Vector Capital has raised its fifth private equity fund, Vector Capital V L.P., with approximately $1.4 billion in capital commitments. The new fund targets technology companies across the software, internet and digital media, communications, and industrial technology sectors.
The firm’s fifth fund exceeded its predecessor, Vector Capital IV L.P., by nearly $200,000,000 in capital. Founded in 1997, Vector Capital is a San Francisco-basedprivate equity firm focused on the tech-enabled businesses. The PE firm has a consistent track record of acquisitions within the sector. Since the firm’s inception, Vector Capital has made more than $3 billion in investments.
In 2015, Vector Capital acquired Saba Software in a transaction valued at approximately $390 million and also purchased IPValueManagement Inc., an intellectual property service provider, for an undisclosed amount. Vector Capital previously won Mergers & Acquisitions’ M&A Mid-Market Award for Seller of the Year in 2013.
More private equity firms, in addition to Vector Capital, have doubled down on their interest to the technology sector. PE firms, like Thoma Bravo and HGGC, have recently raised funds. In December 2016, HGGC closed a third fund with aggregate capital commitments of $1.84 billion, with $90 million from the firm’s general partners, including Steve Young, the former San Francisco 49ers quarterback. Thoma Bravo LLC, which focuses on the software and technology-enabled services sectors, closed its 12th fund, Thoma Bravo Fund XII, at a hard cap of $7.6 billion in September 2016. ParkerGale Capital LP also closed a $240 million buyout fund to grow the firm’s portfolio of lower middle-market tech companies.