CVC closes first tech growth fund

The global buyout firm has closed CVC Growth Partners on $1 billion, with three deals already under its belt.

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.