PE Week Wire: Wednesday, January 28, 2009

Greetings from New York City, where the snow has already given way to sleet. I’m running late for the PEA Outlook conference, which means there’s no time for a real column this morning. But, since I’d hate to leave you with nothing…

*** Private equity is about to get one of its own inside the Treasury Department.

We’ve learned that Matthew Kabaker has resigned as a managing director with The Blackstone Group, in order to join Tim Geithner and company at 1500 Pennsylvania Ave. No word yet on what Kabaker’s official role or title will be, but his past experience with financial institutions would suggest involvement with TARP or a TARP-like program.

“We will miss him as a colleague and as a friend,” says Blackstone spokesman Peter Rose. “But we are very proud of his move into public service.”

Kabaker originally joined Blacksone in 1998, and served on the boards of portfolio companies Alliant Insurance, Ariel Re, TRW Automotive, FGIC, HealthMarkets and Michaels Stores. He also was involv! ed in such other transactions as the London International Financial Futures & Options Exchange (LIFFE), Aspen Insurance, Bayview Asset Management, Financial Guaranty Insurance Co. (FGIC) and SunGard. His final day with Blackstone was last Tuesday, or Inauguration Day.

According to the Federal Elections Commission database, Kabaker donated $2,300 to the Obama campaign in late 2007, and also contributed another $5,000 last October to a PAC called the Obama Victory Fund.

I’ve tried getting comment from Treasury, but no one called back yesterday, and today no one is in yet because of ice (insert anger/bemusement here).

*** I’ll be live-blogging from the conference, beginning with Pete Lattman’s interview of KKR’s Scott Nutall at 10:45am. Just go to the peHUB homepage to find it, and to participate with your own comments and questions.

Top Three

3i Group today said that the value of its largest investments dropped 21% for the quarter ending Dec. 31, 2008. It also announced that Philip Yea is stepping down as CEO, to be succeeded by current infrastructure chief Michael Queen.

TallyGenicom LP has filed for Chapter 11 bankruptcy protection, to facilitate its sale to Printronix Inc., a portfolio company of Vector Capital.

Archemix Corp., a Cambridge, Mass.-based developer of aptamer-b! ased therapeutics, has lost its bid to go public via a reverse merger with NitroMed Inc. (Nasdaq: NTMD), after NitroMed accepted a richer offer from Deerfield Management. Archemix received a $1.5 milion termination fee. Archemix has raised around $135 million in VC funding from firms like Atlas Venture (13.9% stake), Prospect Venture Partners (13.9%), Highland Capital Parnters (13.2%), SV Life Sciences (11.6%), KGaA (11.3%), Rho Ventures (9.6%) and Care Capital (5.3%).

VC Deals

AC Immune SA, a Swiss drug developer focused on Alzheimer´s disease, has raised CHF 40 million ($34.6m) in Series C funding. No investors were identified, except that they were existing shareholders in the company.

TriCipher, a San Mateo, Calif.-based provider of on-demand identity assurance and management solutions, has raised $12 million in fourth-round funding. Backers include ArrowPath Venture Capital, EPIC Ventures, Intel Capital, RBC Technology Ventures and Trident Capital.

Talari Networks Inc., a San Jose, Calif.-based developer of private networking technology, has raised $6.2 million in Series A funding led by Menlo Ventures.

Xylophane AB, a Sweden-based developer of renewable packaging materials to extend food product shelf-life, has raised MSEK 34 million ($4.3m) in new VC funding. SEC Venture Capital and Capricorn Venture Partners were joined by return backersKTH Chalmers Capital and Innovationsbron.

Appnomic Systems (f.k.a. Vitage Technologies) a Bangalore, India-based provider of infrastructure management services, has raised $4.2 million in VC funding from Norwest Venture Partners.

WordStream Inc., a Boston-based provider of productivity tools for paid and natural search engine marketing, has raised $4 million in Series A funding from Sigma Partners.

Buyout Deals

3i Group is facing a possible creditor takeover of portfolio company VNU Business Media Europe, according to The Times of London. 3i bought the Dutch B2B publishing business in late 2006 for €320 million, but reportedly is close to breaking its covenants.

Emerging Capital Partners has acquired a minority stake in Thunnus Overseas Group, a group of tuna processing and distribution companies in Cote d’Ivoire and Madagascar. No financial terms were disclosed.

Kohlberg & Co. has completed its take-private acquisition of Centerplate Inc., a Stamford, Conn.-based concessions company.

PE-Backed M&A

Archer Technologies, an Overland Park, Kansas-based provider of enterprise governance, risk and compliance solutions, has agreed to acquire Brabeion Software Corp., a McLean, Va.-based provider of IT security risk and compliance management software. No financial terms were disclosed. Bain Capital Ventures is a minority shareholder in Archer Technologies, while Brabeion has raised around $10 million in VC funding from firms like Fairhaven Capital Partners and Longworth Venture Partners.

American Tire Distributors, a portfolio company of Investcorp, has, acquired Simi Valley, Cal! if.-based Am-Pac Tire for $75 million.

Novafora Inc., a Cupertino, Calif.–based maker of video processors, has completed its $255.6 million take-private acquisition of Transmeta Corp. Novafora has raised VC funding from Gemini Israel Funds and Vertex Venture Capital.

Human Resources

Stephen Welborn has joined Wynnchurch Capital, a Chicago-based mid-market PE firm, as a managing director. He previously was COO of Gateway Marketing International.

Alex Walker has joined C.P. Eaton Partners as a London-based vice president. He previously was a director of DTZ Investment Management.

TSG Capital Partners has made several promotions: Pierre LeComte to managing direct! or, Brian Krumrei and Robyn Lawrie Rutledge to principal and Jenny Baxter to vice president.