OSLO -- StatoilHydro has assigned the management of its technology corporate venture activities to a special purpose company, Energy Capital Management AS. The new management company will be led by Arne Frøiland, former VP of StatoilHydro Corporate Venture.
The company will be owned by management and StatoilHydro. The existing portfolio, Fund I, will be fully owned by StatoilHydro and led by the management company. New investments into the energy sector will be made from the new Fund II which is to be established by inviting a limited number of key investors, the company says.
The new management company will immediately start the process of bringing in investors, establishing a fund for future investments (Fund II), aiming for a StatoilHydro ownership of some 25% to 40%, the company says.
"The target size of the new fund will be between NOK 0.5 to 1.0 billion ($75 to $150 million)," says Frøiland. "We will invite a few high-quality investors to participate. The management agreement for this fund would be on standard venture industry terms."
The company says it will continue its in-house focus on industrial development through the LOOP program and other direct strategic technology investments.
"The new management company will benefit from the StatoilHydro relationship through opportunities for both pilot projects and increased deal flow," says Frøyland. "The management company will also be a preferred partner to StatoilHydro for venture fund investments."