Cipio acquires fourth venture portfolio

As its former CEO Ulrich Schumacher joins Francisco Partners, Infineon has completed the sale of its venture capital portfolio, one of the largest in Europe, to Cipio.

London and Munich based investment management firm Cipio Partners has acquired the corporate venture capital portfolio of semiconductor maker Infineon Technologies AG for an undisclosed sum. Cipio led the transaction jointly with Swiss fund of funds manager LGT Capital Partners.

The portfolio, which has been managed by Infineon Ventures GmbH since 1998 is one of the largest corporate VC funds in Europe, comprising approximately 30 direct investments and a number of fund investments.

Infineon technologies began looking to sell off its venture arm in October 2004, according to a press release. Commenting on the transaction, Tom Anthofer, managing partner at Cipio said: “We view Infineon’s choice of Cipio as its partner as a clear vote of confidence in us and the credibility and trust we have built up in previous acquisitions.”

Those acquisitions include the purchase of DaimlerChrysler Venture, the corporate VC arm of the German automotive manufacturer in November 2004 and the acquisition of a number of portfolio ventures of T-Venture Holding GmbH, a subsidiary of telecommunications provider Deutsche Telekom AG in September.

In separate news, the former chief executive of Infineon Technologies Ulrich Schumacher has joined the London office of California-headquartered buyout firm Francisco Partners.

Schumacher, who resigned from Infineon abruptly during a board meeting in March last year, joins Francisco as an operating partner and will be responsible for sourcing IT and semiconductor opportunities in Europe and Asia.

Commenting on the appointment, Francisco founder and managing partner David Stanton said: “ I am extremely confident that Dr. Schumacher will be as successful a technology investor as he has been a technology executive.”

Francisco Partners, which was set up less than five years ago, has more than $2.5 billion of committed capital under management.