The California office of Sevin Rosen is splitting off from the Texas office, according to a report published in Private Equity Insider.
The move comes after the firm announced a halt to fundraising for a $300 million tenth fund in October 2006.
There is no word yet on what the California partners will do.
We split the firm’s performance down by partner when it first announced its plans to hold off on Fund X. The results were surprising. The California group significantly underperformed the Texas team.
That disparity has been mitigated thanks to XenSource, which sold to Citrix this year for $500 million.
Some people close to the firm told PE Week that there was discord between the firm’s Dallas and Palo Alto, Calif. offices back in March.
The data seem to bear out that something has shifted inside the firm. An investing disparity between the SRF’s California and Texas offices became obvious after the October 2006 announcement. The firm’s Palo Alto, Calif.-based office did not invest for the first seven months after the announcement, which the Texas offices backed three new startups.
Historically, the firm has invested about 44% of its funds in California-based companies and 33% of its funds in Texas-based companies.