NASHVILLE, Tenn. – Richland Ventures, an investor in the health-care, media, entertainment and information services sectors, held a $200 million final close on Richland Ventures III, above its $150 million target.
The fund was launched in January and held a first close in late May on $92 million, followed by a second close on $120 million in early July.
New limited partners include the Washington State Investment Board, United Airlines, the Los Angeles City Employees Retirement System (LACERS) and the State of Iowa Public Employees Retirement System. Delta Air Lines, which has invested in all previous Richland Ventures vehicles, returned for Fund III.
“We expect to put Richland Ventures III to bed in three to five years with 15 to 18 investments,” Partner Pat Ortale said, adding that the firm recently invested $10 million in TriVergent Communications Inc., leading the DSL telecommunications company’s $52 million round of venture financing.
Most of Richland’s portfolio companies are located in the Southeastern and Southwestern United States, but the firm also will consider Midwest deals. Richland has an even balance between post-seed and expansion-stage companies, with an average deal size ranging between $5 million and $15 million.
Portfolio companies include AccentHealth, @plan Inc., ClearVision Laser Centers, First Insight Corp., Network One, Greenberg News Networks, Harmony Health Plan of Illinois Inc. and Mattress Giant Corp.
The firm’s first vehicle, Richland Ventures I, wrapped in March 1994 on $50 million, while Richland Ventures II closed on $90 million in October 1996. Ortale, Jack Tyrell and John Chadwick are the firm’s partners, and Mark Isaacs and Patrick Hale are associates.