Fidelity sees another spin-out

Former Fidelity Ventures professionals have formed Volition Capital, taking along a portfolio of 26 companies.

Former executives from the venture capital arm of Fidelity have spun out in the US to form Volition Capital, the second Fidelity spin-out in 12 months.

Volition is being led by four managing partners, including Rob Kettison, who formerly ran Fidelity’s buyout arm Fidelity Equity Partners. The other managing partners are Larry Cheng, Andy Flaster and Roger Hurwitz.

The spin-out will continue to manage investments made by the departing executives when with Fidelity. These comprise a portfolio of 20 US companies and six European businesses. The European companies will be jointly managed with Fidelity Growth Partners Europe, Fidelity’s European venture capital affiliate.

Fidelity will not have any ownership of Volition, which will pursue investments in founder-owned technology companies, typically generating between $5 million and $50 million in revenue, the firm said in a statement.

The Volition spin-out follows the creation of Canter Equity Partners last year by former professionals from Fidelity’s London-based buyout arm, Fidelity Equity Partners. Canter was formed by three executives led by managing partner Sebastian McKinlay after the lack of debt financing in the marketplace led Fidelity to shut the division down.

Fidelity Biosciences, the venture division of Fidelity focused on biopharmaceutical and medical technology companies, remains unaffected by the spin-out.