Scoop: Pelion Venture Partners Plans First Fundraising Since Merging Two Firms

Pelion Venture Partners, the Salt Lake City, Utah-based VC that was created when investment firms UV Partners and Novell Venture Partners merged last year, will soon raise a new, fifth fund, according to sources.

As it joins other VCs heading out to a brighter fundraising market, Pelion has a big recent win to highlight when courting LPs. Pelion’s stake in Fusion-IO shares, which have appreciated substantially since the company went public last month, amounts to four percent. With the stock closing Tuesday at $33.05, this deal alone represents more than $100 million in value—providing a substantial profit to the firm.

The merged funds’ aggregate price tag was $122 million, which puts LPs in prime position for positive returns off the Fusion-IO investment alone. Pelion was not listed as a selling shareholder in the company’s S-1. (UV Partners was the investor that brought Fusion-IO into the firm, for those keeping score). Pelion owes its Fusion-IO success to a B round investment it made in the Utah-based data storage company after providing it with a term loan following the company’s A round.

That isn’t to say Pelion’s aggregate team consists of one hit only.

Pelion’s deals include investments in listed, North Carolina-based Red Hat Inc. and hearing aid developer Sonic Innovations. Existing investments include stakes in OpenLogic, the open source software and support provider; Gazillion Entertainment, the games developer, and mobile advertising company Mojiva.

PeHUB could not immediately determine Pelion’s LPs, or pinpoint return data. Most of its management consists of UV Partners who defected from Novell in the years leading up to the firms’ combination. It remains to be seen how much of Pelion’s portfolio will be dedicated to healthcare and medical investments.

Pelion did not provide comment for this story. According to a 2009 S.E.C. filing, UV Partners’ most recent fund was a vehicle for just over $61 million, its fourth. That fund accepted contributions beginning at $25,000.