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    PE Week Wire -- Monday, April 24

The first set of Q1 venture capital data was released this morning, courtesy of VentureOne and Ernst & Young. It shows 564 companies raising $6.02 billion, which is higher than what was raised in either Q1 2005 or Q4 2005. Median round size was $7.5 million, with Amp’D Mobile scoring the largest deal at $150 million. Lots of interesting stuff to discuss, but I’ll hold off until tomorrow when the MoneyTree results come in from PwC, NVCA and Thomson VE. In the meantime…

Desperate Internship Drive
We have 27 firms participating in our Desperate Internship Drive. Some are looking for one intern, some are looking for multiple interns. Some of the positions are paid, some are not. Each position is only open to first-year MBA candidates looking for summer employment. Apologies to everyone else. For those who qualify:

  1. Scan the list of available opportunities below. If one interests you, please send a resume and cover letter to the appropriate email address. The poster is not required to respond or acknowledge receipt. If interested, the poster will contact you.
  2. In order to help prospective employers wade through the flood of applicants, please include the following in the email subject header: "Your Name - Name of your favorite book."
  3. It is possible that these Yahoo accounts will fill up quickly. If your email bounces back, just wait a few hours, and hopefully the firm will clear out space.

Job: Middle-market LBO
Location: Dallas, Texas

Job: Private equity
Location: San Francisco

Job: Middle-market LBO & Buy-side advisory
Location: New York City

Job: Private equity w/ emerging markets focus
Location: New York City

Job: Early-stage tech VC
Location: Sacramento

Job: M&A Advisory and Restructuring (at independent I-bank)
Location: New York City

Job: Early-stage VC (internship is healthcare-focused)
Location: Research Triangle Park, NC

Job: Commercial Finance
Locations: Santa Clara, Calif. and Menlo Park, Calif.

Job: VC
Location: Atlanta

Job: Equity research for sell-side firm
Location: Atlanta

Job: Growth Capital
Location: New York City

Job: I-banking
Location: San Francisco

Job: LBO, with consumer media focus
Location: New York City

Job: Growth equity and buyouts in media, telecom and business services
Location: Cleveland

Job: VC
Location: Mexico City

Job: Retail-focused tech startup about to begin fund-raising
Location: Chicago

Job: I-Bank: M&A and later-stage private placements, with software/Internet focus
Location: San Francisco

Job: Private equity firm in the midst of fundraising
Location: San Francisco

Job: LBO with financial institutions focus
Location: San Francisco

Job: Energy-focused VC
Location: Calgary, Canada

Job: Fund-of-funds
Location: Chicago

Job: Lower mid-market LBO
Location: Greenwich, Conn.

Job: LBO
Location: New York City

Job: Real Estate PE
Location: Northbrook, IL

Job: Growth & expansion private equity
Location: Chicago

Job: Lower mid-market LBO
Location: Chicago

Argyle Executive Forum

David Bonderman
Founding Partner
Texas Pacific Group

Eric Mindich
Eton Park Capital Management

Josh Lerner
Jacob H. Schiff Professor of
Investment Banking
Harvard Business School

Geoff Davis
President and CEO

John P. Costas
Chairman & CEO
Dillon Read Capital Management

David M. Rubenstein
Founding Partner &
Managing Director
The Carlyle Group

Argyle Executive Forum is pleased to present 2006 Leadership in the
Private Capital Markets. To inquire about attendance, please contact
Erin Sauter at:

Argyle Executive Forum
145 E 57th Street, 6th Floor
New York , NY 10022
Phone: (212) 812–4469
Fax: (646) 219–7860


    Top Three

The Blackstone Group has agreed to acquire a 4.5% stake in Deutsche Telekom AG (NYSE: DT) from German bank KfW for €2.68 billion, or €14 per share.

PhotoThera Inc., a Carlsbad, Calif.-based developer of infrared laser technology for the treatment of ischemic stroke, has raised $30.5 million in Series C funding. Warburg Pincus was joined by return backers DeNovo Ventures, Hamilton BioVentures, The Vertical Group and Solstice Capital.

Amit Yoran has resigned as CEO of In-Q-Tel, the venture capital arm of the Central Intelligence Agency. He joined In-Q-Tel just this past January, after Gilman Louie left to launch a new VC firm with former New Enterprise Associates pro Stewart Alsop. Yoran previously served as director of the National Cyber Security Division at the U.S. Department of Homeland Security. Yoran's resignation was first reported by The Washington

    VC Deals

Application Security Inc., a New York-based provider of enterprise application security solutions, has raised $10 million in Series C funding at a post-money valuation of approximately $66 million. Paladin Capital Group led the deal, and was joined by return backers Thomas Weisel Venture Partners, Kodiak Venture Partners and Early Stage Enterprises.

CentrePath Inc., a Waltham, Mass.-based provider of data center networking solutions, has raised $10.05 million in Series C funding, according to a regulatory filing. Bain Capital Ventures was joined by return backers Greylock and Pilot House Ventures.

Peakadilly NV, a Belgium-based molecular diagnostics company, has raised €6 million in Series A funding co-led by Life Science Partners and Johnson & Johnson Development Corp.

Emdigo Inc., a Campbell, Calif.-based developer of 3D content and production technology for the wireless industry, has raised an undisclosed amount of second-round funding led by East Gate Capital Management.

Garlik Ltd., a UK-based provider of personal information management and security solutions, has raised an undisclosed amount of startup funding from 3i Group and Doughty Hanson Technology Ventures.

Pulmatrix Inc., a Cambridge, Mass.-based drug company focused on infectious respiratory disease, has raised around $2.68 million in seed funding co-led by Polaris Venture Partners and 5AM Ventures, according to a regulatory filing.

