Chrysalis closes fourth fund on $163m

Morgan Stanley, Credit Suisse and a Kentucky state pension are among the LPs that helped Louisville, Kentucky-based Chrysalis Ventures exceed the target for its fourth fund.

Chrysalis Ventures has closed its fourth fund on $163 million (€110 million) after 18 months of fundraising, according to the Kentucky-based firm's managing director, Koleman Karleski.

The fund, which was targeting $150 million, will back early and expansion stage companies across the healthcare, technology, media and business services sectors throughout the Midwestern and Southern US.

“The typical Chrysalis investment is [in] companies with $1 [million] to $5 million in revenue but losing money,” said Karleski. “They are young companies with a proven technology into which we are investing capital to help them expand into the marketplace.”

Chrysalis aims to have the fund fully invested within three to four years.

This is Chrysalis' second institutional fund; its first closed on $143 million in 2002. Predecessor vehicles invested capital on behalf of Chrysalis general partners and affiliates.

The fourth fund held a first close in mid-2006, which included commitments only from existing limited partners. New investors include Morgan Stanley Alternative Investment Partners, two Credit Suisse separate accounts and the Kentucky Teachers' Retirement System.

The firm’s managing directors, their affiliates and the professional staff of Chrysalis collectively remain the second largest investor in the fund. Nine former portfolio companies are also limited partners.

Chrysalis has $375 million under management and has invested in more than 55 companies since its 1993 founding.