the new fund, OVP now has over $700m under management. Copyright ©
2006 AltAssets
14
May 2006
Clairvest completes second closing of new $300m private equity investment pool
Clairvest Group Inc. has announced it has completed the second closing of Clairvest Equity Partners III Limited
Partnership. The closing increases the amount raised to $245m from the $180m achieved at the first closing on 18
April 2006. This is 82 per cent of the $300m target pool. Under terms of the limited partnership agreement, Clairvest
has one year from the first closing to raise the balance through ensuing closings. CEP III, to be capitalised at up to
$240m, will be invested alongside at least $60m of Clairvest capital to form the $300m co-investment pool for the
company's next round of private equity investments. Clairvest is a Canadian merchant bank that invests its own
capital, and that of third parties through Clairvest Equity Partners Limited Partnership, in companies that have the
potential to generate superior returns. Copyright © 2006 AltAssets
Parag Saxena, Alessandro Piol, Howard Goldstein launch Vedanta Capital
Venture capitalists Parag Saxena, Alessandro Piol and Howard Goldstein, formerly of Invesco Private Capital, have
launched Vedanta Capital. Vedanta initially will focus on venture investments but anticipates a wider array of global
venture capital and private equity activities, Vedanta Capital announced in a statement. Saxena and Goldstein have
been investing together since 1984, when they both worked at Citicorp Investment Management. Piol has worked
with Saxena and Goldstein since 1995. Copyright © 2006 AltAssets
Carlyle raises $436m mezzanine fund
US private equity giant The Carlyle Group has raised $436m for its first fund dedicated to mezzanine investments.
Carlyle Mezzanine Partners was set up to invest in debt and equity securities of third-party leveraged buy-outs,
recapitalisations and growth financings. CMP primarily invests in senior subordinated notes with warrants, preferred
stock, and minority common equity securities. The mezzanine team has already invested in Sanitors, a provider of
janitorial and landscape services; Combined Systems, a manufacturer of branded less-than-lethal munitions and antiriot products; United Road Towing, an automobile towing and auction company; LPL Holdings, a provider of
investment advisory, marketing, distribution and technology services; Sharis Management Corporation, an operator of
family-style restaurants; Targus Group International, a designer, marketer and distributor of notebook computer
carrying cases and accessories; American Achievement Corporation, a manufacturer and supplier of yearbooks, class
rings and graduation products; and Comark Building Systems, a manufacturer of modular buildings. CMP is co-headed
by managing directors Leo A Helmers, Rufus H Rivers and James C Shevlet, Jr. Its seven investment professionals are
based in Los Angeles and New York. Rivers said, 'We are quite pleased to have exceeded our fundraising target and
appreciate the confidence of our investors. With credit markets becoming increasingly unpredictable in 2006, we are
seeing more mezzanine investment opportunities and are well positioned to take advantage of this trend.' Carlyle's
fund closing announcement came only two days after The Blackstone Group announced that it had closed its latest
mezzanine fund, Blackstone Mezzanine Partners II, with available capital of $1.06bn. Copyright © 2006 AltAssets
Spur Capital Partners closes $200m fund of funds
Spur Capital Partners has closed its second fund of funds on $200m. The firm initially targeted a fund size of between
$175m and $200m. The first closing was held on $148m in October 2005. Spur Capital managing director Bradford
Kelly told AltAssets that a total of 35 investors have committed to the new fund, comprising existing and new
investors. About two thirds of the limited partners are US foundations and endowments. Other investors are European
institutions and high-net-worth individuals. The new fund is expected to be fully committed within the next three
years. Spur Capital invests in early stage, technology-focused venture capital partnerships in the US and outside the
US. With its new fund, the firm will increasingly target international funds. Historically, the focus was heavily focused
on US-based funds. Spur Capital closed its first fund on $140m in 2002. Copyright © 2006 AltAssets
Riverside closes healthcare and technology-focused private equity fund on $225m
Riverside Partners has closed its third private equity fund, Riverside Fund III, on $225m. The target of the fund was
$175m. Investors in Riverside Fund III include the Massachusetts Institute of Technology, TIFF, Abbott Capital
Management, MN Services and Hartford Investment Management. David Belluck, general partner at Riverside, said,
