MVCA News & Events

Michigan VC Community News Roundup
To be included in the news roundup, please send your press releases to LeAnn Auer at lauer@michiganvca.org. Lycera Closes $36M Series A Financing A Federal VC Fund of Funds? Ann Arbor technology firm collects $2.2 million in funding M&A Awards Finalist for Best Deal: HealthMedia Inc. Slowing of capital streams threatens tech efforts at Michigan's research universities

Plymouth Management Co. Executive In Residence (EIR) participant joins Pump Engineering LLC

Plymouth Management Company EIR Ariel Sacerdoti recently became the first-ever Chief Operating Officer of PMC portfolio company Pump Engineering LLC (PEI). Sacerdoti led PMC's January 2009 venture investment in PEI, a Monroe-based global leader in providing hydraulic turbochargers and pumps for the sea water desalination industry. In March, Sacerdoti joined the firm as COO, fulfilling the talent retention promise of the Michigan Venture Capital Association (MVCA) EIR program. The program was developed in 2007 to help Michigan venture firms support the eventual placement of an EIR into a portfolio firm's operations post-investment; PMC and Sacerdoti received the award in 2008.

"We've been a family-run company for many years, but with demand for our product growing so rapidly, it was time to examine our internal structure and add some layers of executive management," said Roy Radakovich, CEO of PEI. "Working with Ariel during his tenure at Plymouth Management Company allowed us to see how well his capabilities fit with our needs." Sacerdoti will oversee the company's operations as well as help improve lean manufacturing capabilities.

Sacerdoti, an Ann Arbor entrepreneur who most recently led Swiss robotics manufacturer G�del's U.S. operations, brings over 20 years of management experience in lean manufacturing, project management, and operational growth. He holds an Executive MBA from Michigan State University and a BS in Mechanical Engineering from the University of Bridgeport (Conn.).

"Everyone at PEI, from the management to the machinists, is eager to improve and learn, and that indicates an environment ripe for growth. I joined PEI because of the people and the product, and I am excited about the move to a new facility and growing global demand for the products Pump Engineering develops," said Sacerdoti.

PEI Hydraulic Turbochargers and Pumps provide customized energy recovery devices for sea water desalination and the liquid processing industry. Customization allows for the lowest Total Life Cycle Cost, which translates into the lowest water cost/m3 in over 3,000 installations around the world.

"Our product is the epitome of "clean technology"-it harnesses nearly all the wasted energy in the desalination process and reuses it to power the process itself. Because our product is completely customizable to the hydraulic needs of each installation, we can change the equipment to become even more efficient as the technology advances," commented Kevin Terrasi, Vice President of PEI.

PEI has doubled its sales annually for the past two years and is on pace to meet or exceed that mark for 2009. Plans to relocate to a larger facility are underway, with the need for an additional 50 new hires expected over the next five years.

MVCA Executive Director LeAnn Auer believes PEI represents the potential venture-backed firms hold in the state's changing economy. "Michigan companies need innovation, capital, and talent to be successful," she said. "Plymouth Management Company's investment in Pump Engineering and its COO placement of Ariel Sacerdoti have filled those gaps for this growing company, and that's a mark of success for our EIR program and the larger Michigan venture community."

About the MVCA EIR and CEO Placement Programs

The MVCA received a 21st Century Jobs Fund award from the Michigan Economic Development Corporation (MEDC) to implement the EIR and CEO Placement programs. This grant award allows the MVCA and the MEDC to work together to foster an environment to help entrepreneurs and Michigan-based venture-backed companies succeed. Under the EIR program, Michigan venture capital firms may apply for a loan award to assist with the first year salary of an EIR. Under the CEO Placement program, the loan award may be used to pay the one year salary of a newly recruited CEO in one of their Michigan-based portfolio companies. The CEO Placement loan award may also be applied toward the recruiting fees incurred in finding an entrepreneurial CEO.

For information about the MVCA EIR or CEO Placement programs, visit the spotlight section on www.michiganvca.org or contact LeAnn Auer at 734.223.3750.

MVCA Completes Awards for Venture Upstart Programs - Fund Development & EIR/CEO Placement

As of February, 2009 the MVCA made their final two Venture Upstart awards to SWMF Life Science Fund, for their EIR, Paul Neeb, and to Nephrion Inc., a portfolio company of Apjohn Ventures and North Coast Technology Investors for the recruitment of a CEO.

As demand across the Michigan venture community continues for the successful EIR/CEO Placement program, the MVCA is currently seeking funds to extend it over the next four years.

Here is a summary of the Venture Upstart program awards:

Executive In Residence:

Arboretum Ventures and EIR, Kris Aalto - success
Plymouth Management Co. and EIR, Ariel Sacerdoti - success
Venture Investors and EIR, Chris Gibbons
SWMF Life Science Fund and EIR, Paul Neeb

CEO Placement:

Lycera Corp., portfolio company of EDF Ventures - success
Metabolic Solutions Development, portfolio company of SWMF Life Science Fund and Hopen Therapeutics
Nephrion Inc., portfolio company of Apjohn Ventures and North Coast Technology Investors

Fund Development:

Plymouth Management Company
TKM Ventures
Seneca Partners
Michigan Growth Fund
MacBeedon Partners

More successes are expected during 2009 and 2010.

March MVCA Roundtable tackles important tax, valuation issues

A large MVCA crowd met March 3 at Honigman's downtown Ann Arbor offices for the organization's networking and roundtable discussion. Speakers included Bob Woolley from Plante & Moran, speaking on the Michigan Business Tax, and Christian Groh and Bob Blee from SVB Valuations, introducing their Analytics capabilities. A meeting for the CFOs of MVCA venture firms will follow to further discuss these topics. More details soon.

Private Equity Conference on Small & Emerging Managers & In-State Investments Comes to Detroit

Credit Suisse's Customized Fund Investment Group ("CFIG") is pleased to be hosting the Credit Suisse Private Equity Conference on Small & Emerging Managers and In-State Investments on April 20th - 21st on the campus of Wayne State University in Detroit, Michigan.

The Conference has been designed to provide a forum for constructive discussion among small and emerging private equity managers ("SEMs"), in-state General Partners and key institutional investors active in the SEM and in-state private equity space.

"The Conference sponsors intend to provide critical investor and fund manager insights and a venue for developing strategic SEMs and in-state initiatives. We are pleased to host this industry-shaping event in Michigan, a state with increasing venture capital and emerging investor activity," said Bob Payne, CFIG's Michigan In-State Specialist.

Registration (closes April 16):
http://www.csfb.com/conferences/sem2009/reg/registration.shtml