Insight Venture Partners has held a final close for its Fund VIII on about $2.57 billion after roughly three months in market.
Fund VIII reached its $2.4 billion target before receiving additional commitments from a group of smaller investors that brought the fund to its $2.57 billion hard-cap, Insight co-founder and managing director Jeff Horing told Private Equity International. Existing investors provided about 85 percent of the capital in the fund. The firm hired David Choi of Sparring Partners Capital to assist with the fundraising process, according to documents filed with the US Securities and Exchange Commission.
“We’ve benefitted from having strong support from our existing investors which I would presume is somewhat tied to our returns historically,” Horing said. “In terms of new investors, I do think that the category that we’re targeting – growth – has been a pretty attractive category overall and has delivered some of the better performing funds over the last bunch of years.”
Insight Venture Partners has yet to deploy any capital from Fund VIII, which will invest using the same strategy as the firm’s Fund VII, backing expansion stage and mid-market companies in the software, technology, and internet services sectors. Fund VII closed on $1.57 billion in 2011 and is fully invested.
Insight will invest up to 40 percent of Fund VIII outside of the US. The firm has historically invested largely in Europe and South America. Fund VIII will make between 30 and 40 investments, Horing said.
New York-based Insight has remained an active investor during 2013, investing alongside Bain Capital and Golden Gate Capital in BMC Software earlier this month and backing mobile device security company AirWatch in February. Both investments came from the firm’s Fund VII.
Insight Venture Partners has raised more than $7.6 billion since its founding in 1995 and has made more than 190 investments in the software, ecommerce and internet and data-service industries.