IVP raises $1bn in five months

Institutional Venture Partners has closed the largest fund in its 32 year history on $1bn, attracting substantial interest from existing limited partners.

Institutional Venture Partners has closed its 14th fund on $1 billion, the firm’s largest vehicle to date, after less than six months on the market. 

The firm launched the fund at its annual investors meeting in February, marketing director Gina Bauman told Private Equity International. 

“We announced it to our existing LPs in February and here we are now in June,” she said. “They appreciate the work we have done, and the relationship we have with them, and they were quick to respond.”

The oversubscribed fund was largely backed by existing limited partners, though new investors were also involved in the fundraise. Fund XIV LPs include the Los Angeles County Employees’ Retirement Association, the Massachusetts Pension Reserves Investment Management BoardOak Hill Investment Management and the San Francisco Employees’ Retirement System

The firm is taking a slow and steady approach with its investment strategy, planning to invest between $10 million and $100 million per deal in 10 to 12 companies per year, according to Bauman. In the past, the firm generally invested on the smaller end of that scale. But with a new, larger fund size, the firm will likely increase the size of its investments, Bauman said. 

Fund XIV will target investments in the internet, digital media, enterprise IT and mobile and communications sectors, Bauman said. Within those sectors, IVP is paying close attention to gaming companies, ecommerce, security, storage and cloud technology.

IVP was founded by Reid Dennis in 1980. The firm manages around $4 billion in committed capital and has a 32 year internal rate of return of 43.2 percent, according to its website. Previous investments include notable venture-backed companies Twitter, Zynga, Shazam, Netflix and Carbonite.