peHUB Wire: Monday, January 11, 2010

As regular readers surely know, I have two primary addictions: Politics and sports (well, three addictions if you include cheese, but that isn’t relevant to this particular item). So when the two overlap with my day job, I get all geeky about it.

That’s why I devoted a few columns late last year to the senatorial aspirations of Steve Pagliuca, the Bain Capital managing director who also owns a slice of the beloved Celtics. Now that the campaign is over – Pagliuca came in fourth out of four major candidates in the Democratic primary – I wanted to know what he took away from it, the pros/cons of a PE pro running for public office and if he might run again.

What’s your top take-away, from a policy perspective?

“We have a long-term issue from an ‘on the ground’ perspective with jobs, based on investments we should have made in job training and education, but didn’t.”

On his private equity background:

“I think the general populace went through an education process. It was one of the positives of the campaign, in that people learned what the investment business does, why it’s a good thing and the benefits of applying some of its lessons to the U.S. economy.”

I did ask why his second TV ad – the “biography” seemed to jump directly from his college job moving boxes to his Celtics stewardship – and if that was to downplay any PE stigma. He said he didn’t realize the ad had done that, and that he’d have to look at it again.

On lessons for other PE pros considering political runs:

“The main thing I learned is that you can’t argue with who you are. As soon as you try to start being something you’re not, people see through it… Be yourself and then emphasize your strengths. You don’t have to run away from the investment business.”

Worth the run?

“I’m extremely glad I ran. I think I changed and drove the focus of what we talked about, in terms of jobs and healthcare. I also learned a lot, getting out of the ivory tower and back to my roots. There are fantastic people all over Massachusetts, and I feel for them because this recession is different than any other. There are so many competent people unemployed, and we’ve got to find a way to get them back to work.”

Beginning of a political career?

“This race was really a unique circumstance, in that it was Ted Kennedy’s seat. It also happened to be an election in which the issues were healthcare and job creation and global employment — all issues where I have 25 years of international experience that is a good fit with the role of a Senator. Being in the Senate deals with those issues, in a way that being, say, Governor doesn’t.”

I also asked Pagliuca if he’d continue to use the Twitter account he set up during the race. He replied positively but not necessarily affirmatively, if that makes sense…

*** A couple more public service notes worth noting, in the wake of the above and last week’s Larry Schloss news. First, there is a report that former Carlyle Group pro Bob Grady has turned down an offer to serve as New Jersey’s treasurer. Grady had co-chaired a budgetary task force for new Gov. Chris Christie, who gets to appoint the state’s treasurer. Sounds like Grady didn’t want to move so soon after leaving the Bay Area for Wyoming (where he currently works with Cheyenne Capital).

Second, Austin Beutner has been named Los Angeles’ deputy mayor of economic development. He also will oversee the Port of Los Angeles and the Department of Water and Power. Beutner stepped down last April as president and co-CEO of Evercore Partners,! the firm he had co-founded in 1996 with Roger Altman.

Last Friday’s column included some carried interest comments, and it got a bit of a reaction. Check out the conversation here (and add your two cents).

*** I’d like to let you know about a pair of new weekly features over at peHUB, which are being written by Connie Loizos. The first is called Behind the Screens, which will focus on the hidden non-execs who really provide most of the value at VC-backed tech companies. The debut post was about Erik “Dutch” Vanbraght, the technical lead developer for Zynga’s Mafia Wars.

The second feature is called Founder Spotlight, and is focused on rising entrepreneurial stars. It begins with a Q&A with Farbood Nivi of Grockit, which helps kids study for standardized tests via online social games.

*** No, I don’t want to talk about it. Go Saints or Cards (the only two remaining teams I don’t despise).

*** Finally, a reminder that Buyouts Magazine is now accepting nominations for its 10th Annual Deals of the Year awards. Get full info here.

Top Three

Candover has agreed to stop making investments from its 2008 fund, after it defaulted on its $1 billion capital commitment to the vehicle. The fund made just one investment.

TeamHealth, a Knoxville, Tenn.-based provider of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers, has acquired Anesthetix Management LLC, a Palm Beach Gardens, Fla.-based provider of anesthesiology and pain management services. No financial terms were disclosed. TeamHealth is owned by The Blackstone Group, and is in registration for a $100 million IPO.Anesthetix Management raised private equity funding in 2006 from Summit Partners.

Solomon Owayda has joined Siguler Guff as a managing director. He previously was chief investment officer at SVG Advisers, and before that oversaw private equity investments for the California State Teachers’ Retirement System (CalSTRS).

VC Deals

Achates Power Inc., a San Diego-based developer of fuel-efficient engine technology, has raised $19.2 million in Series B funding. Triangle Peak Partners was joined by return backers Sequoia Capital, Madrone Capital Partners, Rockport Capital Partners and InterWest Partners. peHUB previously reported on this round in October, based on a regulatory filing.

Advanced Cardiac Therapeutics Inc., a Laguna Beach, Calif.-based developer of irrigated cardiac ablation systems, has raised $5 million in Series B funding led by NBGI Ventures. The round is expected to support commercialization in Europe.

TVA Medical Inc., an Austin, Texas-based developer of minimally-invasive therapies for end-stage renal disease,has raised $2.6 million in Series A funding from Santé Ventures.

