Venture capital fund family focused on seed and Series A investments
Industries
Force 10 Partners served as financial advisor in a sub-advisor capacity to the named fiduciaries of this venture fund family, which had been severely impacted by sponsor misappropriations.
In late 2018, Force 10 Partners was retained as the administrator and acting sub-advisor of a group of venture capital funds formerly led by San Francisco-based fund advisor Michael Rothenberg. This followed a federal district court’s order requiring Rothenberg to pay over $31 million in disgorgement, prejudgment interest, and penalties related to the misappropriation of investor funds.
Force 10 began by conducting a comprehensive forensic analysis to untangle severely deficient accounting records, reconstruct limited partner (LP) equity positions, and verify portfolio data. This foundational work allowed us to establish proper fund management practices and focus on preserving and growing asset values.
At the time Force 10 assumed administration, the funds held over 100 venture-level investments, including notable companies such as Robinhood, SpaceX, Patreon, Vicarious Surgical, and Andela. Our responsibilities included managing complex portfolio company matters, evaluating the impact of capital transactions on fund equity, and determining the best courses of action for the funds.
Additionally, we investigated and addressed prior misappropriation issues, managed ongoing litigation, and provided accurate, transparent fund accounting and reporting.
Through disciplined portfolio management, strategic decision-making, and proactive engagement with portfolio companies, the funds delivered significant investment gains.
These efforts culminated in meaningful capital distributions to LPs, fully restoring the funds’ operational stability and accountability.
