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Funds: October 2001

Final closing for Gilde, debut fund of funds for Schroders, launch of Kleinwort Capital, second fund of funds for Danske, final close for Brockway Moran, Riverside closes ahead of target....

Europe

Close for Pearl
Partners Group announced the final closing of its listed fund of funds vehicle at E660m, according to PrivateEquityOnline (3.10.01). The vehicle allowed clients of German-based DGZ-Deka Bank to buy into the asset class.

RLAM launches £200m private equity joint venture
Royal London Asset Management announced the formation of Royal London Private Equity, a joint venture with former Murray Johnstone managing director David MacLellan, to manage a new £200m fund that will invest in the UK and mainland Europe. Royal London agreed to commit up to £50m to the fund, which is expected to close within 12 months (AltAssets 12.10.01).

Final closing for ABN Amro
After 18 months on the fund raising trail, ABN Amro Mezzanine closed its second fund at over £150m. Commitments were received from ABN Amro Bank, which acted as cornerstone investor, and other institutional investors. The fund will focus on mid-market buy-outs and growth capital opportunities in the UK and continental Europe (PrivateEquityOnline 17.10.01).

Corporate venturing fund for Noble Group
Scottish-based Noble Group has moved into the corporate venturing arena with the launch of a new £20m fund, according to Unquote (October 2001). The firm is hoping to establish itself as a corporate venturing outsourcing service, capitalising on the tax incentive scheme offered by the government-backed CVS (Corporate Venturing Scheme).

NEC commits to nCoTec
An E8m commitment from electronics company NEC took the amount raised by UK-based nCoTec Ventures to E53m. The first-time fund, expected to close later this year, will target opportunities in the technology sector (PrivateEquityOnline22.10.01).

Vontobel hits fund-raising trail
Swiss-based Vontobel Private Equity is preparing to launch two new direct investment funds - Vontobel Early Stage Ventures and Vontobel Late Stage Ventures - to invest in the Western European technology sector (Venturewire 12.10.01). The firm also announced the expansion of its advisory arm.

Debut fund for Julius Baer
Swiss bank Julius Baer launched a new fund of funds private equity investment vehicle - shaPE Capital - to be listed on the Swiss Stock Exchange. Although the firm has a traditional involvement with the private equity market, the new vehicle is expected to offer the bank's institutional and private clients fuller access to market opportunities (AltAssets 17.9.01).

Venture fund for Gartmore
Gartmore shrugged off the uncertainty of global capital markets by announcing the launch of its first venture capital trust. Gartmore Premier VCT, which will be managed by the highly rated Gartmore Smaller Companies Team, aims to raise a maximum of £25m and will invest in small listed and unlisted firms.
(AltAssets 9.10.01).

Media fund for Ergo Equity Partners
The venture capital division of German insurance company Ergo, along with two other media partners, launched a E150m fund to invest in media and entertainment. Ergo Equity Partners is hoping to secure commitments from German institutional investors (PrivateEquityOnline 12.10.01). 

Venture fund for Dubai
Deutsche Bank is setting up a new $100m fund to invest in information technology and media opportunities in Dubai, according to Venturedome (24.10.01).

Launch of Kleinwort Capital
Dresdner Kleinwort Capital and the Kleinwort Development Fund established a joint venture capital firm called Kleinwort Capital Limited to invest in UK-based middle-market technology, healthcare, media and manufacturing companies. The firms will jointly commit £100m to a new fund called Kleinwort Capital Partner IV, and are targeting external investors for an additional £100m (thedeal.com 3.10.01). 

£20m fund announced for Nestle
Nestle announced a new £20m fund to invest in food and life sciences, according to Venturedome (19.10.01). The announcement follows recent admissions that the economic downturn is hitting company profits.

Final closing for AFINUM
EVCA reported that AFINUM exceeded its expected target size, closing its AFINUM Beteiligungsgesellschaft debut fund at E74m. The fund will invest in buy-out and expansion opportunities in German speaking countries (19.10.01).

Fund of funds launch for Danske
Danske Private Equity, a subsidiary of Denmark's Danske Bank, launched a second fund of funds. Danske Private Equity Partners is targeting E600m to invest in buy-out and venture capital funds in the US and Europe (AltAssets 17.10.01).

Final closing for Gilde at E530m
Dutch private equity firm Gilde Investment Management closed its second buy-out fund with around E530m in commitments. The fund attracted 25 limited partners, including pension funds, banks, and insurance companies (AltAssets 19.10.01).

