nCoTec, the early stage enabling communication technology investor, is close to a second closing on its first fund. This will bring the fund from its first closing in May this year at E45 million up to E80 million. Tim Horlick, co-founder and partner at nCoTec, expects to reach E100 million by year-end.
Horlick notes that at year end once the E100 million figure has been achieved the firm will make a decision on whether or not to close the fund raising, although he views a final close and a return to concentrating solely on investments as a distinct option at this time.
Coinciding with this news is the fact that nCoTec has parted company with Alisdair Warren who used to work at Schroder Salomon Smith Barney (SSSB), as did Horlick. Warren has returned to SSSB. nCoTec originally set out in April 2000, in a markedly different
fund raising environment, with a stated aim of raising E150 million see evcj June 2000, p 11.
As the fund raising market has got tougher so has the investment market, although nCoTec has benefited to date from this change. Horlick says: “nCoTec’s strategy has remained the same but we are now investing in companies that are a little bit later stage because we can get the same value and those companies are closer to becoming cash flow positive.”