Fundraising

SSM Partners Raising Fourth Fund

Lehman Statement on Direct PE Biz

Lehman Brothers just issued a statement on the status of the investment management groups that are not included in the proposed sale to Bain Capital and Hellman & Friedman. It doesn’t shed much light, although it also doesn’t discourage widespread speculation that the groups will soon transform themselves into independent entities. Here it is: As specified in a recent press release, the proposed sale of Neuberger Investment Management and several related asset management business units to Bain Capital Partners, LLC and Hellman & Friedman LLC does not include Lehman Brothers' major direct private equity businesses such as Merchant Banking, Real Estate, Venture Capital and MLP. However, the investment teams for these funds remain intact and focused as we actively pursue the best strategic alternatives for these businesses going forward. As always, a primary consideration is the best interests of our investors. While we wait for definitive plans, there are still a pair of questions worth pondering: 1. What will happen to each fund's uncalled commitments from Lehman Brothers? For example, the dearly-deceased bank promised

Claremont Creek Raises Second Fund

Claremont Creek Ventures has closed its second fund with $175 million in capital commitments. The Oakland, Calif.-based firm focuses on early-stage IT opportunities in the healthcare, mobility and security spaces.

Lehman Private Equity Breaking Up?

Lehman Brothers this afternoon announced that it is selling its Investment Management division to Bain Capital and Hellman & Friedman for $2.15 billion. The deal includes Neuberger Berman, the fixed income unit and all non-direct alternative investment activities. What that leaves out is direct alternatives, which includes Lehman Brothers Merchant Banking (buyouts), Lehman Brothers Venture Capital and Lehman Brothers Real Estate. As of this moment, it is not clear what will become of the direct businesses. Assuming a bankruptcy judge approves the larger sale to Bain and H&F, the most likely scenario would be that each group would spin out into independent entities. It also is possible that the three could stick together as an independent alternatives house, which could be attractive due to certain shared services. In either case, the groups would have to decide what to do about existing funds, which were raised with large minority nuts from Lehman that will no longer be honored. They may just decrease the fund sizes, keep them steady with pro rata increases from third-party investors or cut off the funds and raise new ones. It’s also important to note that there is a third scenario, whereby the three groups somehow get reabsorbed by the Investment Management unit. Not sure how that would work, but I’ve been told the situation is fluid enough that it should not be discounted. The Lehman alternatives group had been run by

Jacimovic Leaves NEA, Seeking Commitments for New Fund

Mayfield Raises $395 Million

Austin Ventures Raises $900 Million

Covington Assumes Control of Genesys Capital Funds

Covington Capital has taken over management of two venture capital funds -- New Generation Biotech Equity Fund and New General Biotech Balanced Fund – from Genesys Capital Partners. No financial terms were disclosed. In related news, NGBE has sold portions of its positions in Affinium Pharmaceuticals, Epocal and NeurAxon to “an institutional purchaser.”

Lumira Capital Raising New Fund

True Ventures Closes Second Fund