Term Sheet — Wednesday, October 29

1. Carlyle has secured around $600 million in LP commitments for its third Japan-focused fund, which is targeting $1 billion. It also is around 60% of the way toward a €500 million-targeted European tech fund.
2. Carlyle co-founder Bill Conway said that LPs in its fourth flagship buyout fund are on the hook for around 25% of its $115 million settlement over PE collusion accusations. That represents around 1% of gains from vthe fund, bringing its net multiple of invested capital (MOIC) down from 1.97x to 1.96x. No suggestion that Carlyle itself should have chipped in a bit, particularly given that its decision to delay settlement likely increased the payout (not to mention that it had less insurance for such things than did other defendants). Conway, after saying that he probably shouldn't comment, said: "We thought the case was without merit. Once everyone else settlesd, we thought the risk to our fund investors and unit-holders was just too great to take... Nobody wants to pay this kind of settlement... clearly investors in the fund weren't happy."
   UPDATE: It seems I misunderstood what Conway was saying here. A Carlyle spokesman tells me that Conway's reference to 25% was the amount that Carlyle itself picked up, although he would not say how much of the remainder was covered by insurance.
3. Conway said that he was unaware of an SEC investigation into how private equity firms calculate average net returns, which was first reported on yesterday by Reuters. "It's news to me, but it's not surprising," he added. According to Reuters, here's the issue at hand: "Including the general partner's money in the average net returns can inflate the fund's average net performance figure, and the SEC is investigating whether private equity fund managers properly disclose whether they are doing that or not."

• Deal scoop: My colleague Erin Griffith reports this morning that Rent the Runway, a New York-based startup that rents designer dresses and accessories, is raising $50 million in new VC funding (it previously scooped up more than $54 million). Erin also has revenue details. Full story here.

• Three of a kind: Abbott Labs (NYSE: ABT) this morning announced three deals all targeted at the catheter-based electrophysiology market. One was an acquisition ($250m upfront payment for Topera). One was an agreement to acquire Advanced Cardiac Therapeutics (based on undisclosed milestones). And the last was participation in a $31.5 million VC round for VytronUS. Worth noting that all three "targets" are portfolio companies of venture firm NEA and, more specifically, partner Justin Klein. More on this later today on the website.

• Fascinating: Re/Code yesterday reported that VC firm Benchmark has acquired a stake in Tinder, the mobile dating app owned by Match Group (a unit of IACInteractiveCorp). But there was no equity investment. Instead, Tinder gets the "time and expertise" of Benchmark partner Matt Cohler, who will be joining the Tinder board. Is this the beginning of an "equity for expertise" trend? And would these be considered fund investments? Hoping to get more details later today. At the very least, it's strange. Why wouldn't Tinder want at least a little bit of cash?

• Update: Last week, the WSJ reported on how AirBNB is allowing vested employees (and ex-employees) to sell around $50 million worth of stock at a $13 billion valuation (around 30% premium to the last round). My understanding is that the buyers would be existing AirBNB investors, rather than an outside third party.

• Update II: Last week I raised the prospect of hung LBO loans, caused by both Fed scrutiny and high-yield volatility. According to WSJ, we now have one with Jefferies expected to lose around $15 million on its backing of Bain Capital's deal for Toms Shoes.

• Correction: Social media management company Buffer is raising $3.5 million at at $56.5 million pre-money valuation. Yesterday's issue mistakenly wrote "$66.5 million pre-money." Apologies.

• Drop a dime: Just a reminder that you always can send me an anonymous message by using our tip function. Just go here.

THE BIG DEAL

• Wealthfront, a Palo Alto, Calif.-based automated investment service, has raised $64 million in new VC funding. Spark Capital led the round via its growth fund, and was joined by Dragoneer Investment Group and return backers including Index Ventures, DAG Ventures, Greylock Partners, Ribbit Capital and the Social+Capital Partnership. www.wealthfront.com

VENTURE CAPITAL DEALS

• Cardlytics Inc., an Atlanta-based provider of card-linked marketing services, has raised $70 million in Series F funding. Discovery Capital led the round, while existing backers include Groupe Aeroplan Inc., Canaan Partners, ITC Holdings, Kinetic Ventures, Polaris Partners and TTV Capital. www.cardlytics.com

