peHUB Wire: Tuesday, April 21, 2009

It’s the end of April, which means that a bunch of first-year MBA candidates are freaking out about not having summer internships lined up yet. But we’re here to help, with our annual Desperate Interns Drive.

This is a lot like the Internship Rodeo from November, except that it’s later in the game for both employers and employees. So if your firm is looking to hire summer interns from the current crop of first-year MBA candidates, please drop me a note at (you also can just hit “reply” to this email).

All postings will be put into peHUB’s password-protected MBA Forum section, and can include as much or little information as you’d like to provide. Minimums are firm type (VC, LBO, I-Bank, etc.) and job location. If you’d like to keep your firm identity anonymous, just be sure to let me know.

There is no fee for this service. For context, MBA Forum currently has over 2,000 verified members.

1. Addendum #1: If you are among the desperate MBAs, please do not email me your CV, photograph or any other such information. When the postings are ready, I’ll be sure to let you know (probably early next week).

2. Addendum #2: The Desperate Interns Drive is only for summer internships. If you want to hire someone for a fulltime position, please use our Careers board. Postings cost just $99 each and can be purchased online with a credit card.

*** Most public pension systems report when they have committed to a private equity fund, and include info like the size of commitment, the fund’s basic strategy and the fund’s key personnel. Couldn’t they also provide a basic timeline of how the fund was sourced and diligenced? This would, of course, include the identities of any “finders” that have contact with a pension system on a fund’s behalf.

I’ve talked to a few public pension LPs who say that such a process is feasible, and could prove helpful in reducing political interference. Any objections?

*** Some of you criticized my “Oh The Horror” headline choice, in regards to Q1 venture capital investment data. Specifically, you said that there is nothing horrible about lower disbursement volume, since it does not necessarily presage positive or negative ROI (which is really what’s important). Moreover, the year that Q1 2009 was compared to – 1997 – was actually a great year for VC returns.

Those are valid points, and I regret not making them yesterday. However, “the horror” wasn’t intended to be so much about the dollar volume, as it was about the 47% quarter-over-quarter decline. Even if you believe the current volumes are “right-sized,” it’s hard to argue that such a sudden drop doesn’t represent a shock to the VC system (and, by extension, the entrepreneurial system). So “shock” was perhaps a better word than “horror.” I’ll now go and fire my copy editor…

*** I am pleased to welcome Parish Capital as a co-sponsor of The LP Congress, which is taking place on June 9 at Bond Street restaurant in New York City. Last week we announced Coller Capital as the other co-sponsor, and now we’re a’ done (just like we’re limiting the number of attendees, we’r! e limiting the number of sponsors).

It’s a good group so far, with registrants from public pensions, funds-of-funds, private foundations, family offices, etc. Remember, it’s invite-only, but you can request an invite by emailing me with your name, place of work and job title. Only actual LPs need apply…

Top Three

The City of Chicago has terminated an agreement to lease its Midway Airport to a group led by Citi Infrastructure Inv! estors, after the investo rs were unable to secure enough financing. The $2.52 billion deal would have been the first privatization of a major U.S. airport. Participating alongside Citi was YVR Airport Services Ltd. and John Hancock Life Insurance Co.

Stoke Inc., a Santa Clara, Calif.-based maker of convergence gateways for fixed and wireless broadband access technologies, has raised $15 million in Series D funding. NetOne systems Co. (Japan) and return backer Reliance Technology Ventures (India) co-led the round, and were joined by Kleiner, Perkins, Caufield & Byers, Seq! uoia Capital, Integral Capital Partners, Pilot House Ventures and DAG Ventures. Prior to this round, Stoke had raised over $50 million.

Spectrum Equity Investors and Bain Capital Ventures have agreed to acquire a majority interest in SurveyMonkey, a Portland, Ore.-based provider of online survey solutions. No pricing terms were disclosed for the deal, which included leveraged financing from Bank of America, CIT and NewStar Financial. Dave Goldberg will take over as CEO, after having spent the past two years as an entrepreneur-in-residence with Benchmark Capital.

