Investcorp Technology Ventures Raises $300 Million Fund28 November 2005
Investcorp Technology Ventures (ITV) today announced the final closing of its Investcorp Technology Ventures II, L.P. (ITV Fund II), with $300 million in total committed capital. This includes a commitment of more than $8 million from ITV's own team. The fund was well oversubscribed at its original target of $250 million, and hit its cap at $300 million. ITV focuses on venture buyouts, corporate spinouts and growth capital / expansion stage financing in the technology sector. Fund II will make investments in technology driven companies -- primarily in the United States, and selectively in Western Europe -- with established products, a growing revenue base, and near-term profitability. The team investing ITV Fund II has already produced top-quartile returns, measured against industry peers, with its Investcorp Technology Ventures Fund I, L.P. (ITV Fund I), which was launched in June 2001 with $210 million in committed capital. Of the 16 investments initiated by the team, seven have been fully realized. In Fund II, ITV will continue to seek transactions that many traditional venture capital and technology focused investment firms often avoid due to their complexity, such as "take-private" investments and divisional spinouts of larger companies. Investcorp Technology Ventures focuses on investments in four key areas of the technology market: Mobile Data Technologies and Applications; Enterprise Software; Communications Infrastructure Products and Applications; and Digital Content Enablement. Savio Tung, Head of ITV at Investcorp, said, "ITV Fund II received strong support, and we have had very active participation in the new fund by our traditional investors. In addition, we have a diverse group of new limited partners from North America, Europe and Asia in our first formal offering to these markets." This new group of institutional, individual and family trust investors includes Grove Street Advisors in the U.S. and AlpInvest Partners and UBS Sauerborn in Europe. "We believe the commitments to the new fund result from the strong performance of ITV Fund I, but also show that investors recognize that we have a particular competitive advantage," said Mr. Tung. "ITV takes a disciplined approach to investing, applying the due diligence capabilities often associated with buyouts to venture investments. In addition, as part of our pre-investment due diligence, we focus on potential exit opportunities from day one of our investment. Working as one team across the Atlantic, we have an integrated, global approach and can be opportunistic in sourcing the most suitable transactions from both North America and Western Europe." Current ITV Fund II Investments To date, ITV has completed three investments from ITV Fund II, bringing the total amount invested to approximately $30 million: -- Magnum Semiconductor, Inc. -- In June 2005, ITV formed Magnu emiconductor from a spinout of Cirrus Logic's digital video produc ine. ITV led the asset sale with a $12 million investment. Based i ilpitas, CA, Magnum Semiconductor develops digital video integrate ircuits for consumer applications such as DVD recorders, camcorder nd network media adapters. In addition to DVD recorder chips, Magnu emiconductor also provides sophisticated software that control ecorder functions, administers Digital Rights Management protectio nd operates the user interface. August Capital is a co-investor. -- Trema Holding N.V. -- In February 2005, ITV invested approximately$11.5 million as part of a growth-capital investment in this leadin rovider of treasury and cash management software solutions to centra anks, treasury departments of Fortune 500 companies and asse anagement firms. Incorporated as a Dutch holding company, Trema i ased in Sophia-Antipolis, France. Co-investors include ABS Ventures,Carlyle Europe Venture Partners and Norsk Vekst. -- PanGo Networks, Inc. -- In October 2005, ITV invested $6 million as th ead in an expansion-stage round of funding which included existing co-investors Columbia Capital and IDG Ventures. Framingham, MA base anGo develops and sells a middleware software platform used to trac ssets via wireless networks. Pending ITV Fund II Investments -- Mania Technologie AG -- In October 2005, ITV announced the signing of efinitive agreement to invest approximately $20 million in th ecapitalization of this Frankfurt stock exchange-listed company, whic s a global leader in the printed circuit board industry, providin est equipment as well as outsourcing services. ITV Fund I: Selected Exits ITV has achieved successful exits for a significant number of its Fund I investments via both the capital markets and sales to strategic acquirers. Examples include: -- ObjectStar International Ltd. -- The company, a developer of a legac ntegration software platform, was an ITV spinout of a non-cor ivision of Fujitsu in 2003. ITV arranged the company's sale to TIBC oftware Inc. in March 2005. -- PortalPlayer, Inc. -- ITV's 2002 investment in this developer of chip nd firmware for digital media devices was fully exited through a sal f shares in August 2005, following a November 2004 IPO. -- Spectel plc -- This developer of application platforms for conferencin roviders, in which ITV invested in 2002, was acquired by Avaya i ctober 2004. -- Utimaco Safeware AG -- ITV invested in this software-based IT securit olutions provider in a September 2003 PIPE transaction. By September2005, the investment in this Frankfurt Stock Exchange-listed compan as fully realized via a sale of shares. -- Willtek Communications GmbH -- This developer of wireless test an easurement equipment was an ITV spinout from Acterna in 2003. Willte as sold to Wireless Telecom Group in June 2005. About Investcorp Technology Ventures Based in New York and London, Investcorp Technology Ventures invests in technology-driven companies with established products, a growing revenue base and profitability, or a path to profitability. It is focused on making $10 million to $25 million investments in companies in four key areas of the technology market: Mobile Data Technologies and Applications; Enterprise Software; Communications Infrastructure Products and Applications; and Digital Content Enablement. Investcorp Technology Ventures II, L.P., a fund that closed in November 2005 with total committed capital of $300 million, follows Investcorp Technology Ventures Fund I, L.P., a successful $210 million vintage 2001 fund. Investcorp Technology Ventures is part of Investcorp, a global investment group with offices in New York, London and Bahrain. In addition to Investcorp Technology Ventures, the firm has three other lines of business: corporate investment, real estate investment and asset management. It was established in 1982 and has since completed transactions with an aggregate value of approximately $25 billion. Further information on Investcorp is available at http://www.investcorp.com. Contacts: Media Todd Fogarty Kekst and Company (212) 521-4800 todd-fogarty@kekst.com Business Nancy W. Reynolds CFO/Investor Relations Investcorp Technology Ventures (212) 599-4700 nreynolds@investcorp.com
Source: PR Newswire
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