PE Week Wire: Tues., Nov. 27, 2007

It’s that time of year, when young MBA candidates’ thoughts turn to flights of summer internships. So let’s help them out, through our 5th Annual Internship Rodeo.

The way this works is that private equity firms should contact me via email if you’re looking for a summer intern from the current crop of first-year MBA candidates. All types of firms need apply — VC, LBO, I-banks, Mezzanine, Consulting, Funds-of-Funds, etc. Ditto for geography.

In your emails, please include your firm name, job location and type of business (i.e., VC/LBO/etc.). You also may include any additional information you would like posted.

You firm name will be kept confidential, unless you specifically request it to be disclosed (which about 30% of firms requested last year).

Once compiled, the listings will be posted in the peHUB MBA Forum, an online messageboard only accessible to current MBA candidates. It currently has around 950 members, and that’s sure to grow once word of the Rodeo gets around. Responses will be directed to an anonymous email account that I will set up for you, unless you also let me know of an alternate email address you prefer.

So please get me your information as soon as possible. We have placed around 200 summer interns via this program, and many have gone on to fulltime employment at their internship site following graduation. So, again, please get those emails of interest to me so that we can post the internship listings ASAP.

*** Please remember that this is only to recruit first-year MBA candidates for summer internships. If you are looking to recruit for second-years or other “permanent” positions, please use the Careers board of peHUB. Job ads only cost $99, and stay up there for two weeks.

*** peHUB First Read

*** DFJ is the year’s busiest cleantech investor.

*** Partech manages currency risk.

*** I’ll be giving two speeches on Thursday. Hope to see some of you there.

Top Three

The Abu Dhabi Investment Authority will invest $7.5 billion in Citigroup, which will be convertible into no more than 4.9% of Citigroup’s equity.

Aurigen Re Capital Ltd. has received $500 million in initial capitalization, to launch a life reinsurance business in Canada. Backers include EdgeStone Capital Partners, Englefield Capital, Pine Brook Road Partners and Soros Strategic Partners.

Bill Frist, former U.S. Senate Majority Leader, has joined Cressey & Co. as a partner. Cressey & Co. is a healthcare-focused private equity firm recently formed by Bryan Cressey and Peter Ehrich.

VC Deals

Gigle Semiconductor Inc., a developer of multimedia home networking solutions, has raised $20 million in Series B funding. SEP led the deal, and was joined by return backers Accel Partners and Pond Venture Partners. The company had previously raised $11 million.

BioSpace Med, a France-based orthopedic imaging company, has raised $18 million in new VC funding. NBGI Ventures and Credit Agricole Private Equity co-led the deal, and were joined by return backers Edmond de Rothschild Investment Partners and UFG PE. Aelios Finance advised BioSpace on the deal.

BIND Biosciences Inc., a Cambridge, Mass.-based developer of “smart” therapeutic targeted nano-particles capable of differential delivery and controlled drug release to diseased tissue, has raised $16 million in Series B funding. ARCH Ventures and NanoDimension were joined by return backers Flagship Ventures and Polaris Venture Partners.

BDMetrics Inc., a Baltimore, Md.-based developer of personalization technology for trade shows and associations, has raised $15 million in Series C funding. Greenhill SAVP led the round, and was joined by return backers Valhalla Partners, Grosvenor Funds, New Markets Growth Fund and Maryland DBED.The company had previously raised around $13 million.

Yaupon Therapeutics, a Radnor, Pa.-based drug company focused on lymphoma, addiction and neuropathic pain, has raised $14.5 million in Series C funding. Vivo Ventures led the deal, and was joined by Palo Alto Investors. No word on if past investors also participated. These would include Osage Ventures, Ben Franklin Technology Partners, TDH Capital and BioAdvance Greenhouse Fund.

Xenome Ltd., an Australian developer of novel peptide drugs, has raised US$10 million in VC funding. Return backer Queensland BioCapital Funds was joined by Amylin Pharmaceuticals and Innovis Investment Partners.

