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- Highland delays fund close
LP sources say Highland Capital Partners has delayed the close and cut carry for fund VIII
- Highland Capital Delays Fund Close
Highland Capital Partners has pushed back the first close for its eighth venture fund from the end of June to mid-July, according to multiple LP sources. The Lexington, Mass.-based firm also has reduced the fund's carried interest from 25% to 20 percent. Highland began marketing in in early spring with a $400 million target, which was just half of the $800 million it raised for each of its prior two funds. I lauded the move /36779/highland-capital-smaller-smarter/ writing that Highland was one of the few VC firms willing to put common sense above fee-mongering. After all, the deflated fundraising and deal-making environment makes it the perfect time to raise less. If things pick up, you can always go back for more. Of course, I also assumed that Highland's lowered target would make fundraising a breeze. For example, it could lose half of its LPs, so long as the other half committed pro rata.
- peHUB Wire: Friday, June 26, 2009
Did VC Fund Size Cuts Work?
- peHUB Wire: Friday, June 26, 2009
Did VC Fund Size Cuts Work?
- Did VC Fund Size Cuts Work?
[UPDATED] Coller Capital last week released a survey of limited partners, in which 65% of respondents said that they expect VC fund terms to become more LP-friendly over the next two years. This was portrayed by some as a sea change in the LP/GP power dynamic, although I suggested /42146/lps-say-no-mas-to-future-funds-but-what-about-existing-ones/ that “LPs would have more credibility if they began insisting on changes to funds that have already been raised.” My dissent was rooted in the memory of late 2001 and early 2002, when LPs fought back against the obesity of VC funds raised during the dotcom bubble. Sixteen U.S.-focused venture capital firms “volunteered” to cut their fund sizes by an aggregate of nearly $4.5 billion, including brand names like Accel Partners, Battery Ventures and Kleiner Perkins. The argument for such cuts – which were technically agreements not to call down a certain percentage of committed capital – was twofold: (a) Valuations and investment opportunities had fallen post-bubble, so less money was needed; and (b) VC firms tend to perform better when they focus on earlier (read: smaller) investments, so this was a return to successful knitting. LPs were happy with the resulting management fee reductions, and GPs were happy that their LPs were happy (butter ‘em up for the next fundraise). All hunky dory, except we’ve never actually looked to see if fund reductions produced better returns. So let’s do that now:
- Executive moves, week of April 6, 2009
Hires, promotions and other personnel changes at Velocity, VantagePoint, Bay Hills and other VC and PE firms
- Jeff Mansukhani Joins Bay Hill Capital
Jeff Mansukhani has joined Bay Hills Capital Management as a partner. He previously was a managing director with Cambridge Associates. Bay Hills is a San Francisco-based fund-of-funds manager focused on the small to lower mid-market buyouts space.
- peHUB Wire: Tuesday, March 31, 2009
Random Ramblings