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MK Capital Hits Half-Way Mark With First Close On $150M Sophomore Fund
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It's taking longer than expected, but MK Capital is making headway in raising its sophomore venture fund, which just held a first close on its $150 million target.
The firm has secured $75 million for MK Capital II LP, including $25 million from the Small Business Investment Company program, according to Co-founder and Managing Director Mark Koulogeorge. VentureWire reported in July 2008 the firm hoped to close the fund in 60 days.
"The fund-raising environment is still challenging because so many money managers need to reallocate and they haven't balanced their portfolios," Koulogeorge said. "A large institution will do less of what they're already doing, then decide what's appropriate for the market."
Koulogeorge said the success of the firm's current portfolio is having a positive effect on the road show.
"We're trying to attract new investors and convince them that our approach is less stale than some of the older firms," Koulogeorge said.
The Chicago-based firm has experienced two solid exits from the first $150 million fund. Automation-software company BladeLogic Inc. went public in July 2007 and saw shares soar 47.5% on its first day of trading, closing at $25.07 a share on the Nasdaq Stock Market. MK Capital owned a 6.1% stake in the company.
Also, VeriSign Inc. agreed in 2006 to buy MK Capital portfolio company Kontiki Inc., whose platform supports legal distribution of rich digital media over IP networks, for about $62 million. In May 2008, the company spun out on its own again with funding from its previous largest shareholder, MK Capital. Full terms of the deal were not disclosed.
The firm realized $61 million through those two exits.
Koulogeorge said in the current portfolio, 11 of 17 companies posted record revenue in the first quarter.
MK Capital's new vehicle will mirror its first fund and aim...