Facebook Investors DST, Elevation Each Want $1 Billion

By David Cohen Comment

What do Digital Sky Technologies and Elevation Partners have in common, besides being investors in Facebook? Each is seeking to raise $1 billion.

Russian investment firm DST is dangling stakes in Facebook to potential investors in the hopes of raising $1 billion for a new late-stage technology fund.

DST has committed $50 million worth of stock in the social network to the fund. Bloomberg obtained an investor presentation stating that early investors are being offered stakes in Facebook at a 12 percent discount, as well as 25 percent off the management fee of the DST fund.

And Elevation, a private-equity firm that counts Bono and Roger McNamee among its founders, is seeking to raise money for the first time in seven years, having last brought in $1.8 billion for a fund in 2005, according to Bloomberg.

Besides Facebook, DST has also invested in Twitter, Zynga, and LinkedIn, while Yelp counts Elevation among its investors.

Both private equity companies are looking to attract investors based on having picked Facebook early on.

Only time will tell whether the two hedge funds will be able to pick the next big growth companies.