Private Equity Week Wire for Friday 12/1

? ISELIN, NJ — A group of prominent investment firms, ledby Bain Capital and featuring TA Associates and Silver Lake Partners, hascompleted an agreement to invest $700 million to acquire a majorityinterest in both Datek Online Holdings Corp., which operates one of thenation’s most innovative online brokers, and The Island ECN, Inc., atechnology leader in alternative trading systems. The investment is thelargest private equity investment in an online financial services firm. Datek Online Holdings will acquire all voting shares of stock held by agroup of original shareholders, including former Chief Executive OfficerJeffrey Citron. Current management, led by Ed Nicoll, Chairman and ChiefExecutive Officer of Datek Online Holdings Corp., and the investment groupwill now own 100 percent of the voting control of Datek Online Holdings.

? SAN DIEGO — Facts Online, Inc. announced that over 333 U.S. companies received new fundings during November 2000. This is a reduction of 20% from the month of October. During November, the new fundings spread across 29 states. However only 8 states (28%) had at least 10 or more companies with new fundings: California (38.7%), Colorado (3.0%), Massachusetts (10.2%), New York (7.8%), Pennsylvania (4.5%), Texas (3.0%), Virginia (5.4%) and Washington (5.1%). By comparison, during the prior month of October, about half of the states had 10 or more companies with new fundings.

? BOSTON — Funds Distributor Inc. (FDI) announced its relationship with two new clients, Calamos Asset Management and Lee Munder Capital Group. The Calamos Asset Management agreement will take advantage of FDI’s marketing communications and sales consulting services. The Lee Munder Capital Group relationship will also look to FDI’s marketing communications capabilities as well as serving as the fund underwriter and fund administrator.

? PHILADELPHIA & DURHAM, NC — Sustainable Jobs Fund, L.P. (SJF) has closed on a $500,000 investment in Spectral Dimensions of Olney, MD, SJF Managing Director Dan Hoversten announced today. Spectral Dimensions, which designs and manufactures high- speed, two dimensional chemical analysis instrumentation for use in the pharmaceutical, agricultural and medical industries, expects to create at least 60 high paying, good benefit assembly jobs targeted to low income citizens in Maryland within the next four years.

? WESTBOROUGH, MA — Corp. (Nasdaq:INSI) Friday announced that it has closed the $2 million of convertible debt financing that is part of the $3.5 million of new financing that it had announced on Nov. 7. Previously, the company closed on a $1.5 million asset-based line of credit with Silicon Valley Bank. The $2 million of convertible debt is being provided by Totowa, N.J.-based Selway Partners LLC and CIP Capital L.P. of Wayne, Penn. (the “investors”). Selway is a technology holding company engaged in building technology-oriented companies and is an existing shareholder.

? ANDOVER, MA — CMGI Inc. (Nasdaq: CMGI) Chairman and CEO David Wetherell today reiterated CMGI’s continued support of its NaviSite, Inc. (Nasdaq: NAVI) majority-owned subsidiary, and announced that the company expects to accelerate its previously announced $80 million funding of NaviSite, subject to the negotiation of terms and conditions. CMGI previously increased its original financing commitment to NaviSite from $50 million to $80 million in order to compensate for any loss of funding NaviSite might experience from its institutional lenders. As discussed in CMGI’s recent financial guidance disclosures, the $80 million advance to NaviSite is reflected in CMGI’s projections for fiscal 2001.