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Funds: February 2003

ISIS holds second close for third fund with E143m, PolyTechnos raises E130m for final close of second venture fund, AGF launches new E200m fund of funds, Intersouth closes early-stage venture fund, EDS closes down venture operations, Sevin Rosen cuts fund size, Catalyst/Hall launches mid-market buy-out fund…

Europe

UK's Martin Currie strengthens private equity team, markets new fund
Edinburgh-based fund manager Martin Currie has announced the appointment of Paul Murray, previously a founding partner of Deutsche Bank Capital Partners, as managing director of its private equity team. Murray's appointment comes as Martin Currie is marketing a new E300m fund, which will make direct investments as well as acting as a fund of funds. The fund will be a broadly diversified one, comprising venture capital, management buy-out, and mezzanine funds, with some sector-focused funds considered. Up to 15 per cent of Martin Currie's new fund will be invested directly.
AltAssets 5.2.03

France-based AGF Private Equity launches E200m fund of funds
French private equity captive AGF Private Equity is reported to be in the process of launching its third E200m fund of funds, aiming solely at institutional investors. The fund will target only European funds and will be focusing more on buy-out funds than on venture. AGF Group, AGF Private Equity's parent company, will provide around E100m of the capital.
AltAssets 26.2.03

Equinet Venture Partners raising third fund
Germany-based Equinet Venture Partners has raised E15m towards its third fund, Venture Capital Rheinland-Pfalz. The commitments came from Mainz-based central development institute Investitions-und Strukturbank Rheinland-Pfalz. The fund, which may raise up to E30m, will invest in German seed and early-stage businesses in IT, biotech, nanotech, microreaction and materials technology companies.
Real Deals 27.2.03

European energy fund 4D Global Energy holds first close with $60m
4D Global Energy, Europe's first private equity fund to target the oil and gas market, has held a first close with $60m of commitments. The fund has a target of $150m and will target profitable mid-market companies, mostly in Europe, taking minority stakes. Société Générale Asset Management is sponsoring the fund and has committed $25m.
AltAssets 4.2.03

Sea Lion Ventures raising E100m first fund
UK-based Caledonia Investments has formed Sea Lion Ventures in a joint venture with Stephen Schwiech and Patrick Seely. The fund aims to raise E100m from institutional investors and plans to invest in between 15 and 20 undervalued European small-cap companies.
EVCJ February 2003

Capital Stage Nanotech loses backing from sponsor
German quoted investment company Capital Stage is to renege on its sponsorship of nanotechnology venture capital fund Capital Stage Nanotech, which was launched last year. Capital Stage had agreed to sponsor the fund when it launched last year. But, following meetings last month, the company decided to withdraw support for the fund, citing a lack of appetite for risk among its investors and an unstable economic environment.
AltAssets 7.2.03

GIMV reduces portfolio by E290m
Belgium-based Investment Company for Flanders (GIMV) has released its 2002 results and announced a write-down of E290m on its portfolio, bringing the total to E820m. GIMV invests in information and communications technology, life sciences and growth capital opportunities.
PrivateEquityOnline 20.2.03

PolyTechnos Venture Partners has final close of second venture fund with E130m
German-based PolyTechnos Venture-Partners has announced a final close for its second venture fund, PolyTechnos Venture Fund II, with E130m of commitments. The fund's original target was between E150m and E180m. Investors into the fund include Access Capital Partners, Bank of America Equity Partners, Wilshire Associates and the European Investment Fund. The fund's strategy will be to invest ‘predominantly in German-speaking Europe', in IT, materials, energy and life sciences.'
AltAssets 11.2.03

UK's ISIS Partners Equity Partners holds second close with E143m
UK-based ISIS Equity Partners has announced the second close of its third fund with commitments of £143m. The fund was launched in September 2002 and has a final target of £175m. The firm will maintain its strategy of investing in UK-based companies with enterprise values of between £5m and £50m in the business services, consumer markets, healthcare, IT and media sectors.
AltAssets 24.2.03

North America

Paladin Group holds first close for security fund
Washington-based Paladin Capital Group has held a first close of its Paladin Homeland Security Fund I. The fund will focus on ‘dual-use' investment opportunities, companies developing technologies and products that have both commercial and government applications. The fund is reported to be targeting around $300m for a final close in November.
VentureWire 20.02.03

Cascadia Partners plans to raise $250m venture fund of funds
Oregon-based venture firm Cascadia Partners plans to raise $250m for TCF Ventures, a venture fund of funds to invest in ten seed-stage venture capital funds. The fund will focus on health care, energy and information technology opportunities. Cascadia plans to market the fund to large institutional investors who lack the resources to back seed-stage funds.
Private Equity Analyst February 2003

Electronic Data Systems closes down venture fund
Texas-based Electronic Data Systems, the corporate information systems provider, is to shut its venture capital fund. EDS announced the fund in 1999 with a $1.5bn target and raised just $6m. The firm is aiming to sell off all of its portfolio companies within a year and has decided to focus on partnership opportunities.
VentureWire 24.2.03

