Morgenthaler Closes Fund VIII

Private equity firm Morgenthaler is expected to announce today (Oct. 17) that it has held a final close on its eighth fund, with $450 million in committed capital. MPVIII will invest jointly in venture capital and buyouts.

The fund was targeted at $600 million, according to quarterly fund-raising data released today by Thomson Venture Economics (publisher of PE Week) and the National Venture Capital Association (see Q3 fund-raising chart on page 7).

“We are privileged to be supported by limited partners who are drawn to our 37-year track record and our company-building philosophy,” Managing Partner Bob Pavey said in a prepared statement. Limited partners includeJ.P. Morgan, the Ohio State Teachers Pension Fund and the University of Texas.

In addition to Pavey, the new fund has 14 other investment partners: Robert “Robin” Bellas, Greg Blonder, Jim Broderick, Ralph “Chris” Christoffersen, Daniel Farrar, Ken Gullicksen, Drew Lanza, Paul Levine, John Lutsi, Gary Little, Gary Morgenthaler, Gary Shaffer, Al Stanley and Peter Taft.

The firm’s 11-member VC team invests in both IT (digital media, consumer Internet services, open source software, wireless and nano products) and life sciences (biopharmaceuticals, devices, and services that promote “graceful aging” and “surgery without knives.”) The firm’s VC team is based in Menlo Park, Calif., with additional offices in Boulder, Colo., Boston and Princeton, N.J.

Morgenthaler’s nine-member buyout team, will focus on middle-market, management-led buyouts primarily in the areas of business services and highly engineered content and manufacturing.

The firm has about $2.5 billion under management. Its previous fund totaled $868.9 million and was raised in 2001.