PE Week Wire: Fri., Nov. 16, 2007

Yesterday’s issue was perhaps the longest ever published, and today’s will balance things out by being one of the shortest. Did a 3:50am CNBC spot, and now need to catch an early flight back to Boston – where I plan to attend TechCrunch’s first Boston schmoozefest (hope to see some of you there).

Will try to do some peHUB posting from the SF Airport before my flight, including on last night’s unveiling of “Ted” from (he turns out to be Adeo Ressi). Bizarre event to say the least. Also want to talk about the PayByTouch mess, an update to Kleiner/Al Gore (he’s not donating carry, according to the AP) and some items coming out of Buyouts West (QuizTime: I shared the stage with seven people at the conference, but only one of them works at a firm that closed a fund yesterday. Can you name that firm?).

So check out the site in a couple of hours, or go now to keep railing against the global warming “hoax.” Or just wait for Monday’s email… I’ll be back at my desk for an entire week, which will be a welcome change for both me and you, loyal reader. Have a great weekend.

Top Three

Zosano Pharma Inc. of Fremont, Calif. has secured the $45 million second tranche of its Series A funding, for a round total of $90 million. Participants included New Enterprise Associates, Nomura Phase4 Ventures, HBM BioVentures and ProQuest Investments. The company was founded last year as a Johnson & Johnson Internal Ventures spinout from the ALZA Co. to work on several product opportunities based on the company’s transdermal microprojection delivery system. It was initially named The Macroflux Corp.

Technology Crossover Ventures has invested $55 million in financial media company, via the purchase of preferred stock and warrants.

Cerberus Capital Management has offered to negotiate new terms with United Rentals, after abandoning a $4 billion buyout this week, according to regulatory documents. Cerberus said it has offered to “either to arrange for the payment of the negotiated $100 million termination fee, or to engage United Rentals in a constructive dialogue to negotiate a transaction on revised terms.”

VC Deals

BioVex Inc., a Woburn, Mass.–based drug company whose lead candidate is designed to help treat advanced melanoma, has closed its Series E round with a total of $35 million. It had announced a $22 million first close earlier this year, and the final close includes some venture debt from Oxford Finance Corp. and Silicon Valley Bank. Triathlon Medical Ventures led the overall round, and was joined by New Science Ventures, Harris and Harris Group and return backers ABN Amro, Avalon Ventures, Credit Agricole Private Equity, GeneChem Management, Innoven Partners and Scottish Equity Partners.

M2E Power Inc., a Boise, Idaho-based developer of ways to convert human and vehicle motion into energy to power mobile devices, has raised $8 million in Series A funding. OVP Venture Partners led the round, and was joined by Highway 12 Ventures and @Ventures.

ActiViews Ltd., an Israel-based developer of an interventional radiology guidance system, has raised $5 million in VC funding from Ofer Hi-Tech and Evergreen Venture Partners, according to Globes Online.

Oxtiec Ltd., a UK-based developer of environmentally-friendly pest control solutions for situations that affect agriculture or public health, has raised £1.5 million in new VC funding. Return backer Oxford Capital Partners led the deal with a £1 million investment. Other shareholders include East Hill, University of Oxford and company management.

TileFile Ltd., a Sydney, Australia-based developer of a social media platform that connects users through a “content-neutral” format, has raised an undisclosed amount of VC funding from Motorola Ventures.

Zayo Bandwidth, a Louisville, Colo.-based regional provider of fiber-based network services, has secured an $85 million debt facility. CIT Group led the deal, with CoBank and Hercules Technology Growth Capital also serving as co-sponsors. The deal comes on the heels of Zayo’s recent acquisition of Minneapolis-based telecom provider Onvoy Inc., which had been backed by TowerBrook Capital Partners. Zayo earlier this year had secured access to $225 million in private equity funding, from firms like Columbia Capital, M/C Venture Partners, Oak Investment Partners, Battery Ventures and Centennial Ventures.

Buyout Deals

ABRY Partners has invested an undisclosed amount of equity into Executive Health Resources Inc., a Philadelphia-based provider of medical management services to improve hospital compliance and achieve revenue integrity.

Denham Capital Management has formed a strategic partnership with Recycled Energy Development to develop a $1.5 billion portfolio of waste energy recycling programs. The platform will fund projects developed and managed by RED that will profitably reduce energy costs and greenhouse gas emissions. Denham’s initial commitment is $500 million.

InterMedia Partners has acquired a minority stake in Control Room, a Beverly Hills, Calif.-based producer and digital distributor of live music events by such artists as Madonna, Jay-Z and Oasis. No financial terms were disclosed.

VMG Equity Partners has acquired a 20% stake in specialty tea company Mighty Leaf, according to LBO Wire. No financial terms were disclosed.

Wind Point Partners has sold Saltsburg, Pa.-based hose clamp manufacturer Breeze Industrial Products Corp. to Norma Group, a German pipe and clamp maker owned by 3i Group. No total financial terms were disclosed, except that the transaction included €375 million in debt.

PE-Backed IPOs

3Par Inc., a Fremont, Calif.-based provider of utility storage solutions, raised $105 million in its IPO. The company sold 7.5 million common shares at $14 per share ($11-$13 range), for an initial market cap of approximately $840 million. It will trade on the NYSE Arca under ticker symbol PAR, while Goldman Sachs and Credit Suisse served as co-lead underwriters. 3Par had raised around $185 million in total VC funding since its 1999 inception, from firms like Mayfield, Menlo Ventures, Worldview Technology Partners, Integral Capital Partners and Van Wagoner Capital Management.

Rubicon Technology Inc., a Franklin Park, Ill.-based maker of monocrystalline sapphire and other crystalline products, raised $93.8 million in its IPO. The company sold 6.7 million common shares being at $14 per share ($12-$14 range), for an initial market cap of $269 million.Rubiconwill trade on the Nasdaq under ticker symbol RBCN, while UBS served as lead underwriter. It had raised nearly $44 million in VC funding since 2001, from firms like Cross Atlantic Capital Partners, Gazelle TechVentures, KB Partners and River Cities Capital Funds.

PE Exits

Dell Inc. (Nasdaq: DELL) has agreed to acquire Everdream, a Fremont, Calif.-based provider of software-as-a-service solutions for remote-service management. No financial terms were disclosed. Everdream has raised over $110 million in VC funding since 1999. Current shareholders include Canaan Partners, DFJ, Rho Ventures, Portage Venture Partners and New World Ventures.

Firms & Funds

American Capital Strategies announced that it is opening an office in Framingham, Mass. It will focus on technology investments, and will be led by existing principal Miles Arone. He will be joined by new hire Patrick Gallagher, who previously was a vice president with Morgan Stanley Venture Partners.

Human Resources

Tracy Bahl, former CEO of Uniprise, has joined General Atlantic as a special advisor to the firm’s healthcare practice. She will provide industry insight and strategic counsel to GA and its portfolio companies.