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US Garnett & Helfrich raises $250m technology buy-out fund

US Garnett & Helfrich Capital has closed its debut Venture Buy-out Fund with over $250m of commitments. The fund will focus exclusively on buying out under performing and non-core businesses, product lines and divisions from public companies in the communications, internet, media, semiconductor and software sectors.

'Over 2,500 communications and software companies were acquired over the last ten years by publicly traded companies and many of those businesses have been orphaned or didn't integrate well into the parent operation,' said David Helfrich, managing director of Garnett & Helfrich.

'Our firm is focussed exclusively on spinning out these businesses as independent entities and repositioning them for improvement and growth. We view this as a positive service to the parent company who in many cases is looking for a soft landing for the orphaned business and its employees, customers and business partners.'

Harvard Management Company and Grove Street Advisors served as cornerstone investors to the fund. Additional investors include Stanford Management Company, Harbourvest, RHO Management, University of Michigan, Columbia University, Park Street Capital and Silicon Valley Bank.

'In this very difficult period of fundraising for newly formed buy-out and venture capital firms we are honoured that a group of ten premiere limited partner investors have decided to back us with such conviction and capital commitments,' said Terry Garnett, managing director. 'This creates a tremendous support system for us to build a truly great investment firm in the coming decade.'

Prior to forming this firm in late 2003, Garnett was a general partner with Venrock Associates. He previously served as senior vice president of worldwide marketing at Oracle Corporation. Helfrich was a co-founder of ComVentures where he served as a general partner. He was previously involved in the formation of a number of start-ups including Newbridge Network, Ascend Communications, Centrum/3COM and Copper Mountain.

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