JMI beats Fund VII target with $875m haul

The firm, based in Baltimore and San Diego, launched Fund VII in May with an $800m target.

JMI Equity has collected $875 million in about six months for its seventh fund, beating its $800 million target.
Existing limited partner relationships account for about 85 percent of Fund VII, a person with knowledge of the fundraising told PEO.

JMI, which invests mainly in the mid-market and makes growth equity, buyout and recapitalisation investments, did not use a placement agent for the fundraising.

Fund VII launched in May, and has not yet been activated, the person with knowledge said. It’s not clear how much capital Fund VI has left. JMI collected $600 million in 2007 for its sixth fund.

As of 31 March, Fund VI was generating a .2 percent internal rate of return and a 1x investment multiple, according to performance data from the California Public Employees’ Retirement System. Fund V was generating a 21.88 percent IRR since inception as of 31 March, according to data from the California State Teachers’ Retirement System.

JMI was founded in 1992 and has about $2.1 billion of committed capital.

In July, JMI along with Hellman & Friedman and TPG Capital agreed to sell Intergraph, a maker of engineering and geospatial software, for $2.1 billion to Swedish technology firm Hexagon. The exit reaped the firms a multiple of more than four times the investment, a source told PEO at the time. TPG and JMI bought Intergraph in 2006 in a deal valued at about $1.3 billion.