• Personal Capital, a San Francisco-based digital wealth management firm, has raised $50 million in Series D funding. Corsair Capital led the round, and was joined by BBVA Ventures, USAA and return backers IVP, Venrock and Crosslink Capital. www.personalcapital.com

• Aileron Therapeutics Inc., a Cambridge, Mass.-based developer of drugs based on a stapled peptide platform, has raised $33 million in new Series E funding. AJU IB Investment and two undisclosed private investment groups co-led the deal, and were joined by return backers Apple Tree Partners, Excel Venture Management, Lilly Ventures, Novartis Venture Funds, Roche Venture Fund and SR One. The round total is now $63 million, including a first close from last November. www.aileronrx.com

• QualiSystems, an Israel-based agile infrastructure automation company, has raised $8 million in new VC funding. Return backers include Evergreen Venture Partners, Gemini Israel Funds and Fishman Investments. www.qualisystems.com

• Vestaron Corp., a Kalamazoo, Mich.-based developer of insecticides using natural peptides from spiders, has raised $4 million in new Series B funding led by Anterra Capital. The round total is now $14 million, including past commitments from Cultivian Sandbox Ventures, Southwest Michigan First Life Science Venture Fund, Open Prairie Ventures, Pangaea Ventures and Michigan Accelerator Fund. www.vestaron.com

• Fleksy, a San Francisco-based developer of mobile keyboards, has raised $2 million in VC funding. Backers include Digital Garage, Eniac Ventures, Middleland Capital, Highland Capital Partners and Militello Capital. www.fleksy.com

• Bright.md, a Portland, Ore.-based provider of software designed to reduce the cost of healthcare visits, has raised $1 million in seed funding. Seven Peaks Ventures led the round, and was joined by Portland Seed Fund and Oregon Angel Fund. www.bright.md

PRIVATE EQUITY DEALS

• Laurus Labs, an Indian-based developer of active pharmaceutical ingredients, has secured approximately $90 million in growth equity funding from Warburg Pincus. Existing Laurus Labs shareholders include Fidelity Growth Partners India and Fidelity Biosciences. www.lauruslabs.com

• MTS Health Investors has acquired Celerion Holdings Inc., a Lincoln, Neb.–based provider of clinical trial solutions to pharma and biotech markets. No financial terms were disclosed. Celerion had raised VC funding from Bain Capital Ventures, International Biotechnology Trust, Ricerca Biosciences and SV Life Sciences. www.celerion.com

• Platinum Equity has acquired a majority stake in Grupo Terratest, a Madrid, Spain-based ground engineering firm. No financial terms were disclosed. www.platinumequity.com

• Snow Phipps Group has acquired Teasdale Foods Inc., an Atwater, Calif.–based maker of bean and hominy products, from Palladium Equity Partners. No financial terms were disclosed. www.teasdalefoods.com

IPOs

• GDC Technology Ltd., a Hong Kong-based provider of digital cinema software solutions in which The Carlyle Group holds a 48% stake, has withdrawn registration for a $75 million IPO. No explanation was provided. The company had planned to trade on the Nasdaq, with Barclays, Jefferies and Piper Jaffray serving as co-lead underwriters. www.gdc-tech.com

• Alexander’s Holdings, a Nashville, Tenn.-based operator of upscale dining concepts J. Alexander’s and Stoney River Steakhouse and Grill, has filed for a $75 million IPO. It plans to trade on the NYSE under ticker symbol JAXH, with Stephens Inc., KeyBanc Capital Markets and Stifel serving as lead underwriters. The company reports $6.3 million of net income on $149 million in revenue for the nine months ending Sept. 28, 2014. www.jalexanders.com

• Sientra Inc., a Santa Barbara, Calif.-based maker of breast implants, raised $75 million in its IPO. The company priced 5 million shares at $15 per share (middle of $14-$16 range), for an an initial market cap of approximately $212 million. It will trade on the Nasdaq under ticker symbol SIEN, while Piper Jaffray and Stifel served as lead underwriters. Sientra reports a $1.1 million net loss on around $22 million in revenue for the first half of 2014. Shareholders include OrbiMed Advisors (33.8% pre-IPO stake), Clarus Ventures (29.8%), Abingworth Management (18.6%), an affiliate of Goldman Sachs (8.6%) and TIAA-CREF (6.9%). www.sientra.com

EXITS

• Brickstream, a Norcross, Ga.-based provider of in-store behavior measurement technology solutions, has acquired Nomi, a New York-based omni-channel marketing platform. No financial terms were disclosed. Brickstream has raised over $30 million in VC funding from Columbia Capital, RBC Venture Partners, Mohr Davidow Ventures and Relay Ventures. Nomi had raised $13 million from such firms as Accel Partners, First Round Capital, CAA Ventures, SV Angel, Forerunner Ventures and Greycroft Partners. Read more.

