Vintage Investment Partners has held a first and final close on its latest late stage co-investment fund on $125 million, according to a statement from the firm.
Vintage Investment Partners VIII was “heavily over-subscribed”, according to the firm, with commitments mainly secured from financial institutions, endowments, foundations and family offices.
Vintage VIII will continue the strategy from Vintage V, the firm’s 2011-vintage previous late stage co-investment fund which closed on $80 million. The fund will co-invest alongside Vintage’s portfolio of venture capital and technology-focused private equity funds in promising late-stage portfolio companies in Israel and Europe.
Vintage VIII will typically invest $3 million to $10 million per company, the firm said, focusing on later stage, revenue generating companies active in the communications, enterprise software, internet infrastructure, semiconductors and medical device spaces.
“Our model is to join or lead rounds where the majority of the capital comes from the current investors,” said Vintage founder and managing partner Alan Feld. “We are happy to only take observer seats on boards and we do not need all types of veto or other unique rights.”
Prior to this fund, Vintage has raised three secondaries funds, three funds of funds and one late stage co-investment fund. Its latest fund of funds, Vintage VII, closed on $144 million, above its target of $100 million, in October 2014. Vintage VI, a secondaries fund, closed on $161 million, above its $150 million target, in June 2013. This latest fund close brings the firm’s assets under management to around $980 million.
“As a result of our secondary and fund of funds activities, we have been meeting many of Israel’s leading private technology companies for several years,” said Vintage partner Ehud Hai. “This has allowed us to identify in advance the companies that best fit our model.”
Vintage general partner Amit Frenkel said the new fund “offers a win, win, win to the entrepreneur, the funds that invested in the company and to us” as acquiring small stakes in companies is not overly dilutive to the funds or the entrepreneurs.
“Moreover, as we are not competing with the funds, there is not an issue of who is taking the credit for leading the company or the deal,” Frenkel said.