News briefs, June 4, 2007

North Bridge to open office in Silicon Valley

North Bridge Venture Partners

plans to be the next Boston-area firm to open an office in Silicon Valley. The satellite office will be staffed by North Bridge Partner Paul Santinelli and newly joined Basil Horangic, who recently left his general partner position with Austin Ventures.

The office would be the Waltham, Mass.-based firm’s first satellite since its 1994 formation.

In an email announcing his move, Horangic said that he has “always admired the success and stellar reputation of the firm that [founder Ed Anderson] and his partners have built on the East Coast.” Horangic adds that the Silicon Valley office, known as North Bridge West, will be active in Silicon Valley, the Pacific Northwest, the Rockies and Texas.

North Bridge raised $500 million for its sixth early stage fund in 2005. —Dan Primack

Ares sells stake

Ares Management, a Los Angeles-based private-equity and distressed debt investor, sold a minority stake in itself for up to $375 million to an undisclosed buyer. Ares said that it will use the proceeds from the sale to fund existing business lines, create additional business lines and hire more staff.

Ares manages several private equity and debt funds, plus a publicly traded business development company called Ares Capital Corp. (Nasdaq: ARCC).

Investors in Ares’ previous funds include California Public Employees’ Retirement System (CalPERS), Canada Pension Plan Investment Board, the State Teachers Retirement System of Ohio and the New York State Teachers’ Retirement System.

In selling the stake, Ares joins other large buyout shops, such as The Blackstone Group, which recently agreed to sell a portion of itself to the Chinese government. Also, CalPERS owns about 5% of The Carlyle Group, and TPG is reportedly in discussions with some of its limited partners to sell a portion of its management company. —Dan Primack

Lehman to launch next private equity IPO

Lehman Brothers

plans to offer a $500 millio IPO for a private equity fund of funds. Lehman Brothers Private Equity, a unit of Lehman Brothers Holdings Inc., last week announced that it is considering giving investors access to its leading private equity investment platform through a new Euronext Amsterdam-listed private equity fund of funds vehicle.

The launch is expected to take place later this month. Lehman follows in the footsteps of similar IPO efforts by Kohlberg Kravis Roberts & Co. and Apollo Management.