Harvest, the secondary venture capital fund of the Evergreen VC group, is looking at acquiring participation units in the Pitango 2 fund, TheMarker.com has learned.
Pitango co-manager Rami Kalish confirmed that the fund, formerly known as Polaris, held a presentation of its portfolio startups for Harvest, which also sent representatives to visit some of the companies.
Pitango also said it it has no desire to sell units to secondary funds. Presumably Harvest contacted Pitango either because a specific investor wants to sell, or on the assumption that its sheer interest might induce investors to sell.
Kalish commented that secondary funds have become popular. Not only Israeli funds but foreign ones too are showing an interest, he said. He noted that Evergreen's Harvest received the presentation but has not tendered any offers yet.
Evergreen said it does not comment on its secondary fund business.
Secondary funds acquire entire portfolios of startups, usually through buying out specific investors in venture capital funds who want out.
Pitango 2 secured $125 million back in 1996, a record for Israeli venture capital funds at the time. To date it has invested in 35 companies. Its backers include the American bank Chase, the Travelers group, the Harbourvest group, and several Israeli and foreign pension funds.