TA Associates to ‘build lasting value in exceptional businesses’ with TA XV; Clearview Capital adds on

TA Associates closes fifteenth fund at $16.5 billion.

Good morning, Hubsters. MK Flynn here, back in the saddle after some time off.

Despite the current private equity fundraising challenges, TA Associates earlier this morning announced it has completed fundraising for its largest flagship fund at a hard cap of $16.5 billion.

Below, we’ll take a look at the types of companies the firm invests in and highlight some of its recent deals.

And we’ll spotlight a scholarship program KKR and Cornell launched earlier this morning.

But first, a quick look at some of today’s deal announcements.

Keep on adding on
As dealmaking has slowed, PE firms are making fewer platform investments and instead focusing on beefing up their current portfolio companies. Here are a few add-on deals announced earlier today and covered by Iris Dorbian.

Capitol Imaging, which is backed by Clearview Capital, has acquired two diagnostic imaging services providers, Houston Premier Radiology Center and Alliance MRI. Both are based in the Greater Houston area.

New State Capital‘s general aviation-focused platform NS Aviation has acquired Broomfield, Colorado-based Finnoff Aviation Products, a provider of aircraft upgrades.

Advanco, which is backed by Parabellum Investments, has acquired New Jersey-based Vantage Consulting, a manufacturing automation provider.

To stay on top of the latest deal announcements, check out the News in Brief section of PE Hub.

And now onto big news…

“Lasting value in exceptional businesses”
Earlier this morning, TA Associates announced the completion of fundraising for its latest flagship fund, TA XV, with total LP commitments at its hard cap of $16.5 billion, making it the largest fund raised by the PE firm.

Launched in November 2022, TA XV was significantly oversubscribed and exceeded its initial target size of $15 billion, according to the firm.

TA’s success suggests well-known, focused firms can still get funds raised.

The press release reflects the tone of today’s tough fundraising climate.

“We are deeply grateful for the strong support of our limited partners during the TA XV fundraise,” said Ajit Nedungadi, CEO of TA. “Amid a period of macroeconomic uncertainty, our investors’ continued trust and confidence in our investment strategy is particularly energizing. We embrace the opportunity to further our strategy, partnering with forward-thinking founders and management teams to build lasting value in exceptional businesses.”

The firm’s previous flagship fund closed in June 2021 at its hard cap of $12.5 billion. The firm has raised $65 billion in capital to date and has over 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong.

In keeping with the earlier funds, “TA XV will target equity investments in high-quality businesses capable of delivering sustainable growth within the technology, healthcare, financial services, consumer and business services sectors,” according to the release.

Since the firm’s inception in 1968, TA has invested in more than 560 companies across its target industries, with over 120 companies in the portfolio today.

Here are some of the firm’s recent deals covered by PE Hub and PE Hub Europe:

• In May, TA agreed to invest in Tallahassee, Florida-based Alpha II, a provider of revenue cycle management technology to healthcare providers.
• In April, the firm agreed to make a growth investment in Diatech Pharmacogenetics, a pharmacogenetics and cancer precision medicine diagnostics company based in Ancona, Italy.
• And in March, TA made a minority investment in Frankfurt, Germany-based MRH Trowe, which provides insurance for industrial and commercial clients, institutions and upscale private clients.

For analysis on how the tough market is affecting fundraising, see this story written earlier in June by Buyouts’ Chris Witkowsky.

Next gen
Earlier this morning, Cornell SC Johnson College of Business announced a new program called the Accelerator Scholars Program for Cornell students who are the first in their family to attend college.

KKR is the founding sponsor of the program.

When I asked about the amount of money KKR is committing to the program, a representative said, “We are not disclosing the dollar amount at this time.”

KKR’s participation will support 50 students from the classes of 2026 and 2027, in addition to 17 student mentors, throughout the year for activities including virtual career sessions, mentoring with KKR Cornell Alumni and mock interviews. Program participants will also be invited to visit KKR’s headquarters in New York.

“Although the number of first-generation college students continues to rise, many still face barriers to graduating,” said Pamela Alexander, managing director, and head of corporate citizenship for the PE firm. “KKR’s Citizenship Program focuses on identifying high impact areas where we can drive economic opportunity and security in the communities where we operate. By partnering with Cornell on this excellent initiative, we are helping to empower first-generation students and build the next generation of leaders in our industry.”

On that hopeful note, I’ll sign off.

Obey Martin Manayiti will be with you tomorrow for Friday’s Wire. And then we’ll be closed on Monday in observance of Juneteenth. I’ll see you on Tuesday.

All the best,