Day two of computer catastrophe, which is really a case of “shoulda known better than to hope everything would be better in the morning.” So as my real column is locked away in an inaccessible file, some assorted notes to kick off your hump-day:
*** Expect a slew of KKR stories in the general biz press over the next 48 hours, as the buyout behemoth transfers its listing from Amsterdam to New York. Most of them will probably focus on what the move signals about the private equity market. Let me save you some time: Nothing.
That said, two things to watch: (1) Is KKR able to pull off its $500 million share sale, which it filed for back on May 10. This was originally supposed to occur just after the list switch, but reports have suggested indefinite postponement. (2) KKR plans to keep a fairly low profile ! tomorrow. No bell-ringing, giant parties, etc. Very smart from a PR perspective, particularly when considering the mindset of cost-conscious LPs.
*** The NVCA and Deloitte today released results of a global VC sentiment survey, which measured opinions of more than 500 global venture capitalists. Not surprisingly, 90% of U.S. VCs expected to see the number of firms to shrink over the next five years, while most of those in China, India and Brazil expect growth.
Among cited problems in the U.S. were difficulties in achieving successful exits (88%), unfavorable tax policies (59%) and unstable regulatory policy (53%). On the upside, most lauded government-funded R&D efforts and an “improving entrepreneurial environment.” Get more info here.
*** Yesterday I reported that the Florida State Board of Administration had agreed to acquire an ownership stake in Lexington Partners. A ! pension system spokesman later rang to confirm the news, saying the deal closed on June 18 and involved a $41.25 million investment. That figure is much smaller than what I had heard (9.9% at $1.8b valuation) – meaning that either my ownership percentage or enterprise value were off. Hoping to get more clarity soon…
*** Expect some funding news today from BillFloat, a San Francisco-based payment startup being backed by PayPal and Venrock. The founder is Ryan Gilbert, a Venrock entrepreneur-in-residence who previously founded real estate payment company PropertyBridge (acquired by MoneyGram in 2007).
It almost sounds a bit like an online alternative (read: cheaper) to payday loans, with BillFloat giving people an additional 30 days to ! pay their electric bill, rent, etc. Plan to write more about this today on the site.
Top Three
Leonard Green & Partners reportedly is planning to sell swimming pool supplies company Leslie’s Poolmart.
TriVascular, a Santa Rosa, Calif.-based developer of endovascular repair devices for treating abdominal aortic aneurysms, has raised $60 million in Series C funding. Pinnacle Ventures led the round, and was joined by return backers New Enterprise Associates, Delphi Ventures, MPM Capital and Kearny Venture Partners.The company previously raised $95 million, part of which was used to purchase TriVascular from Boston Scientific (which itself had purchased the company from VCs Delphi and Kearny).
Digital Sky Technologies, a Russian Internet conglomerate with stakes in several VC-backed companies, has sold a 28.7% ownership stake to Naspers, a global media group based in South Africa. The deal involves $388 million in cash, plus Naspers’ 39.3% stake in Mail.ru.
VC Deals
IOD Inc., a Green Bay , Wisc.-based provider of release of information services and solutions to hospitals and physician clinics, has raised over $35 million in growth equity from LLR Partners. The investment is in exchange for a minority ownership position.
Trevena Inc., a Berwyn, Penn.-based developer of drugs that target G-protein coupled receptors, has raised $35 million in Series B funding from existing investors. Polaris Venture Partners and New Enterprise Associates co-led the round, and were joined by Alta Partners, Healthcare Ventures and Yasuda Enterprise Development Company. Trevena previously raised $24 million.
Metamark Genetics Inc., a Cambridge, Mass.-based molecular diagnostics company focused on cancer, has raised $22 million in Series B funding. No investor information was disclosed.
BarRx Medical Inc., a Sunnyvale, Calif.-based developer of endoscopic solutions for treating precancerous lesions of the esophagus, has raised $15 million in Series D funding. Highland Capital Partners led the round, and was joined by return backers Delphi Ventures, Alloy Ventures, Frazier Healthcare Ventures, Sutter Hill Ventures and Greenspring Associates.
ZocDoc, a New York-based provider of physician finder and appointment booking services, has raised $15 million in Series B funding. Founders Fund led the round, and was joined by return backer Khosla Ventures.
