LPs Line Up for IVP’s 14th Fund, Now Expected to Exceed $1B–UPDATED

Institutional Venture Partners’ latest fundraise is set to wrap up soon, sources confirm to peHUB, and the West Coast firm’s 14th fund is expected to beat even lofty expectations — which will likely have it closing with more than $1 billion from its investors.

The VC firm began with a target of $750 million, but will be “significantly oversubscribed,” according to one individual familiar with the firm’s plans. IVP could not be reached for comment.

IVP’s 12th fund, a 2007 vehicle, has a downright enormous IRR of 46.48% as of March 2011, according to figures published by pension CalSTRS. Some of the firm’s more recent smash-hit deals include HomeAway, Twitter and Zynga. IVP’s strategy includes investments in semiconductors, medical and health companies, biotechnology and tech and Internet companies, according to Thomson Reuters data. UPDATE: A source says the VC, which has not recently made medical or biotech investments, will exclusively pursue investments in Internet, digital media, enterprise IT, mobile and communications in the future.

Not too gun-shy about revealing its performance, apparently, IVP’s site indicates its historical IRR has more or less been in line with its spectacular 2007 performance.

Perhaps not coincidentally, based on its track record, a number of IVP partners—including Todd Chaffee, Sandy Miller and Steve Harrick—recently graced Forbes’ 2012 Midas List of preeminent tech investors.

In addition to CalSTRS, other LPs of the firm include the Los Angeles Fire & Police Pension System, the New Mexico Public Employees Retirement Association and the New York State Office of the State Comptroller, according to Thomson Reuters data.

One source who spoke with peHUB said the fund lost some of its LPs, but that new ones quickly filled in. It appears that IVP has had no difficulty obtaining more capital with every fund over the last decade. In 2000, the firm raised $225 million for its 10th fund; in 2004, it took on $300 million more for its eleventh; in 2007, for its 12th vehicle, it bagged an additional $600 million (to which CalSTRS committed $50 million); and in 2010, it raised a $750 million thirteenth fund, Thomson Reuters data show.

News of the fundraising was initially reported by Bloomberg in March.

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