Peter Thiel and Ajay Royan Launch $1B Venture Growth Fund Mithril Capital Management: UPDATED

Venture capitalist and hedge fund investor Peter Thiel announced Tuesday  that he has co-founded a growth stage venture fund named Mithril Capital Management with longtime business associate Ajay Royan.

Update 1: The fund has a target of $1 billion and has raised $402 million to date, according to an SEC filing.

Update 2: A spokesperson for Mithril declined to comment on the regulatory filing, citing SEC restrictions. But a person familiar with the fundraising said the $402 million represents a first close and that the  filing is “correct.” In other words, Thiel and Royan aim to raise another $598 million for the fund.

Royan is the San Francisco-based fund’s managing general partner and a member of its investment committee, while Thiel is chairman of Mithril’s investment committee, according to a press release. Rounding out the team is Partner Jim O’Neill, a former managing director of Clarium Capital Management, a hedge fund headed by  Thiel. Mithril’s “long-term approach, global focus and emphasis on technology-driven growth potential complements the strategies of Thiel’s venture capital group Founders Fund and global macro fund Clarium,” the press release states.

Image credit: Photo of Peter Thiel by David Orban, Wikipedia Commons


Mithril Capital Management Launches Growth-Stage Technology Investment Firm
Peter Thiel, Co-founder, Chairs Investment Committee

SAN FRANCISCO, Jun 20, 2012 (BUSINESS WIRE) — Peter Thiel today announced that Mithril Capital Management (Mithril), a new global tech venture firm based in San Francisco, will begin seeking bold technology entrepreneurs and sponsor the growth of their businesses.

Mithril focuses primarily on growth equity opportunities across the global technology sector, investing in companies that have moved beyond the traditional venture-backed stage and prefer to remain private as they mature.

“Technology holds solutions to most of the world’s most pressing challenges, from resource scarcity to disease. Solving an intractable problem may require a decade of work, but a lifetime of vision,” said Peter Thiel, Mithril’s co-founder and chairman of the investment committee. “Mithril will play a patient, focused, and pivotal role in helping the world’s most outstanding creative minds and build lasting companies that change the world.”

Ajay Royan, co-founder and managing general partner, serves on the investment committee and leads the Mithril team. He developed broad experience and insight by collaborating with Thiel on finance and technology projects since 2003, including as managing director at Clarium.

“Many great inventions are driven by a spirit of dissent and curiosity,” said Royan. “That spirit defines and pervades Silicon Valley, but it can be found everywhere in the world. Just as SAS Institute inaugurated modern business intelligence software, FANUC scaled industrial robotics, and ARM redefined efficient mobile computing, Mithril companies, if we’re right, will foment changes that will seem inevitable after they happen.”

Mithril will offer its portfolio companies access to guidance and collaborative opportunities from the Thiel network of fellow tech industry trailblazers. The firm’s long-term approach, global focus and emphasis on technology-driven growth potential complements the strategies of Thiel’s venture capital group Founders Fund and global macro fund Clarium.

Jim O’Neill, the former principal associate deputy secretary of health and human services, former managing director of Clarium, and co-founder of the 20 under 20 Thiel Fellowship, will also be a partner in Mithril.

“Peter’s tech vision has inspired countless entrepreneurs and built a network that grows broader, deeper and more global with every passing year,” said O’Neill. “Peter and Ajay have the vision to back great companies and the patience to help them scale and define industries.”

About Mithril Capital Management

Mithril Capital Management is a private venture investment firm focused on growth equity opportunities across the technology sector. Mithril’s investment committee is chaired by co-founder and investor, Peter Thiel, the entrepreneur and philanthropist. Mithril’s team is led by co-founder and long-time Thiel colleague Ajay Royan. The firm prioritizes long-term relationships with companies holding the greatest potential over those with odds for a quick exit. This design offers portfolio companies a sustained investment partner across their growth life cycle.

SOURCE: Mithril Capital Management

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Copyright Business Wire 2012

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