Vitruvian Partners has closed its second fund, Vitruvian Investment Partnership II, on its £1 billion hard-cap (€1.2 billion, $1.6 billion).
The firm started pre-marketing in the second quarter of the year, but officially came to market in September, when it published its private placement memorandum, according to a source familiar with the matter.
The fund, which was targeting £800 million with a £1 billion hard-cap, was “massively oversubscribed”, according to the source. Approximately 50 percent of LPs that committed to the fund were new investors. US investors represented a big part of the LP base, but it also attracted investors from Europe, the Middle East and Asia.
LPs include corporate and state pension funds, sovereign wealth funds, fund of funds, endowments and foundations, Vitruvian said in a statement. It is understood the firm contributed a GP commitment of 2 percent.
“We would like to thank the entrepreneurs and management teams with whom we have partnered in our first fund and whose strong performance has made this fundraising possible,” Mike Risman, one of the managing partners and founders of Vitruvian, said in the statement.
Park Hill acted as Vitruvian’s placement agent, but declined to comment. Vitruvian also declined to comment.
Vitruvian has yet to put any capital to work from its latest fund. Last month it acquired RL360°, a financial services provider which was part of Royal London Group for an undisclosed sum, using its debut fund, a €925 million, 2008-vintage. That vehicle was approximately 90 percent deployed following its investment in Inenco Group in July, PEI reported in July.
Raised by Monument Group, Fund I's LPs included AlpInvest Partners, AP Fonden 3, Harvard Management Company, New York City Employees' Retirement System, New York City Fire Department Pension Fund, New York City Police Pension Fund, Teachers' Retirement System of the City of New York, University of Michigan and Worcester Retirement System, according to PEI’s Research & Analytics division.
Vitruvian is understood to have opted for a fund in sterling because most of its investments are in non-euro areas like the UK and Scandinavia. Additionally, most of its team is based in London.
Vitruvian was established in 2006 by Risman, Ian Riley and Toby Wyles. Prior to Vitruvian, Riley worked at BC Partners for eight years, where he was a senior partner. Risman and Wyles both joined from Apax Partners. Risman was global equity partner and head of Apax’s information technology investment team in Europe, spending 10 years at the firm, while Wyles, who was a global equity partner and co-head of Apax’s European leveraged transactions group, spent 13 years at the firm, according to Vitruvian’s website.
Vitruvian specialises in mid-market buyouts and growth capital investments in the UK and Northern Europe, typically targeting equity investments of £25 million to £125 million in companies with an enterprise value of £40 million to £250 million. It typically targets business services, information technology, media, telecoms, financial services and healthcare.