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From:

"Dan Primack"

Name:

Dan Primack

Email Address:

Dan_Primack@fortune.chtah.com

Subject:

Term Sheet -- Monday, October 25

Date:

25-10-2010 14:04:03
Message

Fortune Finance Street Sweep Term Sheet Economics Tech Wall Street Washington

The Term Sheet by Dan Primack

Monday -- October 25, 2010
Email Dan | Follow Dan on Twitter | Subscribe

Monday Mouth-Off
The sky is gray, the Dolphins got hosed and I wish that I could be at this weeks Quebec City Conference.
In other words, its time for some Monday Mouth-Off.
First up are some replies to Fridays column on the Kleiner Perkins sFund, which I argued was a marketing
masterstroke that turned KP into the go-to VC firm for social startups.
Leading us off is Jason: It looks like each of those strategic partners put in less than $10 million, on
average. That means absolutely nothing to a company like Amazon or Comcast, which means that it wont
really have any financial incentive to pay more attention to sFund companies than to portfolio companies of
other VC funds.
Thomas: How does someone like you, who usually wears his cynicism on his sleeve, get so easily
suckered in by Kleiner Perkins? The reason theyre doing the sFund is precisely because they ARE NOT a
major player in social, and this is a desperate attempt to become relevant.
Thomas, you were not along in your sentiment. In fact, I had a running dialogue about it with Chris Dixon
via Twitter. Here was Chris final and wonderfully sarcastic -- tweet on the matter: "In 2015, I'm launching
a fund devoted to game mechanics, location-based services, and daily deals."

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Aaron: You said that Kleiner is raising a new general fund. Do you know how much theyre targeting?
My understanding is that the road-show begins this week or next, with a $750 million target. Not sure how
much of the $250 million sFund is included in that total (e.g., if it is inclusive of the $50m from Facebook, et
all).
*** Next up were some replies to my column about when and how to give media exclusives. In short, most
respondents appreciated this advice well, up to a very particular point.
Henry: Consider lying? Not your finest moment. I like most of what you do, but this one was off the charts
on my cringe-o-meter. Up there with I never had sexual relations with that woman and mission
accomplished.
Nicole: Great post on PR! I totally agree with your perspective. Couple other thoughts Some people
forget (or dont know) that in order to make it a compelling pitch, you need to think about the news from the
reporters perspective. Why will the reporters audience care about this not what is the most important
message for me. Also, if the news is big enough that everyone will cover it, sometimes thats when its not
worth doing an exclusive and makes more sense to pre-brief all of your reporters.
PR pro Chris: "Your primer on how to give an exclusive was spot-on until the lying part at the end. The
way I handle it is to say to the annoyed reporter that we dont discuss those issues. In my experience, most
reporters assume scoops are spoon-fed to their competitors, while our own scoops are hard-fought
efforts.
*** Chad: Where have you been getting all of those breakfast photos for your Pre-Marketing posts?
Most of them are coming via various Google Image searches, although todays pic is of my friend Jons
breakfast this past weekend at the J&J Diner (near the home office). In that spirit, take a photo of your
breakfast some morning and send it on over to me. Ill just ID you by first name and location in the captions.
Could be fun

5 things you should read @Fortune.com

Pre-Marketing, including Princeton's private equity plans, a political ad goes for the hedge-ignorant
vote, law school advice, data shows Americans favor (radical) wealth redistribution and why there is
no Foundry Group "signaling problem" in Boulder.
Mina Kimes: The return of Frank Quattrone

Colin Barr: Hedge fund crackpots vs. Ben Bernanke

Philip Elmer-Dewitt: Why Apple won't buy Facebook

Dan Primack: Talking Betfair with one of its earliest investors

The Big Deal

The Carlyle Group has offered to acquire CommScope Inc. (NYSE: CTV), a Hickory, N.C.-based maker
of communications equipment. The $31.50 per share offer would value CommScope at nearly $3 billion,
and represents over a 36% premium to Fridays closing share price. Allen & Co. is advising CommScope.
This is the big deal mostly because of the (potential) dollars involved. But it's also worth noting that
CommScope's most recenent quarterly report predicted tough sledding ahead -- particularly in terms of Q3
sales -- which piques my interest on Carlyle's timing.

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Does the firm think the rest of 2010 is just a blip caused by macro issues, or does it see ways to stem the
tide? Is its idea that the shareholder vote would come after Q3 earnings are disclosed, thus helping back
down the premium a bit (shares already are up more than 30% today)? Just wondering aloud...