'The closing of Riverside Fund III is an exciting milestone for Riverside and gives us more opportunity to help family
and founder-owned technology and healthcare businesses realise their growth potential. 'Our initial investments have
established solid momentum that is consistent with Riverside's long-term strategy, and we are confident that our
team will continue to identify and invest in strong growth companies,' Belluck continued. Riverside Fund III has been
investing since Q4 2005. Its first three portfolio companies are National Display Systems, a Morgan Hill, Californiabased provider of flat panel display systems used in a range of healthcare applications; SIXNET, an Albany, New Yorkbased manufacturer of advanced industrial automation and network connectivity devices for use in demanding
environments; and Quantum Medical Imaging, a Ronkonkoma, New York-based developer of high quality x-ray
systems for hospitals, imaging centres and physician offices. Riverside targets profitable companies with revenues
between $10m and $100m. Copyright © 2006 AltAssets
15
May 2006
Parallel Investment Partners closes $231m fund
Dallas, Texas-headquartered Parallel Investment Partners has closed its second fund, the Parallel 2005 Equity Fund,
on $231m. Parallel will use the fund to invest in recapitalisations, growth-capital investments and opportunistic buyouts involving privately held companies. Parallel managing director F Barron Fletcher III said, 'We remain confident
that our proven model will continue to create value for Parallel, our limited partners and the incumbent shareholders
of companies in which we invest.' Parallel has already announced three investments this year: specialty home
improvement retailer Weisman Discount Centers; sports media production company Winnercomm; and casual dining
chain Marmalade Cafe & Catering Co. Including the new fund, Parallel manages approximately $400m in capital
commitments. Copyright © 2006 AltAssets
Key Principal Partners holds first closing of KPP Investors III on $435m
Cleveland-based private equity firm Key Principal Partners has announced the first closing of KPP Investors III on
$435m. The hard cap of the fund will be $500m. KPP expects to close the fund in the third quarter of this year. KPP
Investors III will focus on value-oriented, non-controlling mezzanine and control equity investments in lower middlemarket companies. KPP provides capital to middle-market companies in North America. The firm utilizes mezzanine
and equity capital to fund the growth, buy-out, refinancing or acquisition of profitable companies. It has
approximately $2bn in capital under management and can invest $5-35m in companies with at least $20m in
revenue. KPP's offices are in Greenwich, San Francisco and Shanghai. The firm is affiliated with KeyCorp, a $90bn
financial services firm. Copyright © 2006 AltAssets
Canada's TorQuest Partners closes second private equity fund on $550m
Canadian private equity firm TorQuest Partners has closed its second fund, TorQuest Partners Fund II, on Can$550m.
TorQuest Partners Fund II is the successor to TorQuest Partners Value Fund, a Can$180m fund organised in 2002.
TorQuest Fund II will adhere to the firm's traditional investment strategy. The fund will invest in meaningful positions
in companies operating in industries in which TorQuest has demonstrated expertise, including manufacturing,
business services, financial services, industrial products, food, consumer products, and chemicals. The equity
investments targeted by TorQuest Fund II will range in size from Can$15-100m principally in acquisitions of Can$40250m. The primary geographic focus will be on Canada, with a secondary focus on US. TorQuest senior managing
partner Brent Belzberg said, 'Our team has significant experience in building businesses and in realising value. Our
new fund, with international and US investors as well as Canadian investors, will enable us to further capitalise on
opportunities similar to those we undertook in Fund I, such as CNC Global Limited, GCAN Insurance Company, and
Granby Steel Tanks.' TorQuest has approximately Can$700m of equity capital under management. Copyright © 2006
AltAssets
Blackstone closes $1bn mezzanine fund
US buy-out giant The Blackstone Group has closed its latest mezzanine fund, Blackstone Mezzanine Partners II, with
available capital of $1.06bn, bringing the total mezzanine funds under management to $1.6bn. Blackstone Mezzanine
Advisors, a unit within Blackstone's Corporate Debt Group, will manage the new vehicle. Blackstone Mezzanine
Partners II will be headed by Howard Gellis and Salvatore Gentile. Gellis, senior managing director and head of
Blackstone's Corporate Debt Group, said, 'We are excited about this new mezzanine fund and its innovative structure.
