WESTPORT, Conn. – Oak Investment Partners raised more than $1 billion in 10 working days for its latest fund, Oak Investment Partners IX, after a more than $500 million first close in the second week of September. The firm expected a final close at the end of the month.
While Oak did not want to pressure its limited partners to invest on short notice, the firm felt compelled to expedite its fund raising effort so it could secure a deal with a telecommunications infrastruture company before an early September deadline.
The $600 million Oak Investment Partners VIII, which closed in 1998, is completely invested or committed. Its predecessor, Oak Investment Partners VII, closed on $275 million in 1997.
With its latest vehicle, the firm plans to invest in a total of 40 to 45 companies, with about 10 to15 of its larger investments ranging from $30 to $50 million. The fund also will make between 30 and 35 more traditional venture capital investments that will range from $8 to $12 million each over several rounds of financing.
Oak invests in early- to late-stage information technology, health-care and retail companies throughout the United States and abroad. Since January, it has narrowed its focus to only those companies that conduct a portion of their business on the Internet.
Return investors include The Ford Foundation, pension funds such as 3M and Hewlett Packard, and endowments such as Princeton University, Stanford University and Dartmouth College. They were joined by a number of corporate investors interested in possibly acquiring some of the firm’s portfolio companies.
Oak Investment Partners, founded in 1978, has five general partners: Edward Glassmeyer, Ann Huntress Lamont, Bandel Carano, Fredric Harman and Gerald Gallagher. The firm’s three principals are Cathy Agee, Basil Horangle and DavidWalrod.