US investment firm Intellectual Ventures Management is seeking to raise $3bn for its latest intellectual property fund, Bloomberg has reported.
Invention Investment Fund III will have a 20-year life span, with the promise of an annual cash yield based on patent licensing, patent sales and legal settlements.
The fund follows the firm’s $2.8bn second fund, which it raised in 2008.It has hired Mercury Capital Advisors as its placement agent.
Intellectual Ventures was founded by Nathan Myhrvold after he retired as chief strategist and chief technology officer of Microsoft Corporation.
According to the report, the firm’s 2008 and 2003 vehicles were producing average annual yields of 12 per cent and 19 per cent, respectively.
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