NORTHBROOK, Ill. – KB Partners LLC in January launched the $60 million-targeted KB Partners Venture Fund II, which will invest in start-up and early-stage information technology companies in Chicago and the Midwestern United States, said Keith Bank, a managing partner at the firm.
The sophomore vehicle is expected to hold a first close in March and a final close shortly thereafter, Bank said. KB will invest the fund in some 20 companies, with typical investments ranging from $3 million to $5 million.
The $20 million KB Partners Venture Fund I, which closed March 1999, is about 80% invested in or committed to seven companies and plans to back another three before it is fully exhausted, Bank said. Fund I’s portfolio includes e-commerce network provider Orbit Commerce Inc., e-tailer EthnicGrocer.com and database marketing firm U.Access LLC.
Limited partners in the new fund likely will include many repeat high-net-worth individuals from KB’s first fund, as well as some new institutional investors. The firm will retain its 2.5% management fee and 80%/20% carried interest split for its follow-up fund.
KB Partners’ investment team consists of Bank, Byron Denenberg, a general partner, and Robert Garber, a principal who was promoted to general partner upon the launch of the new fund. The firm also is in the market for two additional investment professionals and a chief financial officer, Bank said.