PE Week Wire: Tuesday, January 13, 2009

A bunch of links to kick off your Tuesday, while I sit back and consider if there was no story more overhyped in 2006-2007 than the movement of U.S. private equity firms into China. Very few deals got done, and now folks are pulling back. Maybe just a bubble outgrowth…

* Venture capitalist Julius Genachowski is tapped to run the FCC. It must have been that pro-Obama post he wrote for peHUB last fall.

* Mother Jones fills out a TARP application, and finds that it only takes 27 minutes to complete. But don’t worry, that’s still 25 more minutes than it took them to fill out a new credit card application…

* Best. Job. Ever. Seriously, do any of you have jobs right now that you wouldn’t quit for this one?

* In your career, will you be Pittsburgh or Detroit? Until the recent collapse of Rhode Island’s job market, this also could have been titled: Will you be Providence or Worcester?

* General Motors plans to open a lithium ion battery production plant in Michigan, which is welcome news for the burgeoning battery startup market. Probably including that stealthy one John Doerr just testified about…

* Is hedge fund manager John Paulson brilliant or evil?

* The Jack Bauer Guide to Financial Success: 11 reasons why watching 24 is better prep than a financial modeling class. By the way, aren’t this year’s plot-holes particularly gaping? I know there’s always a suspension of disbelief, but this is ridiculous.

* GlobalPost just launched, as an online international news site from experienced journalists. I really hope this survives…

* First Read, including Colbert on Madoff.

* Second Opinion, including what happened to the healthcare industry’s recession-proofing.

* Q&A on the secondaries market with David Tom of VCFA Group.

* Peter Hebert of Lux Capital: Cleantech’s coming reset.

* How big is your ring finger? A new study says it may matter, if you want to be rich.

* De.lici.ous founder Joshua Schachter tires of “glorious unemployment.”

* A boom year for publicly-traded private equity stocks? Ummm… never mind.

* Madoff gets to stay in his swank penthouse… for now.

* West Hill Partners is still working to raise its first fund, while Westview Capital holds a first close for its second fund.

Top Three

Starwood Energy Group Global, an affiliate of private equity firm Starwood Capital Group, has acquired a majority stake in Nautilus Solar Energy LLC, a Chatham, N.J.-based solar power generation developer. No financial terms were disclosed, except that the deal includes a $50 million commitment for future Nautilus Solar projects.

Alter-G, a Menlo Park, Calif.-based developer of rehabilitation and therapy equipment built on anti-gravity technologies originally developed at NASA, has raised $8 million in Series B funding from Versant Ventures. Ross Jaffe of Versant will join the Alter-G board of directors.

Fredrik Arp has joined Candover as a senior advisor focused on the Nordic region and European industrials sector. He previously was president and CEO of Volvo Car Corp.

VC Deals

Ze-gen Inc., a Boston-based developer of technology for converting waste streams into synthesis gas, has raised $20 million in Series B funding. Omar Zawawi Establishment led the round, and was joined by return backers Flagship Ventures, VantagePoint Venture Partners, and Massachusetts Technology Development Corp.

BiPar Sciences Inc., a Brisbane, Calif.-based developer of PARP inhibitors as cancer therapies, has raised $20 million in new venture capital and debt funding. Return equity backers included Domain Associates, Canaan Partners, Vulcan Capital, PolyTechnos Venture-Partners, Asset Management Company and Quantum Technology Partners. Lighthouse Capital Partners provided the debt. No breakout was provided.

Aster Data Systems, a Redwood City, Calif.-based provider of analytic databases for frontline data warehousing, has raised $12 million in Series B funding. JAFCO Ventures led the round, and was joined by return backers Sequoia Capital, Cambrian Ventures and First Round Capital. The company had previously raised $10 million.

Chiasma Inc., a biotech company focused on enhanced oral delivery of proteins and small molecules, has raised $11 million in Series B recap funding ($9m called so far). Return backers include ARCH Venture Partners, MPM Capital, 7 Health Ventures, Ofer Hi-Tech and F2-ventures. The company had previously raised over $55 million, including a $44 million Series C round.

Tribold, a UK-based provider of enterprise product management software for communication service providers, has raised $11 million in new VC funding. Intel Capital led the round, and was joined by return backers DFJ Esprit and Eden Ventures.

Go Internet Media Inc., a Santa Clara, Calif.-based online advertising network focused on consumer acquisition services, has raised $10 million in Series A funding led by Kennet Partners.

NewsGator Technologies Inc., a Denver-based provider of content aggregation tools and services, has raised $10 million in additional Series E funding. Return backers include Masthead Venture Partners, Mobius Venture Capital and Vista Ventures. The company had previously raised $30 million, including a $12 million Series E tranche in late 2007.

