Sorenson Capital joins Salt Lake-based Peterson Partners, another growth and buyout fund, which was a first-round investor in JetBlue Airways. In March, Peterson Partners closed on a third fund at $105 million, bringing the firm's money under management to $255 million.

What's remarkable, said Brad Bertoch, president and chief executive officer of the Wayne Brown Institute, a Salt Lake-based company that promotes entrepreneurship, is the growth of Utah's venture funds, which he said have grown from just a couple funds in 2000 valued at $75 million to 14 funds today at more than $1 billion under management.

"When Salt Lake City becomes a hub for venture capital, that draws here more venture capital and talent," Bertoch said. "I can tell you for a fact that the Sorenson fund could be anywhere. They don't have to be in Utah. If it's not a profitable venture to be in Utah they wouldn't be in Utah."

Bertoch anticipates Sorenson Capital's investments in Utah companies will make them better run so they can compete, before going public or being acquired.

Buyout funds posted strong returns in 2003, averaging a one-year return of 24.1 percent in 2003, according to the National Venture Capital Association and Thomson Venture Economics.

Bullock anticipates similar returns of about 25 percent.

"What we try to look for is good partnerships with people," Bullock said. "We'll be very fair and competitive on prices that we pay for businesses. We're not just looking at it from a financial buyer's perspective."

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E-mail: danderton@desnews.com