Clarus Therapeutics Inc., a Northbrook, Ill.-based developer of an oral testosterone replacement product, has raised $8 million in Series C funding. H.I.G. Ventures led the round, and was joined by return backer Thomas, McNerney & Partners. The company has now raised over $12 million in total funding.

HealOr Ltd., an Israel-based developer of treatment for skin disorders and chronic wounds, has raised $8 million in Series B funding led by Pitango Venture Capital.

Qwaq Inc., a Palo Alto, Calif.-based developer of virtual spaces for enterprises, has raised $7 million in its first round of institutional funding. Alloy Ventures and Storm Ventures co-led the round.

Advasense Inc., an Israel-based developer of mobile phone image sensors, has raised $6 million in additional Series B funding. The round had held a $14 million close earlier this year. CIDC was joined by return backers Genesis Partners, VentureTech Alliance, Giza Venture Capital and BlueRun Ventures.

Optimum Energy LLC, a Seattle-based developer of software that reduces energy use in high-rises and other large buildings, has raised $5 million in second-round funding led by Columbia Pacific Management.

Star RF Inc., a Waltham, Mass.-based semiconductor startup, has raised $960,000 in Series A funding led by Matrix Partners, according to a regulatory filing.

Sendori, a Sunnyvale, Calif.-based company that drives online traffic from generic domains to specific Web advertisers, has secured $800,000 of a $2.12 million Series A-1 round, according to a regulatory filing. Backers include First Round Capital, Baseline Ventures, Maples Investments and Felices Ventures.

Inigral Inc. has raised around $580,000 in Series A funding led by The Founders’ Fund, according to a regulatory filing. The Palo Alto, Calif.-based company develops software that enables collaboration between students, their peers and their instructors through online tools and social networks.

Buyout Deals

Belvedere Capital has acquired Professional Business Bank, a Pasadena, Calif.-based lender to small businesses. No financial terms were disclosed.

Buchanan Capital Partners has acquired a minority stake in Dehler, a Sauerland, Germany-based manufacturer of high-end sailing yachts. No financial terms were disclosed.

Hunt Special Situations Group has acquired The LETCO Group LP from Republic Services Inc. (NYSE: RSG). No financial terms were disclosed. LETCO Group is a Dallas, Texas-based commercial manufacturer and provider of mulch, compost and other landscaping materials in Texas.

PrivateBancorp Inc. (Nasdaq: PVTB) has raised a $200 million PIPE led by a $100 million investment by GTCR Golder Rauner. Mesirow Financial also participated with a $40 million infusion.

Restoration Hardware Inc. (Nasdaq: RSTO) said that it will give Sears Holding Corp. the financial information it wants, if Sears agrees to sign a confidentiality and standstill agreement. Sears recently said in a regulatory filing that it is interested in acquiring Restoration Hardware, after having acquired a 13.9% ownership stake. Catterton Partners already has a $6.70 per share buyout offer in place.

PE-Backed IPOs

ChinaEdu Corp., a Beijing-based provider of various services to the online degree programs of Chinese universities, has filed for an IPO of 6.82 million American depository shares being offered at between $10 and $12 per share. It plans to trade on the Nasdaq under ticker symbol CEDU, with Bear Stearns & Co. serving as lead underwriter. Shareholders include tiger Global (19.82% pre-IPO stake), McGraw-Hill Cos. (6.61%), IDG Technology Ventures (4.5%), UOB Venture Technology Investments (2.68%) and EcoChina Investments (1.47%).

Milestone AV Technologies Inc. (f.k.a. CSAV Holding Corp.), a Savage, Minn.-based maker of audio-visual mounting equipment and display solutions, has set its IPO terms to 12 million common shares being offered at between $14 and $16 per share. It would have an initial market cap of approximately $542 million, where it to price at the high end of its range. The company plans to trade on the NYSE, with Wachovia Securities and Piper Jaffray serving as co-lead underwriters. Friedman Fleischer& Lowe led a 2003 buyout of Milestone, and currently stands as majority owner. Other shareholders include Fulham Investors and Performance Equity Management.

