Local venture capital firm launches investment arm

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Indianapolis-based venture capital firm Heron Capital announced on Wednesday that it has formed Heron Capital Equity Partners, which seeks to acquire or invest in small to mid-size businesses in the Midwest.

The new investment arm is different from a traditional venture fund, in that it has no life cycle. It can hold an investment for two years or two decades, for instance, said Greg Maurer, Heron Capital managing director. Maurer is the son of IBJ Corp. co-owner Michael S. Maurer.

"We didn't want to be under pressure to invest or sell on a schedule," he said. "We have more flexibility on when we make investments and how long we hold them."

HCEP is supported by some of the larger investors in Herron Capital’s venture fund, who have committed enough money to capitalize HCEP’s first investment, Greg Maurer said.

Investments will range from $1 million to $10 million. Targets are private companies headquartered within 250 miles of Indianapolis that are in the IT, services, media, niche manufacturing, distribution, logistics or health care industries.

Founded in 2004 by Maurer and Kevin Etzkorn, Heron Capital is the city’s seventh-largest venture capital firm, according to the latest IBJ statistics. It has $25 million in capital under management.

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