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Saints Capital, Rustic Canyon Partners form fund to acquire 19 secondary interests Saints Capital, Rustic Canyon Partners form fund to acquire 19 secondary interests

10 Dec 2008. Source: AltAssets.
San Francisco-headquartered secondary direct investment firm Saints Capital and Southern Californian venture capital firm Rustic Canyon Partners have formed a new fund, Saints Rustic Canyon, to acquire interests in 19 companies formerly held by Rustic Canyon Ventures. Saints also purchased shares from Rustic Canyon Ventures SBIC in eight portfolio companies, structured as a strip purchase of 20 per cent of the fund's position in each of the companies.

The 19 entities include Archom Technology, Astea International, Auxora, Cooking.com, iCopyright, EM4, Foodlink Online, HyperQuality, Jo-Ann Stores, JRJK, Internet Brands, LoopNet, MediaSpan Group, NanoNexus, ODS-Petrodata, PC On Call, Serious Materials, US Renewables Group and Visto Corporation.

The eight companies are Capella Photonics, Fulcrum Bioenergy, Intrepid Learning Solutions, Serious Materials, SiliconSystems, Transonic Combustion, Trion World Network and Untangle.

Ken Sawyer, managing director of Saints, said, 'We provided liquidity to the single limited partner in Rustic Canyon Ventures, LP by acquiring the LP interest. In the strip transaction, we purchased a percentage of the shares held by Rustic in each company, thus generating liquidity for that fund.'

'Our first fund was supported by a single investor who wanted to rebalance his asset allocation. This investor remains the largest investor in our second and new third fund that closed in October. After much deliberation, we found the right partner in Saints to meet the needs of our LP, our portfolio companies and the Rustic team. With this transaction, we have fresh capital to support our companies' growth plans,' added Tom Unterman, managing partner of Rustic Canyon Partners. 'Importantly to us at Rustic Canyon, we will continue to manage the investments and support the great management teams we funded years ago.'

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