PE Week Wire, Dec. 28, 2006

Top Three

Delta Private Equity Partners, which backs fast-growing companies in Russia, plans to launch a third fund, this one with a $300 million target, in the next two or three months, PE Week Wire has learned. With offices in Moscow and New York, Delta Private Equity has invested about $400 million in 51 companies through The U.S. Russia Investment Fund established in 1994 and the Delta Russia Fund formed in 2004. The firm is led by the indomitable Patricia M. Cloherty, former co-chairman, president and general ! partner of Apax Partners Inc. San Francisco-based Denning & Co. has been tapped to assist with marketing.

The Goldman Sachs Group Inc. (NYSE: GS) has raised $6.5 billion for its first fund earmarked for investments in infrastructure deals—toll roads, airports, ports, along with regulated gas, water and electrical utilities. The investment bank committed $750 million of the sum, with additional dollars flowing in from pension funds, insurance companies and banks. The firm plans to concentrate mainly on opportunities in Europe and North America. Steven Feldman and William Young are the co-heads of the infrastructure group, which is tucked inside the merchant banking division of Goldman Sachs.

Sequoia Capital India is backing Bangalore-based online educational tutoring company TutorVista Global to the tune of an additional $3 million, according to The Economic Times. The investment is part of a second round of venture financing totaling $10.75 million; Sequoia capital India earlier this year invested $2 million. This latest round was led by Lightspeed Venture Partners, which is investing $7 million; Silicon Valley Bank also made a small investment. The company plans to use the cash for branding, marketing, and may also look to make acquisitions.

Venture Deals

India-based Perlecan Pharma said this week that its anti-diabetic drug candidate DRL-16436 had entered the first phase of clinical trials, according to The Economic Times. The company has more than $50 million in financial backing from Dr. Reddy’s Laboratories Ltd. (NYSE: RDY), Citigroup Venture Capital International Growth Partnership Mauritius Ltd., and ICICI Venture Funds Management Company. The phase-one clinical trials are being conducted in the Netherlands.

iMedica Corp., a Carrollton, Texas-based developer of electronic medical record systems, has sold $6.8 million of preferred stock in a Series C financing round, according to a Form D filed with the Securities and Exchange Commission. The company seeks to draw $9 million altogether in the round. Investors listed on the filing include Leavitt Covington Ventures LLC, North American Venture Fund II LP and CDIB Venture Management (USA) Inc. The company’s flagship product is designed to improve the flow of data among doctors, staff and insurance providers. CEO Michael Nissenbaum and COO Neil Simon are at the helm.

Buyout Deals

A consortium of investors that includes Goldman Sachs Capital Partners and Kohlberg Kravis Roberts & Co. has closed the purchase of KION Group, the Germany-based forklift division of Linde AG. The price was 4 billion Euro ($5.2 billion). With 20,000 employees, KION Group generated sales of about 3.6 billion Euro ($4.7 billion) in its 2005 fiscal year. The company sells forklift trucks and warehouse equipment under the brand names Linde, STILL and OM.

The largest shareholder in Chinatrust Financial Holding Co., owner of Taiwan’s largest private bank, is looking to sell a portion of its stake to investors, according to an article in The Wall Street Journal Asia. Goldman Sachs Group Inc., Fobon Financial Holding Co. and The Carlyle Group are reportedly among the parties interested in talking to the Koo family of Taiwan. A source quoted in the story estimated the size of the stake to be sold at around 10% to 20% of the company, which has a market cap! italization of an estimated $7.2 billion.

PE Exits

Private equity shop Apax has hired Deutsche Bank and Goldman Sachs to look into the possible sale or IPO for Molnlycke Health Care, a Gothenburg, Sweden-based supplier of surgical gloves, wound dressings and other medical products, according to the Financial Times. Among the potential bidders cited in the story are Smith & Nephew, Johnson & Johnson and Stryker and Zimimer. Apax acquired Molnlycke Health Care from Nordic Capital in July 2005, then merged it with portfolio companies Regent Medical and Medlock. The company employs about 5,500 people, and generated sales of about 374 million Euros ($491 million) in the first half of 2006.

Firms & Funds

Voyager Capital, Seattle, has closed a third venture capital fund at $93.3 million, according to VentureWire, short of the $200 million target set for the partnership. The firm invests in early-stage companies developing enterprise software and services, Internet infrastructure and wireless products. Its Web site lists four managing directors: Erik Benson, Curtis Feeny, Enrique Godreau, and Bill McAleer. Among start-ups backed by the firm is CapitalStream Inc., supplier of transaction and workflow software to finance companies. www.voyagercapital.c! om

Southern Capitol Ventures, a Raleigh firm that backs technology and life sciences start-ups in the Southeast and mid-Atlantic regions, has raised a second fund of $15.1 million, according to The News & Observer. Among investors, according to the article, are E. Stephen Stroud, chairman of NAI Carolantic Realty; Tom Darden, CEO of Cherokee Investment Partners; and Capitol Broadcasting CEO Jim Goodmon. Executives at the firm include Founding Partner Ben Brooks, along with General Partners Jason Caplain and Dave Murray. The firm’s Web site lists seven portfolio companies, including, which sells art reproductions, decorative prints and specialty posters. www.southernc!

Human Resources

Ronald F. Dutt has been tapped to become the new chief financial officer of Directed Electronics Inc. (NASD: DEIX) maker of keyless locks for cars and home speaker systems. Dutt joined the company as executive vice president of finance three months ago after serving as CFO of Sola International Inc., a maker of eyeglass lenses owned since early 2005 by Swedish buyout shop EQT Partners AB and Carl Zeiss AG.