Outward Venture Capital has held a first close on half of its £75m target for its debut institutionally backed fund.
Outward VC was formed by Investec Bank executives in 2017 and was previous named INVC. Investec and NIBC are acting as cornerstone investors in the fund and the firm will remain an Investec subsidiary.
A spokesperson for Investec told Unquote that there are structures in place to ensure the fund is managed independently to fulfil the investment mandate agreed with the fund’s investors.
It has already completed investments in financial technology companies Monese, Curve and Bud, which will be transferred into the fund. The VC firm will use the reach of its founding shareholders to source deals and support the growth of its portfolio companies. However, Outward said in a statement that its investment strategy is not bound by the corporate strategy considerations of its investors.
The fund is reporting an average of 4x on its initial investments, according to a statement.
Investec and NIBC have backed the fund at first close alongside other institutional investors. It expects to receive the support of more institutions and private investors in the next 12 months.
Outward VC will invest in financial technology companies at early stages of development, but will reserve a significant amount of capital for follow-on investments. It backed Monese's $60m series-B in September 2018.
Outward Venture Capital – Devin Kohli, Kevin Chong (co-heads).
Charcoal and natural additives company saw final bids from two banks and one direct lender
VCs including the Swiss Entrepreneurs Fund, BtoV and Ringier Digital Ventures also participated
Around 40 existing and new LPs, including British Patient Capital and the EIF, participated
Fund will invest in buyouts, recapitalisations and carve-outs of both profitable and underperforming businesses