Sequoia Capital is holding its next annual LP meeting in China. The objective is to emphasize the Silicon Valley-based firm’s global reach, which peHUB has learned will include a planned consolidation of all its different funds into a single vehicle. That means you shouldn't expect another fundraising drive for Sequoia Capital China. Or Sequoia Capital Israel. Or Sequoia Capital India. Or Sequoia Capital Growth. Just Sequoia Capital XIII, which will include all of the above (plus its traditional early-stage investments in U.S.-based technology companies). It's a bit unclear right now how LPs will react, which may determine whether or not Sequoia follows through. On the one hand, a global fund means less commitment decisions and (perhaps) better geographic synergy opportunities for portfolio companies. On the other hand, many LPs use "bucket" strategies, which makes laser-focused funds more
2 min read · 08 October 2009
Earlier this week, we reported that Berkshire Partners had agreed to sponsor a partial recap of United BioSource, a Bethesda, Md.-based company that has raised well over $150 million in VC funding. Neither firm was willing to comment, but United BioSource made it official this morning with a press release. The only new info is that Berkshire paid $125 million for its minority stake. VC backers -- Grotech Capital Group, J.H. Whitney and New Enterprise Associates -- will retain equity positions. Read the press release after the jump...
3 min read · 08 October 2009
The FDIC announced yesterday that the assets of failed Corus Bank will be sold to a private equity consortium that includes Starwood Capital Group, TPG Capital, WL Ross and Perry Capital. The firms will pay $554 million for a 40% stake, or around 60 cents on the dollar (FDIC retains a 60% equity stake). The bank’s deposits were sold separately in an earlier auction (TPG and Starwood began looking at Corus three or four months ago, before a decision was made to do the deposit/asset split). I spent some time on the phone last night with TPG senior partner Kelvin Davis, whose real estate experience includes the co-founding of Colony Capital. Most interesting was his assessment of the assets that TPG now holds. A lot of them are luxury condo properties, in all stages of development. I referred to them as “ghost towns,” which Davis said was unfair:
2 min read · 08 October 2009
1 min read · 08 October 2009
We're still a couple of weeks away from official Q3 venture capital data, so here's a preliminary look at the year's busiest firms to date. The below statistics refer to investments in U.S.-based companies, and rank based on number of companies supported in 2009 (as opposed to investment rounds, which can be higher if certain companies raised multiple rounds). Enjoy: #1. New Enterprise Associates Deals this year: 36 3 recent deals: Serious Materials, Vuclip, Chelsio Communications #2. Kleiner Perkins Caufield & Byers Deals this year: 35 3 recent deals: Pacific Bioscience, Booyah, Juvaris BioTherapeutics
1 min read · 07 October 2009
Last week we ran a list of the year's biggest VC-backed busts. Today I headed to the laundry room studio, to discuss it a bit further:
1 min read · 07 October 2009
Marlin Equity Partners is raising its third middle-market fund with a target of around $350 million, peHUB has learned. A regulatory filing indicates that the Los Angeles-based firm is seeking $450 million, but that appears to be a hard cap rather than a target. Marlin has a broad investment strategy, with a willingness to invest in companies with between $20 million and $1 billion in revenue (profitability not required). Deals this year include:
1 min read · 06 October 2009
Will private equity firms follow Wilbur Ross into the casino sector, despite the troubled track record of Station, Harrah's, Twin Rivers, etc? It would seem to make perfect sense from a "buy low" perspective, given the confluence of factors like rock-bottom commercial real estate values and misery consumers. But there also are challenges, not the least of which is a limited universe of potential players and high fixed costs (which are partially offset by low tech/innovation risk). My thoughts below, from the laundry room:
1 min read · 06 October 2009
NY Attorney General Andrew Cuomo today announced two guilty pleas in the kickback scandal involving state pension fund investments into private equity. The pleaders were: Saul Meyer, founding partner of private equity "gatekeeper" Aldus Equity, and Ray Harding, former head of the New York Liberal Party. Both have admitted to violating the Martin Act, and will be considered convicted felons unless a judge later removes that designation based on cooperation with the ongoing investigation. No word yet on whether either Meyer or Harding will face jailtime, as sentencing will be determined by a judge at the case's conclusion (Cuomo's office will make a recommendation). Cuomo also said that Meyer "is cooperating" with similar investigations in other states, including one led by
2 min read · 06 October 2009
A couple of months ago, I mentioned that Berkshire Partners had been particularly quiet on the deal-making front. Just one PIPE and a pair of bolt-on acquisitions since October 2007. Pretty slow for a firm investing out of a $3.1 billion fund raised in 2006. Well, it still hasn’t done a traditional LBO (that we know of), but the Boston-based firm has agreed to sponsor a partial recap of United BioSource, a Bethesda, Md.-based company that previously raised well over $150 million from firms like Grotech Capital Group, J.H. Whitney and New Enterprise Associates (closer to $220m, according to VentureXpert database).
1 min read · 06 October 2009