We believe the increased flexibility it provides will allow us to offer compelling financing choices to our clients while
optimising investor returns.' Blackstone's first mezzanine fund, Blackstone Mezzanine Partners, closed in 1999 on
$1.1bn. It has now completed its investment period, according to a statement issued by Blackstone. In addition to
corporate debt investing, Blackstone's core businesses are private equity investing, private real estate investing,
distressed securities investing, marketable alternative asset management, corporate advisory, and restructuring and
reorganisation advisory. Copyright © 2006 AltAssets
16
May 2006
Norwegian firm Norvestor Equity closes Norvestor IV on €167m
Oslo-based Norvestor Equity has closed its fourth fund, Norvestor IV, on €167m. Commitments came from Norwegian
and international investors, including DnB NOR, Telenor, KLP, Gjensidige and Bear Stearns. Norvestor IV held a first
closing on €120m in December 2004. Norvestor partner Rolf Straume told AltAssets, 'We completed the first closing
only with cornerstone investors. The marketing to other investors began in February 2005.' The fund will focus on
buy-outs and development capital investments in the Nordic middle market. 'In the past we focused on control
minority holdings. Our new larger fund allows us to invest in more majority holdings. This will be the only major
difference,' Straume said. Norvestor IV has already invested in several companies. Last year the fund acquired a 50.3
per cent interest in the Oslo-based company SCAN Geophysical through a share issue. SCAN is a niche operator in the
market for high-end 2D and small-size 3D seismic surveys. Norvestor IV also acquired a 75 per cent interest in the
Norwegian company Panorama, a supplier of jewellery, classic silverware and gifts to Norwegian jewellers.
Panorama's activities range from sourcing and product design to retail outlets. This month Norvestor announced that
Norvestor IV had made multiple acquisitions within the Swedish health food sector. These transactions include
Naturapoteket, a Swedish health food store chain with 50 stores carrying the 'Naturapoteket' brand; United Care
Scandinavia, a Swedish health food producer, wholesaler and retailer with 30 stores carrying the 'Exist' brand; and
Hälsofack, an independent Swedish store chain with 125 stores carrying the 'Life' brand. The Norvestor Equity team
advises funds totalling over €300m. Until the end of February 2006 the firm was called Norsk Vekst Equity Partners.
