CapitaOMAHA, Neb.- Looking to capitalize on a what it perceives as a void of funds catering to companies seeking $5 million or less, Odin Capital Group LLC launched its maiden effort in late April, the $60 million targeted Odin Fund I, said Donna Walsh, one of the firm’s three founders and partners. Walsh said Odin is hoping to hold a first close on $25 million sometime this quarter.
The fund will back early- to middle-stage companies in information services, niche financial services and business-to-business/infrastructure e-commerce. Up to 25% of the fund’s value will be invested in companies seeking seed funding, Walsh added. In addition to the partner’s experience in these areas, Odin is focusing on these industries because they are growing market sectors, which tend to produce high returns, she noted.
Walsh said she expects the vehicle to back between 12 and 15 companies, with typical deal sizes ranging from $1 million to $5 million. The firm hopes to leverage the relative lack of venture capital activity in the Midwest to generate a steady stream of deals. However, Odin will be opportunistic and invest nationwide. To date, about half of the firm’s deal flow consists of opportunities outside the Midwest, one quarter for Nebraska companies and the final quarter for companies located elsewhere in the Midwest.
The new vehicle will likely be fully committed in two to four years, she added. Odin plans to begin raising funds for its sophomore effort when it has invested 65% to 75% of Fund I, she said. The firm retains a 2.5% management fee and an 80%/20% carried interest structure. Walsh declined to disclose the amount Odin’s partners invested in the fund.
Odin was founded in March by Walsh, David McLeese and Thompson Rogers, executives of Affiliated Companies Inc., a private investment firm. Rogers had previously been investing his own capital in private equity deals. In order to take advantage of all the deals he was seeing, he decided to create Odin and launch a fund.
Limited partners in the vehicle include high-net-worth individuals and institutional investors. Walsh declined to name any of the LP’s. She said the majority of the LP’s so far are individuals, though she noted institutions may end up providing the majority of the fund’s capital. To date fund raising has been going better than expected, Walsh noted. She declined to say how much of the vehicle had raised so far.
Odin’s investment team consists of five professionals: Walsh, McLeese and Rogers, the three partners, and two associates. The firm currently has two deals in the pipeline, Walsh added.