TA Associates closes 11th fund on $4bn

01 September 2009

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Fund

Private equity firm TA Associates has closed its latest fund, TA XI LP, on $4bn, surpassing its $3.5bn target. The new vehicle, which began fundraising in December 2008, is structured as a 10+3-year Delaware LP. The firm's predecessor fund, TA X, closed on $3.5bn in March 2006. Management fees for TA XI are at a slightly lower percentage of committed capital than they were for TA X. Carry has also decreased from 25% to 20%. UBS acted as placement agent solely for new international LPs, which are a small minority of TA XI's investors. Goodwin Procter provided legal advice.

Investors

Approximately three quarters of the fund's LPs are existing institutional investors, which include pension funds, banks, corporations and insurance companies. The majority are domestic US investors, while a small percentage is based internationally. Among the investors in the firm's previous fund were SVG, Quilvest, VCM and Nestle.

Investments

The new vehicle will invest between $60m-$350m into companies in growth industries, including technology, financial services, business services, healthcare and consumer sectors in North America, Europe and Mumbai. The type of investments will range from minority recapitalisations to buyouts. Historically, the largest industry of focus has been technology, followed by asset management businesses. The new fund is looking to make about 10-15 investments per year. TA Associates is open to co-investing; however, during the past five years, the firm has been the sole investor in about 80% of its investments.

People

TA XI will be managed by a team of 16 managing directors based in the firm's offices in Boston, London, and Menlo Park, California. TA Associates has also recently opened an office in Mumbai.

Name: TA XI LP

Closed on: $4bn

Focus: Growth Capital

Contact: Brian Conway

Address: TA Associates

John Hancock Tower, 56th Floor

200 Clarendon Street

Boston, MA 02116

Tel: +1 617 574 6700

Fax: +1 617 574 6728

Advisers: Goodwin Procter (Legal)

UBS (Placement agent, for new international investors only).