Veritas Capital's 6th fund secures $3.55bn

The new vehicle is nearly double the size of its predecessor fund.

Veritas Capital has held a final close on its sixth fund, Veritas Capital Fund VI, exceeding its $3 billion target and reaching its $3.55 billion hard cap.

Fundraising launched in September and the fund was quickly oversubscribed, with both new and existing limited partners having to cut back on their allocations, according to a person familiar with the process. Veritas was not available to comment.

The source added that the new fund has not made any investments yet but will begin soon as its predecessor fund is fully invested. Veritas Capital Fund V made its last investment last month when it acquired Harris Corporation's government IT services business for $690 million in cash.

New York-based Veritas has carved an attractive niche in the technology sector by focusing on North American tech-focused mid-market companies that work with government-related sectors and commercial customers across sectors including aerospace and defence, healthcare, national security, communications, energy, government and education.

Limited partners in the new fund include Ohio Police & Fire, which committed $35 million, Texas County & District Retirement System, which committed $60 million on 1 Feb, and the Oregon Investment Council, which committed $250 million.

Veritas fifth fund closed in 2014 on $1.8 billion, while Veritas Capital Fund IV, closed on $1.2 billion in 2010. The fourth fund had a 16.5 percent internal rate of return and a 1.69X multiple as of March, according to data from the state of Oregon.