peHUB Wire: Thursday, October 1, 2009

The first quarter ended at the stroke of last midnight, which means we’ve got a lot of data pouring in. Here’s the first batch, with links to where you can download more info:

*** Private Equity Deals

Global private equity volume came in at over $37.84 billion for 641 deals, according to Thomson Reuters. This compares to $15.92 billion for 573 deals during the previous quarter, and easily represents the busiest quarter for private equity since Q3 2008, when over $55 billion was transacted. (Note:The Q3 figure includes agreed-upon deals that have not yet closed, like Skype).

It’s important to keep thebump in context, however, by emphasizing that private equity activity during the first nine months of 2009 is 66.9% lower than it was during the first nine months of 2008. Moreover, the past four quarters combined have been slower than any other four-quarter period since Q3! 2001-Q2 2002.

Global M&A — including private equity — was valued at $459.78 billion in Q3, compared to $527.83 billion the prior quarter and $799.46 billion in Q3 2008. Overall, there has been $1.46 trillion of global M&A either closed or announced so far this year. Download spreadsheet here.

*** Private Equity Fundraising

Private equity firms might have ramped up their deal-making activity in Q3, but it wasn’t on the heels of raising new funds.

According to new data released this morning by Preqin, private equity firms raised less fund capital last quarter than in any other quarter since Q4 2003. The Q3 2009 figure was $38 billion, down 45% from the $84 billion raised in Q2, and a whopping 82% from the high-water mark of $208 billion set in Q2 2008.

It’s important to note that Preqin calculates its numbers by including all of a fund’s committed capital in the quarter in which it holds its final close. For example, that means that the Q3 figures include $8.8 billion for Hellman & Friedman’s new fund, even though most of those commitments came on interim closes held in earlier quarters.

Thomson Reuters (publisher of peHUB) calculates its fundraising data by breaking out the fund closes, and attributing the commitments to the quarter in which they were actually committed. Expect those figures shortly, and the resulting discrepencies. Download Preqin release here.

*** Venture Capital Exits

Venture capitalists might keep talking about a resurgent exit market, but it’s much more prospective than current. Data released this morning by Thomson Reuters and the National Venture Capital Association show that both IPO and M&A exits actually declined in the third quarter. Pretty troubling, considering that Q2 was no great shakes.

Only three VC-backed companies went public last quarter, raising $572 million. This is down from the five VC-backed IPOs that raised $720 million in Q2. Twenty VC-backed companies currently have active S-1 filings with the SEC.

On the M&A front, just 62 VC-backed companies were sold with disclosed values of $1.2 billion. This compares to 64 VC-backed companies being sold the prior quarter, with $2.57 billion in disclosed value. Worth noting that eight more companies disclosed their sale price in Q3 than in Q2, which accentuates the total value decline (although it can be difficult to extrapolate from such a small sample). Download data and view charts here.

*** Not Data: A reminder that our Dallas Shindig is sold out, but you can get on the waiting list by sending me an email. We’re hopeful that some spots will open up next week. Per usual, a big thanks to sponsors StaffOne, New Capital Partners and Landmark Partners.

Top Three

ViaSat Inc. (Nasdaq: VSAT) has agreed to acquire WildBlue Communications Inc., a Denver-based provider of broadband Internet-over satellite services in rural America. The deal is valued at $568 million, including $443 million of cash, $125 million of ViaSat stock and $68 million of WildBlue cash on hand. WildBlue has raised nearly $400 million in private equity funding, including a $50 million infusion in September 2008. Backers include Liberty Media, Intelsat, the National Rural Telecommunications Cooperative and Kleiner, Perkins, Caufield and Byers.

Talecris Biotherapeutics Holding Corp., a Research Triangle Park, N.C.-based developer of plasma-derived protein therapies, raised $950 million in its IPO. The company priced at the middle of its $18-$20 per share range, but increased its number of offered shares by 11.8% to 50 million shares. The company i! s controlled by Cerberus Capital Management, which led a $590 million buyout in 2005. Cerberus had already recouped its equity investment (and then some) via a dividend recap. Other shareholders include Ampersand Ventures.

Hellman & Friedman has closed its seventh buyout fund with $8.8 billion in capital commitments. The firm also announced that Warren Hellman will step down as firm chairman, but remain as an investment committee member. Philip Hammarskjold will succeed Brian Powers as CEO.

VC Deals

Liquid Environmental Solutions, a non-hazardous liquid waste collection and treatment company with offices in Dallas and San Diego, has raised $20 million from Craton Equity Partners.

eCommLink, a Las Vegas-based provider of prepaid debit card processing, has raised $10 million in new VC funding led by Syntek Capital.

Blackwave, an Acton, Mass.-based provider of online video storage and delivery infrastructure, has raised $7 million in Series C funding. Return backers include Globespan Capital Partners, Flybridge Capital Partners and Sigma Partners. The company has now raised more than $29 million in total VC funding. !

ActiViews Ltd., an Israel-based developer of optical guidance systems for use in CT fluoroscopy and MRI procedures, has raised $5 million in new VC funding. 7 Health Ventures led the round, and was joined by return backers Ofer HiTech and Evergreen Venture Partners.

Preparis, a subscription-based workforce preparedness platform, has raised $4.6 million in a VC funding round led by Fulcrum Ventures. Preparis is based in Atlanta.

Molecular Detection Inc., a Wayne, Penn.-based maker of assays for infectious disease diagnosis, has raised $3.3 million in Series C funding. MentorTech Ventures! led the round, and was joined by Ben Franklin Technology Par tners, Robin Hood Ventures and the Mid-Atlantic Angel Group.

