Firms & Funds

Insight Venture Partners launches $6 bln fundraising

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Insight Venture Partners, Jeff Horing, private equity
Photo of Jeff Horing courtesy of Insight Venture Partners
  • Insight VP back in market with large fund
  • Closed prior flagship pool in 2015
  • Brought on COO in November from Citadel

Insight Venture Partners is targeting $6 billion for its next fundraising, which will include its 10th fund, according to two people with knowledge of the firm.

It’s not clear whether the $6 billion total target also includes a coinvestment fund. Jeffrey Horing, co-founder and managing director of Insight VP, did not return a request for comment.

The firm closed its ninth fund on $3.29 billion and raised $1.46 billion for Insight Venture Partners Growth-Buyout Coinvestment Fund, which invests alongside Fund IX.

Insight VP, founded in 1995, makes minority and control growth investments in software and internet-focused companies. The firm closed its eighth fund on $2.57 billion in 2013 and its third co-investment fund in 2014 on $510 million.

Terms on Fund IX included a five-year investment period, and a 10-year fund term, with two one-year extensions with majority LP interest approval, an investment report from Los Angeles City Employees’ Retirement System shows.

Management fees on Fund IX are 1.9 percent on committed capital during the investment period and 1.9 percent on invested capital thereafter, LACERS said. Fund IX has a 20 percent carried-interest rate, the document said.

The GP commitment was set at 3 percent, LACERS said. Fund IX was generating a negative 8.3 percent net IRR as of June 30, 2016, LACERS performance information shows.

Insight VP is owned by Jeffrey Horing, Deven Parekh, Peter Sobiloff, Jeffrey Lieberman and Michael Triplett, according to Insight VP’s Form ADV. The firm managed about $13.6 billion of discretionary assets as of Dec. 31, 2015.

In November, the firm hired Ian Sandler as chief operating officer from Citadel, where he was COO of global equities.

In early March, Insight VP led a $21 million funding round in Nearpod, an education-technology platform that helps educators build digital learning experiences.

Action Item: Check out Insight VP’s Form ADV here: http://bit.ly/2lYN9hw

Photo of Jeffrey Horing courtesy of Insight Venture Partners