Investor Growth Capital Starts Anew as Independent VC Firm, With Evergreen Fund Worth $1.3B

9/28/11Follow @arleneweintraub

Today Investor Growth Capital (IGC), which has offices in New York City and Menlo Park, CA, announced that it is breaking free of its parent company, Stockholm, Sweden-based Investor AB. The newly independent IGC is hitting the ground with $300 million in fresh capital from Investor AB and a portfolio of companies with a total market value of $1.3 billion. Investor AB will be the sole limited partner in IGC.

IGC’s new fund—its sixth—has a distinctive “evergreen” structure, says its president, Steve Campe. That means that instead of maintaining a traditional venture-capital structure, in which a fund contains a certain amount of capital up front that’s drawn upon until it runs out, IGC will keep a portion of the returns generated by its portfolio companies, and pour that money back into the fund. “We’re retaining the proceeds over time to re-invest,” Campe says. “The $300 million is cash in the kitty to start, but we also expect the portfolio to generate more capital.”

Investor AB, an industrial holding company that was founded in 1916, started IGC a decade ago. It built the unit into a fund with 100 portfolio companies and $1.5 billion in assets. IGC invests mainly in what it calls “expansion-stage” technology and … Next Page »

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