Bestport Ventures Formed By Former Close, Bamboo Execs

By Alison Birrane
22-JUN-2005

London -- Former executives of Close Venture Management and Bamboo Investments PLC have launched a new U.K.-based venture capital firm, Bestport Ventures LLP, and are planning to raise a new fund in the next six months.

Bestport Managing Partners James Stoddart, previously of Bamboo, and Ole Bettum, formerly a director of Close Venture Management, established the firm in March this year.

Stoddart said Bestport is currently managing a small fund that was established as a private concern in December 2003 and which "is showing a substantial IRR in excess of 50%."

"Bestport manages a small limited partnership fund raised from private investors investing in venture capital opportunities of sub GBP2 million," Stoddart said. "The existing fund is a generalist venture fund with a sector focus of health care services, technology and business services."

He said the firm has already made a number of small early-stage investments from the fund with a typical value of GBP1 million. He said those investments have also been syndicated with "friends and family" as co-investors.

Stoddart said the fund invested in U.K.-based aged healthcare services company Careforce Group PLC along with Close Venture Management in July 2000. Careforce listed on the Alternative Investment Market of the London Stock Exchange in November 2004.

Bestport's fund also invested in U.K.-based mobile device solutions provider DAT Group in July 2004 and realized its investment when DAT Group listed on AIM in December 2004.

Stoddart said he and Bettum continue to be involved in Bamboo and Close Venture Management, but would now also focus on the new venture firm. He said the decision to establish Bestport followed Close's move to wind down Bamboo after successfully realizing many of its investments.

Bamboo was established in 2000 as a Stoddart family investment vehicle, before Close Venture Management took over the management of the portfolio in 2003 and diversified it to include different types of high-growth businesses other than information technology, the traditional focus of the fund.

In an interview with VentureWire at the end of May, Close Venture Management Managing Director Patrick Reeve said that Bamboo was being wound down because it had GBP9 million on its balance sheet that the firm wanted to return to shareholders.

 

• http://www.closeventures.co.uk