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Facebook Backers Ready For Next Facebook

  • Bloomberg, Wednesday, March 21, 2012 12:07 PM

 

Parlaying its existing stake in Facebook, Digital Sky Technologies is preparing to invest in the next Facebook by seeking $1 billion for a new late-stage technology fund. The Russian firm has committed Facebook stock valued at $50 million to the fund, meaning limited partners will get a chance to own the shares through their investment, reports Bloomberg, citing an investor presentation. Early investors were reportedly offered the Facebook holding at a 12% discount to an internal valuation of about $74 billion, as well as a 25% reduction in the fund’s management fee.

“DST, founded by Russian technology investor Yuri Milner, is among a number of venture capital and buyout firms seeking money after the biggest year for U.S. Internet initial public offerings in more than a decade,” Bloomberg reports. Along with DST, Facebook backer Elevation Partners and Zynga investor Institutional Venture Partners are each seeking as much as $1 billion for their next funds.

DST’s investments in companies including Facebook, Groupon, Twitter, Zynga and LinkedIn have already paid off. According to Bloomberg, the firm’s first fund, DSTG I, has returned a 4.89 times the invested capital, before fees, and produced an annual 151% gross internal rate of return, according to the December presentation.

 


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