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Venture Capital Fund Designed for RIAs Closes

Northern Virginia-based Militello Capital, which was founded by Bill Militello, a registered investment advisor (RIA) and graduate of the US Naval Academy in Annapolis, MD, recently announced the closing of its second venture capital fund.

Militello Venture Partners II (MVP II), which first filed with the SEC in 2012 as a $25 million offering, invests in early-stage technology companies. To date, MVP II has invested in 36 portfolio companies and made follow-on investments in a third of its portfolio.

Registered investment advisors (RIAs) supported the fund’s efforts on behalf of high net worth investors seeking access to private investment opportunities. MVP II’s investments include companies like Boston-based Fancred, a sports social network, Washington, D.C.–based Distil Networks, which provides web site owners protection from content theft and other spam activities, and New York -based, ExecOnline, a resource for executives seeking professional development.

Larger venture capital firms like Kleiner Perkins, Foundry, Bessemer Venture Partners, and Founder’s Fund have also participated in financing many of MVP II’s portfolio companies.

“We’re excited about closing the fund and the continued success of our portfolio companies,” said Bill Militello, CEO and Founder of Militello Capital. “Even more so we’re encouraged by the strong appetite from the RIA marketplace to create strategic partnerships with venture capital and private equity firms, so together alongside clients they can invest in companies that are developing new technologies and creating employment opportunities.”

According to a company announcement, revenues from the portfolio companies have grown 162 percent from Q4 2013 to Q4 2014 and aggregate job growth jumped 58% during the same period.

“For The RIA. From an RIA.”

Bill Militello, an RIA himself, launched Militello Capital with the RIA in mind. The company offers RIAs two direct investment strategies; income-producing commercial real estate and emerging technology venture capital.

Offering the strategies was not enough. Mr. Militello wanted to do it better. One way he aimed to differentiate was making it easy to access and understand information about the investments in each fund.

The company philosophy centers on extreme transparency and as such, investors and RIAs have open access to the underlying investments. Militello maintains a database that all investors and RIAs may access to review investments in property or companies.

“You always have comfort knowing what you are invested in and why you are invested,” according to the company website.