ATLANTA – Asset management firm J.P. Carey Inc. in October launched one of three venture capital funds, targeting between $10 million and $30 million.
Carey Capital Partners L.L.C. will exclusively invest in later-stage Internet-related deals mostly in the Southeastern United States. Average investment sizes will not exceed 10% of the fund’s value, said Joseph Canouse, president of the firm.
“We expect to have this fund fully committed within 60 days of its [November 30 final close] because we’re seeing a lot of investment opportunities arising in the region,” Canouse said.
J.P. Carey’s funds are expected to have a two year life span, and the firm intends to distribute returns immediately as soon as liquidity is achieved through an initial public offering or an M&A. “We want to move fast because business moves fast these days.”
The firm has the managerial and operational expertise and contacts needed to help its portfolio companies achieve liquidity in as early as six months to a year of inception, Canouse said. J.P. Carey was founded in 1994 as an investment bank. Its only existing fund, Atlantis Capital Fund Ltd., which makes private investment in public equity (PIPE) deals, has a 201% return net of fees and expenses as of September.
“We are bringing West Coast-style management to the Southeast, meaning that we will provide quick and efficient access to capital and resources so that Southeast-based companies won’t need to go to Silicon Valley for adequate venture backing,” he said.
A second venture fund will be launched after the New Year, with a tentative minimum target of $100 million. “We thought it was the right time for our firm to use its experience in asset management and make venture capital the main focus of our business,” Canouse said.
Details about the firm’s third venture fund will not be available, Canouse said, until the performance of the first two vehicles is determined.
J.P. Carey’s portfolio companies include WeirdMall.com, eMD, e-Company Store, and RealEstate.com.