FTV closes oversubscribed Fund V on $850m

The growth equity firm expects to begin deploying capital from FTV V after fully deploying FTV IV, which is 85% invested.

Growth equity firm FTV Capital has closed its fifth fund, FTV V, on its $850 million hard cap and ahead of its $700 million target, according to a statement.

The fund, which launched in June, was oversubscribed, and pushes FTV’s total capital raised to $2.7 billion, it said.

An FTV spokeswoman told PEI the fund held a first close on 30 June and the final close on 15 September.

According to FTV partner Karen Derr Gilbert, the fund includes new and returning limited partners such as public and private pensions, superannuation funds, insurance companies, family offices, and endowments. PEI data indicates Texas Municipal Retirement System and the New York City Retirement Systems are LPs in the fund.

Existing LPs make up 80 percent of the fund’s investor base, the firm’s spokeswoman said. She declined to disclose any GP commitment amount, adding that FTV V hasn’t made any investments yet, and the firm expects to finish deploying capital from predecessor FTV IV with “a few more investments this year” before beginning the deployment for FTV V. FTV IV is 85 percent deployed at this point, she said.

FTV V’s predecessor, FTV IV, closed on $714 million, ahead of its $500 million target, in March 2014, according to PEI data. An earlier fund, FTV III, was generating a 16.8 percent internal rate of return, as of 31 March 2015, according to the New York City Police Pension Fund. That fund closed on $512 million in April 2008.

San Francisco-based FTV targets companies with revenues of between $10 million and $100 million in the technology, financial services, and payments and transaction processing sectors. It has invested in 92 companies in these sectors since the firm was founded in 1998, according to the firm’s website.

There are currently 31 active investments in FTV’s portfolio, including marketing platform NewsCred, credit card payment processor Clearent, and corporate training services provider Intrepid Learning Solutions.

Earlier this year, FTV promoted Kyle Griswold to partner in March, and Brad Bernstein to managing partner in May.

The firm also has an office in New York.