Endosomal protein sorting is a highly conserved cellular process that is required for receptor down-regulation, viral replication, and development (
Katzmann et al., 2002 
;
Morita and Sundquist, 2004 
). Much progress has been made in recent years in identifying distinct multiprotein complexes that regulate the fusion of primary endocytic vesicles, the maturation of an early endosome into a multivesicular body (MVB), and the recycling of proteins and lipids to other organelles (
Gruenberg and Stenmark, 2004 
;
Bonifacino and Rojas, 2006 
). The ESCRT-I, -II, and -III complexes (endosomal-sorting complex required for transport), which act in sequence to regulate the formation of internal vesicles at the MVB, play a central role in endosome biogenesis (
Katzmann et al., 2002 
;
Hurley and Emr, 2006 
). Other transport complexes regulate the targeting and fusion of endosomes or endosome-derived vesicles with other organelles (
Bowers and Stevens, 2005 
;
Bonifacino and Rojas, 2006 
).
Many components of the endosomal-sorting machinery were first identified in yeast genetic screens for mutants that are defective in protein transport to the yeast vacuole, which requires functional endosomal sorting and recycling (
Bowers and Stevens, 2005 
). Most of these components have a conserved role in endosome biogenesis in higher cells. Mammalian homologues have been identified for most if not all yeast ESCRT subunits (
von Schwedler et al., 2003 
;
Hurley and Emr, 2006 
), and at least some of the machinery that regulates recycling from the MVB is also well conserved. For example, the five-subunit retromer complex that mediates endosome-to-
trans-Golgi network (TGN) transport in yeast is associated with tubular regions of the endosome in mammalian cells and mediates retrograde transport (
Arighi et al., 2004 
;
Seaman, 2004 
). In the past 20 years, classical genetic screens have identified more than 50 vacuole protein-sorting (
VPS) genes (
Bowers and Stevens, 2005 
). Surprisingly, a recent screen of the yeast genome-wide deletion set identified more than 350 genes with mild to severe vacuolar protein-sorting defects (
Bonangelino et al., 2002 
). This represents a sevenfold increase in the number of candidate
VPS genes and motivates the development of new strategies to prioritize genes for further study.
Exploiting the full potential of global phenotypic screens requires quantitative, objective strategies for collecting and interpreting data and defining gene function (
Carpenter and Sabatini, 2004 
;
Quenneville and Conibear, 2006 
). Yeast knockout screens that record fitness defects under conditions of chemical, environmental, or genetic perturbation have successfully identified the target pathways of bioactive compounds and increased our understanding of genetic redundancy (
Tong et al., 2004 
;
Parsons et al., 2006 
;
St. Onge et al., 2007 
). Although growth rate is easily measured, assays that record biologically relevant attributes for a given pathway are expected to be more effective for systematically identifying the underlying molecular machinery.
Here, we use a sensitive biochemical assay for the genome-scale phenotypic analysis of yeast knockout mutants to define the relative contribution of each gene to the process of endosomal transport. Using a novel computational approach to identify statistically significant clusters, we show that new and known transport complexes can be predicted in an unbiased manner based on objective phenotypic criteria. As a result, we have identified and characterized a new endosome sorting complex. Our data indicate that the Vps55/68 complex acts with or downstream of the ESCRT machinery to regulate a novel step in endosome biogenesis.