Double fund launch for AGF
AGF Private Equity is looking to raise E60m from individual investors for AGF Innovation 3, a fund that will invest in French technology companies. The company also launched AGF Capital Investissement 2 - a second fund of funds vehicle - and is seeking commitments from both individual and institutional investors (eFinancialnews 4.10.01).

New Polish fund for Credit Agricole
French-based Credit Agricole has established a $100m fund for Poland, despite signs that the economic doldrums have begun to make their mark on Eastern Europe.  (Venturedome 24.10.01).
 
BaltCap to manage new Baltic fund 
Baltcap is managing a new E13.75m venture capital fund, intending to take advantage of opportunities in the Baltic region. The European Bank for Reconstruction and Development, the European Investment Fund and Baltic Investment Fund III have all committed to the fund (Venturedome 15.10.01).

First closing for CDC Equity Partners 
CDC Equity Capital announced a first closing of its CDC Enterprises II fund at E300m after six months on the fund-raising trail. Parent company CDC IXIS provided a E200m cornerstone commitment to the French buy-out fund (Private Equity Europe October 2001)

North America

Chinavest ponders $200m fund
The Asia-focused venture capital firm Chinavest is contemplating a return to the fund-raising market with a $200m fund, according to Michael G. Brownrigg, the firm's vice president. Like its five predecessors, the fund will be invested into logistics, IT, and media, with a possible foray into the healthcare sector (VentureWire 3.10.01).

Early stage fund from HDL Capital Partners
HDL Capital Partners, the Toronto-based venture capital firm, is aiming to raise $35m for its new HDL Founders Club fund. Its primary focus will be on early-stage technology investments, particularly in Canadian IT, communications and software firms (VentureWire 5.10.01).  

$120m closing for UV Partners
UV Partners announced the close of its third fund at $120m, according to PrivateEquityCentral (9.10.01). The fund will follow the UV strategy of investing in IT and life science sectors opportunities.

New fund and partner for Alloy Ventures
Alloy Ventures is planning to raise $250m to $300m for its fourth IT and life sciences fund (VentureWire 5.10.01) .The firm also revealed that J Leighton Read, the former CEO of biopharmaceutical company Aviron, has joined as the firm's fifth general partner.

Final close for second Brockway Moran fund
Brockway Moran & Partners announced the $410m final close of Brockway Moran & Partners Fund II, exceeding the original target of $300m. Potential investments are thought to be in the mid-market manufacturing, service, and distribution industries (PrivateEquityCentral 2.10.01).

$200m target for Academy Funds
Washington-based Academy Funds is raising a new $200m fund to invest in seed and early-stage companies. Academy is also looking to extend its geographical focus beyond North Carolina (VentureWire 8.10.01).

Sterling Investment raises $231m
Sterling Investment Partners LP, the middle market buy-out fund from Sterling Investment Partners, has secured a total of $231m, according to TheDeal.com (17.10.01). The fund will focus on the service and manufacturing industries.

Riverside closes fund ahead of target
US buy-out specialist the Riverside Company closed its third fund at $410m, nearly doubling its initial target. Most of the firm's previous investors committed to the fund, which will continue to focus on mid-market buy-outs (AltAssets 24.10.01).

Hamilton Robinson begins investing latest fund
Hamilton Robinson began to make investments from its latest fund, Cygnet Capital Partners. This followed a $70m closing of the fund, which had a target size of $100m (VentureWire  4.10.01).

New fund for Tenex Greenhouse Ventures
The early-stage venture capital firm Tenex Greenhouse Ventures announced the close of its first fund at $20m. The firm is aiming to adopt three investment strategies at the early-seed, restart, and corporate spin-off levels focusing on the biotechnology, medical devices, and iHealth markets (VentureWire  8.10.01).

Government money heading for Toucan Capital
Toucan Capital, a venture capital firm focused on IT and biotech seed investments, looks set to receive around $80m from the US Small Business Administration, elevating its latest fund to between $120m and $150m. The firm is nearing the final stages of its licensing process and should receive the government funds within the next few months (VentureWire 9.10.01).

ZAP Ventures ready to invest
Broadband-focused venture capital firm Zap Ventures recently closed its latest fund and is now in a position to invest, according to VentureWire (9.10.01). The main focus will be on seed and early-stage opportunities, with ZAP looking to make around 20 investments in total.

