Intel Mulls Sale of $1 Billion Venture Capital Portfolio

Industry:    2016-03-14

Intel Corp., one of the world’s largest makers of computer components, is planning to sell part of its venture capital unit, assets that could be worth as much as $1 billion, said people familiar with the matter. The Santa Clara, California-based company is working with UBS Group AG to look for potential buyers for the assets, said the people, who asked not to be identified because the information is private. The portfolio, which is made up of companies across the world, is housed within Intel’s corporate venture unit, Intel Capital, the people said. Intel restructured its venture capital unit in January with President Arvind Sodhani’s retirement after 35 years with the company. He was replaced by head of mergers and acquisitions Wendell Brooks. The combination of the teams was designed to unify investment decisions across the firm, Intel said in a statement. Discussions over the structure of the sale are at an early stage, with Intel open to selling the assets as a whole or divided by geography or sector focus, the people said. The sale is expected to attract private equity houses that specialize in buying portfolios, known as secondaries firms. Since its start in 1991, Intel Capital has invested about $11.6 billion in more than 1,440 companies in 57 countries across a range of sectors including security, wearable technology and digital media, according to the company’s website. Last year, the unit invested $514 million in 143 companies, split almost evenly between new ventures and follow-on investments. A spokeswoman for UBS declined to comment. Intel Capital’s Brooks declined to comment.

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