Portfolio Profiles – ABS Capital Partners –

BALTIMORE – ABS Capital Partners invests in mid- to late-stage technology, business services, media and communications, health-care and Internet companies. The firm does not back start-ups, turnarounds or overseas companies.

The group’s latest fund, ABS Capital Partners III, closed in April on $427 million and already is 25% committed. ABS expects the vehicle to be fully invested in about 30 companies in the next 18 months.

Technology ventures will account for 40% of investments, while media/communications, health-care and business services companies are expected to get 20% each of Fund III’s capital. ABS Principal Stephanie Manuel said Internet-related companies will be spread among these sectors.

The fully invested ABS Capital Partners II wrapped on $314 million in April 1996. The firm’s first vehicle, ABS Capital Partners, closed on $154 million in December 1993.

ABS prefers to be the lead investor, pouring $10 million to $30 million into a company over time. Although the firm’s investment team prefers to take board seats and provide assistance with business strategy, the venture group does not participate in the day-to-day operations of its portfolio companies.

Limited partners for the three funds include the California Public Employees’ Retirement System (CalPERS), the Ewing Marion Kauffman Foundation, JMI Investments, BancBoston Capital Inc., Tucker Anthony Holding Corp., San Francisco City & County Employees’ Retirement System, BT Investment Partners, the Wellcome Trust Ltd. and the Pennsylvania State Employes’ Retirement System (PSERS).

ABS’s partners are Donald Hebb, Frederick Bryant, Timothy Weglicki, Andrew Sheenan, John Stobo and Robert Kunisch. Frederick Emery, Ian McLeod, Robert Smith, Frederick Emery, Ian McLeod, Robert Smith, Laura Witt and Manuel, are principals.

Following are some of ABS’s portfolio companies:

@ Road Inc. (Freemont, Calif.) provides an Internet-based service to track fleet vehicles in metropolitan areas.

U.S. Venture Partners, Institutional Venture Partners, Venture Law Group and Galleon Group were co-investors.

Arrow Corp. (Farmington, Conn.) operates a system of specialty pharmacies in hospitals, clinics, medical office buildings and supermarkets.

Co-investors included Oxford BioScience, International Capital Partners, Conning & Co., Goldman, Sachs & Co. and HLM Management Co.

Brandywine Senior Care Inc. (Exton, Pa.) develops, acquires, and manages health-care facilities that offer a full continuum of care for the elderly, including home health-care, assisted living, sub-acute and skilled-nursing care.

Grotech Capital Group, Conseco Private Capital Group, Keystone Venture Capital and Robinson Humphrey were co-investors.

Cimtek Commerce (Johnson City, Tenn.) provides Web-based electronic commerce software to the medical-supply industry.

Union Street Partners was a co-investor.

Doubleclick Inc. (New York) provides comprehensive Internet advertising services for advertisers and Web publishers.

Bain Capital and Greylock Management Corp. were co-investors.

Online Technologies Group Inc. (Bethesda, Md.) is a developer of automated data-storage management software and document-management software for Microsoft Windows and Windows NT products.

Greylock Management Corp. was a co-investor.

Netbase Computing Inc. (El Segundo, Calif.) provides businesses with software for the utilization of Web-based technologies to create new channels for customer interaction, implement electronic commerce capabilities, optimize supply chains and streamline internal operational processes.

Chase Capital Partners was a co-investor.

Pointshare Corp. (Bellevue, Wash.) is an Internet technology-based provider of secure, private, business-to-business electronic commerce and online information services for local health-care communities.

Co-investors included Domain Associates, Morgenthaler Ventures, Cardinal Health Partners, HLM Management Co., Van Wagoner Capital Management, Salix Ventures and J&W Seligman.

Rainmaker Systems Inc. (Scotts Valley, Calif.) provides outsourced installed base marketing services for software publishers.

SBA Communications Corp. (Boca Raton, Fla.) is an independent provider of communications site leasing and development services.

Co-investors included TA Associates and Hillman Co.

SciQuest.com Inc. (Tampa, Fla.) is a source of scientific and laboratory products used by the pharmaceutical, biotechnology, university and industrial markets.

Co-investors included Trinity Ventures, Bessemer Venture Partners, Noro-Moseley Partners and the Wakefield Group.

ABS Capital Partners is located at 1 South St., 25th fl, Baltimore, Md. 21202, tel: (410) 895-4400, fax: (410) 895-4380. The firm’s Web site is at http://www.abscapital.com.