AIM-listed technology investor Strathdon Investments has set up a new secondaries VC fund. Strathdon Finance Limited, a subsidiary of Strathdon, will manage the new fund, which counts among its investors a fund-of-funds with over €1bn under management.
The fund, called Strathdon Secondaries, has already made its first acquisition in the shape of 3i’s stake in Pancredit Limited, a UK supplier of consumer finance software and lending systems. In addition, the fund has acquired Strathdon’s interest in the Esprit Capital 1 Fund (formerly the Cazenove New Europe Access Fund) for £1m.
Strathdon will look at opportunities where private equity firms have successfully raised a new fund and have some portfolio companies left in older funds which they want to wind up or where a private equity firm is now focusing on larger deals, which is the case with 3i. The fund will also look at some cases where a firm has not been successful in raising subsequent funds or there has been a change in strategy.
Hugh Stewart, chief executive of Strathdon, said: “We are excited about this opportunity. We believe there is potential to build a sizeable and profitable business in secondary purchases of direct venture investments. It is a specialised area requiring technical expertise and access to a broad range of contacts and information sources. The sale of the stake in the Esprit fund, a non-core holding for Strathdon, generates cash for further investment in the Strathdon portfolio.”