Section Partners, a Palo Alto, CA-based provider of creative financing solutions for stock and option holders of late-stage, venture-backed private companies, closed a third fund, at $74m.
Investors included a global fixed income investment manager, family offices, and individual investors, including a number of prominent venture capitalists and Silicon Valley tech executives.
In connection with the closing of Fund III, the firm has brought on board Amrith Ravi and Mow Wong as Venture Partners, who are based in New York City and will target transactions with stockholders of venture-backed companies based on the East Coast.
Led by Dave Crowder, Co-Founder and Managing Partner, Section Partners provides structured financing solutions that enable stock and option holders to leverage their equity holdings to obtain cash financing in a tax-efficient manner that typically does not involve a sale of shares.
The firm’s solutions are designed to be company-friendly and typically do not require a transfer of shares or have any impact on a company’s 409A valuation.
Section Partners manages funds with committed capital in excess of $120m that have completed more than 70 transactions with stockholders of over 30 companies since inception in 2014. Exits to date have resulted from the IPOs of Box, DocuSign, Domo, Lending Club, MongoDB, Pivotal Software, Upwork and Zuora and from the acquisitions of GitHub by Microsoft, Lithium by Vista Equity Partners, SOASTA by Akamai, and Telogis by Verizon.