EnzySurge Ltd., an Israeli maker of chronic wound management solutions, has raised $2.5 million in new private equity funding. This caps the round at $4.1 million, at a post-money valuation of $21 million. The deal was led by company chairman Eli Gilboa.

ImpactRx Inc., a Mr. Laurel, N.J.-b ased developer of a subscription database for pharmaceutical companies, has held a first close on a $1.2 million Series E round from existing shareholders. The company previously raised around $36 million in VC funding from Mediphase Venture Partners, 3i Group, Oxford Bioscience Partners and Merck Capital Ventures.

Technology Crossover Ventures has made a “significant growth equity investment” in Origin Healthcare Solutions, a Windsor, Conn.-based provider of healthcare revenue cycle management services. No financial terms were disclosed. Origin Healthcare previously raised capital from Beecken, Petty & O’Keefe & Company, which will remain an investor.

Buyouts Deals

The Blackstone Group reportedly has been approached by Virgin Money to jointly bid for state-owned UK bank Northern Rock.

Gala Coral, a UK gaming group owned by Candover, Cinven and Permira, has asked for three waivers from senior debt holders. This includes a request by the debt-laden company to delay in publishing its annual report.

Platinum Equity has won the majority of assets of Genmar Holdings Inc., a Minneapolis-based boat manufacturer,&nb! sp;via a bankruptcy auction. Platinum will pay $70 million.

Solta Medical Inc. (Nasdaq: SLTM), a maker of anti-aging medical aesthetics,has agreed to raise $17.2 million via a PIPE financing,co-led byGreat Point Partners and existing shareholder Longitude Capital.

TPG Capital has denied a report that it was in talks to acquire UK engineering group Tompkins (LSE: TOMK).

PE-Backed IPOs

Cellu Tissue Holdings, an Alpharetta, Ga.-based maker of household and industrial paper products, hasset its IPO terms to 7.8 million common shares being offered at between $15 and $17 per share. It would have an initial market cap of approximately $316.32 million, were it to price at the high end of its range. The company plans to trade on the NYSE under ticker symbol CLU, with Goldman Sachs and JPMorgan serving as co-lead underwriters. Weston Presidio holds an 83.8% pre-IPO stake.

Medica, a French care homes group owned by BC Partners and AXA Private Equity, this week is expected to begin an IPO roadshow. The company is planning to raise at least €250 million, and list the week of February 8. The company’s current owners bought it from Bridgepoint in 2006 for around €750 million.

PE Exits

BC Partners has ceded control of UK estate agency chain Foxtons to its lenders, resolving a year long standstill.

CA Inc. (Nasdaq: CA) has acquired Oblicore, a Waltham, Mass.-based provider of service level management software for enterprises and service providers. No financial terms were disclosed. Oblicore raised around $20 million in VC funding, from firms like JVP, Concord Ventures, Shrem Fudim Kelner Technologies, Platinum-Neurone Ventures and Technoplast Technologies.

CUnet, a subsidiary of Nelnet Inc. (NYSE: NNI), has agreed to acquire Sparkroom, a Toronto-based provider of enrollment marketing automation and lead performance management solutions. No financial terms were disclosed. Sparkroom raised around $4 million in VC funding from Matrix Partners in 2007.

Progress Software Corp. (Nasdaq: PRGS) has acquired Savvion, a Santa Clara, Calif.-based provider of business process management software. The deal was valued at approximately $49 million, net of cash acquired. Savvion had raised nearly $52 million in VC funding since 2000, from firms like H.I.G. Capital, Redwood Ventures, TransCosmos, Westaim Partners, Walden I! nternational and VantagePoint Venture Partners.

SeaChange International (Nasdaq: SEAC) has agreed to buy VividLogic Inc., a Fremont, Calif.-based provider of software and services to cable television service providers, set-top box manufacturers and consumer electronics suppliers. No financial terms were disclosed. VividLogic raised $3 million in 2005 from Constellation Ventures.

TIBCO Software Inc. (Nasdaq: TIBX) has acquired Foresight Corp., a Dublin, Ohio-based provider of transaction automation solutions and EDI productivity tools. No financial terms were disclosed. Foresight had raised around $6 million in VC funding from Aurora Funds, Core Capital Partners, Fountainhead Capital and River Cities Capital Funds.

Firms & Funds

3i Group reportedly is planning to raise a £1 billion growth equity fund.

Human Resources

Michael Grey has been named a venture partners with Pappas Ventures. Grey has served as a member of the firm’s scientific advisory board for the past six years, and has served as CEO of Auspex Pharmaceuticals, SGX Pharmaceuticals (acquired by Eli Lilly) and Trega Biosciences (acquired by Lion Bioscience).

Nomura Holdings has named Glenn Schiffman as head of I-banking for the Americas. He had been serving as Nomura’s head of I-banking for Asia (excluding Japan).

William Perez has agreed to join Greenhill & Co. as a senior advisor, focused on the co! nsumer products market. He is the former president and CEO of chewing gum company Wm. Wrigley Jr. Co., and before that was president and CEO of Nike.

Julie Schneider has joined First Republic Bank, as a senior commercial lender in the firm’s Palo Alto, Calif. office. She had spent the past 17 years with Silicon Valley Bank, most recently as a director of private equity services.