Early-stage software venture capital firm EVP (formerly Equity Venture Partners) has launched fundraising for a growth capital fund.
The evergreen fund will provide flexible funding for growth stage companies by making minority stake equity investments.
Misha Saul, formerly of technology specialist private equity firm Potentia Capital, has joined EVP to lead the new fund.
EVP co-founder Howard Liebman said: “Over the past decade we’ve invested in almost 50 early-stage software companies. We’ve had the incredible good fortune to partner early with the likes of Deputy, Ignition, Shippit, Hnry, Mutinex and others. With many of these growing to become category leaders, the EVP Opportunities Fund will be underpinned by selective growth stage investments across the best of the current EVP portfolio.
“More broadly, the fund meets a significant opportunity in the ANZ market for growth-stage companies seeking capital and for founders, employees and early investors seeking liquidity. Through an open-ended structure with periodic liquidity, the fund will provide investors ongoing access to some of the region’s best growth-stage software businesses.”
EVP currently has commitments of around $20 million for the EVP Opportunities Fund, including $5 million from its investment team, and is targeting a first close in the range, $30 million to $50 million. Within ten years, it is anticipated the fund could grow $500 million.
Set up as a unit trust rather than a closed-end Venture Capital Limited Partnership (VCLP), the new fund will be open to additional investments throughout its lifespan. Investors will be able to redeem units in quarterly windows after an initial three-year hold period. The fund will target a gross internal rate of return (IRR) of 25% plus.
EVP has raised four flagship funds that have invested in early-stage software businesses focusing on B2B sales. The firm currently generally makes initial investments of under $5 million. The Opportunities Fund will enable EVP to provide larger sums to its investee companies that have reached growth stage, including taking up preemptive rights, and will also provide liquidity, from an acceptable source, for founders and employees.
Leibman, a former corporate adviser and investor, and angel investor Les Szekely founded EVP in 2014; their first fund raised $25 million in 2016.
Image: Misha Saul will head EVP’s new Opportunities Fund.