Technology Crossover Ventures, which is targeting $2.5 billion for its eighth fund, has received a $100 million commitment from New Jersey’s state pension system.
TCV has collected at least $1.4 billion as of Jan. 10, 2014, according to a filing with the U.S. Securities and Exchange Commission. It’s not clear when Fund VIII officially launched, but the first official filing was made in January 2013.
Management fees on the fund will scale up, rising from 1.1 percent in the first year to 2 percent in years three to six, and will decline after that, according to investment documents from the New Jersey state Treasury’s Division of Investment.
Carried interest is set at 20 percent, and 100 percent of directors’ fees, consulting fees or transactions fees will be used to offset the management fee, the documents said.
Over 19 years, TCV has invested about $7 billion with a 1.6x net multiple on invested capital and a 16 percent net internal rate of return across all funds, the New Jersey documents said. The firm closed its Fund VII in 2007 on $3 billion. That vehicle was generating a 14.20 percent IRR and a 1.3x net multiple, according to New Jersey.
TCV has been collecting big pledges from public pension funds in the U.S. Last year, the Washington State Investment Board committed up to $150 million, and the Los Angeles City Employees’ Retirement System committed up to $30 million to the fund.
In October, Minted, an online marketplace for independent design and art, announced a $41 million Series C investment round led by TCV. Last month, the firm led a $30 million Series B round in SiteMinder, an online hotel distribution platform.
TCV did not return a request for comment Wednesday.
Photo courtesy of Shutterstock.
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