peHUB Wire: Friday, July 16, 2010

Some quick hits before we collectively leave early for a 2.5 day weekend…

*** Q2 venture capital investment data was released this morning by the MoneyTree Three, and I think Connie nailed the gist: Big rebound over last year’s numbers, but that’s damning with faint praise.

Overall, VCs invested $6.5 billion into 906 U.S. deals last quarter. That represents a 34% capital increase over Q1, and the first half of 2010 had a 49% dollar increase over the first half of 2009 (but still down 30% over the first half of 2007, which was hardly a banner year)…

*** … On the other hand, VCs announced over $324 million in deals on Wednesday and Thursday. Pretty remarkable, conside! ring that the largest round was only $60 million (Atlassian). Just “timing” groupthink by PR flacks, or is Q3 going to be a legitimate VC blowout?

*** More numbers: Thomson Reuters just sent over its latest I-banking scorecard, which included this nugget:

Private Equity firm Carlyle Group LLC announced its intention to acquire US-based nutritional supplement manufacturer, NBTY Inc, in a deal valued at $3.9 billion. There have been 485 private equity backed acquisitions of US targets valued at $46.8 billion so far in 2010, up three times from the same period in 2009.

Private Equity acquisitions of US healthcare companies total $7.8 billion for year-to-date 2010, 17% of the total buyside financial sponsor activity this year and the top industry in 2010. Carlyle Group ranks as the largest private equity acquirer worldwide in 2010 with $6.9 billion in deals followed by Texas Pacific Group Inc with $6.0 billion.

*** Kleiner Perkins partner Joe Lacob yesterday agreed to buy the Golden State Warriors. Now I know what you’re thinking: “Gee, he must have gotten tired of having to attend all those playoff games as a Celtics minority owner. Next May, he’ll be able to turn in by 10pm each night.”

For me, the question is if he’ll be a fulltime owner like Wyc Grousbeck, who quit his VC job before later returning in a part-time capacity (after he realized that there wasn’t too much for him to do in the Celts ! office each day, after working out in the team gym). Or will he be like Steve Pagliuca, who kept his dayjob and was mostly visible during gametime?

I’ll make a call today, and hopefully will have the answer on Monday.

*** Am I the only one who thinks the idea of Penthouse buying Playboy seems wrong? Like Velveeta buying cheddar…

*** By the way, here’s a way to connect the aforementioned deal to the week’s most notorious newsmaker: Hugh Hefner’s bid is being financed by Rizvi Traverse Management, a private equity firm whose portfolio includes Summit Entertainment. That’s the film studio responsible not only for Twilight, but also a new animated feature starring Mel Gibson (mostly finished, release now very uncertain).

*** Hey Atlanta: More than 150 of you have tickets for our next peHUB Shindig, taking place on August 5 in Atlanta. Be sure to join us, by going to:

Big thanks to sponsors Womble Carlyle, Grant Thornton and Navigation Capital Partners.

Top Three

TPG Capital and GS Capital Partners have agreed to buy Belgium-based diaper-maker Ontex from Candover, for €1.2 billion. It represents the year’s largest European leveraged buyout.

Smart Technologies Inc., an Alberta, Canada-based maker of interactive technology products for learning and collaboration, raised around US$660 million in its IPO. The company priced 38.83 million shares at $17 per share, and began trading on both the Nasdaq and TSX. Morgan Stanley, Deutsche Bank and RBC Capital Markets served as co-lead underwriters. Apax Partners acquired Smart Technologies in 2007. Intel Capital also is listed as a significant shareholder.

Alberta Investment Management Corp. has ended talks to acquire British private equity firm Candover.

VC Deals

CellFor Inc., a Vancouver-based producer of varietal tree seedlings for reforestation, has raised more than US$30 million in fifth-round funding. Capricorn Investment Group led the round, and was joined by return backers CSFB Equity Partners, GrowthWorks Capital and BDC Venture Capital.

iPeak Networks, an Ontario-based networking technology development company , has raised an undisclosed amount of Series B funding from Miralta Capital and Arjesan II LP.

Buyouts Deals

The Carlyle Group and TPG Capital have submitted a final bid for Australian hospital group Healthscope. It is unclear if the company also received a bid from KKR, which previously submitted an indicative offer that would have valued Healthscope at around A$1.8 billion.

The Carlyle Group’s $3.8 billion deal to acquire NBTY Inc. (NYSE: NTY) includes $2.4 billion in debt financing.

Clayton, Dubilier & Rice and TPG Capital have opted to submit independent bids for RBS payment processing business WorldPay, rather than teaming up. Final offers are due Monday, with the frontrunner considered to be a pairing of Advent International and Bain Capital.

San Miguel Corp., a Philippine conglomerate, said it has received multiple offers for its Pure Foods unit. Bidders reportedly include The Carlyle Group, CVC Capital Partners and Universal Robina Corp.

Sverica International has acquired Syscon Justice Systems, a Vancouver-based provider of software solutions to domestic and international corrections facilities and police departments. No financial terms were disclosed.

