As lines blur between asset classes
and their participation in venture capital deals, it should come as no surprise
that one of the oldest hands in crossover investing took advantage of the
current market to close the largest fund in its history.
Technology
Crossover Ventures closed on $3 billion in a new TCV VII fund to continue its
focus on growth equity investments in later-stage technology companies, including recapitalizations and
PIPE deals. The new fund brings the firm's total capital under management to about $7.7
billion, which will help TCV to hold its own as tech-focused buyout firms
such as Silver Lake Partners, Francisco Partners and others remain active, while
traditional buyout firms and even hedge funds increasingly participate across
the venture spectrum.
Just about every decent-sized late-stage venture round now
includes a hedge fund or two, essentially playing in the space TCV had largely
to itself for several years following its formation in 1995. And with more
traditional venture funds such as Mayfield and 3i specifically targeting late-stage deal flow, TCV felt the need to maintain its position with a large
commitment, raising more than double the amount of its $1.4 billion sixth fund
of November 2005.
The deal is the largest venture fund to close this year. But rather than doubling its activity, TCV hopes that the new fund can stretch out over four years to reduce the burden of raising funds every couple of years, as it has in the past. TCV goes into the new fund with the same roster of general partners and will continue to target deals in the Internet, financial technology, infrastructure and communications, software and services, and health care IT sectors. - Clifford Carlsen
See Nov. 6 story from Tech Confidential
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