APV Anticipates Close For Institutional Fund –

MENLO PARK, Calif. – Asia Pacific Ventures (APV) is preparing for a first and possibly final close in March on its inaugural fund aimed at institutional investors, said General Partner Pete Bodine.

Targeting $100 million, APV Technology Partners Institutional Fund will invest side-by-side with the $83 million APV Technology Partners II, a corporate investors’ vehicle that notched a final close in September (VCJ, November 1998, page 18).

APV traditionally has raised capital from corporations with a strategic interest in backing young technology companies. The firm had planned to add institutional investors, such as pensions, endowments and foundations, to APV Technology Partners II, but last fall opted to close the vehicle and raise a separate fund for institutions.

Although Mr. Bodine declined to name likely investors in the new fund, he said much of the initial interest has come from pensions because APV began marketing the institutional fund to pensions, later turning to endowments and foundations.

Attracting institutions, which back venture funds for financial rather than for strategic gain, has been a new experience for APV.

“The sort of technical or financial analysis is nothing like we’ve seen from the corporates,” Mr. Bodine said referring to an institutional investor’s due diligence. While corporate investors are interested in studying the technologies offered by APV-backed companies, institutions are more concerned with poring over the financial records from a firm’s deals.