PE-Backed IPOs

NetSpend Corp., an Austin, Texas-based provider of prepaid reloadable debit cards in the U.S., has filed for a $200 million IPO. It plans to trade on the Nasdaq, with Goldman Sachs and BoA Merrill Lynch serving as co-lead underwriters. The company reports $18 million in 2009 net income, on around $223 million in revenue. This compares to a net loss of nearly $28 million in 2008, on $128 million in revenue. NetSpend was acquired in 2004 by Oak Investment Partners (46.9% pre-IPO stake). Other shareholders include JLL Partners (32.5%), based on NetSpend’s 2008 acquisition of JLL portfolio company Skylight Financial.

Qlik Technologies Inc., a Radnor, Penn.-based provider of business analytics software, raised around $112 million in its IPO. The company priced 11.2 million shares at $10 per share, which was above its $8.50-$9.50 offering range. The company has an initial market cap of approximately $749 million, and will trade on the Nasdaq under ticker symbol QLIK. Morgan Stanley, Citi and J.P. Morgan served as co-lead underwriters. Shareholders include Accel Partners (26.7% pre-IPO stake), Jerusalem Venture Partners (25.4%) and Stiftelsen Industrifonden (10.1%)

RealD Inc., a Beverly Hills, Calif.-basedlicensor of stereoscopic (aka 3-D) technologies, raised $200 million in its IPO. The company priced 12.5 million common shares at $16 per share, which was above its $13-$15 per share offering range. It will trade on the NYSE under ticker symbol RLD, with J.P. Morgan and Piper Jaffray serving as co-lead un! derwriters. Shareholders include Shamrock Capital Growth Fund< /strong>, with a 14.8% pre-IPO stake.

PE-Backed M&A

Joyent Inc., a Sausalito, Calif.-based developer of cloud computing technology, has acquired Layerboom Systems, a Vancouver-based provider of software virtual server management tools for hosting providers and enterprise companies. No financial terms were disclosed. Joyent has raised VC funding from Intel Capital.

LPL Financial Corp., a U.S. brokerage in registration for a $600 million IPO, said it would buy pieces of National Retirement Partners Inc., which manages group retirement plans. No financial terms were disclosed. Hellman & Friedman and TPG Capital acquired a 60% stake in the company four years ago at an enterprise value of around $2.5 billion. According to the S-1 filing, the two firms now own a combined 72 percent.

Manoir Industries SAS, a portfolio company of Sun Capital Partners, has acquired Kartik Steels Ltd., an Indian manufacturer of steel castings for the petro-chemical industry. No financial terms were disclosed.

Vantage Specialty Chemicals, a portfolio company of H.I.G. Capital, has recapitalized Lipo Chemicals Inc., a Paterson, N.J.-based provider of ingredients and ingredient technologies to the personal care and cosmetics industry. No financial terms were disclosed.

PE Exits

Haddington Ventures and GE Energy Financial Services have agreed to sell the Port Barre, La.-based Bobcat Gas Storage assets and development project to Spectra Energy Corp. (NYSE: SE) for $540 million.

SDL (LSE: SDL) has acquired Language Weaver, a Marina Del Rey, Calif.-based provider of automated language translation software, for $42.5 million in cash. Language Weaver had raised over $4 million in VC funding from In-Q-Tel, Palisades Ventures and Tech Coast Angels.

Firms & Funds

Baring Private Equity Asia is targeting $1.75 billion for an Asia-focused fund. The group’s prior vehicle closed on $1.52 billion in May 2008.

DT Capital Partners, a growth equity investor focused on China, has raised RMB 1.5 billion for a new fund, according to Zero2IPO.

Institutional Venture Partners has closed its thirteenth fund with $600 million in capital commitments, according to a regulatory filing. The firm had been targeting $600 million, which is the same amount it raised for its twelfth fund in 2006.

Storm Ventures is pre-marketing its fourth fund with a $150 million target, according to VentureWire. The firm previously raised $220 million for its third fund in 2005.

RoundTable Healthcare Partners has closed its third private equity fund with $600 million in capital commitments. It also closed its second subordinated debt fund with $200 million.

Human Resources

Flybridge Capital Partners has promoted Matt Witheiler from senior associate to principal. He joined the firm two years ago, and sits on the board of The Capital Network.

Steve Glick has stepped down as a principal with Lineage Capital, peHUB has learned. He plans to join the middle-markets group of Sankaty Advisors.

Maurice Gordon has joined Guardian Life Insurace Co. of America as a senior manager of private equity investments. He previously served in a ! similar role with The Hartford Insurance Co.

Jeff Markowitz has joined executive search firm Heidrick & Struggles as managing partner of its global venture capital practice. He previously was with Howard Fischer Associates.

Neill Occhiogrosso has joined Investor Growth Capital as a New York-based vice president. He had spent the past four years with Highland Capital Partners, most recently as a Boston-area principal.