September 12, 2005
Garnett & Helfrich Capital Raises Additional $100 Million
Venture Buyout Firm Targets Larger Businesses to Acquire
Menlo Park, Calif.,—Garnett & Helfrich Capital, the first private equity firm to specialize in Venture Buyout (VBOs) partnership investments with large technology companies, announced today it has expanded its initial Fund by $100,100,000, raising the total commitment of their fund to $350,350,000. The leading institutional investors and educational endowments that make up the firm’s roster of 11 limited partners, led by Harvard, Stanford, Harbourvest and Grove Street, all participated pro-rata in the fund increase and no new investors were added to the Fund.
“CEOs and Board of Directors of major technology companies have been encouraging us to take on larger scale transactions in partnership with them,” said David Helfrich, managing director, Garnett & Helfrich Capital. “Increasing the size of our fund at this stage provides the financial resources to spin out larger business units that have more compelling value potential if operated as focused, well-financed, stand-alone companies.”
“Our investors proactively offered to provide additional capital to the fund in order for us to address this larger opportunity,” said Terry Garnett, managing director, Garnett & Helfrich Capital. “We view this additional commitment as a major endorsement of our core strategy and it strengthens our position as the leader in the Venture Buyout segment of the Private Equity world.”
Garnett & Helfrich Capital focuses exclusively 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. The firm’s venture buyout model leverages the entrepreneurial background and operational experience of its founders, Terry Garnett and David Helfrich, to reposition portfolio companies for substantial growth based on new management, product and market strategies.
Garnett & Helfrich Capital’s roster of limited partners includes leading institutional investors and educational endowments including Harvard Management Company, Grove Street Advisors, Stanford Management Company, Harbourvest, RHO Management, University of Michigan, Columbia University, Comprehensive Financial Management (CFM), Capricorn Holdings, Park Street Capital and Silicon Valley Bank.
About Garnett & Helfrich Capital
Garnett & Helfrich Capital is the first fund to focus exclusively on the emerging venture buyout segment for mid-sized technology spinouts. Formed in March 2004 with the backing of Harvard, Stanford, Grove Street and Harbourvest, the firm will invest in spinout partnerships with large global technology companies in the enterprise software, communications and networking, semiconductors, and Internet content/infrastructure segments of the technology industry. The principals, Terry Garnett and David Helfrich, have over 30 years of collective operating experience in senior roles at Oracle, Ascend Communications, 3COM, Tandem and Newbridge Networks as well as 15 years of venture capital investment experience at Venrock and ComVentures prior to founding Garnett Helfrich Capital. Their prior venture capital investments have included Checkpoint Software, Siebel, Niku, CoSine and P-Cube. More information is available at www.garnetthelfrich.com.
Kim Milosevich, OutCast Communications
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