Marianne Wu, president of GE Ventures, has left the corporate venturing unit as the US-listed industrial conglomerate has agreed to sell 16 healthcare portfolio companies to an affiliate of Leerink Revelation Partners.
Wu was unavailable to comment but for her GCV Rising Stars 2017 award ahead of being promoted to president, she was described by her then-boss, chief innovation officer Sue Siegel, who left GE in July, as having a “breadth of experience in venture capital, startups, management consulting, engineering and marketing [that] make her a force to be reckoned with”.
Wu had been at GE (and GE Ventures) for about five years after working as a partner alongside Siegel at VC firm Mohr Davidow Ventures from 2005.
GE declined to comment on Wu’s departure but on the secondaries sale to Revelation David Mayhew, chief investment officer at GE Ventures, said: “This decision was made with their growth in mind, given Revelation Partners’ strong track record and expertise.”
The sale does not include any venture equity investments held by GE Healthcare and GE Ventures continues to hold about 70 portfolio companies, primarily in the software, energy, and industrial sectors.
GE Ventures had been seeking a buyer for its entire portfolio or a spin-out of its entire team.
GE Ventures was established in 2013 to succeed GE Capital – which continues to operate as a financial services provider – and a series of separate funds focused on distinct sectors, such as energy and healthcare.
The unit had a mandate to invest $150m a year but with concerns about its financing in its main subsidiaries, the corporate venturing unit was hampered in its dealmaking and GE Ventures has suffered from a series of high-profile departures over the past year, including Lisa Suennen, Noah Lewis, Jessica Zeaske and Alex Tepper before Siegel and Wu’s departure and insiders said further moves were expected this year as other dealmakers leave.
GE had $110bn of debt on its books as of March this year and was undergoing an investigation by the US Securities and Exchange Commission and Department of Justice into its accounting practices.
Mike Boggs, managing partner at Revelation Partners, added: “We were able to buy a high-quality portfolio, deliver for GE Ventures, and create a winning formula for the underlying portfolio companies. Each company gained a new investor, Revelation Partners, who specializes in healthcare, can serve on the board of directors as needed, and has substantial capital reserved to support them in their next phase of development.”
Financial terms were undisclosed. Lazard acted as financial advisor to GE. Law firm Pillsbury Winthrop Shaw Pittman advised Revelation Partners and Paul Hastings and Holland & Knight advised GE as counsel.
