TEANECK, N.J. – Reaching a final capitalization of $360 million on BCI Growth V L.P., BCI Partners Inc. closed its fifth venture partnership in May and added Thomas Cusick as a general partner.
Limited partners in the latest effort include existing investors Abbott Capital Management, Bank of America Capital Corp. and Oregon Public Employees’ Retirement System. New BCI investors include Allianz of America, City and County of San Francisco Retirement Fund, Delta Airlines Master Trust, Syracuse University and TIAA-CREF, among other L.P.s that included pensions and financial institutions, said Lorelei Karan, chief financial officer at BCI.
Fees on the latest fund follow standard industry practices, including an 80%/20% carried interest split and a 2% management fee. The minimum investment was $5 million, which Ms. Karan said all the L.P.s surpassed.
Five Area Focus
BCI will maintain a growth capital oriented investment focus with the fund, which more than doubles the $175 million Fund IV. The firm typically will invest between $5 million and $35 million in each deal, said Steve Eley, a BCI managing director. BCI will take a board seat on portfolio companies and will steer the bulk of its efforts toward five areas – communications and software, broadcasting and media, financial services, Internet services and education. Mr. Eley said the firm will consider recapitalizations and buyouts that can serve as platforms for roll-ups.
The firm held a first close on $211 million last December, and has since made eight investments, totaling $73 million.
Current portfolio companies include VIA Net.works, EC Cubed, Airspan, Grapevine Communications, Screen Media Ventures, Factual Data, Asset Management Outsourcing and Alta Colleges.
BCI Partners hired Mr. Cusick as its ninth investment professional in early May. The new G.P. comes from San Francisco-based Dominion Ventures where he was an associate.