The new name was chosen to reflect both the company's pan-Nordic investment strategy and its international investor
base. The new fund's predecessor fund, Norsk Vekst Equity Partners III, closed on €75m in 2000. Copyright © 2006
AltAssets
Lehman Brothers reportedly plans to raise $3bn fund
Lehman Brothers Merchant Banking, part of the private equity business of global investment bank Lehman Brothers,
targets $3bn for its next fund, sources told Reuters. They said that the new fund, Fund IV, is expected to launch this
summer and close in 2007. The fund that is currently being invested by Lehman Brothers Merchant Banking is Fund
III, which closed on $1.2bn in 2005. Earlier this year Lehman Brothers Merchant Banking acquired the European
Seafood business from H.J. Heinz Company for €425m. The firm partnered with the current CEO Adolfo Valsecchi and
David Williams, the former CEO of Heinz Europe. Copyright © 2006 AltAssets
Waterland closes third mid-market fund on €400m
Waterland Private Equity Investments has closed its latest fund, Waterland Private Equity Fund III, on €400m, the
hard cap of the fund. WPEF III launched in November 2005 with an initial target of €300m. Returning investors
include ATP, JPMorgan and Delta Lloyd; while new investors include BP Pension Fund, Rothschild and LGT Capital
Partners. WPEF III will make control investments in medium-sized companies in the Rhineland region (comprising
parts of The Netherlands, Belgium and Germany), with revenues between €10m and €150m. Rob Thielen, managing
principal of Waterland, said, 'I am very happy with the result. We set out at the beginning of the fundraising with the
clear goal of supporting our existing investors and adding a select number of long-term, international investors. We
are delighted to have achieved this goal within a very short period of time. 'Waterland's proactive hands-on approach
to value creation, combined with its ability to identify attractive industries and sectors, is key to our buy-and-build
strategy and has clearly added to the raised interest from investors. Now, our team will focus on the next phase of
the challenge - making the right investments,' Thielen continued. Waterland's second fund, Waterland Private Equity
Fund II, closed on €170m in April 2004. Waterland concentrates on consolidation strategies. The firm's portfolio
includes Catalpa (childcare), Senior Living Group (private retirement and nursing homes) and arxes (active in IT
workplace services). Copyright © 2006 AltAssets
Millennium Technology Value Partners closes new technology venture capital fund
Millennium Technology Value Partners has closed its latest fund on $130m, above the original target size of $100m.
TVP is the fourth fund in the Millennium family of private equity funds. TVP's investment focus will include direct
secondary acquisitions of private equity securities, restructurings and recapitalisations, corporate spin-offs, leveraged
buy-outs, public market PIPEs, going private transactions and a variety of special situations. 'At the core of the TVP
fund is its special focus on providing liquidity to holders of venture capital-type assets,' the firm said in a statement.
Samuel L Schwerin, managing partner of Millennium, said, 'We have designed the fund so that we can invest in
leading companies through a very wide array of transaction formats - debt and equity, common and preferred stock,
public and private, individual direct investments, portfolios of assets, limited partnership interests, intellectual
property assets, spin-offs of non-core operating assets, restructuring and bankruptcy situations, and more. 'The
common theme in all these situations is our willingness to work with sellers, asset holders, and existing investors to
help them achieve their liquidity goals, add value, and contribute to the success of the companies we invest in,'
Schwerin continued. To date TVP has invested in companies including Tellme Networks, Airvana, Wayport, Vendare
Media Corporation, Questia Media, Multiplex, and Axsun Technologies. Copyright © 2006 AltAssets
17
May 2006
Partners Group closes Partners Group European Mezzanine 2005 above target on €265m
Zug, Switzerland-headquartered alternative asset manager Partners Group has closed its Partners Group European
Mezzanine 2005 fund on €265m, the hard cap of the fund. The original target size was €200m. Investors came from
regions including Northern and Continental Europe, the Middle East and the US. Partners Group has approximately
CHF11bn (approximately €7bn) in private equity, private debt and hedge fund investment programmes under
management. The firm manages different funds, structured products and customised portfolios. Partners Group has
offices in New York, London, Singapore and Guernsey. Copyright © 2006 AltAssets
Australia's CHAMP Ventures closes new fund above target on Aus$300m
CHAMP Ventures, the mid-market private equity specialists of the CHAMP Group, has closed its new fund, CHAMP
Ventures Investment Trust Numbers 6A and 6B, on Aus$300m. CHAMP Ventures was originally targeting A$250m.
