Boston-based private equity firm Great Hill Partners has closed its fourth fund on target at $1.1 billion, with commitments from more than 10 new investors.
Fund IV closed just shy of its $1.25 billion hard cap, according to Reuters, at nearly double the value of its predecessor, Great Hill Partners III, which closed on $750 million in 2006.
New limited partners include Metropolitan Life Insurance Company, the National Football League, Lumina Foundation as well as seven American universities. Returning investors include JPMorgan Investment Management and the Virginia Retirement System. The firm did not use placement agents.
“We are pleased to have raised a significant pool of capital in what is likely to be an attractive entry point in the economic cycle,” managing partner Mark Vettel said in a statement.
The firm said it had recently completed the investment phase for Fund III and posted aggregate portfolio revenue growth of 10 percent and pre-tax profit growth of 12 percent for last year. It attributes its “solid performance” to only making two investments in 2008: In June it took private payment processing firm CAM Commerce for around $180 million; and in July it co-led the $232 million recapitalisation of Passport Health Communications, a provider of revenue cycle management services to healthcare providers, with Spectrum Equity Investors.
Great Hill has a strategy of investing in “growth” companies with low leverage across numerous sectors with enterprise values of between $100 million and $500 million, primarily in the US but also in Europe and South America. The fund close brings its capital under management to $2.7 billion.