US-based Intersouth Partners raises $205m for early-stage venture fund
North Carolina-based venture firm Intersouth Partners, which focuses on emerging life sciences and information technology companies in the US, has announced a final close of its Fund VI with $205m. Institutional investors were mostly US-based, but Intersouth said that 22 per cent of funds came from investors based outside the US. Some 37 per cent of the commitments came from new investors.
AltAssets 19.2.03

Radius Venture closes second life sciences fund
New York-based Radius Ventures has closed Radius Venture Partners II at $73.5m. The fund will focus on low valuation firms across sectors, and will only invest in the US, concentrating on the New England region. Limited partners in the fund include CRA Funding and Bain Capital.
VentureWire 18.2.03

Debut mid-market fund for US joint venture Catalyst/Hall
US mezzanine funds The Catalyst Group, based in Houston, and Hall Brothers Holdings, of Oklahoma City, have joined forces to raise a new mid-market fund named Catalyst/Hall, with $150m. Investors into the new fund include high net worth families, institutions and principals of the partnership itself, the firm said in a statement. The firms said the joint venture would help them expand their geographic reach. Companies considered will be those based in the south-west and mid-west regions of the US.
AltAssets 18.2.03

New World Ventures cuts fund size
Chicago-based New World Ventures has cut the size of its $80m William Blair New World Ventures fund to $50m. The company will continue to make new investments out of New World Ventures as well as continuing to focus on its existing performance.
VentureWire 12.2.03

Friedman, Billings, Ramsey Group abandons fundraising plans
Investment bank, Friedman, Billings, Ramsay Group has dropped plans to raise $50m to $100m for FBR Technology Venture Partners III. The firm said it sees no market for an early-stage technology fund, and will instead concentrate on supporting companies in two prior funds. The firm closed a $50m fund in 1998 and a $160m fund the following year, making a total of 32 investments. The firm now looks likely to drop the FBR Technology Partners name.
Private Equity Analyst February 2003

MCNC Ventures to invest in early-stage North Carolina firms
MCNC Ventures, a new fund established by MCNC Research Development Institute, has $25m to invest in technology start-ups in North Carolina. Investments will be made through two funds, the Seed Fund and the Enterprise Fund. The two funds will invest in between 15 and 30 companies over a period of four to five years.
VentureWire 10.2.03

Sevin Rosen cuts Fund VIII by one third
Texas-based Sevin Rosen Funds has reduced the size of its eighth fund my nearly a third, to $600m from $875m. The firm now believes it will only need to invest $10m throughout the life of its portfolio companies, rather than the $15m it initially anticipated. The firm focuses on early-stage ventures in communications, eBusiness infrastructure and solutions and internet-enabled business models.
PrivateEquityCentral 11.2.03

K2 Capital Partners launches $100m fund of funds
Houston-based K2 Capital Partners is targeting $100m for K2 Capital Private Equity Partners II. The firm will seek to expand its investor base from wealthy individuals to small institutional investors. The fund plans to commit around 60 per cent to buy-out funds and the remaining 40 per cent to venture capital funds.
Private Equity Analyst February 2003

Football star forms mid-market buy-out firm
Former San Francisco 49ers quarterback Steve Young has teamed up with Fraser Bullock, former president and COO of the Salt Lake Organising Committee, to form Sorenson Capital. The Utah-based firm has so far raised $75m towards the $275m fund, which will focus on mid-market buy-out opportunities in the Rocky Mountain region. The fund is named after a key investor - Jim Sorenson, chief executive of Sorenson Media.
PrivateEquityCentral 24.2.03

Redwood Partners International launches $150m venture fund
Newly formed Redwood Partners International has launched a $150m venture fund to focus on media opportunities. Redwood Partners International is the result of a merger between New York-based Redwood Partners and inVentures, a London-based investment and development company.
AltAssets 20.2.03

Platinum Equity seeks $750m for debut buy-out fund
Platinum Equity seeks $750m for its debut investment fund. Platinum specializes in buying ailing high-tech companies and is keen to raise capital to finance larger acquisitions. Outside investors have expressed interest in participating in a Platinum fund and the firm is currently in talks with several potential limited partners.
The Deal 25.2.03

Redpoint Ventures slashes fund size
Redpoint Ventures has reduced the size of its 2000 fund, Redpoint Ventures II for the second time. The fund has been cut from $938m to $750m. The early-stage technology investor had already cut the fund from its original $1.25bn in April 2002. The firm was expecting to invest an average of $14m per start-up, due to the market conditions this has been revised down to $12m.
Private Equity Analyst February 2003

Forward Ventures cuts fundraising target by $150m
San Diego-based Forward Ventures has cut the target size of its fifth fund from $400m to $250m following the death of managing member Jeffrey Sollender. The firm was expecting to hold a first close this quarter. Mr Sollender died in a car accident in December, aged 42.
Private Equity Analyst February 2003

Rest of World

Jerusalem Global Ventures reduces first fund by E32m
Early-stage Israeli venture capital firm Jerusalem Global Ventures, which focuses on IT, communications and life sciences, has decided to cut its first fund to $156m, a reduction of $32m according to media reports. The venture capital industry in Israel has been in steady decline since the bursting of the venture bubble in 2000. In 2000, Israeli high-tech companies attracted as much as $3.1bn - this fell to just $1.14bn in 2002.
AltAssets 19.2.03