Proficiency Inc., a Marlborough, Mass.-based provider of product knowledge integration and CAD interoperability solutions to manufacturers and their suppliers, appears to have ceased operations. It had raised over $70 million in VC funding since 1998, with its most recent infusion coming in early 2008. At its peak, the company had around 150 employees and five global offices (HQ, Texas, Israel, France and Germany). A source familiar with the situation says the company has a small debt-load (sub-$1m), and is in talks to sell its assets to a strategic buyer in Ohio. I rang up Proficiency CEO Alex Shapira at his Texas home, but he declined to comment or confirm the company's current status (said he had to confer with unnamed others). Proficiency was originally seeded by Concord Ventures, and soon after raised $10 million at a $22 million post-money valuation from Ticonderoga Capital and Charles River Ventures. Its valuation would rise to $57.5 million following a $27.4 million Series C round in 2001, which included return backers and
2 min read · 01 June 2009
* All auto eyes are on GM this morning, but last night a bankruptcy court judge okayed the sale of most Chrysler assets to Italy's Fiat SpA. * Todd Dagres: "I say thanks to the grumpy old VCs. Thanks for spreading the word that Venture is over. Just don’t mind me continuing to beat this dead horse. And don’t tell anyone that the dead horse isn’t really dead, but rather, resting in preparation for the next derby." * Morning Call: U.S. futures up sharply, London rises early, European shares climb, the Nikkei nears an 8-month high and Hong Kong jumps on Chinese PMI report. * Just a few months after leaving Atlas Venture, Eric Hjerpe joins up with Jo Tango at Kepha Partners. In other words, I had two VCs from the same firm on my Nantucket Conference panel (but, in my defense, I thought Eric was headed elsewhere). * Terra Firma reportedly pumps another $45 million into EMI, prompting a collective gag from its limited partners. * Richard Bradley on Harvard: "Suddenly, unthinkably, the World's Richest University finds itself forced to reconsider what it can afford to be. (Losing $11 billion will do that.)"
2 min read · 01 June 2009
Still no word on when KKR will pull the trigger on its so-called IPO, but today it pulled back the curtain a bit in preparation. The buyout giant published an eight-page update on its business, including information on annual fee revenue and remaining dry powder in its existing funds (it didn't address the new U.S. fund it wants to raise). KKR also revealed that it is carrying half of its ten largest investments below cost, including a 40% markdown on its $2.33 billion investment in First Data. The other fair value cuts are for Alliance Boots, Energy Future Holdings (f.k.a. TXU Corp.), Biomet and US Foodservice. Four other companies are marked up, including a 128% markup for Legrand. The final company -- HCA -- is being held at cost. Get the full report after the jump...
1 min read · 01 June 2009
Greetings for the last time in a long time, as I’m heading off for a two-week vacation. Destination is Peru, including a trek along the Inca Trail (to Machu Pichu) and a visit to the floating islands of Lake Titicaca. peHUB will continue to be updated in my absence, with Erin Griffith and Connie Loizos doing most of the heavy lifting. The daily peHUB Wire email also will be published, with Erin taking over (email her any news items). We’ll also have some guest columnists for you. Be back on June 1, to write about things like the irony of VC firms raising annexes for funds they once cut in size (hello MDV) and how that Clinton Group co-investment fund for NYSCRF (the one that snared Barrett Wissman) has actually performed pretty well. Same blog time. Same blog channel...
1 min read · 15 May 2009
Distressed investment firm MatlinPatterson is striking back against UK newspaper The Telegraph, following an article in which firm chairman Mark Patterson is described as calling the U.S. Treasury's public-private partnership program (PPIP), "a sham." Kind of striking charge, given that MatlinPatterson invested alongside Treasury (via TARP) in troubled Michigan bank Flagstar Bancorp Inc. (NYSE: FBC). In a letter earlier today to limited partners, Patterson wrote: The article is an unfortunate and complete fabrication and a mischaracterization of our position on public-private investments generally and MP Thrift’s Flagstar investment in particular. We have demanded a retraction from The Telegraph, and the article has been removed from its website while an internal investigation is conducted. Nonetheless, we want to ensure that our Limited Partners hear our views on these matters directly. Indeed, the only record of the story we can find at this point is in the blogosphere (excerpts here). The Telegraph even seems to have pulled the story from Factiva, in a sort of
1 min read · 15 May 2009
I'm still trying to digest everything from Andrew Cuomo's announcement regarding The Carlyle Group, which has agreed to repay $20 million and sign a "code of conduct." Here are my gut reactions, which I hope to refine later today: * Cuomo is kidding himself, if he truly believes that his "code of conduct" will be adopted by the private equity market at large. First, it is obvious that Carlyle only adopted it under duress. Second, Carlyle did not agree to apply the code's principles outside of the U.S. (i.e., outside of Cuomo's jurisdiction). Third, most firms do not have the in-house resources of a Carlyle, which negates the possibility of following its lead vis-a-vis not using placement agents. Moreover, this isn't a high school sport where the freshman follow the senior captain's example. Private equity firms -- big and small -- pay attention to Carlyle, but don't necessarily try to mimic it. * The $20 million is a slap on the wrist. Here's some context: Carlyle co-founder David Rubenstein paid more than $20 million for a copy of the Magna Carta (which he's loaned to The National Archives). * The $20 million isn't even a real slap, because everyone is calling it a "payment" instead of a "fine." If Carlyle is repaying ill-gotten gains (even if the ill was caused by someone else), why repay so little of them? Imagine I steal a diamond bracelet and give it to my wife, without telling her of its origins. When the police come knocking, she can't keep some of the diamonds for herself, even though she wasn't the bad actor.
