Broadview, the technology-focused investment bank, has cut $35m from its commitment to Kennet II, the E280m high technology venture capital fund of Kennet Capital. According to a report on eFinancialNews, this leaves Broadview with a $15m contribution to the fund’s coffers.
Broadview, which is Kennet Capital’s parent company, had placed $50m with the fund when it closed at the end of 2000. However following last year’s downturn in technology stocks, the fund had to be brought more in line with Broadview’s current business activity, reports the website.
It took Kennet Capital just four months to raise the fund, with investors such as Harbourvest, Bank of America, Allianz, Swiss Re and Swiss Life committing.
According to Michael Elias, managing director of Kennet Capital, some of these investors will be increasing their allocations, but it is unlikely this will make up the $35m. Broadview would however increase its commitment should technology activity rise up again, he said. He added that this was not expected to occur any time soon.
Broadview, which has been hit hard by the technology downturn, last week denied rumours that it was working with a financial adviser who had been given the explicit buyer to find a buyer for the bank.