Saturday, May 23, 2015

Cross Atlantic Capital to wind down fund, sell Rubicon shares

The Radnor venture capital firm said it will liquidate the holdings of a fund started in 1999 and sell about $4 million worth of its large stake in Rubicon Technology.

Cross Atlantic Capital to wind down fund, sell Rubicon shares

Venture capital funds do not last forever, and Cross Atlantic Capital Partners has said it will wind down a fund started in 1999.

The Radnor firm, which has more than $500 million under management, said Friday it will liquidate its remaining portfolio holdings. Cross Atlantic said the decision comes after several "successful exits, including three IPOs."

Firms generally are not eager to tout the beginning of the end for a fund. But in this case, the Cross Atlantic Technology Fund L.P. owns 668,572 shares of Rubicon Technology Inc., a publicly traded maker of products used in LEDs and other optical equipment.

And Cross Atlantic Capital Partners is by far the largest shareholder in Rubicon, based in Bensenville, Ill., with a 23.9 percent stake. The firm said that while it intends to sell the technology fund's Rubicon holdings by June 30, it will continue to own 4,985,677 shares in Rubicon through its two other funds.

Shares of Rubicon closed at $5.95 on Friday, down 4 cents. At that price, the shares to be sold by Cross Atlantic would be worth $3.98 million. Cross Atlantic's remaining holdings were valued at $29.66 million based on Friday's close.

Rubicon lost $5.5 million, or 25 cents per share, on revenues of $67.2 million last year. In contrast, the company reported net income of $38.1 million, or $1.61 per share, on revenues of $134.0 million in 2011.

Inquirer Columnist
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Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist