FTVentures raises $512m for Fund III

Liberty Mutual, Skandia Insurance, Barclays, the New York State Common Retirement Fund and Kamehameha Schools are among the firm’s new limited partners.

FTVentures has closed its third growth capital fund on $512 million (€324 million), a 21 percent increase over its previous fund, which closed on $423 million in September 2001.

Fund III began its official marketing period in March 2006, and was placed by Sparring Partners Capital in North America and Triago Partners in Europe and the Middle East, each of which had limited mandates, said Karen Derr Gilbert, marketing director.

The fund’s limited partner base is heavily populated by financical services-related firms; 50-some such LPs are named as investors including AIG, Lloyds TSB, Nomura, Deutsche Bank, BNP Paribas, CIBC, Credit Suisse, Sallie Mae, Fidelity National Financial and Wachovia.

New “traditional limited partners” include New York City Retirement Systems, the New York State Common Retirement Fund and Kamehameha Schools, FTVentures said.

“The addition of traditional investors and new strategic investors to our existing investor network will allow us to continue to deploy our proven model with more diversified sources of capital,” Richard Garman, FTVentures managing partner, said in a statement.

Fund III continues the firm’s strategy of investing between $10 million and $60 million in growth capital in software and business services companies.

The firm recently led a $12 million Series B funding round with Charles River Ventures and Pequot Capital in governance services company Aveska.

Founded in 1998 and formerly known as Financial Technology Ventures, FTVentures manages more than $1 billion and has offices in San Francisco and New York.