ThermalTherapeutic Systems Inc., a Pittsburgh-based provider of a portable platform technology for standardizing hyperthermic perfusion, has raised $2.75 million in Series A funding. Originate Ventures led the round, and was joined by seed backers Pittsburgh Life Sciences Greenhouse and Innovation Works.

Blue Belt Technologies Inc., a Pittsburgh-based developer of instruments for use in orthopedic and neurosurgery procedures,has raised $2.4 million in Series A funding. Backers include the Pittsburgh Life Sciences Greenhouse and Innovation Works.

Racktivity, a Belgium-based developer of management technology for large-scale datacenters, has raised €1.2 million from Big Bang Ventures.

Adimab Inc., a Lebanon, N.H.-based developer of a human antibody discovery platform in yeast, has raised an undisclosed amount of Series D funding. Google Ventures led the round, and was joined by return backersOrbiMed Advisors, Borealis Ventures, Polaris Venture Partners and SV Life Sciences.

Next Big Sound Inc., a Boulder, Colo.-based provider of online music analytics and analysis, has raised an undisclosed amount of VC funding from Foundry Group.

Delivery Agent Inc., a San Francisco-based provider of shopping-enabled programming and content monetization for entertainment properties, this morning announced that it has raised nearly $25 million in Series D funding. peHUB reported the round earlier this week, based on a regulatory filing. Focus Ventures led the deal, and was joined by T-Venture, Coral Group, Ironwood Capital and return backers Bessemer Venture Partners, Worldview Technology Partners and Cardinal Venture Capital. It had previously raised $35 million.

Buyouts Deals

Cortec Group has acquired a majority interest in Katena Products Inc., a Denville, N.J.-based maker of micro instruments for ophthalmic surgeries of the anterior segment of the eye. No financial terms were disclosed. Investment bank The Walden Group represented Katena Products.

Panolam Industries, a Shelton, Conn.-based decorative laminate company, said that it has reached a debt restructuring agreement with lenders led by Apollo Capital Management. The deal would include a prepackaged debt-for-equity swap. Genstar Capital and Sterling Group bought Panolam for $345 million in 2005.

The Riverside Company has acquired Crioestaminal, a Cantenhede, Portugal-basedumbilical cord blood c! ollection company. No financial terms were disclosed. The deal was done out of Riverside’s fourth European fund.

True Temper Sports Inc., a Memphis, Tenn.-based maker of golf shafts and other sports equipment, has agreed to a debt restructuring with its lenders. The deal would include a prepackaged bankruptcy filing and around $70 million in new equity funding. The company did not identify the equity investors, nor mention if they include current owner Gilbert Global Equity Partners.

PE Exits

AT&T Inc. (NYSE: T) has acquired Plusmo Inc., a Santa Clara, Calif.-based developer of cross-platform mobile applications. No financial terms were disclosed. Plusmo had raised around $4.4 million in a Series A round led by New Enterprise Associates.

Sanofi-Aventis has agreed to acquire Fovea Pharmaceuticals SA, a Paris, France-based drug company focused on ophthalmic diseases. The deal is valued at up to €370 million, including an upfront payment and possible milestone payments. Fovea had raised over $60 million in VC funding from firms like Forbion Capital Partners, Sofinnova Partners, Abingworth, GIMV, The Wellcome Trust and CAPE.

PE-Backed M&A

ASP Westward, acommunity newspaper publisher owned by American Securities, has agreed to acquire two Texas newspapers from Cox Enterprises Inc. No financial terms were disclosed. The papers are the Longview News-Journal (Longview) and The Marshall News Messenger (Marshall and Harrison County).

DOCUgroup, a provider of business information to the European construction sector, has acquired the Nordic assets of Reed Business Information. No financial terms were disclosed. DOCUgroup is a portfolio company of GMT Communications Partners.

Forte Design Systems, a San Jose, Calif.-based provider of software design products, has acquired Arithmatica Ltd., a UK-basedprovider of IP and datapath synthesis. No financial terms were disclosed. Forte Design has raised over $40 million in VC funding, from firms like3i Group, Infinity Capital, U.S. Venture Partnersand Saints Capital. Arithmatica has raised over $2 million from firms like Spark Ventures.

Firms & Funds

American Capital (Nasdaq: ACAS) has closed its Frankfurt, Germany office, “in response to the global downturn in the private equity markets over the past two years.” The office’s assets will continue to be managed by the firm’s London staff.

The Carlyle Group’s investment team in Mexico has spun out into an independent firm named EMX Capital. It will continue to manage Carlyle Mexico Partners, a $134 million fund closed in 2005. That fund has a 17.4% IRR through the end of Q2, according to limited partner CalPERS.

CIT Group Inc. reportedly is nearing a deal that would turn the company over to bondholders.

Kolhberg Kravis Roberts & Co. has completed its previously-announced merger with Amsterdam-listed affiliate KPE, and has now become publicly traded on the Euronext. It plans to transfer its listing to a New York exchange early next year.

Human Resources

Tom Ehret has joined Advent International as an operating partner, with a focus on the oil and gas services and equipment sector. He previously was CEO of Acergy SA, a global offshore engineering and construction contractors to the oil and gas industry.

Gordie Nye has been named CEO of Zeltiq Aesthetics, a Pleasanton, Calif.-based developer of non-invasive procedures for the reduction of unwanted fat tissue. He had been a general partner with Prism Venture Partners for the past six years, and will remain a director with some of its portfolio companies. peHUB reported last month that Prism had shut down the Southern Californi! a office which Nye ran.

Charlie O’Donnell has been named an entrepreneur-in-residence with First Round Capital, which also is opening a New York City office. O’Donnell is co-founding CEO of Path101, and has previously worked at both Union Square Ventures and the GM Pension Fund.