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American Capital Ventures Out Tony Abate and Andy Fillat have spent the past year as venture capital nomads. Today, however, they will announce permanent residency with a new tech-focused VC program from publicly-traded American Capital Strategies Ltd. (Nasdaq: ACAS) Abate is a former partner with Battery Ventures and Ironside Ventures, who left Ironside last March after it couldn’t hits its $150 million third fund target. Fillat is Advent International's former head of North American venture capital, who left because Advent decided to close its North American VC practice. Before continuing, let me be the first to say: Thank goodness. There might not be two free agent VCs who have been linked to more firms than these guys. Always flirty bridesmaids, never brides. The pair even came precipitously close to forming their own firm – along with Doug Schrier of Argo Global Capital – but bailed after Fillat received feelers from ACAS. The ACAS offer was immediately attractive to Fillat for three reasons: First, he would not be strangled by deal size/stage or industry cycle restrictions. Instead, ACAS would give him the freedom to do everything from $5 million pre-revenue plays to $50m-$100m growth equity financings. And, if a particular niche sector had fallen out of favor, he'd be under no obligation to invest there. Second, he wouldn’t have to fund-raise, since the effort's capital would come from ACAS’ publicly-traded evergreen pools. Finally, ACAS is a professional investment firm preoccupied with profits, rather than a corporate venture shop focused on more strategic aims. Fillat soon signed on, and recruited Abate. The program is called American Capital Technologies, and will feature six managing directors working out of new ACAS offices in both American Capital Technologies does not have a specific fund size or allocation, but one can safely assume that it has more available cash than almost any other VC firm on the planet. ACAS manages nearly $7 billion, invested around $3.2 billion last year (mostly buyouts, recaps, mezzanine deals) and returned around $1.3 billion. It also has around 300 employees with nine offices (or 11, once the new ones are opened). The VC practice likely won’t move the ACAS needle too much, but is nonetheless an important component of the firm’s overall desire to cover the private tech investment spectrum. “Two years ago we decided to build out the organization so that it would have the capacity to do other things in the areas of equity and sub debt,” says Malon Wilkus, president, chairman and CEO of ACAS. “Specifically, getting into venture capital is part of a somewhat larger strategy involving tech-driven companies. We’ve already been working on later-stage and mature tech companies, and now we’ll also be able to focus on earlier-stage companies.” Now it’s just a question of finalizing some leases, recruiting some more people and getting to work. Fillat and Abate already have begun due diligence on a few deals, with an initial investment possible within the next month or two.
The UK Treasury and Revenue & Customs are considering substantial tax rate increases on private equity firms, according to a letter sent last Thursday to members of the British Venture Capital Association. The news was first reported yesterday by The Sunday Times of Restaurant Technologies Inc., an Eagan, Minn.-based provider of bulk-cooking oil management services to the food services industry, has raised $60 million in combined equity and debt funding. Return backers Parthenon Capital and ABS Capital Partners led the equity tranche, while the senior subordinated debt facility was provided by Sankaty Advisors (credit affiliate of Bain Capital) and MCG Capital Corp. www.rti-inc.com Lawrence Calcano is leaving Goldman Sachs, where he serves as co-head of technology I-banking, in order to pursue private equity opportunities. He has not yet decided whether he will join an existing firm or form a new partnership. www.gs.com
ApaceWave Technologies Inc., a Saratoga, Calif.-based provider of broadband wireless solutions, has raised nearly $12.1 million in Series A funding, according to a regulatory filing. Backers include Venrock Associates and DCM-Doll Capital Management. www.apacewave.com
Six Apart Ltd., a San Mateo, Calif.-based provider of blogging software, has raised $12 million in new VC funding, according to Investment Dealers’ Digest. No word on the new backers for Six Apart, which previously raised money from August Capital. www.sixapart.com Precision Therapeutics Inc., a Pittsburgh-based oncology services company, has raised $20 million in fifth-round funding. Quaker BioVentures led the deal, and was joined by Adams Capital Management, Birchmere Ventures, Techno Venture Management and Draper Triangle Ventures. The company has raised over $83 million in total VC funding since its 1995 inception. www.precisiontherapeutics.com SigNav Pty Ltd., an Australia-based provider of GPS solutions, has raised Au$2.5 million in Series C funding. Neo Technology Ventures led the deal, and was joined by return backer Nanyang Ventures. www.signav.com
Natural Gas Partners has sponsored the formation of PSI Midstream Partners LP, a new company focused on midstream asset opportunities along the
BC Partners has received European Commission approval to buy a 51% stake in Hyatt Regency Hotels and Tourism SA from Hellenic Casinos Co. for approximately 476 million euros (or 11 euros per share). CDC Entreprises Capital has agreed to acquire French jewelry and watch retailer Marc Orian from the founding Krief family (75% ownership) and Credit Agricole Private Equity (25%). No financial terms were disclosed, but Les Echos puts the price at around 140 million euros, including leverage. www.cdcentreprises.fr KKR and CVC Capital Partners are considering an offer for Dutch conglomerate Stork NV, according to Permira has offered to sponsor a Gbp600 million management buyout of
AGI Therapeutics Ltd., a Rock Mobile Corp., a Taiwan-based provider of mobile music services, reportedly is planning an IPO on the Nasdaq in the second half of this year. The company is a 2002 spinout from Chinese-language music publisher Rock Music Group., and has raised over $30 million in venture capital funding from such firms as Acer Technology Ventures, Goldman Sachs, Id Tech Ventures, Legend Capital and Siemens Mobile Acceleration. www.rockmobile.com.cn
Microsoft Corp. has acquired MotionBridge Inc., a Paris, France–based provider of search technology for mobile operations and the mobile Internet. No financial terms were disclosed. MotionBridge had raised venture funding from Siemens Mobile Acceleration. www.microsoft.com www.motionbridge.com
The Illinois Teachers’ Retirement System has hired R.V. Kuhns & Associates as its general investment consultant, with responsibilities to include asset allocation studies, investment manager research and performance reporting. R.V. Kuhns will replace Callan Associates, whose contract with Illinois TRS expired at the end of 2005. TRS also announced the following private equity fund commitments: Madison Dearborn Capital Partners V ($100m), Belvedere Capital Fund II ($20m), Carlyle/Riverstone III ($90m), Energy Capital Partners ($50m). http://trs.illinois.gov AIG Global Investment Group has closed its Pinestar Capital fund with $700 million in capital commitments. PineStar is a secondary portfolio of approximately 150 private equity funds that AIGGIG acquired from Dresdner Bank and certain affiliates in March 2005. www.aig.com
Hydro Technology Ventures, the VC arm of Norwegian energy and aluminum company Norsk Hydro ASA, has closed its second fund with 400 million Norwegian crown ($59.2 million). The group focuses on energy sector opportunities. www.hydro.com
Michael Carroll has joined Triton Pacific Capital Partners as controller and investment relations manager. He most recently served as treasurer for the losing
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