The fund will focus on the mid-market expansion capital and buy-out segments. Some funds may also be used to
make early stage investments in Australian businesses. Su-Ming Wong, managing director, CHAMP Ventures, said in a
statement that he anticipated CVIT 6 would be allocated over a similarly diverse range of industry segments with a
particular focus on the healthcare, mining services, food and beverage and financial services sectors. Wong
commented, 'Our previous fund CVIT 5 took over 12 months to raise. By comparison we issued our memorandum for
CVIT 6 in mid-February and we received all our investors' commitment in early-April.' CHAMP Ventures expects that
CVIT 6 will invest in between ten and 15 portfolio companies over a four to five-year timeframe, with subsequent
holding periods appropriate to the circumstances of the portfolio company. CHAMP Ventures was established in 2001
as the successor to Australian Mezzanine Investments. Copyright © 2006 AltAssets
Chrysalis closes $300m fund
Chrysalis Capital Partners, a US firm focused on distressed and special situation investments, has closed its first
institutional fund, Chrysalis Capital Partners, on $300m, the hard cap of the fund. The fund was launched in autumn
2004 with an original target of $200m. Greg Segall, managing partner of Chrysalis, said, 'There is far less capital
dedicated to assisting distressed companies in the middle-market space than there are opportunities. 'There is a
significant shortage of sophisticated, value-adding players in the highly specialised, complex, and rapidly expanding
$700bn middle market. At Chrysalis, our depth of hands-on restructuring experience, coupled with our management
style, has allowed us to tap into this opportunity and produce superior outcomes thus far for stakeholders,' Segall
added. Chrysalis has already committed about 25 per cent of the fund to six transactions and has achieved two
successful realisations, according to a statement. In addition to direct debt and equity investments in companies, the
fund will also invests in the direct purchase of assets or outstanding equity or debt securities of such companies.
Chrysalis focuses on special situation investing such as divestitures, buy-outs, turnarounds, financial restructurings,
reorganisations and recapitalisations in middle-market companies in the US with typical revenues of $50-500m. The
firm has no particular industry sector focus. Copyright © 2006 AltAssets
Media buy-out specialist VSS closes fourth fund on $1.3bn
Media buy-out firm Veronis Suhler Stevenson has closed its fourth private equity fund, VSS Communications Partners
IV, on $1.3bn. The fund was oversubscribed, VSS said in a statement. VSS Communications Partners IV is expected
to invest across a broad range of sub-sectors within the media, communications and information sectors, including
business magazines, cable television, consumer magazines, television broadcasting, wireless communication towers,
and yellow page directories. Jeffrey T Stevenson, a managing partner and co-chief executive officer of VSS, said, 'The
market has been very receptive to our "buy-and-build" strategy of investing in middle-market companies across the
breadth of the media, communications, information and education industries, and growing the companies through
add-on acquisitions and organically.' James P Rutherfurd, executive vice president and managing director in charge of
investor relations and marketing, added, 'We have a strong and diverse group of limited partners in the fund and are
particularly pleased to have expanded our investor base to include a substantial number of investors from Canada,
Europe, the Middle East and Asia. This reflects investor interest in the large and growing industries in which we invest
and in the international capabilities of our firm.' The new fund has already made seven platform company
investments, including investments in German publisher Berliner Verlag and Riviera Broadcast Group, a radio
broadcaster with stations in Phoenix and Las Vegas. The seven platform company investments and six add-on
acquisitions currently total $230m of combined equity capital from the fund, and are likely to account for
approximately $300-350m of fund equity with potential future add-on acquisitions, according to VSS. VSS
Communications Partners IV is expected to have a total of approximately 20 platform companies. VSS focuses on
investing across North America and Europe. Including the new fund, VSS has $2.8bn of committed equity capital
under management. Since 1987, VSS has managed approximately $2.8bn in committed capital across four private
equity funds and a mezzanine debt fund, all focused exclusively on the broadly defined media, communications,
