Private Equity Week Wire for Tuesday 11/20

FORT LAUDERDALE, FL — Privately held Bioheart Inc. has received an equity investment from Getz Medical, a division of Getz Bros. & Co., Inc., a leading marketing and distribution organization in the Asia Pacific Region focused on medical technologies for cardiovascular disease. Bioheart and Getz Medical have also entered into a long-term marketing and distribution agreement for the Asia Pacific Region. Additional participants in the completed $5 million round of financing included Ascent Medical Technology Venture Capital Fund and the previously announced investment by Guidant Corp. (GDT). Bioheart is focused on developing cellular-based therapies to regenerate heart muscle tissue.
WASHINGTON — BV Group Ventures LLC is pleased to announce the appointment of Mr. Reid R. Miles as managing director and partner, venture capital. Mr. Miles joins BV from Blue Water Capital, a Virginia-based venture fund, where he was a founder and managing director. He will assume his appointment at BV on December 1, 2001.

NEW YORK — MTS Health Partners LP a private merchant bank providing equity capital and strategic advisory services to companies in the healthcare industry, today announced the closing of its private equity fund. The firm also announced that Andrew M. Paul, former senior partner at Welsh Carson Anderson & Stowe, has been named chairman of the firm. Founded by Curtis S. Lane and Terrence J. Quinn in early 2000, MTS Health combines its principals’ more than 70 years experience investing in, advising and operating healthcare companies to deliver unparalleled services to its clients and superior returns for its investors.

MTS Health’s private equity fund, with investors including CIBC Capital Corporation, has raised $110 million for the first closing in 2001 and anticipates a subsequent closing by mid-2002. The fund typically targets investments greater than $10 million in operating companies involved in acute care, distribution, healthcare information and technology, managed care, medical devices and technology, pharmaceuticals, pharmaceutical services and post-acute care.

CALGARY, CANADA — The Board of Directors of Megawheels Inc. (CDNX:MGW) today announced that existing shareholder, Venture Investment Management Company LLC (VIMAC), has subscribed to US$200,000 (CDN $318,000) of its previously announced Convertible Promissory Note (the Note) financing for US$400,000. As a condition of the financing the Company has agreed, subject to shareholder approval at the Annual General and Special Meeting scheduled for January 21st, 2002, to consolidate its Common Shares on the basis of one consolidated share for two existing common shares within 90 days of closing of this financing.

EDISON, NJ — NetForensics Inc., provider ofinnovative Security Information Management (SIM) solutions, today announced ithas raised $10.8 million as part of Series B financing. Soundview Ventures ledthe round; Series A investors Cisco Systems and Palo Alto-based Storm Venturesalso participated in the round and are joined by top-tier technologyleadership firm, The Feld Group. The completion of this phase of Series Bfinancing brings the total external investment to date in netForensics to$17.8 million. netForensics has also added Edward G. Sim, a Managing Directorat Soundview Ventures, to the company’s Board of Directors.

READING, UK — Tao Group today announced that Dr. Alan E. Baratz, CEO of Zaplet, Inc. and former President of Software Products and Platforms at Sun Microsystems, has been appointed to its Board of Directors. Baratz joined Zaplet from E.M. Warburg, Pincus & Co., LLC, a private equity and venture capital firm, where he was instrumental in building a number of new technology companies. In his former role as President of the Software Products & Platforms Division at Sun Microsystems, he led the growth and adoption of the Java(TM) platform from its infancy to a robust platform supporting mission-critical applications in almost 80 percent of Fortune 1000 companies.
MENLO PARK, CA — –Pequot Ventures, the direct venture investment arm of Pequot Capital Management, Inc., today announced the opening of a Silicon Valley office located in Menlo Park, California. The Menlo Park investment team supports the firm’s expanded Silicon Valley focus on promising software technology, network infrastructure and healthcare sector companies. Pequot Ventures has $1.7 billion in committed capital, and earlier this year announced the final closing of its $730 million Pequot Private Equity Fund III, L.P., its fifth venture fund overall. Pequot Ventures is the lead investor for a majority of its portfolio companies and approximately 60 percent of its investments fall into the start-up or early growth stage categories.

CAMBRIDGE, UK — Zeus Technology Limited, the acknowledged leader in mission-critical web server software and solutions, today announced that it has secured a 3.5m pounds ($5.1m) fourth round financing. Cazenove Private Equity and Cross Atlantic Capital Partners made the investment.

For yesterday’s Wire, click here

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