San Francisco & Washington, D.C., July 19, 2001
—Round1, ™ a provider of financial productivity and analysis software and services for the private capital markets, and the International Finance Corporation (IFC), a member of the World Bank Group, today announced that IFC would take a stake in Round1 in return for a cash investment, as well as the license and eventual sale of an IFC-developed portfolio management and reporting system for private equity.
The agreement between Round1 and IFC includes:
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an equity investment by IFC in Round1;
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an additional IFC investment dedicated to the continued development of IFC’s Private Equity Street (PES), a Web-based private equity portfolio management and reporting product;
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a PES development and commercialization license, including plans for the eventual sale of PES to Round1.
In addition, IFC will join the newly formed Round1 Product Advisory Council, which consists of leading industry executives, investors, and CFOs who will help to guide Round1 product development and ensure that customer needs are identified and managed.
“In order to thrive, global private capital markets need greater efficiency, increased transparency, and standardization,” said Teresa C. Barger, IFC’s Director of Private Equity and Investment Funds. “We are confident that the working relationship between Round1 and IFC will help address those needs and generate enhanced interest in private equity investments worldwide, including in developing countries, from a range of existing and new investors.”
Round1 and IFC Share Common Vision
IFC, which is one of the largest private equity investment organizations in the world with a portfolio of private equity funds worth US$1.2 billion, initially developed and incubated PES to provide standardized portfolio management tools for private equity fund managers and investors in the U.S., internationally and in less transparent, non-OECD markets. The product supports IFC’s well-known efforts to expand the range of funding mechanisms through which developing country entrepreneurs can access global private investment funds.
“Until recently, IFC focused much of its capital markets work on the development of stock markets and reforms to banking sectors in developing countries,” said Barger. “We saw a need, however, for a more efficient system for the private equity market that took advantage of new technologies. We began development in-house, while at the same time looked for a company to partner with – one that had similar interests, but unique qualifications.”
Since its inception in 1999, Round1 has focused on developing a family of products for financial institutions, corporate venture groups, investment funds, and alternative asset managers to more efficiently manage and execute private capital transactions, and to actively manage private capital investment portfolios. The company combines the expertise of a financial services organization, a National Association of Securities Dealers (NASD) member broker-dealer, and an Internet technology firm to deliver its unique solutions.
IFC will further support PES on a policy level while Round1 will be responsible for the continued development, commercialization, marketing, and distribution of the product. These mutual efforts will benefit private capital investors, issuers, and financial institutions by making possible more readily available global information, reduced transaction costs, transparency and data standardization, as well as, eventually, global compliance for reporting and transactions.
“IFC and Round1 have synergistic visions to provide more valuable solutions for institutions in the global private equity market,” said Alan Freedman, Round1 Cofounder and Executive Vice President, Strategic Alliances. “Round1 is a natural partner for IFC to expand the availability of PES worldwide, including in emerging markets.”
IFC Invests in Round1
In addition to IFC, previously announced Series B investors in Round1 include lead investor Allianz Capital Partners GmbH and Round1 Cofounder and Chairman Jamie Cohan. IFC’s investment is intended to further Round1’s vision of delivering global efficiency to private capital markets.
Introducing Private Equity Street
PES is an investment portfolio management, reporting and analysis system designed for investors, fund managers, and consultants in private equity. The system will deliver real-time information; it also reports on fund information and performance, and analyzes portfolio characteristics.
“Round1 has a worldwide business model, reflecting the global nature of the private equity asset class,” said Jim Casella, CEO of Round1. “Round1 plans to market PES globally, including in emerging markets, where it sees large and untapped growth potential.”
Private Equity Street Extends Round1’s Private Capital Management Platform
PES will become the third product introduced this year as part of the Round1 Private Capital Management Platform, the first end-to-end, integrated platform for the management of private capital. The Round1 Private Capital Management Platform is comprised of a suite of products and services that increase efficiency within the private capital markets by combining information, transaction, reporting, analysis, and benchmarking capabilities into a single platform.
The Round1 Platform will provide Round1 customers the tools to assist in assessing fair market value for securities, report transactions to their constituents, analyze transaction and portfolio data to make more intelligent investment decisions, and automate the management and administration of deal flow. Specifically, general partners, limited partners, and issuers can employ the products to more effectively manage deal origination, investment and portfolio activities, and capital structures.
The Round1 Private Capital Automation System™, which provides an end-to-end solution that automates deal flow processes and transaction workflow in the distribution of private securities is currently in production along with Round1 Capitalization Manager™, a capital structure administration application.
About International Finance Corporation
The mission of IFC, part of the World Bank Group, is to promote sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. IFC finances private sector investments in emerging markets, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Additional information about IFC private equity funds is available at
http://www.ifc.org/funds
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About Round1
Founded in August 1999, San Francisco-based Round1 is a leading provider of productivity and analysis software and services for the private capital markets. The company is developing the Private Capital Management Platform, an end-to-end, integrated platform comprised of a suite of products for financial institutions, corporate venture groups, investment funds, and alternative asset managers to more efficiently manage and execute private capital transactions, and to actively manage private capital investment portfolios. The company is headquartered in San Francisco and also has offices in New York and Dallas. Additional information about Round1 is available at
http://www.round1.com
.
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Round1 is a registered service mark and Round1 - Private Capital Marketplace and Round1 Capitalization Manager are trademarks of Round1 - Private Capital Marketplace Inc. Other names may be trademarks of their respective owners.
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