[Federal Register Volume 59, Number 178 (Thursday, September 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22764]


[[Page Unknown]]

[Federal Register: September 15, 1994]


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SMALL BUSINESS ADMINISTRATION

[Application No. 99000143]

 

AVI Capital, L.P.; Notice of Filing of an Application for a 
License To Operate as a Small Business Investment Company

    Notice is hereby given of the filing of an application with the 
Small Business Administration (SBA) pursuant to Sec. 107.102 of the 
Regulations governing small business investment companies (13 CFR 
107.102 (1994)) by AVI Capital, L.P. at One First Street, Suite 12, Los 
Altos, California 94022, for a license to operate as a small business 
investment company (SBIC) under the Small Business Investment Act of 
1958, as amended, (15 U.S.C. et seq.), and the Rules and Regulations 
promulgated thereunder. Its principal area of operation will be 
Northern California's Silicon Valley (Santa Clara County) and selected 
areas on the West Coast such as Southern California, Oregon and 
Washington.
    AVI Capital, L.P. will be managed by AVI Capital Management, L.P., 
General Partner, which consists of three experienced General Partners 
with successful track records in Silicon Valley. The individual General 
Partners are Peter Wolken, Barry Weinman, and Brian Grossi. 
Additionally, AVI Capital Management, L.P. will be affiliated with four 
Special Limited Partners who are Gene Flath, Jean-Louis Gassee, Ken 
Levy, and Jack Loustaunou. Four of the General and Special Limited 
Partners of AVI Capital Management, L.P. have been active with the 
prior venture capital partnerships Associated Venture Investors, L.P. 
(AVI) and Associated Venture Investors II, L.P. (AVI II) over the past 
eleven years, providing significant continuity.
    The following limited partners will own 10 percent or more of the 
proposed SBIC:

------------------------------------------------------------------------
                                                       Percentage of    
         Name                Relationship to        ownership directly/ 
                                applicant               indirectly      
------------------------------------------------------------------------
AVI III L.P............  Limited Partner........  Directly owns 73.8% of
                                                   AVI Capital, L.P.    
AVI I SVP..............  Limited Partner........  Directly owns 14.2% of
                                                   AVI Capital, L.P.    
Motorola Corp..........  Passive Institutional    Indirectly owns 15% of
                          L.P. of AVI III.         AVI Capital, L.P.    
3M Corp................  Passive Institutional    Indirectly owns 22% of
                          L.P. of AVI III.         AVI Capital, L.P.    
Mutual of Omaha........  Passive Institutional    Indirectly owns 15 of 
                          L.P. of AVI III.         AVI Capital, L.P.    
Sitra--Helsinki,         Passive Institutional    Indirectly owns 15% of
 Finland.                 L.P. of AVI III.         AVI Capital, L.P.    
------------------------------------------------------------------------

    The Applicant will raise private capital from institutional sources 
comprising Associated Ventures III L.P. (AVI III) and AVI Partners 
Growth Fund II, L.P. (AVI PGF II), and individual sources comprising 
AVI Silcon Valley Partners, L.P. (AVI SVP). Although less than ten 
percent, AVI PGF II will be a limited partner and directly own 7.5% of 
Applicant.
    There are four limited partners of the Limited Partner Partnerships 
which are expected to indirectly own ten percent or more of the capital 
of Applicant. Such investors, which are each a Limited Partner of AVI 
III are: Motorola Corporation, 3M Corporation, Mutual of Omaha 
Insurance Company, and Sitra. These organizations are all passive 
investors of the partnership, and directly or indirectly have no 
control of the management nor of the decision-making of the Fund. In 
addition, none of such organizations owns 33% of the capital committed 
to Applicant.
    The Applicant will began operations with private capital of $13.37 
million and plans to make investments principally in California's 
Silicon Valley in Information Technology start-up companies; e.g. 
software, enabling hardware, publishing and electronic distribution, 
mobile computing, and multimedia. The Applicant will also consider 
extraordinary investments in selected areas on the West Coast (such as 
Southern California, Oregon, or Washington). The Applicant plans to 
invest in approximately 20 companies over a period of five years with 
an average total investment of $2 million per company. The Applicant 
plans to target companies which need funds to develop or complete 
development of a product or service, increase production, recruit 
personnel and execute its sales and marketing strategy.
    Matters involved in SBA's consideration of the application include 
the general business reputation and character of the proposed owners 
and management, and the probability of successful operations of the new 
company under their management, including profitability and financial 
soundness in accordance with the Act and Regulations.
    Notice is hereby given that any person may, not later than 15 days 
from the date of publication of this Notice, submit written comments on 
the proposed SBIC to the Associate Administrator for Investment, Small 
Business Administration, 409 3rd Street SW., Washington, DC 20416.
    A copy of this Notice will be published in a newspaper of general 
circulation in Los Altos, California.

(Catalog of Federal Domestic Assistance Programs No. 59.011, Small 
Business Investment Companies).

    Dated: September 9, 1994.
Robert D. Stillman,
Associate Administrator for Investment.
[FR Doc. 94-22764 Filed 9-14-94; 8:45 am]
BILLING CODE 8025-01-M