VCF Partners, the UK-based technology fund manager, has announced details of VCF II, its second fund for institutional investors and fifth fund in total. The firm is looking to raise £60m, which it plans to invest across all areas of information technology, communications and manufacturing technology.
The firm will look to make investments of between £1-5m and will focus on early and development stage investments. Matrix Corporate Finance has been appointed as placement agent for the fund, in which minimum investments are set at £1m.
Investors in the firm's previous institutional fund, Fleming Ventures, enjoyed a return of around five times their original investment. The technology fund, which was fully realised in late 2000, achieved successes such as Gemplus, a smartcard technology firm where a £2m investment generated proceeds of £53m. The fund also returned £10.6m on a £440,000 investment in IS Solutions, a computer service business.
Donald Maclennan, partner at VCF, believes that the current downturn in technology investments makes this an attractive time to be getting involved. “I think that a downturn makes prices more attractive, meaning that better returns are available from good investments. The fund will focus primarily on UK investments, although there is scope to invest around 20 per cent of the fund in the US and Europe if suitable opportunities arise.”