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Francisco Partners seeking $3.25bn for latest fund

The target for the tech firm’s fifth fund is more than 50% larger than its predecessor.

The San Francisco-based firm is seeking to raise $3.25 billion for Francisco Fund V, with a hard-cap of $3.5 billion to $3.75 billion, according to a memo prepared by the Nebraska Investment Council, which plans to commit $50 million to the fund.

Francisco Fund IV had a target of $2 billion in capital from limited partners and closed on $2.88 billion in 2015, according to PEI data. Nebraska committed $20 million to the fourth fund.

Francisco Partners, which had $10.3 billion in assets under management as of 30 June, focuses on mid-market technology investments including value-oriented and growth opportunities.

The firm plans on making 15 to 25 investments out of Fund V in companies with enterprise values of $100 million-$500 million.

Terms for Fund V will be identical to Fund IV, according to the document from Nebraska, with a management fee of 1.5 percent of committed amount with a step down to 1.25 percent post investment period. It has a 20 percent carried interest and 8 percent preferred return.

The investment team counts 42 professionals, while the firm has a strategic relationship with venture capital firm Sequoia Capital, taking advantage of its deal flow and technical knowledge on the technology sector.

Fund III, which closed on $2 billion in 2009, had a net internal rate of return of 19.5 percent, according to Nebraska’s memo, although the date for this return rate was unclear.

Francisco Partners was not immediately available to comment.