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.

To access more Francisco Partners insights, analysis and data, click here