Francisco Partners has closed its third fund focused exclusively on information technology investments on its $2 billion hard cap.
FP III will target mid-market technology companies, investing in buyouts, growth equity, recapitalisations, restructurings and divisional divestitures. The firm will pursue opportunities in the US and abroad, including stand-alone investments and add-on acquisitions. Fund III was placed by Lazard Freres.
“Information technology remains one of the most dynamic, important and rapidly growing sectors of the global economy,” Francisco Partners co-founder and managing partner Dipanjan Deb said in a statement.
A Francisco Partners spokesperson was not available for comment at press time. San Francisco-based law firm Cooley acted as legal advisor to the firm.
Limited partners in FP III include The School Employees’ Retirement System of Ohio, which committed $40 million to the fund in January 2010. As of 31 May 2010, Francisco Partners II had generated a 10.19 percent IRR, according to documents from the University of Texas Investment Management Company, which committed $33 million to Fund II.
Francisco Partners targets investments in technology companies with transaction values ranging between $25 million to more than $500 million. The firm has raised approximately $7 billion since its founding in 1999 and has an office in London in addition to its San Francisco headquarters.