Portfolio Profiles – InSight Capital Partners –

NEW YORK – InSight Capital Partners invests in early- to late-stage business-to-business e-commerce companies throughout the United States and Europe.

The firm’s $300 million Insight Capital Partners III L.P. held a first close on $240 million in June and a final close in August. Some 25% of the fund already is invested or committed, and it is expected to back a total of 40 companies, with most individual investments ranging between $10 million and $15 million, said Jeffrey Horing, a partner at the firm.

A quarter of the fund will be dedicated to start-up companies, and those investments typically will spread over two or three rounds of financing. The remaining portion will be used for individual investments in expansion-stage companies, deals in which InSight Capital usually acts as the sole investor.

The firm’s second vehicle, the $150 million InSight Capital Partners II L.P., held a final close in July 1997 and was fully invested in March after backing about 20 companies. InSight Capital’s $40 million InSight Venture Partners I L.P. is fully invested in about eight companies.

The limited partners in Fund II primarily were high-net-worth individuals, most of whom returned for the latest fund. First-time investors in Fund III include The Common Fund, Goldman, Sachs Fund-of-Funds, Columbia University, Hewlett-Packard Co., MSD Capital, Grove Street Capital and Bank Vontobel. FLAG Venture Partners invested in both Fund II and Fund III.

Jerry Murdock, Ramanan Raghavendran, Peter Sobiloff, Bill Doyle and Horing are the firm’s five partners.

Following are some of InSight Capital Partners’ portfolio companies:

Click Interactive Inc. (Chicago) provides business-to-business commerce solutions for manufacturers and distributors.

Compaq Computer Corp. was a co-investor.

Convergent Solutions Inc. (King of Prussia, Pa.) develops business solutions to enhance business operations through a convergence and integration of process and technology.

There were no co-investors.

Easyphone Inc. (Milpitas, Calif.) provides computer telephony integration (CTI) technology and automated call center software application products.

NeSBIC CTE Fund was a co-investor.

Eliance Corp. (Minneapolis) supplies outsourced electronic commerce solutions to Web businesses.

There were no co-investors.

Exchange Applications Inc. (Boston) provides customer optimization and marketing solutions.

There were no co-investors.

Greenfield Online Inc. (Westport, Conn.) performs marketing research using an Internet panel.

MSD Capital was a co-investor.

ILLUMINET (Overland Park, Kan.) delivers network, database and billing services to the communications industry in both wireless and wireline connectivity markets.

Spectrum Equity Partners was a co-investor.

Peace Software Inc. (Alpharetta, Ga.) develops and implements the Energy Customer Information System for gas, electric and water utilities.

Arete Ventures was a co-investor.

mediapassage.com (Seattle) is a market exchange for media buyers and sellers.

There were no co-investors.

Quest Software Inc. (Newport Beach, Calif.) provides performance and availability management for Web sites and databases.

There were no co-investors.

SLMsoft.com Inc. (Toronto) provides the banking industry with e-commerce and transaction processing applications.

There were no co-investors.

Software Technologies Corp. (Monrovia, Calif.) sells middleware and enterprise application integration products.

Norwest Equity Capital and Integral Capital Partners were co-investors.

InSight Capital Partners is located at 527 Madison Avenue, 10th Floor, New York, N.Y., 10022, tel: (212) 230-9200, fax: (212) 230-9272. The firm’s Web site may be found at www.insightpartners.com.