WESTWOOD, Mass. – Prism Venture Partners at press time was preparing for a January launch of Prism Venture Partners III L.P., which will target $200 million and invest in health-care, communications and Internet companies at all stages of development.
“We expect about two-thirds of the new fund to go into Internet and communications sectors,” said Robert Fleming, managing partner at Prism. The remainder will go toward health care.
Fleming specified that under the health care heading, Prism invests in e-health and medical device companies, while in the Internet sector, the firm invests in e-commerce companies (both business-to-business and business-to-consumer ventures). In the communications field, the group invests in optical networking and converged voice-and-data companies.
In addition to Fleming, the new fund will be managed by six other general partners: Laurie Thomsen, Duane Mason, John Brooks, William Seifert, David Baum and Michael Baum.
The vehicle’s investor base will consist primarily of institutions. Limited partners in the first two Prism funds include the University of Texas Investment Management Co., the University of Richmond and Phoenix Mutual Life Insurance Co. Foreign limited partners include Vencap International Fund Management Ltd. and Mitsui & Co.
Prism Venture Partners III is slated for an April 2000 final close. The group’s freshman effort, Prism Venture Partners I, wrapped on $84 million in December 1997 and is fully invested in 19 companies. Prism’s second fund, Prism Venture Partners II, closed on $140 million in May, and at press time, was invested in 16 companies, with up to seven more deals expected in the first quarter of 2000.
The group’s portfolio companies include AXSUN Technologies Inc., an optical component manufacturer, MarketSoft Corp., a marketing software provider, Delsys Pharmaceutical Corp., a drug company, InfiMed Threapeutics Inc., a time-release medicine company and Songbird Medical Inc., a disposable hearing aid manufacturer.
Fleming said the fee and carry structure of the fund are standard, but he declined to comment further.
Louis Moechert, vice president for business and finance at the University of Richmond, described the university’s relationship with Prism as “very positive” since Fund I and added that the university likely will invest in Prism Venture Partners III.