Financial advisor and fund manager to venture fund family that fell victim to sponsor misappropriations.
Force 10 was retained in late 2017 as the administrator of a group of venture capital funds once sponsored by San Francisco-based fund advisor Michael Rothenberg after a federal district court ordered Rothenberg to pay more than $31 million in disgorgement, prejudgment interest, and penalties in connection with the misappropriation of investor money. Force 10 performed an initial forensic analysis of the misappropriations to unravel the extremely deficient accounting data, LP equity amounts, and portfolio information. We used this information to establish proper fund management and to preserve and grow asset values.
At the time, when Force 10 took over the administration of the funds, they held over 100 venture-level investments, including Robinhood, Space-X, Patreon, Vicarious Surgical, and Andela. Force 10 manages portfolio company matters including determining the impact of portfolio company capital transactions on the funds and deciding among the potential options for how the funds should respond. Force 10 also investigated and addressed past misappropriation issues and helps manage ongoing litigation on behalf of the funds. Force 10 performs fund accounting and reporting. The Rothenberg funds are now fully-functional, achieving investment gains and making capital distributions to LPs.
