UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(RULE 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(b)(c), AND (d) AND AMENDMENTS THERETO
FILED PURSUANT TO RULE 13d-2(b)
(AMENDMENT NO.__)*
Capella Education Co.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
139594 10 5
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(CUSIP Number)
December 31, 2006
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
|_| Rule 13d-1(b)
|_| Rule 13d-1(c)
|X| Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Insight-Salmon River LLC
58-2684670
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 850,000 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 850,000 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 850,000 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 5.4%
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12. Type of Reporting Person (See Instructions)
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CO
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Page 2 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Salmon River Capital I, LLC
42-1650471
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 272,222 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 272,222 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 272,222 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 1.7%
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12. Type of Reporting Person (See Instructions)
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CO
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Page 3 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Salmon River CIP, LLC
42-1614243
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 146,018 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 146,018 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 146,018 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.9%
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12. Type of Reporting Person (See Instructions)
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CO
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Page 4 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Insight Venture Partners IV (Fund B), L.P.
52-2269507
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 194 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 194 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 194 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.001%
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12. Type of Reporting Person (See Instructions)
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PN
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Page 5 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Insight Venture Partners IV (Co-Investors), L.P.
52-2269509
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 2,997 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 2,997 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 2,997 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.02%
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12. Type of Reporting Person (See Instructions)
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PN
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Page 6 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Insight Venture Partners IV, L.P.
52-2269503
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 24,308 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 24,308 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 24,308 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.4%
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12. Type of Reporting Person (See Instructions)
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PN
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Page 7 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Insight Venture Partners IV (Cayman), L.P.
90-0183706
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Cayman Islands
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Number of 5. Sole Voting
Shares Power 3,251 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 3,251 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 3,251 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.02%
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12. Type of Reporting Person (See Instructions)
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PN
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Page 8 of 18 pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Salmon River Capital II, L.P.
43-2087060
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
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3. SEC Use Only
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4. Citizenship or Place of
Organization Delaware
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Number of 5. Sole Voting
Shares Power 55,736 shares of common stock
Beneficially -------------------------------------------------------
Owned by Each 6. Shared Voting
Reporting Power
Person With: -------------------------------------------------------
7. Sole Dispositive
Power 55,736 shares of common stock
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8. Shared Dispositive
Power
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9. Aggregate Amount Beneficially Owned by
Each Reporting Person 55,736 shares of common stock
10. Check box if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions)
11. Percent of Class Represented by Amount
in Row (9) 0.4%
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12. Type of Reporting Person (See Instructions)
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Page 9 of 18 pages
ITEM 1.
(A) NAME OF ISSUER:
Capella Education Co.
(B) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
225 South 6th Street, 9th Floor
Minneapolis, MN 55402
ITEM 2.
(A) NAME OF PERSON FILING:
Insight Salmon River LLC
Salmon River Capital I, LLC
Salmon River Capital CIP, LLC
Insight Venture Partners IV (Fund B), L.P.
Insight Venture Partners IV (Co-Investors), L.P.
Insight Venture Partners IV LP
Insight Venture Partners IV (Cayman) L.P.
Salmon River Capital II LP
ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
c/o Insight-Salmon River LLC
680 Fifth Avenue, 8th Floor
New York, NY 10019
See also supplemental information relating to principal
business office is included in Exhibit 2(a) attached hereto.
(B) CITIZENSHIP:
Insight Salmon River LLC : Delaware
Salmon River Capital I, LLC : Delaware
Salmon River Capital CIP, LLC : Delaware
Insight Venture Partners IV (Fund B), L.P. : Delaware
Insight Venture Partners IV (Co-Investors), L.P. : Delaware
Insight Venture Partners IV LP : Delaware
Insight Venture Partners IV (Cayman) L.P. : Cayman Islands
Salmon River Capital II LP : Delaware
(C) TITLE OF CLASS OF SECURITIES (OF ISSUER):
Common Stock
(D) CUSIP/ISIN NUMBER:
139594 10 5
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO SS.SS. 240. 13d-1(b) OR
240.13d-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A:
Not applicable.
