MENLO PARK, Calif. – InterWest Partners was preparing for a late- February first and final close on its seventh fund and has added a venture partner to assist in investing the new vehicle.
The firm was careful to avoid mass oversubscription by giving existing and new L.P.s estimates of the amount of capital they could realistically invest in the fund. InterWest Partners VII targets $200 million and has a cap of $250 million, said Managing Director Stephen Holmes.
InterWest, which typically invests $4 million to $5 million over the life of an investment, will continue backing early-stage information-technology and health-care companies, including biotechnology and medical device enterprises. About 45% of the new vehicle will be devoted to IT and 45% to health care, Mr. Holmes said. The remainder will be invested in non-tech companies and special situations.
Managing directors Arnold Oronsky, Al Crites and Gil Kliman are in charge of medical investing, and Scott Hedrick will lead non-tech and special situation efforts.
Bowsher Signs On
Philip Gianos, Barry Cash and new venture partner Stephen Bowsher will spearhead IT deals. Prior to joining InterWest, Mr. Bowsher was a marketing manager at E*Trade Group. He also held posts at two other Internet-related companies. Mr. Bowsher is a former Stanford University Business School classmate of Mr. Kilman and an InterWest associate. InterWest remains in the market for a new IT-focused managing director.
Bob Momsen, a long-time member of the firm, will not take part in the new vehicle as part of an ongoing transition between early and succeeding managers, Mr. Holmes noted.
Existing L.P.s backing the latest effort include HarbourVest Partners L.L.C., J.P. Morgan, the Wellcome Trust, Liberty Mutual Group, Bell Atlantic’s pension, Illinois State Board of Investment, Brinson Partners, Pantheon Ventures Inc., the Regents of the University of California, Kresge Foundation and the pension of Corning Glass Works.
Mr. Holmes would not disclose management fees or the vehicles’ carried interest structure, but said they are comparable to those by other top-tier firms.