AVI Capital, L.P.; Notice of Filing of an Application for a License To Operate as a Small Business Investment Company

SMALL BUSINESS ADMINISTRATION

[Application No. 99000143]

AVI Capital, L.P.; Notice of Filing of an Application for a

License To Operate as a Small Business Investment Company

Notice is hereby given of the filing of an application with the

Small Business Administration (SBA) pursuant to Sec. 107.102 of the

Regulations governing small business investment companies (13 CFR

107.102 (1994)) by AVI Capital, L.P. at One First Street, Suite 12, Los

Altos, California 94022, for a license to operate as a small business

investment company (SBIC) under the Small Business Investment Act of

1958, as amended, (15 U.S.C. et seq.), and the Rules and Regulations

promulgated thereunder. Its principal area of operation will be

Northern California's Silicon Valley (Santa Clara County) and selected

areas on the West Coast such as Southern California, Oregon and

Washington.

AVI Capital, L.P. will be managed by AVI Capital Management, L.P.,

General Partner, which consists of three experienced General Partners

with successful track records in Silicon Valley. The individual General

Partners are Peter Wolken, Barry Weinman, and Brian Grossi.

Additionally, AVI Capital Management, L.P. will be affiliated with four

Special Limited Partners who are Gene Flath, Jean-Louis Gassee, Ken

Levy, and Jack Loustaunou. Four of the General and Special Limited

Partners of AVI Capital Management, L.P. have been active with the

prior venture capital partnerships Associated Venture Investors, L.P.

(AVI) and Associated Venture Investors II, L.P. (AVI II) over the past

eleven years, providing significant continuity.

The following limited partners will own 10 percent or more of the

proposed SBIC:

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Percentage of

Name Relationship to ownership directly/

applicant indirectly

------------------------------------------------------------------------

AVI III L.P............ Limited Partner........ Directly owns 73.8% of

AVI Capital, L.P.

AVI I SVP.............. Limited Partner........ Directly owns 14.2% of

AVI Capital, L.P.

Motorola Corp.......... Passive Institutional Indirectly owns 15% of

L.P. of AVI III. AVI Capital, L.P.

3M Corp................ Passive Institutional Indirectly owns 22% of

L.P. of AVI III. AVI Capital, L.P.

Mutual of Omaha........ Passive Institutional Indirectly owns 15 of

L.P. of AVI III. AVI Capital, L.P.

Sitra--Helsinki, Passive Institutional Indirectly owns 15% of

Finland. L.P. of AVI III. AVI Capital, L.P.

------------------------------------------------------------------------

The Applicant will raise private capital from institutional sources

comprising Associated Ventures III L.P. (AVI III) and AVI Partners

Growth Fund II, L.P. (AVI PGF II), and individual sources comprising

AVI Silcon Valley Partners, L.P. (AVI SVP). Although less than ten

percent, AVI PGF II will be a limited partner and directly own 7.5% of

Applicant.

There are four limited partners of the Limited Partner Partnerships

which are expected to indirectly own ten percent or more of the capital

of Applicant. Such investors, which are each a Limited Partner of AVI

III are: Motorola Corporation, 3M Corporation, Mutual of Omaha

Insurance Company, and Sitra. These organizations are all passive

investors of the partnership, and directly or indirectly have no

control of the management nor of the decision-making of the Fund. In

addition, none of such organizations owns 33% of the capital committed

to Applicant.

The Applicant will began operations with private capital of $13.37

million and plans to make investments principally in California's

Silicon Valley in Information Technology start-up companies; e.g.

software, enabling hardware, publishing and electronic distribution,

mobile computing, and multimedia. The Applicant will also consider

extraordinary investments in selected areas on the West Coast (such as

Southern California, Oregon, or Washington). The Applicant plans to

invest in approximately 20 companies over a period of five years with

an average total investment of $2 million per company. The Applicant

plans to target companies which need funds to develop or complete

development of a product or service, increase production, recruit

personnel and execute its sales and marketing strategy.

Matters involved in SBA's consideration of the application include

the general business reputation and character of the proposed owners

and management, and the probability of successful operations of the new

company under their management, including profitability and financial

soundness in accordance with the Act and Regulations.

Notice is hereby given that any person may, not later than 15 days

from the date of publication of this Notice, submit written comments on

the proposed SBIC to the Associate Administrator for Investment, Small

Business Administration, 409 3rd Street SW., Washington, DC 20416.

A copy of this Notice will be published in a newspaper of general

circulation in Los Altos, California.

(Catalog of Federal Domestic Assistance Programs No. 59.011, Small

Business Investment Companies).

Dated: September 9, 1994.

Robert D. Stillman,

Associate Administrator for Investment.

[FR Doc. 94-22764 Filed 9-14-94; 8:45 am]

BILLING CODE 8025-01-M