Venaca Inc., a New York-based provider of digital asset management systems, has raised an undisclosed amount of first-round funding from The Argentum Group and first Analysis Corp.

KooXoo, a China-based category message search engine, has raised $2 million in VC funding, according to SinoCast.

    Buyout Deals

Cendant Corp. (NYSE: CD) is considering a sale of its Travel Distribution Services division, which includes Orbitz, and Galileo International. It previously had announced plans to spin out the unit. A sale could be worth upwards of $4 billion.

Stork NV, a Dutch industrial systems company, has received buyout interest, according to Het Finacieele Dagblad. Interested firms reportedly include AEA, Apax Partners, AlpInvest, Carlyle Group, Clayton Dubilier & Rice and Texas Pacific Group. Stork’s stock rose around 4% on the news, valuing the company at around €1.6 billion.

    PE-Backed IPOs

Jazz Semiconductor Inc., a Newport Beach, Calif.-based foundry focused on specialty process technologies for the manufacture of analog and mixed-signal semiconductor devices, has filed to raise $105 million via an IPO of common stock. It plans to trade on the Nasdaq under ticker symbol JAZZ, with Cowan & Co. and Needham & Co. serving as lead underwriters. Jazz was bought in 2002 by The Carlyle Group, Conexant Systems Inc. and RF Micro Devices Inc. It had filed for a $150 million IPO in 2004, but withdrew the registration in 2005.

Light Sciences Oncology Inc., a Snoqualmie, Wash.-based developer of light-activated treatments for solid tumors, has filed to raise $86.25 million via an IPO of common stock. It plans to trade on the Nasdaq under ticker symbol LSON, with Wachovia Securities and Cowen & Co. serving as lead underwriters. The company raised $67.3 million in Series A funding late last year from firms like Essex Woodlands Health Ventures, Scandinavian Life Science Venture, Novo AS, New Science Ventures, China Industrial Development Bank and Johnson & Johnson Development Corp.

    PE Exits

PPM Capital has agreed to sell European industrial parts distributor OREFI Participation to Investcorp for an undisclosed amount. OREFI employs 1,240 people in France and The Netherlands, and had 2005 revenue of €293.5 million.

The Carlyle Group has agreed to sell its stake in the Dr. Pepper/Seven Up Bottling Group to Cadbury Schweppes PLC for up to Gbp300 million, according to The Financial Times. Cadbury Schweppes already owns a 45% stake in the company.

    PE-Related M&A

Mediabolic Inc., a San Mateo, Calif.-based developer of entertainment networking software, has agreed to acquire Digital 5 Inc., a Lawrenceville, N.J.-based provider of software for streaming multimedia content. No financial terms were disclosed. Mediabolic shareholders include Aurora Ventures, Intel Caital, Spinnaker Ventures and AsiaTech Management. Digital 5 had raised around $32 million from 3i Group, Intel Capital, AVC Technology, Blue Chip Capital Co., Phillips Venture Capital, Texas Instruments and SpaceVest.

PharmaTech Solutions Inc., a Wilmington, N.C.-based integrated clinical development services company, has agreed to acquire Realinterface Expert Systems, an Annapolis, Md.-based provider of specialty software for the clinical trial and first responder markets. No financial terms were disclosed. PharmaTech has raised VC funding from The American Fund Advisors (according to VentureWire), while RES has raised a small amount of funding from The Maryland Department of Business and Economic Development and the Maryland Technology Development Corp.

Radiant Research Inc., a Bellevue, Wash.-based clinical research company, has agreed to sell eight of its early-phase clinical development sites to Covance Inc. (NYSE: CVD) for approximately $65 million. They are located in Austin, Boise, Dallas, Daytona, Fla, Gainesville, Fla, Honolulu, Portland, Ore. and San Diego. Radiant Research has raised over $70 million in VC funding since its 1998 inception, from firms like Oak Investment Partners, Salix Ventures, Pacific Venture Group, Mayfield Fund, Caltius Mezzanine and ABS Capital Partners. Radiant has more than 40 total clinical development sites.

One Connect IP, an Albuquerque-based regional VoIP service provider, has acquired ZiaNet, a New Mexico ISP. No financial terms were disclosed. One Connect recently raised funding from Mesa Capital Partners and Silicon Valley Bank.

    Firm & Fund News

The Longreach Group of Tokyo has closed its debut fund with approximately $750 million in capital commitments (technically two funds that will invest side-by-side). The firm will focus on strategic buyouts in the technology and financial services sectors of Japan, with an ancillary focus on Northern Asia. Denning & Co. served as placement agent.

Mach Ventures is planning to raise $150 million for its inaugural fund, according to PE Week. The San Francisco-based firm is run by John Lonergan, former co-founder of CardioNow, and Michael Laufer, a former managing director with Menlo Ventures.

    Human Resources

Index Ventures has promoted Ben Holmes to principal in the firm’s London office. He joined Index in 2003 as an analyst, and represents Index on the boards of Stardoll and MindCandy.

Richard Cerf has joined GE Commercial Finance-Technology Lending as a senior vice president based on Palo Alto, California. He previously served as a senior vice president and market manager of structured finance with Silicon Valley Bank.

Sean Stone has joined Silicon Valley Bank as head of its Vienna, Va. office. He previously was with Capital Advisors Group.

Mohan Iyer has joined Burrill & Co. as a managing director in the firm’s merchant banking group. Iyer previously was executive vice president of corporate development with DiaDexus.

Private Equity Week

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April 24, 2006

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