Broadview Capital Sees Quick Close for IT Fund –

Indicating broad interest in information technology investing, Broadview Capital Partners this month saw a rapid first closing on its debut IT buyout fund, raising $185 million.

The fund’s original target was $150 million when it was launched early this year (BUYOUTS Feb. 22, p. 12).

A source close to the fund raising said Broadview Capital was increasing its fund cap to $250 million from $200 million.

Commitments to the fund so far include $15 million from partners at Broadview Capital and undisclosed amounts from First Union Bank, Bank of America, Chase Manhattan Corp. and 40 executives from the IT industry.

Banking on Deal Flow from Affiliate

The source attributed the relatively quick fund raising to the strong proprietary deal flow that limited partners expect to come from Broadview Capital’s investment banking affiliate, Broadview Associates, which advises IT and communication companies, and from the fund’s roster of executive investors.

The fund is being headed by Steven Brooks, a former managing director for technology M&A at Donaldson, Lufkin & Jenrette, and by Stephen Bachman, a managing director from Broadview Associates.