RESEARCH TRIANGLE PARK, N.C. – Southeast Interactive at press time was anticipating a first close on $60 million to $70 million on Southeast Interactive III L.P.
The fund targets $100 million and is expected to wrap on that figure in early in 2000, said General Partner David Blivens. The firm, which closed the $36 million Southeast Interactive II earlier this year, was encouraged by its limited partners to raise a larger fund in its third outing.
“We wanted to close on some investments before year-end,” Blivens said. “Having committed all of Fund II, we had an impetus to accelerate, and our partners supported the close.”
Southeast Interactive is not the only RTP-area firm raising money, however. In October, The Aurora Funds Inc. held a $40 million first close on a $100 million-targeted investment vehicle co-sponsored by Harbinger Group Inc. of Birmingham, Ala.
Blivens said existing investors will provide 60% of Southeast Interactive III. The terms of the new fund, an 80%/20% carried interest split and a 2.5% management fee, are consistent with the firm’s previous funds. The new vehicle will invest as much as $7 million throughout the life of its 15 to 20 information technology-only portfolio companies.
“This will be the largest amount of capital to be focused on one industry in the Southeast,” Blivens said. “Larger funds may devote more money to IT, but we are the oldest one in the region with a pure focus.”
In anticipation of the larger fund, the firm hired Rob Shuler as its fifth partner. Most recently Schuler worked with Market Street Advisors, Sirrom Capital and Petra Capital.