3 min read · 14 May 2009
New York Attorney General Andrew Cuomo will be holding a press conference at 12:15 this afternoon, to announce "new developments" in the pension fund kickback investigation. I'm going to live-blog the call, in order to get the info out as fast as possible. Not sure if there will be new indictments or guilty pleas announced, but I did report yesterday that Cuomo's office has been zeroing in on a hedge fund manager who may have taken kickbacks (a la Barrett Wissman). As of last check, said hedgie was "in discussions" with both Cuomo and the SEC. Also, don't be stunned if Cuomo somehow manages to work California into the conversation. Cuomo Presser on Pension Scandal
7 min read · 14 May 2009
Another day, another development in the pension fund kickback scandal. This time it’s a guilty plea from Julio Ramirez, who committed securities fraud by scheming with Hank Morris to secure investments from New York State Common Retirement Fund. At the time, he was working for placement agency Wetherly Capital. Ramirez, you might recall, was in this space just three weeks ago – when we reported that he had left placement agent Park Hill Group, an affiliate of The Blackstone Group. Blackstone spokesman Peter Rose told me at the time – and reiterated yesterday – that Ramirez voluntarily gave notice at the beginning of January, and his last day was March 31. Ramirez did not mention anything about the pending investigation, although Blackstone subsequently did its own review (including a sweep of Ramirez’ emails) to make sure he hadn't been double-dealing while with Park Hill. Rose says that Blackstone found no such evidence. Kind of kicking myself for not publicly tying Ramirez to the kickback scandal in that original item, but I didn’t feel like I had enough to go on – particularly because he had told Blackstone and others that he was leaving to hang his own shingle. So let me now double-back and trust my instinct on a couple of things:
2 min read · 13 May 2009
peHUB yesterday participated in Field of Dreams, an event in which a group of 16 peHUB readers played softball at Fenway Park, to benefit a summer jobs program here in Boston (ABCD SummerWorks). First, a HUGE thanks to everyone who donated and participated. The generosity of peHUB readers is a consistent joy, with more than $35k raised for various organizations since the beginning of last year. Second, kudos to my corporate overlords at Thomson Reuters, who kicked in to buy shirts for our team (we would have looked ragtag without them). Third, the Narragansett Brewing Co. emailed yesterday morning, inviting all peHUB players and our “fans” over to The Baseball Tavern for a complimentary post-game celebration. Extremely kind of them (and Tavern owner Jimmy), because we were very thirsty. I now consider Narragensett Lager to be the official brew of peHUB. Finally: We won, beating TD BankNorth by a final score of 15-13. I think each of our players got at least one hit, we had some outstanding fielding plays and yours truly missed the cycle by a homer (sorry for the brag). Just a magical day. If you were on the fence about participating this year, I urge you to participate next year. It completely lived up to the grandest of expectations. Photos and our roster after the jump...
2 min read · 12 May 2009
Fifty-six percent of mid-market private equity investors, bankers and lawyers expect deal-making to improve in the second half of 2009, according to survey results being released tomorrow by the Association for Corporate Growth (ACG) and Thomson Reuters (publisher of peHUB). Thirty-four percent of respondants said that they expect deal-making to remain at current levels, while the remaning 10% said that things would get even slower. Thirty-three percent of respondants blamed the "credit crunch" for current deal woes, although that was down from 43% last December. Rising from 22% to 27% was seller expecations, while "weak economy" edged up from 16% to 17 percent. Overall, 88% of respondants said that the current M&A environment is fair or poor, which was the most negative view expressed in the bi-annual survey's five-year history. Get full results after the jump...
1 min read · 12 May 2009
