April 28, 2004
Garnett & Helfrich Capital Raises $250 Million Venture Buyout Fund
Harvard Management Company is lead investor
Redwood City, Calif.,—Garnett & Helfrich Capital was launched today with its newly formed Venture Buyout (VBO) Fund, which has initial funding of $250,250,000 from leading universities and institutional investors.
Harvard Management Company was the single largest contributor and served as the lead limited partner investor along with Grove Street Advisors in the formation of Garnett & Helfrich Capital. Additional limited partner investors include Stanford Management Company, HarbourVest, Grove Street Advisors, RHO Management, University of Michigan, Columbia University, Comprehensive Financial Management (CFM), Capricorn Management, Park Street Capital and Silicon Valley Bank.
“Terry Garnett and David Helfrich both have highly successful 20+ year track records in building world class technology businesses both as entrepreneurs, operating executives and venture investors and are exactly the kind of new fund managers that we want to back and put in business.” said Peter F. Dolan, Director, Private Equity, Harvard Management Company Inc. “We are extremely selective in our evaluation process and believe that Garnett Helfrich Capital can be built into a franchise fund addressing a newly emerging investment category, venture buyouts.”
Garnett & Helfrich Capital will be exclusively focused on venture buyout transactions involving the “spinning out” of under-performing and non-strategic businesses, product lines, and divisions from public companies in the fields of communications, internet/media, semiconductor and software. Ideal investment candidates for the fund will have on-going annual revenue of $20m to $100+m but with the potential for substantial improvement and growth based on new management, product and market strategies and acquisitions.
“Over 2,500 communications and software companies were acquired over the last 10 years by publicly traded industry leaders and many of those businesses have been orphaned or didn’t integrate well into the parent operation.” said David Helfrich, managing director, Garnett & Helfrich Capital. “Our firm is focused exclusively on spinning out these businesses as independent entities and repositioning them for improvement and growth. We view this as a positive service to the parent company who in many cases is looking for a soft landing for the orphaned business and its employees, customers and business partners”
“In this very difficult period of fund raising for newly formed buyout and venture capital firms we are honored that a set of 10 world class limited partner investors have decided to back us with such conviction and capital commitments.” commented Terry Garnett, managing director, Garnett Helfrich Capital. “This creates a tremendous support system for David and I to build a truly great investment firm in the coming decade.”
About Garnett & Helfrich Capital
Garnett & Helfrich Capital was founded in late 2003 by managing directors Terry Garnett and David Helfrich. The principals have significant experience in completing M&A transactions as principals, investors and management, and have spent over 15 years serving on startup and public boards of directors assisting management with the building of their companies.
From 1995 to 2003, Mr. Garnett served as both a general partner and venture partner with Venrock Associates during which time his individual investment activities generated substantial personal returns and limited partner investor distributions. Terry was a personal investor in Siebel Software and Crossworlds Software and led the Venrock investments into Checkpoint Software, New Era of Networks, WhoWhere/Lycos, NetObjects, Neoforma, and Niku which were all successful public offerings. Prior to joining Venrock, he served as senior vice president of marketing and business development at Oracle Corporation, reporting directly to Larry Ellison and served on Oracle’s executive committee.
Mr. Helfrich helped start ComVentures, an early stage communications venture fund with over $1.2B under management, where as a general partner he led early stage investments in CoSine, Entera, Internet Photonics and Intruvert, which generated over $2.5 billion in public offerings and acquisitions. Prior to his six years of venture experience, he had a very successful entrepreneurial track record in which he was a member of the executive team and played a key role in the founding and building of Newbridge Networks, Ascend Communications, Centrum/3COM, and Copper Mountain.
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