Montagu Newhall holds $250m close

The third venture fund of funds from Montagu Newhall Associates has finished its fundraising oversubscribed, pulling in $250m in commitments.

Baltimore-based Montagu Newhall Associates has closed its third venture capital fund of funds, amassing $250 million (€207 million) in limited partner commitments for Montagu Newhall Global Partners III, LP. The fund hit its hard cap for the vehicle, and came in $50 million ahead of its original $200 million target.

It’s a changing market. Elite firms are reducing fund sizes dramatically. Tech funds are, in many cases, reduced by 50 percent. Getting a meaningful allocation to those funds is significant, especially as access is difficult in this environment.

Jim Lim, general partner, Montagu Newhall Associates

According to a statement, up to a quarter of the capital in the fund will be dedicated to co-investments.

Greenwhich, Connecticut-based Champlain Advisors served as placement agent for the fund.

Montagu Newhall was founded in 2000, and maintains offices in London and Redwood City, California, in addition to its headquarters near Baltimore. The firm’s previous fund had taken in $156 million in commitments, while its inaugural investment vehicle was $52 million in size.

The incremental expansion of Montagu Newhall’s fund size comes alongside a downward trend among general partners with regard to fund capitalisations. Jim Lim, a general partner at the firm, cited this dynamic, adding that against that backdrop, access to top tier funds is even more important in today’s marketplace.

“It’s a changing market,” Lim said. “Elite firms are reducing fund sizes dramatically. Tech funds are, in many cases, reduced by 50 percent. Getting a meaningful allocation to those funds is significant, especially as access is difficult in this environment.”

Montagu Newhall has made past investments in funds from Accel Partners, Delphi Ventures, Domain Associates, HealthCare Ventures, Lightspeed Venture Partners, TA Associates and others.

The firm said in a statement that its investment strategy for the new fund would follow that of the two previous vehicles, which targeted funds with a focus on IT, communications and healthcare.