VC Deals
iCiX Inc., a San Mateo, Calif.-based online network for analyzing supply chain risk and managing supplier
information, has raised $6 million in Series B funding. Draper Fisher Jurvetson led the round, and was
joined by Starfish Ventures. www.icix.com
GigaOm, an online media and events company focused on technology, has raised $2.5 million in new VC
funding. Return backers were True Ventures and Alloy Ventures. www.gigaom.com
Sario Marketing GmbH, a Germany-based provider of an on-demand content platform called
Textbroker.com, has raised a multi-million Euro round of funding from Berlin-based ViewPoint Capital
Partners. www.textbroker.com

Private Equity Deals

Apollo Management and Clayton, Dubilier & Rice are among several firms circling hair-salon operator
Regis Corp. (NYSE: RGS), according to Reuters. The company retained Peter J. Solomon Co. as financial
advisor in August, and has a current market cap of around $1.14 billion. www.regiscorp.com
Bain Capital has commenced its previously-announced tender offer for Gymboree (Nasdaq: GYMB), at
$65.40 per share. www.gymboree.com
Metalmark Capital has acquired a majority stake in Aegis Sciences Corp., a Nashville, Tenn.based
provider of forensic toxicology testing services. No pricing terms were disclosed. Debt financing was
provided by Madison Capital Funding, Regions Bank and Pinnacle National Bank.
www.metalmarkcapital.com
Silver Lake Partners has invested an undisclosed amount in Nobao Renewable Energy Holdings, a
Chinese energy efficiency company. www.silverlake.com

PE-backed IPOs
First Wind Holdings Inc., a Newton, Mass.-based developer of wind power projects, plans to price its IPO
this week. The company plans to sell 12 million common shares at between $24 and $26 per share. It
originally filed for its IPO in 2008. Shareholders include D.E. Shaw and Madison Dearborn Partners.
www.firstwind.com
Tudou, a Chinese online video sharing site, has hired Credit Suisse and Deutsche Bank to advise on an
IPO, according to Reuters. The float would take place on the Nasdaq, and be designed to raise upwards of
$150 million. Tudou has raised $135 million in VC funding, from Temasek Holdings, IDG Technology
Venture Investment, Granite Global Ventures, General Catalyst Partners, Capital Today, Jafco Asia, KTB
Ventures and JAIC. www.tudou.com

Exits
EQT Partners is looking to offload German cable operator Kabel Baden-Wuerttemberg, either by a sale

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or a public listing, according to Reuters. EQT bought Kabel BW for around 1.3 billion euros from The
Blackstone Group. www.eqt.se
GE Healthcare has agreed to acquire Clarient Inc. (Nasdaq: CLRT), an Aliso Viejo, Calif.-based provider of
provider of anatomic pathology and molecular testing services. The deal values Clarient at approximately
$587 million. Clarient shareholders include Safeguard Scientifics and Oak Investment Partners.
www.clarientinc.com

Other Deals
The Singapore Exchange has agreed to acquire Australias ASX Ltd. for $8.3 billion, creating Asias
fourth-largest stock exchange.
LVMH, a French luxury goods company, has agreed to pay 1.45 billion for a minority stake in familyowned handbag maker Hermes.

Firms & Funds

Catalyst Fund, a Kenyan private equity firm focused on mid-market opportunities, has secured a $15
million commitment from African Development Bank.
Catalina Ventures, a new VC firm focused on opportunities in Southern California, is targeting $100 million
for its debut fund, according to peHUB. The firm is mostly agnostic on industry sector and company stage,
and was launched by Palomar Ventures co-founder Randall Lunn.
EnCap Investments has secured over $1 billion in capital commitments for its eighth private equity fund,
according to regulatory filings. No target was disclosed. Park Hill Group is serving as placement agent.
EnCap raised $2.5 billion for its seventh private equity fund in December 2007.
www.encapinvestments.com
SecondMarket, an online marketplace for alternative investments, has launched operations in Israel.
www.secondmarket.com
Wilson Sonsini Goodrich & Rosati has opened an office in Hong Kong. It will be led by Weiheng Chen,
who recently joined the firm from Milbank, Tweed, Hadley and McCloy. www.wsgr.com

Moving In, Up and On

The Institutional Limited Partners Association (ILPA), has named Tim Recker as the groups new
chairman. He currently is responsible for private equity investing for the University of California Regents.
www.ilpa.org
John Van Hooser has joined equipment lease financing firm Fountain Partners as managing partner. He
previously was a general partner with M/C Venture Partners. www.fountainpartners.com

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