Nordic Bloom, through its status as an authorised manager of alternative investments, offers parallel funds with no additional layer of costs for the same investment amount, in exclusive cooperation with Knightsbridge Advisers, an SEC registered investment advisor, participation in US Secondaries Fund III A/S.
Through its reputation and network, Knightsbridge has more than 40 years of access to source investment opportunities among the most attractive venture capital firms in the US.
Knightsbridge handpicks Secondaries investments from a shortlist of 150-250 venture-backed companies that Knightsbridge has invested in and monitored through its previous Primaries funds and which Knightsbridge, based on its knowledge, considers attractive for further investment. The investments are made both through the direct purchase of shares in the company in question and by acquiring portfolios from - or shares in - previously established venture funds. Risk is mitigated to a significant extent by i) prior knowledge of the companies, ii) that the companies are at a later stage of development (secondaries), and iii) that by investing in a total of 150 companies or more, a significant diversification and thus levelling of the portfolio is ensured. The fact that the companies are at a later stage of development also means that, all other things being equal, there is lower risk associated with this than a pure start-up investment, and that there is a shorter time to exit the investments and thus liquidate the Fund than in a "Primaries" fund. The result is therefore expected to be a shorter maturity/liquidity commitment, but also a lower total return, albeit still attractive, than in a "Primaries" fund.