More than a year after the dot-com bust, Dutch private equity firm NeSBIC has cut the size of its Converging Technologies & e-Commerce Fund (NeSBIC CTe Fund), which was launched in 2000. It is the second largest fund cut this year.
The fund originally closed on $256.6 million-about $99 million above its target-but it was scaled back to $140.3 million, says managing general partner Robert Wilhelm. He says the fund is now closer to its original target of $148 million.
The fund will not make any new investments, instead concentrating on nurturing its 16 portfolio companies. “We have decided to do this, as we feel it is right for our investors,” Wilhelm says. “The opportunities are not as great as we expected them to be at the time of the fund’s launch. We have sufficient funds to continue to support the portfolio.”
Besides e-commerce deals, the fund has invested in communications services and enabling IT technologies.