Venture capital fund bringing more money to Nashville

Mundie says Delta's $50 million fund will create more portfolio companies closer to Nashville

Email | Print By Milt Capps

Don Mundie

Delta Capital Management LLC Co-founder Don Mundie told NashvillePost.com yesterday he plans to join the ranks of Nashville-based venture capitalists, by relocating here from the Memphis area, in order to travel more easily to oversee companies in which Delta has invested.

Fourteen-year-old Delta manages more than $90 million in invested capital for institutional and individual investors. One of Delta's most significant portfolio companies is Franklin-based EcoSmart Technologies, Inc., which has attracted $35 million in capital, Mundie said.

Mundie said he already has portfolio-company board duties in the Nashville-Chattanooga-Atlanta corridor, and expects increased involvement in the region's companies, after he becomes a venture partner in Delta's third capital fund, which Mundie expects to close in the first quarter of 2007.

Mundie said that fund has a $50 million target and may invest in 14 or more companies. Targeted sectors are likely to include healthcare services, information technology services and software, telecommunications and logistics.

Mundie will relocate to Nashville soon after the fund closes. Whether Delta establishes a bricks-and-mortar presence will be driven partly by portfolio activity and availability of space within local portfolio companies. The company will remain headquartered in the Memphis area.

Delta has roughly two dozen portfolio companies, spread out among Arkansas, Georgia, Alabama, Kentucky, Texas and Tennessee.

Prior to Delta, Mundie served in the investment banking group of Union Planters National Bank, and was a consultant with Ernst & Whinney in Memphis.