• Employees Provident Fund, a Malaysian state-run pension system, is prepping a bid for a 33.6% stake in UK port operator Associated British Ports Holdings PLC that currently is held by Goldman Sachs Infrastructure Partners and Prudential PLC, according to the WSJ. Read more.

• Engility (NYSE: EGL) has agreed to acquire rival government services contractor TASC for approximately $1.1 billion in stock. Sellers are General Atlantic and KKR, which paid $1.65 billion to buy TASC for nearly $1.7 billion from Northrop Grumman in 2009. Read more.

• MegaChips Corp. (Tokyo: 6875) has agreed to acquire SiTime Corp., a Sunnyvale, Calif.-based chipmaker, for $200 million in cash. SiTime has raised over $50 million in VC funding from firms like Greylock Partners, Jafco Ventures, Robert Bosch Venture Capital, NEA, Grazia Equity, CID Group, Northgate Capital, Camp Ventures, NEC Capital Solutions and SMBC Venture Capital. www.sitime.com

• TPG Capital has hired Lazard to find a buyer for Australian electricity retailer Alinta Energy, according to Reuters. The deal could be valued at around US$3.54 billion. Read more.

• Western Gas Partners LP (NYSE: WES) has agreed to acquire Nuevo Midstream LLC, a midstream company focused on the Delaware Basin in West Texas and Southeast New Mexico, for $1.5 billion from EnCap Flatrock Midstream. www.nuevomidstream.com

OTHER DEALS

• Berkshire Hathaway (NYSE: BRKa) has sold World Marketing Inc., an Omaha, Neb.-based marketing and direct mail company, to an investment group led by Milwaukee businessman Robert M. Kraft. No financial terms were disclosed. www.worldmarkinc.com

• Bristol-Myers Squibb Co. (NYSE: BMY) has signed a commercial agreement and exclusive option to buy F-star Alpha, a UK-based provider of oncology and immune-oncology products. The deal includes a $50 million up-front payment, while the total agreement could be worth upwards of $475 million. F-star has raised VC funding from firms like Atlas Venture, Merck Serono, Aescap Venture, SR One, TVM Capital and MP Healthcare Venture Management. www.bms.com

• Buzzfeed has acquired stealthy Torando Labs, via an acqui-hire that makes Torando CEO Todd Levy the new VP of data engineering at Buzzfeed. No financial terms were disclosed. Buzzfeed recently raised $50 million in new VC funding led by Andreessen Horowitz. Read more.

• Josh Harris (Apollo Global Management) and David Blitzer (Blackstone Group) are in talks to purchase Barclays Premier League club Crystal Palace, according to The Times of London. The two private equity investors, acting independent of their firms, already own the NBA’s Philadelphia 76ers basketball franchise and the NHL’s New Jersey Devils club. Read more.

• L.B. Foster Co. (Nasdaq: FSTR) has agreed to acquire FWO, the railroad-turning business of Balfour Beatty Rail GmbH. No financial terms were disclosed. www.lbfoster.com

FIRMS & FUNDS

• Akkadian Ventures, a direct secondary firm focused on providing liquidity to early employees and investors in VC-backed companies, has closed its third fund with $74 million in capital commitments. www.akkadianventures.com

• The Carlyle Group is targeting $2.5 billion for a mezzanine debt fund focused on the energy market, according to Bloomberg. Read more.

• Infracapital Partners, a UK-based private equity firm focused on the European infrastructure market, has closed its second fund with £1 billion in capital commitments. Co-investment commitments bring the amount of investable capital to £1.3 billion. Atlantic-Pacific Capital served as placement agent. www.infracapital.co.uk

MOVING IN, UP, ON & OUT

• Tokarz Group Advisers, a debt unit of MVC Capital, has hired four professionals from Fifth Third Bancorp’s mezzanine finance group: David Williams, Harrison Mullin, David Gardner and Scott Foote. www.ttga.com

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