Stratim Seeks $150 Million For Fund III

Stratim Capital is out marketing for its third fund, which has a $150 million target, two sources told sister Web site peHUB.

Marketing for Stratim Capital Fund III started in August and the pool has received expressions of interest worth roughly $50 million, one source said. Stratim is targeting endowments, strategic funds of funds and some state funds for the pool, a second person said. “The response has been overwhelming,” the first source said.

Atlas Placement Advisors is the placement agent for the fund, the sources said.

San Francisco-based Stratim provides liquidity for investors by buying shares of venture and buyout-backed companies. Several Stratim executives, including founder Zachary Abrams, hail from Lake Street Capital, which is also a San Francisco-based direct secondary firm. Other competitors in the space includes the much bigger Saints Capital or W Capital Partners.

Direct secondary deals have only recently gained acceptance in the alternatives community. As recently as five years ago, Stratim had to explain the secondary market to investors and explain why shareholders of companies would want to sell their stakes. “It was considered disloyal” to sell, the source said.

The private-market success of Facebook and Zynga changed that. Many Facebook and Zynga shareholders were able to offload their stock—before either company went public—using SecondMarket or SharesPost. “Facebook put selling on the map,” the person said.

Stratim invests in sectors such as technology, financial services and business services. Stratim has invested in 3PAR, VeriCenter and Double-Take Software. Current investments include Linden Lab, Cafe Press and savings.com. Stratim’s second fund collected less than $100 million in 2010, the second source said.

Executives at Stratim declined to comment.

(Luisa Beltran is a senior writer for peHub.)