Thursday, April 9, 2009

Report: Highland Capital targets latest fund at $400M

By Galen Moore

Highland Capital Partners is raising its eighth fund, and has set a target of $400 million for the investment vehicle, according to online reports.

If reached, the reported value would be one half Highland’s seventh fund, which closed at $800 million in 2006.

The report, on the site PE Hub, did not cite any sources for the $400 million number, but the figure is consistent with a trend toward smaller funds, identified by Mass High Tech in a February article.

A Highland spokesman declined to comment on the report.

In the first quarter of 2009, Highland’s investments included return participation in a $10 million Series C round for Quattro Wireless Inc., a $15 million Series B round for Virtual Computer Inc., and a $6.24 million Series D round for StreamBase Systems Inc.

Recent portfolio exits include the April sale of Magen BioSciences Inc. to North Carolina-based PPD Inc.for $14.5 million in cash – less than the $17.2 million reported invested in the company as of 2006. Highland portfolio company Codon Devices Inc. shut its doors earlier this month, having received $44 million in total investment.

Highland investment Imprivata Inc. also bought earlier this month a second Highland portfolio company, IdentiPhi Inc., in an asset acquisition for undisclosed terms.


 

An earlier online version of this story mischaracterized a recent merger deal involving a Highland Capital portfolio company. Highland investment Imprivata Inc. acquired the assets of Texas-based IdentiPhi Inc., which is not a Highland portfolio company.