GM spinout debuts with venture FoF

Performance Equity Management, a former division of General Motors Investment Management Corp, has held a first close of $242 million for its venture capital fund of funds.

Performance Equity Management, an investment manager formerly owned by General Motors Investment Management, is in fundraising mode and has thus far secured commitments worth $242 million (€206 million) for a venture capital fund of funds.

A filing submitted earlier this month with the Securities and Exchange Commission does not specify a target for the fund, Performance Venture Capital LP, but published reports have indicated that the firm intends to raise $400 million for the vehicle.

The firm, which spun out of GM in May, also intends to raise a $700 million co-investment fund, according to reports. GM is reportedly expected to make a significant contribution to both funds, but was not mentioned in the filing as having invested yet.

Early backers in the new venture vehicle include the Canadian Pension Plan Investment Board, The School Employees Retirement Board of Ohio, WBS Tool Partners and James Mossman, formerly a senior managing director at The Blackstone Group.

Performance is headed by Charles Froland, who previously oversaw the internal and external private equity and debt securities investments for General Motors Investment Management. He is joined at the firm by former GM colleagues Lawrence Rusoff, John Clark, Jeffrey Barman, Jon de Klerk and Marcia Haydel.

Performance has already made commitments out of the fund, including investments in the debut fund of Spark Capital and the most recent vehicle from Canaan Partners, Canaan Partners Fund VII.

This is not the first time the Performance team has managed third party capital. Under General Motors, it reportedly accepted investments from outside groups, such as returning investor Canada Pension Plan Investment Board, Ontario Municipal Employees’ Retirement System and New York State Common Retirement Fund.