Technology Venture Partners (TVP), an Australian venture capital manager specialising in the information technology and telecommunications (IT&T) markets, has announced the completion of its second fund (TVP#2), having raised $45 million in capital. This amount will be invested in young Australian companies, and is more than the initial target of $30 million, making it one of the largest privately funded, specialist IT&T funds in Australia.
John Murray, founding shareholder and TVP executive director has called the response to the fun "encouraging".
"It confirms our conviction that there are many investors who believe that Australian technology is worth supporting. The capital raised will allow us to make substantial investments in companies enabling them to develop young talent, create new technologies, and build the necessary infrastructures to compete globally," Murray said.
The venture capital manager announced the first closing of TVP #2 in early February. At that stage, the company had raised $20 million in capital and finalised two investment opportunities, NetPort Systems and imTEK Australia.
According to TVP, the new fund has drawn a diverse group of investors, including Australia Post Superannuation Scheme, Victoria Superannuation Board, Queensland Investment Corporation and Mercantile Mutual Private Capital Fund.
"The IT industry is producing some of the most interesting investment opportunities out there. TVP's successful track record illustrated to us that they have the expertise and deal flow to source the most promising of these," said Jon Schahinger, business manager, Private Capital, Mercantile Mutual.
Other investors include Development Australia Fund, which invests on behalf of major industry Super funds; Australian Technology Group; the Stevedoring Employees Retirement Fund; Tower Life; PostSuper and institutional clients of asset adviser, Total Risk Management; as well as several private local and international investors.
"SERF (the Stevedoring Employees Retirement Fund), has been investing in the venture capital sector since 1994 and was looking to increase its exposure to this area as well as gaining diversification," explained Terry Newson, fund secretary, SERF.
"TVP demonstrated its in-depth understanding and proven track record of investingin the IT area and has provided us with the opportunity to invest into a market that not only offers diversification, but the chance to earn exceptional returns."
Allan Aaron, founding shareholder and TVP executive director said, "Our investors have recognised that the IT&T industry is one of the most dynamic and potentially rewarding area of investment activity today. At TVP we will ensure that their capital is invested in companies that embody the talent, technological innovation and entrepreneurial spirit needed to become leaders in this industry."