VC Deals

Kazeon Systems Inc., a Mountain View, Calif.-based provider of intelligent eDiscovery solutions, has raised $10 million in sixth-round funding, according to a regulatory filing. JK&B Capital was joined by return backers like Clearstone Venture Partners, Menlo Ventures and Redpoint Ventures. Kazeon had previously raised around $65 million since 2003.

Health Market Science, a King of Prussia, Penn.-based provider of healthcare data and analytics, has raised $5.6 million in new VC funding. Return backer Edison Venture Fund led the round with a $2.9 million investment.

nContact Surgical Inc., a Morrisville, N.C.-based developer of tissue coagulation devices for use in surgical procedures, has secured nearly $5 million of a $15 million round of VC funding, according to a regulatory filing. Listed shareholders include return backers Finistere Partners, Intersouth Partners, Massey Burch Capital and Harbert Venture Partners. The company previously raised around $24 million over three funding rounds.

Naverus Inc., a Kent, Wash.-based developer of performance-based aircraft navigation, has raised $4 million in fourth-round funding co-led by return backers Foundation Capital and East Peak Partners.

Batanga, a Coral Gables, Fla.-based online media and entertainment company for Latinos, has raised an undisclosed amount of Series B funding from return backers like Tudor Ventures and H.I.G. Ventures. According to an April 6 regulatory filing, Batanga had secured $2.5 million of a $7.5 million funding round. The company previously raised over $37 million.

Buyout Deals

GE Capital has sold its stake in SAFE Security, a San Ramon, Calif.-based security alarm company, to Rustic Canyon/Fontis Partners. No pricing terms were disclosed, except that the deal included a $25 million senior credit facility from Bank of America.

InBev has received final offers for South Korea’s Oriental Brewery from three private equity firms: Affinity Equity Partners, KKR and MBK Partners.

Rite Ventures, a Swedish private equity firm has acquired Frank Dandy Superwear, a bankrupt maker of men’s underwear.

TPG Capital has agreed to inject extra capital into UK chemicals group British Vita, as part of a debt-for-equity swap with the company’s lenders.

PE-Backed Busts

Dayton Superior Corp., a Dayton, Ohio-based concrete forming and shoring rental company, has filed for Chapter 11 bankruptcy protection. Odyssey Investment Partners acquired the company in 2000, and still maintained a sizable stake following a 2006 IPO. As of March 31, Odyssey held nearly 48% of Dayton Superior’s common stock.

PE Exits

Microline Pentax has acquired Starion Instruments Corp., a Sunnyvale, Calif.-based developer of surgical technology for sealing and dividing soft tissue. No financial terms were disclosed. Starion had raised over $9 million from firms like Atherton Venture Partners, Band of Angels, St. Paul Venture Capital and Tyco Ventures.

Firms & Funds

3i Group has sold its stakes in ten portfolio companies to Cipio Partners, a direct secondaries firm. No financial terms were disclosed for the sale, which involved companies from 3i’s European venture capital portfolio.

Morgan Stanley Investment Management has closed its fourth fund-of-funds with $1.14 billion in capital commitments. It will invest in buyout, venture capital and special situations funds.

SVG Capital said that it will remain a listed investment trust focused on private equity, following a strategic review. SVG also said that it would continue its relationship with Permira.

Wellspring Capital Management has secured $163.1 million in LP commitments for its fifth fund, according to a regulatory filing. The New York-based private equity firm is targeting $1.5 billion, and is using Credit Suisse as a placement agent.

Human Resources

Bridget Rauvola has joined Morgenthaler as a partner in charge of investor relations. She had spent the past 16 years with Frazier Healthcare Ventures as senior vice president of marketing and investor relations. She is based in Boulder, Colorado.

John Milad has joined NGBI Ventures, a London-based venture firm focused on the med-tech sector. He previously was with Insight Capital & Advisory.

Daniel Zimmermann has joined Sonnenschein Nath & Rosenthal as a Palo Alto-based partner in the firm’s Venture Technology group.