education, information and business services industries. Almeida Capital acted as European placement agent to the
fund. Copyright © 2006 AltAssets
18
May 2006
Surveys and trends
(more at http://www.altassets.com/news/arc/lists/newscat_Surveys1.php)
European venture capital fundraising down on quarter and year
European venture capital firms raised €470.7m in nine funds in the first quarter of 2006, according to Dow Jones
VentureOne. The Q1 total was only about half the amount raised in the first quarter of 2005 (€913.3m) and 42 per
cent down from the €807.4m raised in Q4 2005. While venture capital fundraising was down, the amount raised by
private equity and buy-out funds in Europe increased to €4.88bn this quarter, up from €4.38bn a year ago. Steve
Harmston, director of global research at VentureOne, said, 'Renewed interest in other private equity for the moment
is leading to a slowdown in venture capital fund raising. 'Additionally, venture capital funds ramped up last year,
raising €3.64bn, almost as much as was invested in 2005 and the most raised since 2002; this quarter's decline may
simply be a natural slowdown from that trend,' Harmston continued. Among the largest venture capital funds that
closed in Europe in the first quarter were the €135m Via Venture Partners Fond I of Denmark and the €120.6m Pond
Ventures III fund of the UK. Dow Jones VentureOne is the publisher of VentureSource. Copyright © 2006 AltAssets
German private equity fundraising and investment up in Q1 compared to a year ago
German private equity firms raised more capital and invested more capital in companies in the first quarter of 2006
than in the first quarter of last year, according to the German Private Equity and Venture Capital Association BVK. In
the first three months of this year, BVK members raised €553.1m, compared to €234m in Q1 2005. Private equity
and venture capital firms invested €510.8m in 251 companies in the first quarter of 2006, up from €407.2m invested
in 227 companies in Q1 2005. Prof Dr Michael Gross, vice chairman of the BVK board, said, 'Investors are regaining
confidence in the economic location Germany.' Gross stressed that the positive development of the German economy
supported by governmental initiatives such as the high-tech Gründerfonds and the ERP/EIF fund are making an
essential contribution. Venture capital investments made up one third of all investments or €187.6m in Q1 2006,
similar to Q1 2005 when venture capital investments totalled €194.4m. Copyright © 2006 AltAssets
European venture capital investment tops €1bn in Q1
In the first quarter of 2006 venture capital investment in Europe grew to €1.02bn from €999m in Q4 2005. This was
the largest aggregate investment in Europe in four quarters, according to the European Venture Capital Report
released by Dow Jones VentureOne and Ernst & Young. The Q1 2005 figure was €1.04bn. However, deal flow
decreased to 200 from 291 in Q4 2005 and 262 in the first quarter of 2005. Among the significant investment trends
in the first quarter is the renewed attention by investors for seed and first-round deals, the report found. In total, it
recorded 71 early stage deals and €322.4m invested. Although this is six fewer deals than a year ago, the amount
invested was up 44 per cent and was the most capital directed toward these early rounds since the first quarter of
2002. Gil Forer, global director of Ernst & Young's Venture Capital Advisory Group, said, 'The early stage activity is
coming at an interesting time in the European venture capital market. A wave of European VC-backed IPOs bolstered
investment levels for later stage companies in 2005. This wave of IPOs also allowed investors to refocus on a new
crop of entrepreneurial start-ups in anticipation of a positive horizon for exits. 'Although there was a decrease in early
stage deal flow, 36 per cent of all the rounds completed in Europe were for seed and first-round deals. Investors also
appear to be selecting among the most promising new opportunities as the size of those deals is rising as well, with
first rounds reaching a median €2.5m, the highest point since at least 2000,' Forer continued. Looking at the various
industry sectors European investors directed considerable capital to information technology companies, as also
observed in the US. The total amount invested in IT in the first quarter was €474.6m, up eight per cent from a year
ago (€437.8m), despite 30 fewer IT deals being completed (down to 107 from 137 in Q1 2005). The venture capital
activity for the European healthcare category slowed from a year ago, with 56 deals and €434.6m invested there,
decreases of 24 per cent from the 74 deals completed in Q1 2005 and nine per cent from the €479.4m. Total
investment in the product and services category was up slightly to €77m from €75.9m, although the number of deals
