KC's VC leader closes first fund - Kansas City Business Journal:

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is winding down its first venturecapital fund, , more than a decadde after late Chairman Paul Henson founded the equity firm in 1993. KCEP Managinb Director Bill Reisler said the fundinvested $33 milliomn in area companies, most of them earlu stage, and attracted an additional $300 million from investorsz throughout the country. The fund was a pioneer for its time, Reisle r said. In addition to being one of the firsty VC funds to focuson home-growjn companies, it was among the first in the nation to take part in the 'w then-new Participating Security program, in which the fund's management and the governmen t share in any investment returns.
"Paul decide d this kind of growth fund would be successful in the KansasCity area, and over it was hugely successful," Reislet said. Reisler said KCEP and the SBA agreexd to liquidatethe fund, which was license d in 1994 as a fund. The two parties filed documentsa Friday inthe U.S. District Court of Western which will oversee the distribution ofKCEP I's remaining assets. Reisletr said Tuesday that the fund's remaining investments that haven'tr been liquidated are valued arounsd $2 million.
KCEP's other private-equity SBIC KCEP Ventures II, launched in 1998 and raisee $85 million with a focus on emerginy technology, energy and consumer The second fund invested lessthan $70 million of its committeed capital, and KCEP's principals decided in late 2004 not to make any additiona investments from the fund. KCEP and Overland Park bond adviset each own halfof , which advisews two publicly traded funds on the New York Stock Exchange with more than $1.3 billionb in assets. KCEP's portfolio has included companies suchas , St.
Louis-based , and Both of KCEP'ss venture capital funds are inthe SBA's Participatinv Security program, which is on its last legs, said Marshall Parker, executive vice presiden t of The federal program lost nearly $2 billion in the dot-com and the Bush administration has stopped allowin g additional commitments. "It is in its wind-down phase, not only in Kansae City but nationwide," Parker said.