Edgewater Taps PIMCO Veteran, Raising New Fund
By RAJIV VYAS
Chicago-based The Edgewater Funds is looking to raise $200 million for its fourth fund and has tapped a seasoned financial hand for its Irvine office.
William Cvengros, the former chief executive of Newport Beach-based Pacific Investment Management Co., has joined Edgewater in Irvine as a venture partner. He’s set to focus on Edgewater investments in financial and business services companies, help evaluate new investments and assist portfolio companies.
“We believe in the power of industry networks and experience,” said Robert Allison, an Edgewater partner at the Irvine office. “Bill reflects our continued and increased commitment to the Southern California market as a fund and in support of our portfolio of companies.”
The move comes as Edgewater partners are on the road trying to raise the firm’s latest fund. The money is set to go to technology, communications and business services companies, Allison said. Most of the new fund is pegged for expansion-stage companies or those that have products and some sales.
“The environment for fundraising has, of course, been difficult,” Allison said. “Some investors may be reducing allocations towards venture or private equity funds. So, we have to call on more groups, provide more information and provide returns updates as they occur.”
Edgewater started its fundraising in December and so far counts $150 million. The fund is set to close at year’s end.
“The end result, we believe, will be that we achieve our target of $200 million,” Allison said.
Edgewater has more than $500 million under management, of which about $180 million is yet to be invested,the $150 million raised so far for the fourth fund and $30 million from the firm’s third fund.
Allison declined to give performance details about the prior three funds but pointed to the Edgewater’s ability to raise money during tough times.
“Only those in the upper quartile of performance are going to continue to raise funds in the current market,” he said.
Managing partner Jim Gordon started Edgewater in 1991 after selling a business in the late-1980s. Allison joined the firm in 1997. Edgewater opened its Irvine office in 1998.
The venture firm has invested in 10 Southern California companies so far, six of them in Orange County.
Its OC portfolio companies include: Irvine-based Alteer Corp., a provider of software for doctors’ offices; Newport Beach-based CommerceScout Inc., creator of an electronic procurement system; and Garden Grove-based InfoGraphics Systems Corp., a maker of electronic products for the security industry.
