Frontiers Capital, the specialist telecoms and technology private equity fund, has raised €25m for its first fund since it was created through the merger between nCoTec Ventures and Frontiers Capital (previously the corporate venturing arm of the Carphone warehouse) in 2003. Both firms each operated one fund, both of which were renamed. nCoTec I LP became Frontier Capital I and Wireless Frontiers I LP became Frontiers Capital II.
nCoTec was formed by a group of ex-investment bankers at the high of the tech bubble in 2000, while Frontiers Capital emerged in May 2001 from the corporate venturing arm of Carphone Warehouse when joint managing partner Nigel Spray structured a deal whereby the investments in Carphone Warehouse’s fund were transferred across to the newly created Frontiers Capital and new capital was bought into the fund from new investors.
Frontiers Capital III LP includes a significant contribution from Frontiers own shareholders. The fund has already made a number of investments including, earlier this year, the purchase of the entire Vesta Capital fund and, in March, the acquisition of a majority stake in Eazyfone, the leading European mobile phone recycling business.
Nigel Spray, joint managing partner of Frontiers Capital, said: “We are delighted to have had the support of our shareholders in our latest fund and to have increased the investment of our management company, which holds significant positions in all our funds, a distinguishing feature of our investment approach. The new companies in FCIII are reaping early benefits from the involvement of our network of corporate partners.”