Page 10 of 18 pages
ITEM 4. OWNERSHIP
(A) AMOUNT BENEFICIALLY OWNED:
Insight Salmon River LLC : 850,000
Salmon River Capital I, LLC : 272,222
Salmon River Capital CIP, LLC : 146,018
Insight Venture Partners IV (Fund B), L.P. : 194
Insight Venture Partners IV (Co-Investors), L.P. : 2,997
Insight Venture Partners IV LP : 24,308
Insight Venture Partners IV (Cayman) L.P. : 3,251
Salmon River Capital II LP : 55,736
(B) PERCENT OF CLASS:
Insight Salmon River LLC : 5.4% (as of December 31, 2006)
Salmon River Capital I, LLC : 1.7% (as of December 31, 2006)
Salmon River Capital CIP, LLC : 0.9% (as of December 31, 2006)
Insight Venture Partners IV (Fund B), L.P. : 0.001% (as of December 31, 2006)
Insight Venture Partners IV (Co-Investors), L.P. : 0.02% (as of December 31, 2006)
Insight Venture Partners IV LP : 0.2% (as of December 31, 2006)
Insight Venture Partners IV (Cayman) L.P. : 0.02% (as of December 31, 2006)
Salmon River Capital II LP : 0.4% (as of December 31, 2006)
(C) NUMBER OF SHARES AS TO WHICH SUCH PERSON HAS:
SOLE POWER TO VOTE:
(i) Insight Salmon River LLC : 850,000
Salmon River Capital I, LLC : 272,222
Salmon River Capital CIP, LLC : 146,018
Insight Venture Partners IV (Fund B), L.P. : 194
Insight Venture Partners IV (Co-Investors), L.P.: 2,997
Insight Venture Partners IV LP : 24,308
Insight Venture Partners IV (Cayman) L.P. : 3,251
Salmon River Capital II LP : 55,736
SHARED POWER TO VOTE:
(ii) Not applicable.
SOLE POWER TO DISPOSE:
(iii) Insight Salmon River LLC : 850,000
Salmon River Capital I, LLC : 272,222
Salmon River Capital CIP, LLC : 146,018
Insight Venture Partners IV (Fund B), L.P. : 194
Insight Venture Partners IV (Co-Investors), L.P.: 2,997
Insight Venture Partners IV LP : 24,308
Insight Venture Partners IV (Cayman) L.P. : 3,251
Salmon River Capital II LP : 55,736
SHARED POWER TO DISPOSE:
(iv) Not applicable.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS
Not applicable.
Page 11 of 18 pages
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
Not applicable.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY OR CONTROL PERSON
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not applicable.
ITEM 10. CERTIFICATION
Not applicable
Page 12 of 18 pages
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Date: February 14, 2007
INSIGHT - SALMON RIVER LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
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Name: S. Joshua Lewis
Title: Managing Member
INSIGHT VENTURE PARTNERS IV, L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
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Name: Jeffrey Horing
Title: Managing Member
SALMON RIVER CAPITAL I LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
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Name: S. Joshua Lewis
Title: Managing Member
SALMON RIVER CIP LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
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Name: S. Joshua Lewis
Title: Managing Member
Page 13 of 18 pages
INSIGHT VENTURE PARTNERS IV (FUND B), L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
-------------------------------------
Name: Jeffrey Horing
Title: Managing Member
INSIGHT VENTURE PARTNERS IV
(CO-INVESTORS), L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
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Name: Jeffrey Horing
Title: Managing Member
INSIGHT VENTURE PARTNERS (CAYMAN) IV, L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
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Name: Jeffrey Horing
Title: Managing Member
SALMON RIVER CAPITAL II, L.P.
BY: SALMON RIVER CAPITAL GP, LLC
ITS GENERAL PARTNER
By: /s/ S. Joshua Lewis
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Name: S. Joshua Lewis
Title: Managing Member
Page 14 of 18 pages
EXHIBIT 2(A)
ITEM 2. IDENTITY AND BACKGROUND.
This statement is being filed by Insight-Salmon River LLC., a
Delaware limited liability company, Salmon River Capital I, LLC, a Delaware
limited liability company, Salmon River CIP, LLC, a Delaware limited liability
company and Salmon River Capital II, L.P., a Delaware limited liability company,
each of whose principal business office is located 680 Fifth Avenue, New York,
New York 10019. Each of Insight-Salmon River LLC, Salmon River Capital I, LLC,
Salmon River CIP, LLC and Salmon River Capital II, LLC is engaged in the venture
capital business. The managing member of Insight-Salmon River LLC, Salmon River
Capital I, LLC and Salmon River CIP, LLC is Salmon River Capital LLC which is
also engaged directly and indirectly (through affiliates) in the venture capital
business. The general partner of Salmon River CIP, LLC is Salmon River Capital
GP, LLC. Accordingly, Mr. Lewis has voting and investment powers with respect to
the shares beneficially owned by the Salmon Funds. The managing member of Salmon
River Capital LLC and the sole member of Salmon River Capital, GP, LLC is S.
Joshua Lewis, a director of the Issuer. Mr. Lewis disclaims beneficial ownership
of such shares except to the extent of his pecuniary interest therein.
