Looking South: Status Update on Kodiak Venture Partners
As a hedge against poor market condition, in late November Kodiak let it be known that it has entered into an arrangement with one of its limited partners to provide continued support for some of the older companies in Kodiak's portfolio.
What is a sidecar arangement? In Kodiak's case, partner Tony Volpe told Tech Confidential that some of Kodiak's lps had purchased a small ownership position in a number of portfolio companies as well as put up additional capital for Kodiak to continue to invest in and support those companies.Good news for Ottawa's BTI and Montreal's Airwide Solutions, we can hope.
This kind of sidecar fund is a popular tool that only some local VCs here have been able to secure from their lps. Given that the sale of LP interests in secondary markets reportedly fell to 61% of net asset value in the second half of 2008, let's hope that limited partners find an appetite for further funding.