First closing for OVP Venture Partners
OVP Venture Partners, a technology VC fund based in Oregon, announced the first closing of its sixth fund at $160m, well on track for its final target of around $200m, according to AltAssets (11.10.01). The funds were sourced from existing investors in OVP funds and a handful of new ones, including Calpers.

$200m close for General Catalyst
General Catalyst, the early-stage venture capital firm closed General Catalyst Group II at over $200m (VentureWire 10.10.01). This is the firm's second fund and the capital was raised in only eight weeks. Investments will primarily be in enterprise software companies.

Intelliun creates venture fund
Texas-based software development firm Intelliun has formed a $2m venture fund to focus on the development of new business opportunities for ASPs, software providers, and web service providers, alongside Intelliun products (VentureWire 10.10.01).

First closing for Discovery Capital
Discovery Capital 2001 Technology Fund announced a first closing at $5m, with a second closing likely in mid-November, according to VentureWire (11.10.01). The fund will invest in mid-stage private, and public, IT and communication companies.

MPM aims for larger fund
After the success of its $600m Bioventures II fund, MPM capital is reported to be raising an even larger fund. An unnamed source revealed that the new fund was expected to be about 25 per cent larger than its predecessor (VentureWire 15.10.01).

M&A fund for OptIn Ventures
California-based OptIn Ventures, a new technology-focused venture firm revealed it was raising a debut fund of between $50m and $100m. The firm plans to have a first close early next year, followed by a final close in the second quarter of 2002 (VentureWire 16.10.01).

Blue Capital postpones second fund-raising
A $350m fund-raising plan from Blue Capital has been abandoned, according to PrivateEquityCentral (5.10.01). Lack of investor interest, combined with poor market conditions, has affected the decision.

DragonVenture looks to China for co-management of new fund
Dragon Venture, the San Jose-based venture capital firm, is to co-manage a new fund with China's largest venture capital firm, Shenzhen Venture Capital Co.  Focused on Chinese software, internet infrastructure and technology companies, the fund will be raised on a 50:50 basis between the two firms (PrivateEquityCentral 17.10.01).

Berkshire Partners closes sixth fund
US private equity giant Berkshire Partners overcame the deepening chill in the fund-raising climate to close its sixth fund ahead of target on $1.7bn. Most commitments came from previous investors, with some new institutional participants. ‘The swiftness with which the new fund was raised was gratifying, particularly in this challenging economic environment,' said Kevin Callaghan, a Berkshire Partners managing director (AltAssets 24.10.01).

Debut fund for Applied Materials
The world's largest chipmaking manufacturers, Applied Materials Inc, has embarked on its first corporate venturing move, Applied Materials Venture I, according to The San Francisco Chronicle (29.10.01). The firm is looking to make strategic investments in optical equipment manufacturing companies in preparation for an expected mass production of optical components in the near future.

DLJ commits to SpaceVest III
DLJ Fund Investment Partners is the latest investor to commit to the SpaceVest III, LP fund.  The current focus of the fund is the space industry and next generation networks, according to an official press release (23.10.01).

Over $200m raised by RRE
The early-stage venture capital firm RRE Ventures is expected to close its third fund at between $200m and $250m by the end of the year (VentureWire 29.10.01). Richard McGinn, former Lucent Technologies CEO, was recently appointed as a senior advisor to the firm.

Local approach from Fort Washington
Fort Washington Capital Partners LLC is looking to raise around $50m for the Tri-State Growth Capital Fund, LP. This is a fund of funds aimed at drawing venture capital investment into early-stage venture funds in the Cincinnati area (Private Equity Analyst Oct 2001).

$89m for RiverVest
RiverVest Ventures has closed its debut fund at $89m, according to PrivateEquityCentral (19.10.01). The fund will target investment opportunities in seed- and early-stage drug development, medical devices, and biotechnology companies.

Hamilton Lane to manage fund of funds for US Vanguard Group
Hamilton Lane Advisors is to manage a new private equity fund of funds for mutual fund specialists Vanguard Group, according to AltAssets (10.10.01). The fund will seek commitments from wealthy individuals, and this announcement reflects the growing diversification of fund raising beyond the traditional core of institutional investors.

Final close for ARC Financial's third Canadian Energy Fund
ARC Financial, the Calgary-based venture firm, announced the closing of its third fund at $196.5m (PrivateEquityCentral 30.10.01). With the fund focusing mainly on Canadian oil and gas exploration, the firm will increase diversity by also investing in energy technology companies.