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Fund Briefs, June 2009

Battery Back to Market in Fall

Battery Ventures has ambitious plans for its next fund, given the current state of the fund-raising market. General Partner Tom Crotty recently told VCJ that the Boston-based firm’s ninth fund will likely be the same size as its current fund—a $750 million core fund and a $250 million sidecar. Crotty says the firm expects to start fund-raising this fall. Battery hopes to hold a final close in the first quarter of 2010, according to a firm spokeswoman.

Crotty, 51, also noted that fund IX will be his last as full-time managing general partner of Battery. He joined Battery in 1989.

It’s been about two years since Battery was last in the fund-raising market. It raised its core fund VIII in 2007 and the fund VIII sidecar in 2008, according to Thomson Reuters (publisher of VCJ). To date, the core fund has invested close to $200 million in 22 companies, most of them (seven) in the Internet space, according to Thomson Reuters. The core fund has also invested in four companies in the software business, three in communications, three in semiconductors, three in industrial/energy, one in financial services and one in the consumer space.

Thomson Reuters did not have any details about investments made by the sidecar fund. —Lawrence Aragon

DFJ Cuts Target by 33%

Draper Fisher Jurvetson has cut the target and fees for its newest venture fund, as first reported last month by Private Equity Insider.

The firm unveiled the changes in an e-mail to investors, telling them that it is now aiming to raise $400 million for its 10th fund. Previously, the firm said it was looking to raise at least $600 million. DFJ raised more than $650 million for its ninth fund, which closed in 2007.

PEI also reported that DFJ is offering better terms to potential investors, including carried interest that starts at 20% instead of 25% and is based on performance benchmarks.

DFJ Frontier Falls Short

DFJ Frontier, the Draper Fisher Jurvetson affiliate that invests in seed stage deals on the West Coast, has closed its second seed stage fund with $55.4 million in capital commitments.

The fund was targeted at $80 million, according to previous regulatory filings.

Limited partners in the new fund include the California Public Employees’ Retirement System, Credit Suisse, Hamilton Lane, the Los Angeles City Employees’ Retirement System and the Oregon Growth Account.

DFJ Frontier, which has offices in Santa Barbara, Calif., and Sacramento, Calif., also promoted Frank Foster from venture partner to partner, and opened new offices in Los Angeles and Portland, Ore.

The firm raised $22 million for DFJ Frontier Fund II, which closed in 2002.

Among its exits, the firm sold VoIP quality of service software maker CrystalVoice for an undisclosed amount in January 2007 and high school sports Internet portal MaxPreps for $43 million in March 2007.

Walden Raises Singapore Seed Fund

Walden International has closed Seed Ventures IV, a $13 million fund established under the Singapore National Research Foundation’s Early Stage Venture Funding Scheme.

Walden—which invests throughout Asia, but has its international headquarters in San Francisco—also announced its first initial investment through Seed Ventures. The fund invested a little more than $1 million in Brandtology, a Singapore-based provider of online brand intelligence solutions. —Reuters

Quebec’s Caisse Launches Venture Fund

Caisse de depot et placement du Quebec, one of Canada’s largest pension fund managers, recently launched a venture capital fund with the Quebec government that could be worth as much as $676 million.

The Teralys Capital Fund is a joint initiative of Caisse and the Solidarity Fund QFL, which are each contributing about $200 million.

Caisse is one of the largest institutional fund managers in Canada and in North America, with net assets under management totaling $100 billion as of Dec. 31, 2008.

Target Partners Closes Second Fund

Target Partners, a Munich-based venture firm focused on the tech sector, has closed its second fund with $150 million in capital commitments. Limited partners include CAM Private Equity, Capital Dynamics, Etera Mutual Pension Insurance Co., Invesco Asset Management, LGT Capital Partners, Morgan Stanley Alternative Investment Partners and RWB AG.

Target Partners raised about $110 million for its first fund, which closed in 2001.