Revolution turns the $1bn corner with fund close

Revolution Growth III closed on $525m, above its $450m target, to invest in companies outside of the Silicon Valley area.

Washington DC-based Revolution’s assets under management have risen past $1.1 billion with the close of its latest fund. Revolution Growth III closed on $525 million, beating its $450 million target.

The fund will follow Revolution’s focus on investing “speed-up capital” in companies outside of Silicon Valley. It is expected to make three or four investments per year at $25-$50 million each, as the previous funds have done.

Its predecessor, Revolution Growth II, raised $450 million in 2011. It has invested in companies such as cleaning service company Handy, retail logistics solution provider Optoro and healthy food company sweetgreen.

According to the firm’s filing with the US Securities and Exchange Commission, the fund received its first commitment on 3 June 2015 and has 70 investors.

GCA Savvian Advisors served as the placement agent and Kirkland & Ellis as the legal counsel for the fund.

Revolution also has a venture capital fund, Revolution Ventures II, which closed in September 2013 on $200 million. The venture cheque size for deals is between $5 and $10 million. According to PEI Research & Analytics, San Francisco-based fund of funds Top Tier Capital Partners is an investor.

A spokeswoman was not available to comment.