Stratim Capital Seeks $150M Fund III

Stratim Capital is out marketing for its third fund, which has a $150 million target, two sources say.

Marketing for Fund III started six weeks ago and the pool has received expressions of interest worth roughly $50 million, one source says. Stratim is targeting endowments, strategic fund-of-funds and some state funds for the pool, a second person says. “The response has been overwhelming,” the first source says.

Atlas Placement Advisors is the placement agent for the fund, persons say.

San Francisco-based Stratim provides liquidity for investors by buying shares of VC and PE-backed companies. Several Stratim executives, including founder Zachary Abrams, hail from Lake Street Capital, which is also a San Francisco-based direct secondary firm. Other competitors in the space includes the much bigger Saints Capital or W Capital Partners.

Direct secondary deals have gained acceptance recently. Roughly five years ago, Stratim had to explain the secondary market to investors and why shareholders of companies would want to sell their stakes. “It was considered disloyal [to sell],” the source says.

The success of Facebook and Zynga changed that. Many Facebook and Zynga shareholders were able to offload their stock– before either company went public—using SecondMarket or SharesPost. “Facebook put selling on the map,” the person says.

Stratim invests in sectors such as technology, financial services and business services. Stratim has invested in 3PAR, VeriCenter and Double-Take Software. Current investments include Linden Lab, Cafe Press and

Stratim’s second fund collected less than $100 million in 2010, the second source says.

Officials for Stratim declined comment.

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