Intel Capital Restructuring, Won't Sell Portfolio
27 May 2016 - 3:10AM
Dow Jones News
Intel Capital is restructuring its investment team, but the firm
has decided not to sell part of its venture-capital portfolio.
In a blog post Thursday, Intel Capital President Wendell Brooks
said the group has completed a review of its portfolio and "despite
what you may have read or heard, we are not planning any major
changes to Intel Capital's portfolio. While, like all investors,
we'll continue to actively manage our investments, I intend to keep
and support the portfolio I inherited. We aim to build upon our
strong track record and generate successful outcomes for our
portfolio companies."
But Intel Capital, the venture capital arm of Silicon Valley
chip maker Intel Corp., is restructuring to streamline its
investment process and give startups wider exposure to Intel's
business units, and departures are expected, Mr. Brooks said.
"Some team members will be shifting roles and a few may leave,"
he wrote. "While I hate to lose good people, some turnover and
promotions for exceptional talent will be good for the
organization. One thing that won't change is our relentless search
for new technologies and market opportunities."
The movement has started. Former Intel Capital Vice President
Lisa Lambert said Wednesday she is joining Silicon Valley venture
firm Westly Group as a managing partner. She was managing director
of Intel Capital's Software and Services Fund and the Intel Capital
Diversity Fund. The Diversity Fund continues, and Intel has
combined its Software and Services Fund with its security group,
putting Managing Director Ken Elefant in charge of both.
Ms. Lambert said her departure has nothing to do with the
changes at Intel. She wanted experience at a private venture firm,
she said, and Westly Group approached her several months ago. "I
wouldn't have traded my experience at Intel for anything," she
said.
Intel was working with UBS Group AG and considering selling a
part of its portfolio in a sale that could have been valued at $1
billion in order to focus on areas most strategic to Intel. Since
April the company has been undergoing a companywide restructuring
and is in the process of cutting 12,000 jobs to focus more on the
cloud.
Mr. Brooks said that after evaluating Intel Capital's portfolio,
"I am happy to report I inherited a terrific portfolio. The
portfolio as a whole represents a broad-based and solid set of
investments across many strategic and nonstrategic sectors to
Intel. This review has demonstrated to me the tremendous job the
Intel Capital team has done in sourcing and supporting investments
across technology sectors."
Intel Capital is one of the largest corporate investment arms in
the world. Since 1991, Intel Capital has invested about $11.7
billion in 1,445 companies in 57 countries, the company said.
Intel Capital declined to answer questions on Mr. Brooks'
post.
Patience Haggin contributed to this article.
Write to Deborah Gage at Deborah.Gage@dowjones.com
(END) Dow Jones Newswires
May 26, 2016 12:55 ET (16:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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