Vector closes fifth mid-market fund at $1.4 bln

San Francisco-based Vector Capital has raised $1.4 billion for its fifth private equity fund, beating its $1.2 billion target.

Vector Capital V LP will focus on public and private companies in software, internet and digital media, communications and industrial technology. The fund will target middle-market companies in North America, Europe and Israel that have valuations between $100 million and $2 billion.

In 2007, Vector closed its fourth fund at $1.2 billion. As reported by Reuters, Fund IV generated an IRR of 14.4 percent and a multiple of 1.7x as of the end of last June, according to data from  California Public Employees’ Retirement System.

Since its launch 20 years ago, Vector has invested more than $3 billion in buyouts, recapitalizations, corporate divestitures, credit securities, restructurings, and minority investments, according to the firm. Among the firm’s investments are commodity management platform Allegro Development; Cambium Networks, a wireless broadband solutions provider, and SafeNet, an information security company.

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