peHUB Wire: Tuesday, October 20, 2009

Top Three

New Enterprise Associates (NEA) has raised $2.45 billion from 189 investors toward its thirteenth fund, New Enterprise Associates 13 LP, according to an SEC filing. The vehicle has a $2.5 billion target and is using Greenhill & Co. as its placement agent. The general partners of Baltimore-based NEA will contribute $24.8 million to the fund.

Jon Moulton, the founder of Alchemy Partners who earlier this year left the British buyout firm in a public disagreement over its direction, has plans to launch a new buyout firm according to reports. Moulton will hire six executives to begin the firm, called Better Capital, which will invest in distressed companies in the UK.

Cerberus Capital Management is in advanced preparations to take rifle and ammunition maker Freedom Group Inc public, according to the Wall Street Journal. Cerberus has rolled at least seven U.S. gun-and-ammunition makers into Freedom over the last three years, creating a company that is on pace for nearly $1 billion in sales this year.

VC Deals

BioCeramic Therapeutics, a London-based developer of bioactive materials for orthopaedic and dental applications, has raised £1.2 million in new VC funding. Backers include Imperial Innovations, Longbow Capital and return backers Comvest Ltd. and the Esmee Fairbairn Foundation.

Jive Software Inc., a Portland, Ore.-based maker of social business collaboration software, has raised $12 million in Series B funding from return backer Sequoia Capital. It previously raised $15 million.

Lux Biosciences Inc., a Jersey City, N.J.-based biotech company focused on ophthalmic diseases, has raised $50 million in Series B funding. Return backers include HBM Bioventures, Novo A/S, Prospect Venture Partners and SV Life Sciences and SVLS’ publicly traded fund International Biotechnology Trust plc. Lux Biosciences had raised a $49 million Series A round in 2006.

Buyouts Deals

Clayton, Dubilier & Rice, Inc. completed its deal $250 million equity investment in the NCI Building Systems. The CD&R-managed funds acquired newly issued preferred stock resulting in an ownership position in the Company of approximately 68.5% on an as-converted basis.

Carlyle Group has purchased a 16.5% stake in China Agritech, an Asian organic fertilizer maker, for $15 million.

Carlyle Group has invested an additional $10 million into Supercircuits, a video surveillance provider it purchased control of in 2006. The new capital will be used to fully retire Supercircuits’ debt and develop new products.

Thompson Street Capital Partners, a buyout firm based in St. Louis, Missouri, has invested in Logan’s Linens , a Shelbyville, Ky.-based hospital linen and uniform rental business for an undisclosed price. Falls River Group advised the seller; Dresner Partners assisted the firm on the transaction.

Avenue Capital is in the final stages of talks to buy a Chinese medical equipment company backed by a unit of Citigroup Inc in a deal worth over $100 million. The exclusive talks for Shenzhen-based Landwind between Avenue Capital, one of the world’s largest hedge funds, and Citi Venture Capital International (CVCI) came after Bain Capital and other private equity funds dropped their bids, said the sources. ()

Bunker Hill Capital has developed an operating partnership with Donald W. Borden Jr. to assist in the identification and acquisition of companies in the water and wastewater industry.

IMS Health Inc is in talks with private equity firms about the sale of the company, Reuters reported. The prescription drug data provider received an initial round of bids last week and may make a decision as early as November on whether to sell the company. Private equity firm TPG submitted an offer, while Silver Lake and BC Partners submitted a joint bid, the report said.

PE-Backed IPOs

Hyatt Hotels Corp set the size and price range of its planned initial public offering, suggesting the launch of the $931 million deal is imminent despite signs of feuding within the controlling Pritzker family. Goldman Sachs and Madrone Capital Partners maintain stakes in the company.

PE-Backed M&A

Maxxam Analytics, an independent analytical laboratory business backed by OMERS Private Equity, acquired Cantest Ltd., a British Columbia-based analytical laboratory business, for an undisclosed sum. OMERS Private Equity is the buyout arm of OMERS, a Canadian pension plans.

FleetPride, a Woodlands, Texas-based seller of aftermarket heavy duty vehicle parts, has purchased the assets of Angelo Fleet & Industrial Supply, Inc. of San Angelo, Texas for an undisclosed price. FleetPride was purchased by Investcorp in 2006.

