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Scale Venture Partners yesterday said it has completed diversification of its limited partner base, with Bank of America Corp. exiting entirely from the current fund.

Earlier plans called for the bank, formerly the firm's only LP, to maintain about a 25% stake in the $400 million fund, now called Scale Venture Partners II LP. Bank of America remains the only limited partner in the firm's $500 million prior fund. The bank is restructuring its private equity activities.

"What we're looking for are long-term primary LPs who want to stay in the business for the long run," said Scale Managing Director Kate Mitchell. She said there was enough limited-partner interest to make a complete transition now rather than with a subsequent fund.

Scale, which is based in Foster City, Calif., announced in January that it had changed its name from BA Venture Partners.

Besides the LPs disclosed by VentureWire yesterday -- Pantheon Ventures Ltd., Paul Capital Partners and Lexington Partners - the new investors include Credit Suisse Group, Key Capital Corp., Liberty Mutual Insurance Group, Macquarie Global Private Equity Fund, Montagu Newhall Associates Inc. and Storebrand ASA.

The fund now has 12 LPs, Scale said. It is about half committed and the firm probably will be in the market for a new fund in mid to late 2008, according to Mitchell.

The incoming LPs bought not only stakes in existing Scale II portfolio, but also agreed to finance its future investments. Bank of America did not hold a stake in the general partnership, Mitchell said.

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