Dan Primack

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Exclusive: DST plans to raise giant venture capital fund

December 7, 2010: 10:37 AM ET

There is no bigger name in venture capital right now than Digital Sky Technologies, the Russian Internet conglomerate run by Yuri Milner. It is one of the largest outside shareholders in Facebook, and also holds big pieces of companies like Zynga (both of which it bought at massive, late-stage valuations).

There also are reports that it just lost out on a big new round for Twitter.

The group so far has been bankrolled by a few global investors – including Goldman Sachs and Tiger Global Management – plus a Russian oligarch. Now I'm told that DST is looking to broaden its capital base, with plans to raise approximately $1 billion for a new fund from "traditional" limited partners like pension funds and endowments.

No books are out yet, but multiple sources tell me that a road show is expected to begin within weeks. It's being managed by a guy named Andy Brown out of Goldman Sachs' San Francisco office. The investment strategy apparently is to continue buying up shares in relatively-mature Internet startups, but ones with slightly lesser public profiles (the "next layer," as one prospective investor put it).

Attempts to reach Milner and Brown were unsuccessful.

[UPDATE: The original version of this post called DST the largest outside investor in Facebook. That was incorrect. Accel Partners retains that distinction.]

See also:

Facebook's friend in Russia

Who is Alisher Usmanov?

Posted in:
Join the Conversation
About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

Email a Tip | @danprimack | RSS
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by WordPress.com VIP.