Francisco Partners closes fifth fund on $3.98bn

Christopher Papadopoullos
22 November 2017

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Francisco Partners has closed its fifth fund on $3.98bn, surpassing its $3.25bn target after less than six months on the road.

The fund is tech-focused, with a concentration on sub-sectors including infrastructure software, healthcare IT, tech-enabled healthcare services, network security, cybersecurity, applications software, communications, systems, hardware, semiconductors, financial technology, internet and information services.

Francisco has now raised a total of $14bn since its establishment 18 year ago, according to the firm.

The previous vehicle, Francisco Partners IV, was launched by Francisco with an original target of $2bn. Ultimately, the buyout fund exceeded its original target and held a final close on $2.87bn in February 2015.

Investments
The fund will aim to complete 15-25 investments. These will have a target enterprise value of $100-500m and will primarily be control investments in tech-focused mid-market companies. Most of the investments will be in North America (60-80%), but 15-25% will be invested in Europe and Israel.

Investors
The main investors appear to be US pension funds and endowments. Confirmed investors so far include the Nebraska Investment Council ($50m), the University of Houston System Endowment, the Oregon Public Employees Retirement Fund ($250m) and Oklahoma Police Pension and Retirement Board ($15m).