PolyTechnos launches European Growth Fund

01 March 2008

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Fund

PolyTechnos Venture Partners GmbH has launched PolyTechnos European Growth Fund I, which is based in Guernsey, has a target of EUR120m and expects the first closing within the second quarter of 2008. The fund also has an office in Silicon Valley.

The fund has a lifespan of seven years with a three-year investment period. The minimum subscription is EUR5m, with a GP contribution of 1-5%. The fund's cap is set at EUR150m. The carry is up to 25% and the hurdle 10%, with a full clawback provision. New funds can be raised nine months after first closing. About 40% of the capital will be used for new investment, 60% will be held back for follow-on rounds. SJ Berwin acts as legal adviser.

Investors

Investors were described as the usual mix of various institutional investors, a third of which is based in Europe, a second third in the US, and the remaining third in Asia. The cornerstone investor contributed EUR30m.

Investments

The fund is dedicated to invest in companies in the DACH region that can be exited in less than three years by trade sale. Potential buyers are located mainly in the US and Asia, with direct access to and knowledge of the buyer cited as critical. IPOs are considered only by exception. The investor aims to invest in a total of 10-12 companies, in all stages, typically taking the role as lead investor, but structuring syndicates where required. Per year, the fund will make three to four investments.

Three deals are already in the pipeline, with two having been pre-financed. The pre-financed companies are in the sectors of software and services and mobile phone software, and located in Germany, and Germany/Silicon Valley, US, respectively.

People

Dirk Kanngiesser manages the fund from the Munich office, Peter Weber from the Silicon Valley office. In total, five full time partners manage the fund.

Name: PolyTechnos European Growth Fund I

Target: EUR120m

Focus: DACH, stage independent

Contact: Dirk Kanngiesser

dirk.kanngiesser@polytechnos.com

Te: +49 8924 226 20

Peter Weber

peter.weber@polytechnos.com

Tel: +1 (408) 370 1946

Address:

PolyTechnos Venture-Partners

Promenadeplatz 12