PRINT THIS PAGE Israeli VC BRM Capital to return $100m to LPs04/07/2002. Source: AltAssets. 
 BRM Capital, an Israeli-focused venture firm, has joined the growing list of groups returning capital to limited partners in the face of a deteriorating investment climate.
It plans to hand back $100m of the $250m it raised in 2001 for its second fund.
The firm said the present market conditions did not warrant such a large fund. It said three of its 48 LPs asked for the fund size to be reduced and there was unanimous support for the eventual decision.
‘They (the LPs) appreciate the move and will take it into consideration when we raise our next fund,' BRM chief executive Mensahe Ezra said in the Israeli business newspaper Globes.
The Israeli market has been hit with the double whammy of a meltdown in global technology markets and a worsening of the local political situation. Confidence among venture capitalists in the region has plummeted in recent months.
US venture firms were the first to hand back money to their investors but the malaise has spread to Europe and elsewhere around the globe in recent weeks. Many more firms are expected to follow suit in the months ahead, with little prospect of a dramatic improvement in market conditions before the end of the year.
Venture groups have become acutely sensitive of the need to take a long-term view of their activities, in particular by maintaining healthy relations with their existing LPs.
Copyright © 2002 AltAssets
|
