- Tech growth fund to target up to $2 bln
- Firm’s tech investments led from Silicon Valley office
- Several firms are raising growth vehicles
Permira is talking to limited partners about launching its debut tech growth fund, which is expected to target $1.5 billion to $2 billion, according to LPs with knowledge of the situation.
The firm is one of several that have launched growth vehicles and pools focused on smaller tech investments, including Thoma Bravo, Apax Partners and Aquiline Capital Partners.
Permira Growth Opportunities Fund, slated to hit the fundraising trail this fall, will be led by Permira’s tech team based out of the firm’s Silicon Valley office. The tech team is led by Brian Ruder, who heads the Silicon Valley office, and Richard Sanders.
The pool will focus on established and high-growth tech businesses globally, sources said.
U.K.-based Permira has traditionally invested in tech, with 8 billion euros ($9.51 billion) deployed across more than 30 investments. Investments include LegalZoom, Informatica, Magento and Allegro Group. Past investments include Ancestry.com, Renaissance Learning and Intelsat.
In a 2015 interview with Buyouts, Ruder said the tech sector offers a range of deals on the high and low ends.
“Many companies in the tech world are trading at low multiples, but it’s not the obvious stuff,” Ruder said. “It’s companies that need operational help or where their revenue mix doesn’t translate well into a profit multiple. The value may be hidden, but it’s there.”
Thoma Bravo raised its debut middle-market tech fund last year on a bit more than $1 billion. Aquiline hired Max Chee and Michael Cichowski in January to run its Technology Growth Fund, Buyouts reported. Chee, who was to run the fund, formerly was a managing partner at Millennium Technology Value Partners. Cichowski was a managing director at a family office and spent time at Edison Ventures. Update: Aquiline closed its tech-growth fund on about $190 million, the firm announced in July.
Apax Partners last year had been talking to LPs about its debut growth tech fund, which could target $750 million to $1 billion, Buyouts had reported. Apax hired back Dan O’Keefe from Technology Crossover Ventures to work on the growth strategy.
Update: This story was updated to include more information about Aquiline’s Technology Growth Fund.
Action Item: Permira’s Form ADV here: http://bit.ly/2x9xNz3
Picture of Brian Ruder sourced from Permira’s website.