Global buyout firm CVC Capital partners has reached final close on CVC Growth Partners, its first tech growth fund. The fund will invest in high growth mid-market companies in the software and technology-enabled business services sectors, CVC said.
The vehicle started collecting capital in the first half of 2015 and raised a total of $1 billion, exceeding its $750 million target. The balance includes a co-investment side-car of commitments from fund investors, it is understood.
CVC Growth Partners is understood to have a similar investor profile to CVC’s existing LP-base.
Investors in CVC’s European Equity Partners VI Fund, a 2013-vintage vehicle that raised €10.9 billion, include Sweden’s AP Fonden 2, the California Public Employees’ Retirement System, the Canada Pension Plan Investment Board, Boston-based HarbourVest and Swiss-based Partners Group, according to PEI Research & Analytics.
The growth fund will pursue opportunities in primarily North American and Europe in segments including software, software as a service (SaaS), managed services, cloud computing, mobility, payments, security, financial technology, healthcare information technology and other tech-enabled business services, CVC said.
It will target equity investments of $50 million to $200 million and has already invested in Wireless Logic, a UK-based connectivity and managed services provider, and Kount, an e-commerce and mobile fraud detection service based in Idaho.
In January, the firm completed its fourth investment in Indonesia – made through its CVC Asia Pacific Fund, a 2013-vintage vehicle that closed on $3.5 billion – by acquiring consumer goods company PT Softex Indonesia, as reported by Private Equity International.
In the same month, former New York-based investor relations manager Lisa Lee launched a law suit against the firm alleging systemic gender discrimination. A CVC spokesperson told PEI’s sister title pfm that Lee’s claims were “without merit” and that the firm would defend its position “vigorously”.
CVC also hired Thomas Kichler as a partner and its first head of industrials and energy based in Chicago, as reported by PEI.