JVP Asks Investors For More Capital

Private Equity Week has confirmed an Israeli newspaper report that Jerusalem Venture Partners (JVP) is asking limited partners in its third fund for an additional $15 million to $20 million to support existing portfolio companies. The $161 million JVP III fund was raised in 1999 by tapping such institutional investors as France Telecom, Columbia University, Nortel Networks Corp., Horseley Bridge Partners, MIT, Flag Venture Partners, AXA, Reuters PLC, Boeing Co. and Hebrew University.

The move comes just three months after JVP wrapped up fund raising on its fourth general fund, which netted a total of $400 million. That vehicle had an upper target of $500 million, but firm founder Erel Martgalit said at the time that he was happy, at least temporarily, to be done with fund raising. He did not mention anything about possibly going back out after additional capital for Fund III.

A number of venture firms have recently raised annex, or addendum, funds to support portfolio companies during the economic downturn. Last year, for example, both Accel Partners and New Enterprise Associates went back to LPs for extra follow-on investment cash.

JVP, through its spokeswoman, declined to comment on this story.

Dan Primack can be contacted at Daniel.Primack@tfn.com

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