KLINE HAWKES ACTIVELY INVESTING,
OUTPERFORMS SIMILAR VENTURE FUNDS
Los Angeles, CA, June 27, 2002— Kline Hawkes & Co., a Los Angeles based venture capital firm is actively seeking investments for its funds. The firm specializes in communications, enterprise software and outsourced services.
“Kline Hawkes hasn’t experienced the carnage that’s taken place in other VC funds because we didn’t succumb to the investment frenzy that permeated the market of the late 1990’s,” says Frank Kline, Founding Partner of Kline Hawkes & Co. “While others are in the retreat or salvage mode, Kline Hawkes continues to actively research opportunities that fit our investment criteria.”
“Venture capital is not a volume business,” adds Kline. Since its founding in 1994, Kline Hawkes has traditionally made four to six investments per year in emerging growth and middle market companies throughout the Western U.S.
Kline Hawkes manages approximately $300 million and invests via three funds: Kline Hawkes California, L.P.; Kline Hawkes California SBIC, L.P. and its most recent fund, Kline Hawkes Pacific, L.P., where the investment range is $5 million to $10 million for mid and late stage venture opportunities.
“Our strategy is to both invest in and build strong management teams and to position our portfolio companies for growth. We perform meticulous due diligence, and once an investment is made we take a very active role with the company. This hands on approach has produced successful investments and our Limited Partners have reaped the rewards.”
One such Limited Partner is the California Public Employees Retirement System (CalPERS), the nation’s largest pension fund. In its most recent survey of 147 funds, CalPERS ranked Kline Hawkes third in terms of return on investment. In the category “Total Value Multiple”, Kline Hawkes returned the pension fund a multiple of 3.87 times its invested capital during the surveyed period. When compared to other California-focused funds, Kline Hawkes ranked first among CalPERS managers.
In addition to CalPERS, Kline Hawkes manages investments for other pension funds, including the Pennsylvania State Employees’ Retirement System (SERS); the City of Los Angeles Fire and Police Pension System; and the Los Angeles County Employees Retirement Association (LACERA).
Kline Hawkes has also received top tier performance ranking from organizations that monitor the industry. Data compiled by Venture Economics/National Venture Capital Association, ranked Kline Hawkes California Fund fifth out of 24
vintage 1995 funds, with a 44 percent internal rate of return (IRR) on investments as of December 31, 2001. That compares to an average 21 percent IRR for similar VC funds, a 12 percent return from the Dow, an 11 percent return from the S&P, and a 10 percent return from Nasdaq.
Companies that are representative of the current Kline Hawkes investment portfolio include: Sensor Systems, a Sterling, Virginia-based imaging software company in the homeland security sector; IP MobileNet, a Santa Fe Springs, California-based mobile wireless data company; National Water & Power, a Santa Ana, California-based utility management and billing company; Uprizer, a Santa Monica, California-based provider of peer-to-peer networking services for enterprises; UFO, a San Francisco-based provider of “last mile” broadband services; and Ascendent Telecom, an Encino, California-based provider of wireless office solutions.
About Kline Hawkes & Company:
Founded in 1994, Kline Hawkes & Co. manages approximately $300 million of capital through the following funds: Kline Hawkes California, L.P; Kline Hawkes California SBIC, L.P; and Kline Hawkes Pacific, L.P. Kline Hawkes has invested in more than 30 companies in the communications, enterprise software and outsourced services sectors, with a focus on mid and late stage venture opportunities in the Western United States. Kline Hawkes investments are guided by Partners Frank Kline, Jay Ferguson and Nick Memmo; Principal Klaus Koch and Special Venture Partner Peter Ivory.
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