Zogenix Inc., a San Diego-based drug company focused on pain management and CNS disorders, has raised $15 million in Series C funding. Return backers include Clarus Ventures, Domain Associates, Scale Venture Partners, Thomas, McNerney & Partners, Abingworth Management and Chicago Growth Partners.The company previously had raised $71 million, and today also announced that it has secured a $35 million debt facility from Oxford Finance Corp. and Silicon Valley Bank.
hi5, a San Francisco-based social entertainment site, has raised over ! $14 million in Series B funding. Crosslink Capital led the round, and was joined by return backer Mohr Davidow Ventures. The company raised a $20 million Series A round in July 2007.
Power Assure Inc., a Santa Clara, Calif.-based provider of power management solutions for data centers, has raised $11.25 million in Series B funding. Good Energies and Point Judith Capital were joined by return backer Draper Fisher Jurvetson.
FreightWatch International, an Austin, Texas-based provider of global l ogistics security, has raised $10 million in a growth equity round led by Bridge Investments.
Morphlabs Inc., an El Segundo, Calif.-based cloud platform startup, has raised $5.5 million in Series B funding. Global Gateway Investment Group led the round, and was joined by Frontera Group and return backers CSK Venture Capital and AO Capital Partners.
Vivox Inc., a Framingham, Mass.-based provider of VoIP services for online games and virtual worlds, has raised $2 million f! rom Peacock Equity. The company previously raised around $20.6 million from Benchmark Capital, Canaan Partners, Grandbanks Capital and IDG Ventures San Francisco.
Buyouts Deals
Hugh Hefner has released text of a letter sent to the Playboy board of directors, regarding his bid to take the company private.
Lion Capital and Permira reportedly are the frontrunners for Findus, the Italian frozen foods unit of Unilever. BC Partners also is expected to bid, with a winner being selected within the next few weeks.
Thompson Street Capital Partners and Charterhouse Group have acquired Colo4 LLC, a Dallas-based provider of carrier-neutral colocation data center services. No financial terms were disclosed.
Wingate Partners has acquired Dunn Paper Acquisition Inc., a Port Heron, Mich.-based specialty paper manufacturer, from Meriturn Partners. No financial terms were disclosed.
PE-Backed IPOs
Envestnet Inc., a Chicago-based provider of online investment solutions and services to financial advisors, set its IPO terms to 7.7 million common shares at between $12 and $14 per share. The company plans to trade on the NYSE under ticker symbol ENV, with Morgan Stanley, UBS and Barclays Capital serving as co-lead underwriters. Envestnet reports nearly $78 million in 2009 revenue, down from $92 million in 2008. It also dropped from a $5.2 million net profit in 2008 to an $872k net loss in 2009. The company has raised over $40 million in VC funding, from GRP Partners (29.14% pre-IPO stake), Foundation Capital (9.45%), Apex Venture Partners (7.2%), Edgewater Funds (7.15%) and Siguler Guff (5.24%). www.envestnet.com
Stroeer, a German advertising group, said it plans to raise €394 million in its IPO. Partial owner Cerberus Capital Management plans to sell its entire stake for around €83.2 million.
PE Exits
Rally Software, a Boulder, Colo.-based provider of on-demand application life cycle management solutions, has acquired an iPhone app called ScrumAway from Blue Hole Software. The $15 app will be relaunched as a free app called Rally, which will provide access to the real-time status, progress and quality of Agile development projects. Rally Software has raised over $51 million in VC funding from Greylock, Mohr Davidow Ventures, Boulder Ventures, Mobius Venture Capital and Vista Ventures.
PE Exits
Goldman Sachs is in talks to sell its 86% stake in Teibow Co., a Japanese maker of felt pen nibs. The deal could be worth upwards of $113 million.
J.F. Lehman & Co. has completed its sale of Atlantic Marine Holding Co. to BAE Systems for $352 million in cash. Atlantic Marine provides vessel maintenance, repair, overhaul and conversion, marine fabrication and ship construction services. !
Thompson Street Capital Partners has sold DCL Medical Laboratories LLC to LabCorp, for an undisclosed amount. DCL provides diagnostic and clinical trial testing services, with a focus on women’s health. It has offices in St. Louis and Indianapolis .
Firms & Funds
Sequoia Capital China is looking to raise CNY3 billion ($442m) for a new yuan-denominated fund, according to VentureWire. www.sequoiacap.com
Human Resources
Thomas Anderman has joined Paine & Partners as a principal in the firm’s New York office. He previously was a vice president with BAML Capital Partnersand, before that, worked at Freeman Spogli & Co.
Tom Newell has joined Greene Holcomb & Fisher as a managing director in charge of the firm’s Pacific Northwest investment banking efforts. He previously was president of the Shorewood Group.
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