Elevation eyes mags, but skips Dennis

By Michael Flaherty

NEW YORK (Reuters) - Elevation Partners, the private equity firm with U2's Bono among its founders, sees magazine assets as hot investment turf, driven by growth through online expansion, according to managing director Bret Pearlman.

Despite a bullish view toward magazines, Elevation has skipped the auction for Dennis Publishing Inc., publisher of "Maxim" magazine, Pearlman said.

Pearlman would not comment on the auction for part of magazine publisher Primedia, though he said the media's reporting on bidders appears to be fair. Elevation has been named as a bidder.

Elevation invested roughly $200 million in Forbes magazine last year, and is involved with its push toward increasing its online content. The firm has also invested in a real estate Web site and a video game maker.

"We're more interested on the magazine side," Pearlman said, about the firm's current focus, speaking at the Reuters Hedge Funds and Private Equity Summit here on Tuesday.

Regarding Forbes, Pearlman said "You will see a revolutionary, user-generated content application" on Forbes' Web site in the near-term. He disputed a recent article that there was tension between Elevation and a top Forbes executive.

"Honestly, we are collectively so shocked. It is truly an extremely harmonious relationship," he said. "We are six to eight months into a transaction that we're extremely enthused to be partners with the Forbes family."

Elevation was founded by Pearlman, a Blackstone Group veteran; Fred Anderson, the former CFO of Apple Computer; Marc Bodnick and Roger McNamee, founding members of Silver Lake; and rock star Bono. The Menlo Park, California-based firm raised a $1.9 billion private equity fund in 2005 that focuses on media and entertainment investments. The firm, which gets its name from a U2 song, has invested in video game maker BioWare / Pandemic Studios, Forbes, and real estate Web site Move Inc.  Continued...