was down to 24 from 38 in the first quarter of 2005. Regionally, deal flow in France remained steady in quarter over
quarter comparison, with 42 deals, just one fewer than a year ago. The amount invested in French companies nearly
doubled in the same period, to €205.1m from €104.3m in Q1 2005. In Germany, deal flow declined by four deals and
investment was down 21 per cent to €124m. The UK remains the most active country in Europe but deals were down
33 per cent from a year ago, to 56, while capital investment was up slightly to €356.3m. Copyright © 2006 AltAssets
19
May 2006
Value of VC investments in Canadian companies up in Q1, fundraising declines
In the first quarter of this year the total reported investment made by venture capital funds into Canadian companies
amounted to $390m, up 13 per cent from the $344m in Q1 2005, according to Canada's Venture Capital and Private
Equity Association and CVCA research partner Thomson Macdonald. However, the number of transactions declined to
165 this quarter from 179 transactions during the first quarter of last year. First quarter activity declined in value
from Q4 2005, when $527m was invested in 223 firms. The CVCA pointed out that this was in line with historic Q4/Q1
data. 'The 13 per cent increase in Canadian investment numbers in Q1 2006 relative to Q1 2005 mirrors a similar 12
per cent increase in the US over the same time period,' said Rick Nathan, president of the CVCA and managing
director of Goodmans Venture Group, 'which suggests that broadly comparable factors are shaping the venture
investment climate in both countries. The continuing growth in total investment in Canada, along with our alignment
with the US market, is positive for Canadian investors and entrepreneurs.' The first quarter saw a significant boost in
investment into the biopharmaceutical and other life sciences sectors in Canada. Total life science investment during
Q1 2006 amounted to $139m across Canada, more than triple the $37m invested in the same period last year.
Fundraising by the Canadian Venture Capital industry declined by more than 50 per cent during Q1 2006 compared to
the same period of 2005, with a total of $453m of new capital committed into venture capital funds, compared to
$1.04bn last year. 'Its difficult to draw conclusions based on a single quarterly trend in our market,' said Nathan,
'however, if this trend continues, it would obviously reduce the industry's ability to invest in new emerging Canadian
growth companies. The CVCA is presently undertaking a series of initiatives designed to strengthen the Canadian
venture capital market by improving the industry's ability to access additional sources of capital. This quarter's
numbers highlight the importance and the urgency of those initiatives.' Copyright © 2006 AltAssets
US venture capital funds raise 69 per cent more capital in Q1 06 than in Q1 05
US venture capital firms raised $4.26bn in the first quarter of this year, a 69 per cent increase over the $2.52bn
raised in the first quarter of 2005, according to Dow Jones VentureOne. However, the amount also represented a 40
per cent decrease from the 7.13bn raised in Q4 2005. Fewer total funds closed in the first quarter of 2006 (17)
compared to a year ago (22), continuing the trend that fewer but larger individual funds are being raised. The median
size of funds closed in the first quarter was $209m, the highest median fund size on record. Stephen Harmston,
director of global research for VentureOne, said, 'Larger fund sizes are becoming the norm in venture capital, partly a
result of new interest among investors entering or re-entering this asset class. 'Larger funds also are a necessity as
venture investors are making more significantly sized investments into select portfolio companies in an effort to see
them through to profitability and eventual liquidity,' Harmston continued. The largest US fund raised this quarter was
the $1bn Polaris Venture Partners V fund. In addition, four other funds raised this quarter were $400m or larger. Dow
Jones VentureOne, the publisher of VentureSource, is a unit of Dow Jones Financial Information Services. Copyright ©
2006 AltAssets
20
May 2006
Firm news
(more at http://www.altassets.com/news/arc/lists/newscat_Firm news1.php)
SpaceVest Capital renames itself REDSHIFT Ventures
SpaceVest Capital has renamed itself REDSHIFT Ventures. The firm will continue to invest in companies that are
commercialising advanced technologies including wireless, networking, microelectronics and software applications for
high growth markets. REDSHIFT Ventures' managing general partner will be Richard Harris, who has been with the
fund since 1997. He said, 'Redshift is a scientific term that is related to theories of expansion, movement and growth.
