Knightsbridge Announces $500 Million Funds of Funds -- Knightsbridge Venture Capital VI.

BARTLESVILLE, Okla. -- Knightsbridge Advisers Incorporated, a leading early stage venture capital fund of funds firm for more than 22 years, announced today it has raised $500 million from global institutional investors. KVC VI will invest in top-tier early stage venture partnerships in the U.S. and in public emerging tech companies, many of which were venture-backed.

KVC VI offered investors two choices, Series VC (venture only) and Series VXM(TM) (Venture Exposure Management(TM)). Series VXM combines a 60% venture commitment with a 40% commitment to post-venture emerging tech. "We plan to continue to focus on the very best early stage venture funds, to exploit what we believe are the advantages provided by our post-venture-based VXM strategy, and to maintain our objective of capturing high cash to cash returns from successful venture-backed companies," said Joel Romines, Managing Principal of Knightsbridge.

"We are extremely pleased with the very strong investor interest in KVC VI," said Romines. "We believe our funds are right-sized for the opportunity, although maintaining our size discipline caused us to turn away substantial investor demand."

Knightsbridge's clients include a number of leading endowments, foundations, pension funds and insurance companies in the United States, Canada, Europe and Australia. For KVC VI, long-standing investors such as British Airways, The California Endowment and Shell are joined by institutional investors such as the Annie E. Casey Foundation, Nestle UK and Telstra.

The Knightsbridge team is comprised of seasoned investment experts who carefully track private and public emerging technology investments and evaluate opportunities in these highly inter-related sectors. "We have a great team of experienced professionals who have long-term relationships with first rate venture capitalists and the highly disciplined analytical skills that should help us make smart investments," said Judith Elsea, Managing Principal of Knightsbridge.

"At Knightsbridge, we are proud of the strong network of key venture relationships we've formed over the past 22 years," said Brad Hammond, Managing Principal of Knightsbridge. "We're constantly tracking the venture community, and over the years we have been fortunate to have formed relationships with some of the best venture capital firms before they became widely known. We invested early in a number of venture groups that are now very highly regarded and are virtually impossible to access."

Innovative Investment Strategies

Knightsbridge introduced Venture Exposure Management in 2002 as a complement to the firm's early stage venture partnership investing, and this feature was an option for investors in KVC VI. Beginning in 1989, the firm's integrated investment approach, combining venture and post-venture, set the stage for the development of VXM. Tim Bliamptis, Managing Principal of Knightsbridge, notes, "VXM directly addresses the inherent cyclicality of venture capital by investing in post-venture when venture exposure is low or building, and harvesting post-venture as venture exposure increases. VXM allows us to manage exposure to emerging tech to targeted levels."

"We believe Knightsbridge's strategy to pursue returns from successful emerging technology companies both in the venture sector and among the newly public companies Knightsbridge refers to as 'public venture' distinguishes us from traditional venture capital funds of funds and provides a unique option for investors," said Romines.

In parallel with KVC VI and included in the fund-raising total, Knightsbridge closed a $25 million tailored fund -- Knightsbridge Venture Completion 2005 -- for a leading institutional investor. This post-venture-based fund is designed as a venture completion overlay to complement the institution's investment in KVC VI. It incorporates both a strategy to manage exposure and to capitalize on selected public venture-backed companies using external specialist post-venture managers.

About Knightsbridge Advisers

Formed in 1983, Knightsbridge has a long-standing commitment to invest in leading U.S. early stage venture capital partnerships. As one of the oldest funds of funds and one of the first to focus on early stage, historically the highest return segment of venture capital, Knightsbridge's early stage venture relationships are among the strongest in the industry.