When mention of a new venture capital investment opportunity popped up recently on Silicon Valley discussion boards, the brief buzz contained a definite note of amusement. After all, it's not every venture capital firm whose Web site features lingerie-clad models tugging on each others' G-strings, and animated narration delivered by cartoon minxes in push-up bras and dog collars.

The Web site is the public face of AdultVest, an "online marketplace" created to offer investment opportunities in the adult entertainment industry, which, according to figures frequently cited by company principal Francis Koenig, is worth $57 billion a year globally. "Around here we like to say it's the world's oldest bull market," he says.

Koenig, who describes himself as a former hedge fund executive (his partner is an unnamed Los Angeles attorney with "a large book of adult-related clients") is skimpy with details about AdultVest's overall strategy. "I don't really want to reveal our business model at this point," he tells Institutional Investor.

He does, however, assert that AdultVest is developing two venture capital funds. So far, Koenig says, the company's Web site has attracted inquiries from about 300 potential institutional investors and twice as many private individuals. AdultVest had planned to close its Bacchus Fund (minimum investment $1 million, total capitalization $100 million) and Priapus Fund ($100,000 and $10 million, respectively) by the end of June, but Koenig says the funds might close three months earlier because of strong interest. The annual management fee for each fund will be 2 percent.

The funds will invest side by side, Koenig says, and focus on opportunities in four major areas of the adult industry: content (such as films and Web sites), distribution, technology and "real property with proven cash flow." Specifically? "The development, franchising and acquisition of strip clubs."