PE Exits

Intuit Inc. (Nasdaq: INTU) has agreed to acquire Homestead Technologies Inc., a Menlo Park, Calif.–based provider of website solutions for small businesses. The deal is valued at approximately $170 million in cash, including the assumption of Homestead’s outstanding options and restricted stock units. Homestead has raised $73 million in total VC funding, including a $35 million Series C round in 2000 at a post-money valuation of approximately $313 million. Backers include DFJ, DFJ ePlanet Ventures, Goldman Sachs, Institutional Venture Partners, Intel Capital, DLJ Merchant Banking Partners, Draper Richards, VeriSign, GRP Partners and Meritech Capital Partners.

Nogales Investors has agreed to sell Southern California retailer Chick’s Sporting Goods to Dick’s Sporting Goods Inc. (NYSE: DKS). The deal is valued at approximately $71 million, including $40 million in cash and $31 million in assumed debt. It is expected to close later this year.

PE-Backed M&A

Advanced Health Media, a Bridgewater, N.J.-based provider of regulatory compliance management systems and sales logistics services to the life sciences sector, has acquired the operations of Embryon, a Somerville, N.J.–based provider of sales-force meeting logistics systems and medical communications services to the pharmaceutical industry. No financial terms were disclosed. AHM is a portfolio company of Arlington Capital Partners.

eInstruction, a provider of a real-time feedback solution for students and instructors, has agreed to acquire Interwrite Learning, a provider of a mobile teacher slate. No financial terms were disclosed. eInstruction is a portfolio company of Leeds Equity Partners.

GuildCafe Entertainment Inc., a Cambridge, Mass.-based social media site for online gamers, has acquired UberGuilds, a network of online gaming communities and fansites. No financial terms were disclosed. GuildCafe earlier this year raised $600,000 in seed funding from IDG Ventures Boston.

InsideView Inc., a San Bruno, Calif.-based provider of on-demand sales intelligence services, has acquired Southborough, Mass.–based competitor TrueAdvantage Inc. No financial terms were disclosed. InsideView recently raised a $7.4 million Series A round from Emergence Capital Partners, Greenhouse Capital Partners and Rembrandt Venture Partners. TrueAdvantage had raised $26 million in VC funding since 2000, from firms like Atlas Venture, Rustic Canyon Partners, Longworth Venture Partners, Village Ventures, Baird Venture Partners and Long River Capital Partners.

PSI, a Burbank Calif.-based based provider of professional testing services and talent assessment solutions, has acquired LaserGrade LP, a network of computer-based testing centers. No financial terms were disclosed. PSI is a portfolio company of ABRY Partners.

Human Resources

Marios Fotiadis has joined TVM Capital as a Boston-based general partner on the firm’s life sciences team. He previously was with Enterprise Partners Venture Capital. TVM also announced that it has promoted Jens Eckstein to general partner, and hired Ovid Santoro as a venture partner in the firm’s recently-opened New York office. Santoro previously worked in the alternative capital group of Deutsche Bank, and will focus on building and maintaining relationships with I-banks and hedge funds.

Ed Olkkola has joined Belo Corp. (NYSE: BLC) as vice president of business development. He most recently was a managing director with STARTech Early Ventures and, before that, spent nine years with Austin Ventures.

Mark Hauser has joined Sandell Asset Management as a senior managing director responsible for the firm’s global private equity practice. He previously spent seven years as a managing director at FdG Associates, where he served as a member of the firm’s investment committee.

Michelle English has joined Paul, Hastings, Janofsky & Walker LLP as a London-based partner in the firm’s private equity practice. She will focus on cross-border buyout and VC transactions, and previously was with Kirkland & Ellis.