Hedge fund manager Pequot Capital Management and Pequot Ventures, its New York-based venture capital arm, have agreed to separate the two businesses as of the end of June.
Hedge fund manager Pequot Capital Management and Pequot Ventures, its New York-based venture capital arm, have agreed to separate the two businesses as of the end of June. Under the separation agreement, the investment principals of Pequot Ventures will form a new firm, FirstMark Capital, which will assume the investment management operations of Pequot Ventures and, with investor approval, take on responsibility for the assets it currently manages.
‘Our venture business has been functioning as an autonomous entity for some time and this separation is the next logical step for both Pequot Capital’s and Pequot Ventures’ successful yet distinct businesses,’ says Larry Lenihan, a managing director and co-head of Pequot Ventures. ‘As a separate entity, we will be better positioned to pursue our investment agenda and develop new opportunities unique to our business.’
Established 11 years ago, Pequot Ventures focuses on companies with a novel business or operational model that are creating new markets or changing existing industries. The firm is the first institutional investor in the vast majority of its investments, enabling closer involvement with portfolio companies and more significant potential upside for limited partners.
‘We are very excited for this new phase of our business and enter it with tremendous momentum,’ says Jerry Poch, also a managing director and co-head of Pequot Ventures. ‘In the past 18 months we closed our seventh fund, completed eight successful exits and made 12 investments, including five in New York-based companies.
‘We remain fully committed to cultivating energetic, high-impact partnerships with our portfolio companies that extend beyond the boardroom, bringing extensive operational knowledge, financial savvy, and crucial business connections.’
FirstMark’s four managing directors, Lenihan, Poch, Amish Jani and Rick Heitzmann, have worked at Pequot Ventures for more than seven years. Two venture partners, Larry Wilson and Sterling Phillips, will contribute additional operational depth to a staff of 12 investment professionals, supported by a team of operations staff.
Pequot Capital Management was founded in 1998 by chairman and chief executive Arthur J. Samberg to manage the Pequot family of funds, which began investing in 1986, and has offices in Connecticut, New York, California and London. Pequot Ventures has nearly USD2bn in capital commitments and around USD1bn in capital under management and uncalled capital.
