VentureWire reported today that Charles Moseley and Russell French, two very visible partners at Atlanta-based VC firm Noro-Moseley, are retiring. This, coupled with the fact that Allen Moseley is rumored to be busy putting together a venture capital forum/event for Atlanta slated for this fall (2006), could mean that the Atlanta VC market is set to evolve this year – to what, I don’t know, but it could be evolving a bit. Noro-Moseley is a very prominent firm, and this nexus of leadership change, launching of a new $200M fund, and the potential venture forum could spark some things locally.
Noro-Moseley Senior Partners To Retire Ahead Of Fund-Raising Effort
Wednesday, March 22, 2006 — VentureWire Professional
Noro-Moseley Partners founder Charles Moseley and General Partner Russell French have decided not to participate in the firm’s newest fund, which is expected to hit the market within the next three months with a $200 million target.
Moseley, 63 years old, and French, 60, are both retiring from the Atlanta-based firm, VentureWire has learned. Moseley, who founded the firm in 1983 and built it into one of the largest venture capital operations in the Southeast, will continue to be involved in Noro-Moseley as chairman of its six-person advisory board.
French, who joined the firm in 1985, will continue to oversee investments he made via Noro-Moseley’s fourth and fifth funds but will not serve in any additional capacity.
Their pending departures leave the firm’s investment operations in the hands of five remaining partners: Charles Johnson, Allen Moseley, Steve Nusrallah, Alan Taetle and Mike Elliott, who joined the firm last year from Wakefield Group of Charlotte, where he was a managing director.
Elliott said the Noro-Moseley team remains confident in its ability to find good deals and manage its portfolio companies, despite the fact that the firm’s two most senior partners would be leaving.
“The core [Noro-Moseley] investment team going forward has been working together for eight years,” Elliott said. “And though new to the team as of last year, I have co-invested with NMP in 17 transactions over the last 20 years.”
The core investment team [that remains] has been working together for a while,” Elliott said.
Like many venture capital firms, Noro-Moseley will seek a smaller chunk of capital for its newest fund. The firm has set a $200 million target for its Noro-Moseley Partners VI, L.P. vehicle, much less than the $320 million it raised for its fifth vehicle in 2000.
The firm is expected to start marketing the fund before June. It has enough capital in its fifth fund to make four to six new investments, which should carry it through the end of 2006.
Noro-Moseley is mulling whether to hire a placement agent to help solicit commitments from international investors. Roughly one-quarter of the firm’s limited partners are based outside of the U.S.
The firm makes seed to growth-stage investments in technology, health care and business services companies based in the Southeast.
It announced in February that one of its portfolio companies, Miami-based information technology service firm Adjoined Consulting, was going to be acquired by global IT service company Kanbay International for $165 million in cash and stock.