Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Fund Targets Marginalized Projects

A new VC firm is out to salvage riches that may be hidden inside established storage networking and communications companies.

Garnett & Helfrich Capital, a new investment fund recently launched by technology and venture capital veterans Terry Garnett and David (what else?) Helfrich, is courting neglected business units of large, public, high-tech companies. The firm plans to use its recently raised $250 million fund to buy these units, spin them out, and nurse them back to positive growth.

"The opportunity here is germane to all of IT," says Helfrich, managing director of the fund. "There are many underutilized assets that don't belong or have been abused in companies."

This approach -- dubbed "venture buyout" by Garnett & Helfrich for its combination of VC and traditional buyout investing -- adds a twist to the private-equity game by aiming to acquire and rejuvenate promising business units trapped inside other organizations.

How can the fund identify potential candidates? Well, for starters, only buyout targets with $20 million to $100 million in annual revenues are being considered.

  • 1