Fund briefs, July 30, 2007

Nexus India raises $100M

Nexus India Capital

, a venture firm with offices in Menlo Park, Calif., and Mumbai, India, has raised a $100 million fund for investment in India. The firm says that it has already invested in five companies, including mobile2win, a Mumbai-based digital and mobile entertainment company, and DimDim, a Web collaboration startup. The firm says that it will announce the other three investments soon.

The fund will invest between $500,000 and $10 million in each company, with an average deal size of $4 million. Over the next three years, it plans to invest in 15 companies (in addition to the five deals done) in India.

The firm launched fund-raising efforts in December 2006. Partner Suvir Sujan previously co-founded eBay India. He co-founded Nexus with Naren Gupta, the founder of embedded systems software company Integrated Systems Inc., and Sandeep Singhal, co-founder with Sujan of Baazee.com.

Bill Davidow of Mohr Davidow Ventures serves as a special advisor to Nexus. The firm, which received commitments from limited partners in North America, Europe and Asia, targeted the fund at $150 million, according to a regulatory filing. The filing also listed its expected salaries and fees at about $32 million, or about 21% of the target.

The firm joins a crowded market of investors focusing on the South Asian country. In February, New Enterprise Associates announced that it opened an office in India and appointed Ben Mathias to lead what the firm hopes will be between a $125 million and $200 million effort in the country. NEA’s fund will invest in mid to late stage opportunities in telecommunications, media, alternative energy, technology-enabled services and infrastructure.

In addition, Tim Draper said he would raise a $200 Indian affiliate of the Draper Fisher Jurvetson network in 2005; Intel Capital launched a $250 India fund in December 2005; Norwest Venture Partners said it would devote a substantial part of its $650 million 10th fund to India; Matrix Partners raised $150 million for its first Indian fund in August 2006; and Sequoia Capital, after acquiring Westbridge last year, raised a $400 million growth fund focused on India.

Meanwhile, venture investment in India skyrocketed last year as VCs put $1.83 billion to work in 115 Indian companies, according to Thomson Financial (publisher of PE Week). That’s up from the more than $1 billion invested in 60 Indian companies in 2005. The number of VCs investing in India has grown, too. Some 78 firms made investments in India in 2006, up 77% from the 44 firms that invested in 2005. The median deal size for India last year was $11 million.

Third Security secures $250M

Third Security

, a Radford, Va.-based firm that makes venture and private equity deals, has closed its fifth fund with $250 million in capital commitments, according to VentureWire. The fund, named New River Management V, will invest in both private and public companies.

Current investments include publicly traded Clinical Data Inc. (Nasdaq: CLDA) and the privately held Intrexon Corp., a transcriptional therapeutics developer, which raised its entire $25 million Series C from Third Security in May.

TCV plans fund VII

Technology Crossover Ventures

, of Palo Alto, Calif., is planning to raise between $2 billion and $2.5 billion for its seventh fund, according to VentureWire. The firm raised $1.4 billion for Fund VI in 2005.

Siemens invests in Galen

Galen Partners, a Stamford, Conn.-based health care investor, announced last week that Siemens Venture Capital GmbH has invested in its fifth fund, Galen Partners V. The fund, which closed last month, has now raised $250 million in partner commitments. Fund V will focus on investments in health care information technology/outsourcing, medical devices and specialty pharmaceutical companies.

Flag nears close of $400M FoF

FLAG Capital Management

, which has its roots backing venture funds with family office money, is ready to close on a third private equity fund of funds. The pool is earmarked for about 20 managers, largely buyout firms.

As of early June, the firm had raised at least $350 million for the fund, which has a $400 million target. A spokeswoman for FLAG declined to comment.

FLAG Capital has already agreed to commit to invest in funds raised by New York-based Cerberus Capital Management; Boca Raton, Fla.-based Sun Capital Partners; and San Francisco-based tech buyout specialist Golden Gate Capital.

Co-founding FLAG Capital in 1994 were Diana Frazier, who previously spent nine years with BancBoston Ventures, and Peter Lawrence, who previously spent 12 years managing private equity portfolios for the Marshall Field family office. “FLAG” stands for “Frazier, Lawrence and the Gang.”

Advent raises largest Latin America fund

Boston-based buyout firm Advent International has closed its fourth Latin America private equity fund with $1.3 billion in capital commitments. It is believed to be the largest such fund ever raised for Latin American investments. The firm did not disclose limited partners, but the Pennsylvania State Employees’ Retirement Board recently announced that it agreed to commit $30 million to Advent’s Latin American Private Equity Fund IV.

Advent, which has invested in Latin America for 11 years, acquires control positions in later stage, cash-generative businesses, primarily in Mexico, Brazil and Argentina. The fund will target service sectors, such as airports, financial services and business outsourcing, with investments of between $50 million to $150 million.