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Francisco Partners Raises $2.88 Billion for Technology Buyouts

Francisco Partners Raises $2.88 Billion for Technology Buyouts

By Gillian Tan and Laura Kreutzer

Technology-focused buyout firm Francisco Partners has closed its fourth fund at $2.875 billion after only around six months in the market.

The final tally for Francisco Partners IV LP exceeded the fund’s $2 billion target as well as an original $2.5 billion hard cap the firm upwardly revised to $2.8 billion amid outsize investor interest in the fund, Dow Jones previously reported. A person familiar with the firm said that it received more than $5 billion in investor interest in the new fund.

Although Francisco experienced strong demand from backers of its prior funds, the firm did take on some new investors, including the Washington State Investment Board and the Nebraska Investment Council.

Francisco invests in midsize technology companies across sectors that include software, cybersecurity, hardware, financial technology and communications.

“Since we started Francisco Partners, we have witnessed technology disrupt nearly every sector of the economy,” said Managing Partner Dipanjan Deb. “Today, we’re seeing this dislocation at unprecedented levels, and it’s expanding beyond consumer products to nearly every sector and geography. This wave is creating opportunities for us on both sides of the dislocation.”

Francisco’s latest fundraising benefited from a strong year of sales and initial public offerings from the firm’s prior funds. Over the past year, Francisco Partners has sold or taken public 10 of its portfolio companies. They include software provider eFront, which Francisco sold to European buyout shop Bridgepoint earlier this month for some three times its investment, and software and analytics company API Healthcare Corp., which the firm sold to General Electric Co. for more than five times its investment, said the person familiar.

Francisco is the latest in a line of technology-focused buyout shops that have enjoyed success on the marketing trail over the past year. In October, Vista Equity Partners closed its fifth fund with nearly $5.78 billion commitments, while earlier in the year, Thoma Bravo raised $3.65 billion for its newest technology-focused buyout fund.