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Belgian FLV Fund negotiates secondary market transaction for entire portfolio

Troubled Belgian venture firm, FLV Management, is in negotiations to sell its entire FLV Fund portfolio in a secondary transaction. The fund decided to wind up its operations after a $30m embezzlement scandal hit its fund in 2001.

FLV fund is currently in negations with an unnamed European-based secondary investment firm. The potential acquirer has asked for exclusivity for the duration of the negotiations but the transaction is subject to further due diligence procedure.

FLV plans to wind up the fund by the end of 2004. It is committed to making no investments in new ventures and concentrating on existing portfolios to secure their ‘gradual and orderly' realisation. If successful this transaction could potentially see the fund winding up in advance of its target date.

FLV posted a loss of E1.6m for the second quarter of 2003. The market value of non-listed venture capital investments decreased by E1.8bn because of additional write-downs for unrealised losses. Listed investments went up by E0.8m.

FLV Fund is a venture capital fund focused on companies developing applications on intelligent interfaces in the security and telematics, telecommunications, edutainment and business intelligence sectors.

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