SOURCE: Industry Ventures

February 14, 2012 10:00 ET

Horizon Ventures Announces Sale of Preferred Limited Partnership Interest Owned by U.S. Small Business Administration

LOS ALTOS, CA--(Marketwire - Feb 14, 2012) - Horizon Ventures today announced the sale of its Preferred Limited Partnership Interest in Horizon Ventures Fund II, L.P. previously owned by the U.S. Small Business Administration (SBA). The sale was to two well-known secondary investors. Industry Ventures, a new limited partner in Horizon Ventures, was the majority investor in the transaction and was joined by Ant Capital, an existing limited partner.

Horizon's most recent fund, Horizon Ventures Fund II, was formed as a Small Business Investment Company (SBIC) and Horizon was licensed by the SBA in 2004. The SBA became a Preferred Limited Partner in the SBIC and supplied over $50 million from 2005 to 2009. In May 2011, the SBA insisted they be named a receiver for the fund and filed a civil suit in San Jose District court. In August 2011, that dispute was resolved via a forbearance agreement whereby, among other things, the SBA agreed to permit Horizon Ventures II to seek a secondary buyer for SBA's interest.

"We are very pleased to welcome Industry Ventures as a new Preferred Limited Partner in Horizon Ventures Funds and look forward to working with its experienced investment team," said Jack Carsten, Managing Director of Horizon Ventures. "Industry Ventures' track record in secondary private equity opportunities and focus on technology investments uniquely qualifies them to help us achieve our objectives." As part of the investment two members of the Industry Ventures team will join Horizon Ventures' Advisory Board, as will Reijiro Samura of Ant Capital.

About Horizon Ventures

Horizon Ventures manages a family of venture capital partnerships with $150 million in private capital under management, based in Los Altos, CA. The firm invests in data and telecom systems, wireless networks, enterprise and technical application software, Internet tools and infrastructure, and semiconductors. Their current portfolio includes Applied MicroStructures, Discera, Invivodata, iWatt, Sensys Networks, Toolwire and WhiteHat Security, all located in the San Francisco Bay area. For more information, visit www.horizonvc.com.

About Industry Ventures LLC

Industry Ventures is a leading investment firm that focuses on inefficiencies in venture capital and technology growth equity. The firm acquires direct equity portfolios, founders' interests, tail-end funds, limited partnership interests, and other special situations. Moreover, the firm invests in small venture funds with high multiple potential via primary and early secondary commitments. Founded in 2000, the firm manages over $1 billion of institutional capital and is headquartered in San Francisco with an office in Washington, D.C. For more information, please visit www.industryventures.com.

About Ant Capital Partners

Ant Capital Partners is a Tokyo based private investment firm with over $1.7B under management. They invest in a broad range of special situations including expansion capital, turnarounds, management buyout and secondary purchases of private equity, primarily in Asia. They are already an investor in Horizon's first fund, Horizon Ventures I. For more information, please visit http://www.antcapital.jp/english.

Contact Information

  • Media Contacts:
    Horizon Ventures:
    Jack Carsten
    Email Contact
    650-917-4100

    Industry Ventures:
    Alex Wellins
    The Blueshirt Group
    Email Contact
    415-217-5861