'We feel that it signifies our interest in building successful technology companies, and it symbolises how our firm and
investment strategy has developed and matured. I am proud to be a part of a fund with such deep expertise and
success in identifying and advancing groundbreaking technologies that create real-world applications for commercial
markets,' Harris continued. REDSHIFT Ventures invested in Microelectronics Center of North Carolina spin-out Cronos
Integrated Microsystems, a provider of MEMS technology, that ultimately led to a successful sale to JDS Uniphase,
generating a 25 times return on investment, according to a statement. Most recently, REDSHIFT Ventures announced
an exit in MIT spin-out Sandburst, a developer of networking chips. Copyright © 2006 AltAssets
Parag Saxena, Alessandro Piol, Howard Goldstein launch Vedanta Capital
Venture capitalists Parag Saxena, Alessandro Piol and Howard Goldstein, formerly of Invesco Private Capital, have
launched Vedanta Capital. Vedanta initially will focus on venture investments but anticipates a wider array of global
venture capital and private equity activities, Vedanta Capital announced in a statement. Saxena and Goldstein have
been investing together since 1984, when they both worked at Citicorp Investment Management. Piol has worked
with Saxena and Goldstein since 1995. Copyright © 2006 AltAssets
PAMA to merge into Asian operations of EMP Global
Washington, DC-based emerging markets specialist EMP Global has acquired a stake in the PAMA Group. EMP will
merge the PAMA organisation with its own to develop a new pan-Asian private equity business in the buy-out and
growth capital areas, focusing on the middle market. Michael Kwee, CEO and chairman of PAMA, will direct EMP's
business in Asia and will be vice chairman of EMP Asia with EMP's chairman, Moeen Qureshi, acting as chairman.
Moeen Qureshi, chairman of EMP, said, 'We are delighted with the merger of our Asian business with the PAMA Group.
PAMA is one of the pioneers in the Asian private equity business and under Michael's leadership has a long history of
successful investments. 'The PAMA team's skills in the buy-out and growth capital business will complement our own
team and allow EMP Asia to aggressively position itself to develop new business in Asia,' Qureshi continued. Don Roth,
managing partner of EMP, added, 'While the Asian macro environment is currently very conducive to the private
equity, there is a real dearth of seasoned Asian private equity professionals. Michael and his team complements EMP's
own experience in Asia and should allow us to offer private equity opportunities and experience that are unique in the
market today.' EMP manages eight private equity funds totalling over $6.5bn invested in Africa, Asia, Latin America,
Europe and the Middle East. The firm began activities in Asia in 1994. Following the transaction, the management of
EMP's existing funds in Asia will not change. PAMA, established in 1986 under the name Prudential Asset Management
Asia, has managed private equity funds in Asia totalling over $1.3bn in more than 100 investments. In September
2005, PAMA closed a $155m middle-market buy-out fund in Japan in partnership with NIF-SMBC Ventures. Copyright
© 2006 AltAssets
Spire Capital Partners forms Ariston Global Partners
New York-headquartered private equity firm Spire Capital Partners has partnered with Steve Dubnik and Kevin
Dickens to form Ariston Global Partners. Dubnik and Dickens are co-CEOs of Ariston. Ariston will focus on
communications services companies including software, billing, customer care, customer resource management,
provisioning, outsourced services, hardware testing and other tool set companies required by hardware providers and
communications carriers. Target clients of such companies will include telecommunications carriers, wireless/wireline
service providers, cable MSOs, VOIP service providers, communications hardware manufacturers. Dubnik said, 'The
technology and regulatory changes that are occurring in telecommunications are creating the need for new services
from existing communication companies as well as enabling the creation of new companies. These changes require
new methods of billing, measuring usage, servicing clients and monitoring networks.' Spire has approximately $350m
of capital under management. Spire invests in middle-market buy-outs, recapitalisations, industry consolidations and
growth equity investments in the media, communications, information services and business services industries. Spire
typically invests between $10m and $40m in companies with enterprise values from $25m to $400m. Copyright ©
2006 AltAssets
21

Private Equity News Review

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