This Statement is also being filed by Insight Venture Partners
IV, L.P., a Delaware limited partnership (hereinafter referred to as "IVP"),
Insight Venture Partners IV (Co-Investors), L.P., a Delaware limited partnership
(hereinafter referred to as "IVP Co-Investors"), Insight Venture Partners
(Cayman) IV, L.P., a Cayman Islands limited partnership (hereinafter referred to
as "IVP Cayman"), Insight Venture Partners IV (Fund B), L.P., a Delaware limited
partnership (hereinafter referred to as "IVP Fund B"). The managing member of
each of the Insight Funds is Insight Venture Associates IV, LLC, a Delaware
limited liability company (hereinafter referred to as "Associates") and the
managing member of Associates is Insight Holdings Group, LLC, a Delaware limited
liability company (hereinafter referred to as "Holdings") each of whose
principal office is located at c/o Insight Capital Partners IV, L.P., 527
Madison Avenue, 10th Floor, New York, New York 10022. Each of IVP, IVP
Co-Investors, IVP Cayman and IVP Fund B (collectively referred to herein as the
"Insight Funds") is engaged in the venture capital business. Each of the
Associates and Holdings is engaged in the venture capital business indirectly
through the Insight Funds. Associates is the general partner of each of the
Insight Funds, and as such may be deemed to be the beneficial owner of all
shares held by the Insight Funds. Holdings is the managing member of Associates,
and as such may be deemed to be the beneficial owner of all shares held by the
Insight Funds.
The managing member of Insight-Salmon River, LLC is Salmon
River Capital LLC, and the non-managing members of Insight-Salmon River LLC are
the Insight Funds, Salmon River Capital LLC, as managing member of
Insight-Salmon River LLC, generally controls the voting power over the shares
held by Insight-Salmon River LLC, but the Insight Funds have shared voting power
with Salmon River Capital LLC over the shares with respect to certain matters.
In addition, Salmon River Capital LLC and the Insight Funds have shared
investment power over the shares held by Insight-Salmon River LLC. Mr. Lewis,
Associates and Holdings have shared voting and investment powers with respect to
the shares beneficially owned by Insight-Salmon River LLC. The foregoing is not
an admission by such persons that such persons are the beneficial owners of the
shares held by Insight-Salmon River LLC and each disclaims beneficial ownership
of such shares except to the extent of their pecuniary interest therein.
Page 15 of 18 pages
EXHIBIT 2(B)
JOINT FILING AGREEMENT
The undersigned acknowledge and agree that the foregoing statement on
Schedule 13G is filed on behalf of each of the undersigned and that all
subsequent amendments to this statement on Schedule 13G shall be filed on behalf
of each of the undersigned without the necessity of filing additional joint
acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning him or it contained therein, but
shall not be responsible for the completeness and accuracy of the information
concerning the other, except to the extent that he or it knows or has reason to
believe that such information is accurate.
Dated this 14th day of February, 2007.
INSIGHT - SALMON RIVER LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
-------------------------------------
Name: S. Joshua Lewis
Title: Managing Member
INSIGHT VENTURE PARTNERS IV, L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
-------------------------------------
Name: Jeffrey Horing
Title: Managing Member
SALMON RIVER CAPITAL I LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
-------------------------------------
Name: S. Joshua Lewis
Title: Managing Member
Page 16 of 18 pages
SALMON RIVER CIP LLC
BY: SALMON RIVER CAPITAL LLC
ITS MANAGING MEMBER
By: /s/ S. Joshua Lewis
-------------------------------------
Name: S. Joshua Lewis
Title: Managing Member
INSIGHT VENTURE PARTNERS IV (FUND B), L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
-------------------------------------
Name: Jeffrey Horing
Title: Managing Member
INSIGHT VENTURE PARTNERS IV
(CO-INVESTORS), L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
-------------------------------------
Name: Jeffrey Horing
Title: Managing Member
INSIGHT VENTURE PARTNERS (CAYMAN) IV, L.P.
BY: INSIGHT VENTURE ASSOCIATES IV, LLC
ITS GENERAL PARTNER
BY: INSIGHT HOLDINGS GROUP, LLC
ITS MANAGING MEMBER
By: /s/ Jeffrey Horing
-------------------------------------
Name: Jeffrey Horing
Title: Managing Member
Page 17 of 18 pages
SCHEDULE 13G
ISSUER: Capella Education Co. CUSIP NO.: 139 594 105
SALMON RIVER CAPITAL II, L.P.
BY: SALMON RIVER CAPITAL GP, LLC
ITS GENERAL PARTNER
By: /s/ S. Joshua Lewis
-------------------------------------
Name: S. Joshua Lewis
Title: Managing Member
Page 18 of 18 pages