eTrade 2002 Annual Report Download - page 136

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Table of Contents
Index to Financial Statements
Fund I is managed by its General Partner, ArrowPath Ventures I, LLC (the “General Partner”). The Company’ s Former CEO and current Chief
Strategic Investment Officer (“CSIO”) are the managing members of the General Partner. The Company is a non-managing member of the
General Partner. The General Partner is allocated a 20% carried interest in the capital transaction gains and losses of Fund I, of which 40% is
allocated to the Company pursuant to its non-managing member interest.
In July 2001, the Company amended its agreement with the General Partner and assigned it’ s right to receive an annual management fee of
1.75% of the total committed capital of Fund I and transferred it’ s obligation to pay the ongoing expenses of the General Partner in managing
Fund I to ArrowPath Venture Management, LLC, an entity owned in it’ s entirety by the Former CEO and the CSIO.
ArrowPath Fund II — The Company made a $50.0 million capital commitment to the ArrowPath Fund II (“Fund II”) as of June 16, 2000, of
which $4.7 million was paid during fiscal 2002, $2.5 million was paid during fiscal 2001 and $1.0 million was paid during fiscal 2000. Fund II
has committed capital of approximately $207.3million, with all capital in excess of the Company’ s contributions being raised from third parties.
Fund II investsin early to mid-stage information technology companies. At December 31, 2002, the Company’ s outstanding capital funding
commitment to Fund II was $41.8 million.
Fund II is managed by its General Partner, ArrowPath Ventures II, LLC (the “General Partner II”). The Company’ s Former CEO and current
CSIO are the managing members of General Partner II. The Company is a non-managing member of General Partner II. General Partner II is
allocated a 25% carried interest in the capital transaction gains and losses of Fund II, of which 25.6% is allocated to the Company pursuant to
its non-managing member interest.
In July 2001, the Company amended its agreement with the General Partner II and assigned its right to receive an annual management fee of
1.75% of the total committed capital of Fund II and transferred its obligation to pay the ongoing expenses of the General Partner II in managing
Fund II to ArrowPath Venture Management, LLC, an entity owned in its entirety by the Former CEO and the CSIO.
The Funds have a December 31 fiscal year end. The following table presents summarized combined financial data for the Fund I and Fund II
(unaudited, in thousands):
Year Ended December 31,
2002 2001 2000
Statement of operations data:
Investment income $ 37 $ 361 $ 220
Unrealized loss on investments, net (2,752 ) (28,784 ) (66,049 )
Realized loss on investments, net (7,901 ) (20,854 ) —
Management fees (5,060 ) (5,353 ) (3,354 )
Other expense (111 ) (264 ) (157 )
Net loss $ (15,787 ) $ (54,894 ) $ (69,340 )
98
2003. EDGAR Online, Inc.