Elevation Partners needs a capital lift? | webOS Nation

Elevation Partners needs a capital lift?

by Derek Kessler Sat, 19 Dec 2009 10:59 am EST

Elevation Partners

If it weren’t for guys named Bono and McNamee, we wouldn’t even have Palm or webOS today. The guys at Elevation Partners have invested $460 million into Palm, and that investment would net them only $40 million were they to sell today. A 9% gain isn’t the kind of thing that attracts new investors, and the folks at Fortune believe that Elevation is on the prowl for more money - no company wants to sustain, they want to grow, even investment firms.

With 70% of Elevation’s initial fund already invested and little demonstrable success to show for it, they’ll have their work cut out for them should they seek more money. Then again, they’ve got Bono and Roger McNamee. Those two, along with the rest of Elevation Partners’ board, are clearly in Palm for the long term. Like we said, selling today would net $40 million in profit, but just two and half months ago they could have turned that investment into $330 million in profit. That 75% gain would have been more to investors’ liking, especially given that Palm is expected to continue burning through cash at a steady clip as they expand Pre and Pixi distribution onto new carriers in 2010.

[via: Palm InfoCenter]