GTV, BoA Equity Partners part ways

Bangalore's Global Technology Venture wants to buy BAEP and settle for an asset split

Global Technology Ventures (GTV), a Bangalore-based investment management fund, is parting ways with Bank of America Equity Partners (BAEP).

BAEP had come in with close to $18 million to jointly start this fund with V G Siddhartha, the founder of the fund, in 2000. Siddhartha is also the founder of Cafe Coffee Day.

The spilt is expected to be finalised by year-end. According to the split formula, GTV and BAEP will share the fund's holdings in various firms.

At $45 million, GTV has seeded from early stage two high profile IT successes namely MindTree Consulting and Ittiam Systems, a global leader in digital signal processing technology. It funded Kshema Technologies which was acquired by MphasiS.

GTV also has under its belt, through a group firm, around 110 acres of land in Bangalore and Mangalore on which it is developing technology parks for its investee companies. It is also learnt that GTV will take real estate development further and is looking at entering the hospitality sector by setting up resorts.

When contacted, GTV sources declined comments. BAEP sources were not available. GTV had earlier parted ways with Nomura International Venture Partners. According to industry sources, GTV wanted to buy out BAEP and decided to settle for an asset split.

GTV was focussed on funding Indian entrepreneurs working in the area of IT, biotechnology and other knowledge-based domains from early start-ups to later stage high growth enterprises with investments ranging from half a million dollars to $5 million.

This move by GTV to part ways with BAEP comes at a time when MindTree is looking at going public next year. MindTree is believed to raise close to Rs 400 crore. Investors including GTV hold a little more than 40 per cent in the firm.

GTV is also in the process of looking at exit options for its other investments such as GlobalEdge and Magnasoft.