IVP raises $510m for co-investments

Insight Venture Partners’ third co-invest fund will invest alongside IVP’s $2.57bn Fund VIII.  

New York-based Insight Venture Partners has closed its Insight Venture Partners Coinvestment Fund III on $510 million. 

The fund was established to invest alongside Insight Venture Partners VIII, which closed at $2.57 billion in May 2013. Like its predecessor funds, this fund will invest in global software, internet, and data-services businesses. 

Fund VIII is able to write equity checks of $15 million and higher; in conjunction with Coinvestment Fund III, Insight will have the flexibility to invest more than $500 million of equity per transaction, according to a statement.  Fund VIII aims to invest $300 million of equity per transaction, according to Private Equity International’s Research and Analytics division.  

Insight managing director Deven Parekh recently led a $160 million series C round of funding for WordPress.com creator Automattic. The round included new investors Chris Sacca, Endurance, and a special vehicle True Ventures created to step up their investment, alongside existing secondary investors Tiger and Iconiq, according to a blog post from Automattic CEO Matt Mullenweg. With this round, Automattic’s valuation has reached $1.16 billion. 

Other firms managing dedicated co-investment funds include Boston-based HarborVest Partners, which recently closed its oversubscribed HarbourVest Partners 2013 Direct Fund on $1 billion, over its $750 million target.

IVP was founded by Reid Dennis in 1980. The firm has raised more than $8 billion since its founding and has made more than 200 investments in software, ecommerce and internet and data-service industries.