Growth equity firm FTV Capital has raised $700 million in the final close of its fourth fund. The target was $500 million. The pool’s LPs include banks, insurance companies, public and corporate pension plans, college and university endowments and foundations.
SAN FRANCISCO & NEW YORK–(BUSINESS WIRE)–FTV Capital, a sector-focused growth equity investment firm, today announced the final closing of its fourth fund, FTV IV, L.P. (“FTV IV”), with $700 million of limited partner commitments. Formed to continue the successful growth equity strategy of its predecessor fund, FTV IV had an initial target of $500 million and was significantly oversubscribed. FTV Capital has raised over $1.8 billion across four funds since its inception.
FTV will continue its focus on high-growth companies with innovative solutions, established business models and strong management teams that value its collaborative approach to building great companies. FTV invests at the intersection of its core sectors — enterprise solutions (business services and technology), financial services and payments/transaction processing — where its market insight, domain expertise, track record and Global Partner Network can add significant value. Often the first institutional investor, FTV target companies have $10 million to $100 million in revenue and are growing 20 percent plus annually, are typically profitable, and are validated by blue chip enterprise customers and distribution partners.
Investors in FTV IV are globally diverse and include banks, insurance companies, public and corporate pension plans, college and university endowments, foundations, investment advisors, family offices, high net worth individuals and strategic investors.
“We are extremely grateful for the support of our existing investors who value our distinct approach to growth equity investing and the strong results we have generated,” said Richard Garman, FTV Capital managing partner. “Our long-tenured team, deep sector knowledge, theme-based sourcing approach and unique Global Partner Network were also appealing to high quality, new investors who have chosen to partner with FTV. We are very excited to welcome our new investors to the fund.”
“Our team has already invested $170 million in five exciting new FTV IV portfolio companies which achieved aggregate revenue growth of 49% in 2013,” said Brad Bernstein, FTV Capital partner and head of the New York office. “The new capital will enable us to continue to partner with proven, motivated management teams in highly attractive businesses, where our contributions can help accelerate revenue growth, profitability and compelling returns for our investors.”
“Given the highly competitive fundraising environment, we were thrilled by the significant demand for FTV IV,” said Karen Derr Gilbert, FTV Capital partner and head of business development who spearheaded FTV’s fundraising efforts. “We are appreciative of the confidence our existing investors continue to entrust us with, and we look forward to building long-term, productive relationships with our new investors.”
Founded in 1998, FTV Capital has invested in 81 portfolio companies and has offices in San Francisco and New York. FTV Capital leverages its industry sector expertise and distinct Global Partner Network, a group of the world’s leading enterprises and executives, to help portfolio companies drive growth. Many successful companies have partnered with FTV including Aveksa (acquired by RSA, the security division of EMC), Castle Pines Capital (acquired by Wells Fargo), Coremetrics (acquired by IBM), ExlService (IPO), Financial Engines (IPO), Fleet One (acquired by Wright Express), Mu Sigma (sold to shareholders), PowerShares (acquired by Invesco), Varicent (acquired by IBM) and Verus Financial Management (acquired by The Sage Group).