WebLayers Inc., a Cambridge, Mass.-based a Cambridge, Mass.-based developer of automated SOA governance software, has raised $3 million in fourth-round funding. Return backers include Ascent Venture Partners, Cedar Fund and Veritas Venture Partners.

Millennium Pharmacy Systems, a Wexford, Pa.-based provider of contract pharmacy services, has secured a $35 million senior credit facility from MidCap Financial. The company has raised over $60 million in VC funding from firms like Essex Woodlands Health Ventures, Ascension Health Ventures, CHL Medical Partners and Boulder Ventures. Read more…

Buyout Deals

avVenta Worldwide, a Charleston, S.C.-based provider of digital production and interactive services, has raised $20 million in private equity funding from TZP Group LLC. It’s the first deal for TZP, a New York-based firm formed in 2007.

Centerfield Capital Partners has acquired a 45% stake in Associated X-Ray Services LLC, a distributor of radiology and medical imaging devices in Indiana and Michigan, according to LBO Wire. No financial terms were disclosed.

Trantech Radiator Products Inc., an Edgefield, S.C.-based maker of radiators used for cooling liquid-filled transformers in the electric power industry, has sold $10.7 million of preferred stock and subordinated debt to Key Principal Partners.

Windjammer Capital Investors has acquired S.T. Specialty Foods Inc., a Brooklyn Park, Minn.-based provider of private label and store-branded, dry shelf-stable dinners and side dishes. No financial terms were disclosed, except that Windjammer provided both equity and subordinated debt. Last month, peHUB reported that the two sides were in negotiations.

PE Exits

AngioDynamics Inc. (Nasdaq: ANGO) has acquired substantially all the assets of FlowMedica Inc., a Fremont, Calif.-based provider of targeted renal therapy solutions. The deal is valued at $1.75 million in cash, plus a possible earnout based on 2011 s! ales of a FlowMedica product. FlowMedica had raised over $28 million in VC funding since 2002, from Oxford Bioscience Partners, De Novo Ventures, Mi3 Venture Partners, Medica Venture Partners and Palo Alto Investors.

AVG Technologies, a Dutch Internet security software provider, has acquired Sana Security, a Redwood City, Calif.-based provider of identity theft prevention software. No financial terms were disclosed. Sana Security had raised over $43 million in VC funding since 2000, from firms like Bay Partners, El Dorado Ventures and Sevin Rosen Funds.

CMS Small-Cap Private Equity Fund has sold MedDispense LP, a provider of automated dispensing machines to small healthcare facilities, to Emerson (NYSE: EMR). No financial terms were disclosed. CMS had recapped MedDispense in January 2007, alongside CEO Bill McClintock. Cobblestone Advisors advised MedDispense on the sale.

PE-Backed M&A

Delta Rigging & Tools, a Lake Jackson, Texas-based provider of lifting products and services for the domestic lifting equipment and rigging industry, has acquired D&M Wire Rope, a provider of wire rope and rigging throughout Colorado, Utah, and Wyoming. No financial terms were disclosed. Delta Rigging was acquired last summer by Austin Ventures.

ExpertPlan, an East Windsor, N.J.-based private-label retirement plan record-keeper, has acquired Actuarial Enterprises Inc., a Newtown, Penn.-based third party administrator. No financial terms were disclosed. ExpertPlan has raised over $18 million between 2000 and 2004, from firms like Bridge Partners, BaseCamp Ventures, Milestone Venture Partners, Meridian Venture Partners, First Analysis Corp. Argentum Group, Paddington Venture Capital, Liberty Venture Partners, Gamma Investors, NextLevel Group and SeaCap Ventures.

Firms & Funds

Credit Suisse has formed a new unit to provide restructuring advice to companies and private equity firms in Europe, the Middle East and Africa. It will be co-led by Marisa Drew and Craig Klaasmeyer, former co-heads of leveraged finance origination. Read more…

GSO Capital Partners, a $25 billion credit hedge fund owned by Blackstone Group, is closing its Asia investment desk. The four-person team is expected to be relocated to either New York of London.

New Horizon Capital, a China-focused private equity firm, has raised 1 billion yuan ($146m) for its third fund.

Tailwind Capital has closed its inaugural fund with $775 million in capital commitments, according to LBO Wire. The New York-based buyout firm spun off from Thomas Weisel Partners in 2006, and held a $320 million first close in early 2007. It had been targeting $750 million. Atlantic-Pacific Capital served as placement agent.

Human Resources

Larry Klane has joined CVC Capital Partners as a senior advisor, focused on the financial services sector. He is the former president of Capital One Financial’s global financial services division. Read more…

Leeds Equity Partners has promoted Atif Gilani from principal to managing director, and Josh Kaufman from associate to senior associate.

Lime Rock Partners, an energy-focused private equity firm, has promoted Will Franklin, J McLane, and Simon Munro to the position of managing director. Lime Rock also has hired Kris Agarwal as director and assistant general counsel.