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Growth investor Spectrum Equity raises $1 bln for Fund VII

Spectrum Equity has officially closed its Fund VII on the hard cap of $1 billion, crushing the original $800 million target, the firm announced Thursday.

The fund didn’t officially hit the market until early June, according to a source with knowledge of the situation. Fund VII was oversubscribed by several hundred million dollars, and has not yet made an investment, the source said.

Spectrum, which targets investments in information services, digital media, software and Internet companies, revealed in fundraising documents filed with the U.S. Securities and Exchange Commission last week it had collected $951 million from 80 investors.

The managing directors of the Fund VII general partnership are Brion Applegate, William Collatos, Randy Henderson, Christopher Mitchell, Victor Parker Jr., James Quagliaroli and Benjamin Spero, according to the SEC filing.

Spectrum was founded in 1994 with officers in Boston and Menlo Park, Calif. Spectrum’s sixth fund, which closed on $680 million in 2010, was generating a 1.21x multiple and a 13.26 percent internal rate of return as of Dec. 31, 2013, according to performance information from the Texas County & District Retirement System.

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