BARTLESVILLE, Okla. – Knightsbridge Advisers, an investment management firm, in March held a first close on $103 million of its $200 million-targeted Knightsbridge Post-Venture IV LP, which backs publicly traded venture-backed technology companies, according to The Private Equity Market Group of Chase H&Q, one of the firm’s placement agents.
Knightsbridge will invest Fund IV in about 100 to 120 companies listed on the Nasdaq exchange, with investments ranging from as little as $2 million to as much as 25% of the value of the fund. At press time, some $15 million of Fund IV had been invested, Chase H&Q said.
Knightsbridge, which also invests in private companies through its fund-of-funds, Knightsbridge Integrated Holdings, believes that there are opportunities to be made in the post-venture market as well. The firm bases its belief, in part on research conducted by Harvard Business School Professor Paul Gompers, which said 85% of the total returns of venture-backed companies occur after an the initial public offering.
Managing Principals Joel Romines and Brad Kelly will oversee the new fund. Their investment decisions will be based on the research of the fund’s four managers, who each research a narrow focus within the technology industry.
Founded in 1983, Knightsbridge began by making venture capital partnership investments, and in 1989 started backing post-venture companies as well. Knightsbridge abides by a venture methodology of investing, which includes having a long-term strategy, investing deliberately over time, a willingness to take capital out of the market and completely researching investments, according to Chase H&Q.
The firm has some $1.5 billion under management and has about 20 active vehicles. The $61 million Knightsbridge Post-Venture III LP, which also invested in public venture-backed companies, closed in 1998 and is almost completely invested.
The other placement agent for Fund IV is Judy Price of Harvest Group Securities Ltd. Limited partners include a mix of North American foundations and endowments, and European pension funds, insurance companies and foundations, some of which have previously invested with Knightsbridge.
Knightsbridge expects to have Fund IV completely invested by the end of 2000, Chase H&Q said.