TA Associates has closed its eleventh fund for U.S. limited partners, with $4 billion in capital commitments. Its predecessor fund secured $3.5 billion in March 2006.
TA Associates, a leading growth private equity firm, today announced the closing of a $4 billion private equity fund, TA XI, L.P. The Fund is the successor to TA X, a $3.5 billion fund organized in March 2006.
The objective of TA XI is to achieve first quartile capital appreciation with relatively modest risk by originating investments in profitable, private companies in growth industries. Investment structures will be flexible and range from minority investments to buyouts. The Fund will be invested in growth industries in which TA Associates has demonstrated expertise and in which the underlying fundamentals of profitability and growth are superior to those for the overall economy, thereby presenting the opportunity for superior returns. These targeted industries include technology, financial services, business services, healthcare and consumer. The equity investments targeted by TA XI and affiliated funds will generally range from $60 million to $350 million.
“Despite a challenging fundraising environment, there was notable investor interest in TA XI,” said C. Kevin Landry, Chairman and Managing Director of TA Associates. “We not only exceeded the original target of $3.5 billion, but also did so in a relatively short time. We believe this is indicative of investors’ desire for quality in this very difficult economy, and I would like to thank our Limited Partners for their commitment to this Fund and to TA Associates.”
“TA has generally achieved long-term investment returns in the top quartile of comparable private equity firms,” said Brian J. Conway, a Managing Director at TA Associates. “We have achieved this through a unique investment origination methodology honed through 40 years of experience, industry expertise and a focus on profitable growth companies. As we invest TA XI, we will adhere to this same approach, helping management teams increase the long-term value of their businesses through strategic advice, recruiting, acquisitions and financings.”
Goodwin Procter LLP provided legal counsel to TA Associates during the formation of the Fund.
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced private equity firms. The firm has invested in nearly 400 companies, and currently has over $6 billion in actively investing funds. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.