PE Exits

AmTrust Financial Services Inc said it agreed to initially invest $42.5 million in a joint venture to acquire struggling GMAC’s U.S. consumer property and casualty insurance business. Cerberus Capital Management maintains a minority stake in GMAC.

Lonza withdrew its $460 million offer to acquire Canada’s Patheon on Tuesday, citing the cost and the opposition of majority shareholder JLL Partners, a buyout firm which owns 57% of Pantheon.

OriGene Technologies, Inc. has acquired of Marligen Biosciences, Inc., Maryland-based a provider of genome technology. Marligen has received backing from Emerging Technology Partners. OriGene has received venture backing from Morningside Group, as first reported by VentureWire.

BMC Software today announced it has entered into a definitive agreement to acquire privately-held Tideway Systems Limited (Tideway), a leading provider of IT discovery solutions. Tideway has received investments from Apax Partners, Accel Partners, Scottish Equity Partners, and Nesta.

Hudson Capital Partners, a Newton, Mass.-based adviser for retail and consumer products asset dispositions, has appointed Elijah Kaplan Vice President of Capital Markets. In the newly created position, Mr. Kaplan will focus on originating investment opportunities by marketing the firm’s products and services to capital markets participants such as financial sponsors, distressed investors, lenders, and advisers. .

Citigroup appointed Jing Zhao and Simon Yoo as co-heads of its Asia Pacific Financial Institutions Group (FIG), putting in place leaders of a team with 90 bankers spread across the region. Both will be based in Hong Kong and report to Farhan Faruqui, Citi’s head of Asia Pacific Global Banking, a Citigroup spokesman said.

Toronto-based advisory firm Beringer Capital has added Michael Sifton and Josef Prosperi have joined Beringer as Managing Partners. Sifton was previously President & CEO of Sun Media; Propseri was previously a Director at Teachers’ Private Capital, the private equity division of the Ontario Teachers’ Pension Plan Board.

Algon Group, an Atlanta-based financial advisory firm, has hired Heather L. Barlow as a Senior Managing Director and Bradley Edwards, G. Travis Hendren, and Janet L. Protas as Managing Directors. Barlow was as formerly a senior banker in the Restructuring Advisory Group at CIBC World Markets Corp. Hendren was a Director with Wachovia in its Investment Banking division.

Firms and Funds

CIT Group Inc, a leading provider of financing to small businesses and middle market companies, today acknowledged receipt of a letter from Carl Icahn to CIT’s Board of Directors regarding CIT’s efforts to secure financing and offering to underwrite an alternative $6 billion loan. This letter is CIT’s first indication of Mr. Icahn’s interest in underwriting an alternative financing and the Company intends to ask Mr. Icahn for more information regarding his proposal. ()

Human Resources

Hudson Capital Partners, a Newton, Mass.-based adviser for retail and consumer products asset dispositions, has appointed Elijah Kaplan Vice President of Capital Markets. In the newly created position, Mr. Kaplan will focus on originating investment opportunities by marketing the firm’s products and services to capital markets participants such as financial sponsors, distressed investors, lenders, and advisers. .

Citigroup appointed Jing Zhao and Simon Yoo as co-heads of its Asia Pacific Financial Institutions Group (FIG), putting in place leaders of a team with 90 bankers spread across the region. Both will be based in Hong Kong and report to Farhan Faruqui, Citi’s head of Asia Pacific Global Banking, a Citigroup spokesman said.

Toronto-based advisory firm Beringer Capital has added Michael Sifton and Josef Prosperi have joined Beringer as Managing Partners. Sifton was previously President & CEO of Sun Media; Propseri was previously a Director at Teachers’ Private Capital, the private equity division of the Ontario Teachers’ Pension Plan Board.

Algon Group, an Atlanta-based financial advisory firm, has hired Heather L. Barlow as a Senior Managing Director and Bradley Edwards, G. Travis Hendren, and Janet L. Protas as Managing Directors. Barlow was as formerly a senior banker in the Restructuring Advisory Group at CIBC World Markets Corp. Hendren was a Director with Wachovia in its Investment Banking division.