Intel Corp. (NASDAQ: INTC) venture capital arm, Intel Capital, is said to have engaged UBS Group AG (NYSE: UBS) to explore the sale of nearly a quarter of its portfolio companies, in a deal valued at $1 billion.
Private equity firms Coller Capital, HarbourVest Partners and Lexington Partners, which are known to acquire equity stakes through secondary direct deals, have reportedly expressed an interest in bidding for Intel Capital’s assets.
“As part of my review of the Intel Capital business, I have commissioned a review of our portfolio,” said Intel Capital president, Wendell Brooks, in a memo sent to its portfolio companies, according to Fortune.
“There are investments in our portfolio that are representative of a different investment focus. Provided that we could find a better home for such investments, we would contemplate a sale,” he stated.
Since 1991, Intel Capital has invested more than $11 billion in 1,440 companies in 57 countries.
“Intel Capital plans to continue investing at its historical rate, $300 million to $500 million per year,” added Brooks. “We will look to lead investments in those areas where we can add value to our portfolio companies and create value and learning opportunities for Intel.”
Intel Capital’s strategic review and divestment plans with the appointment of UBS to handle the process, were set in motion earlier this year, according to Bloomberg.