Vector Closes Fourth Fund

Vector Capital has closed its fourth fund with $1.2 billion in capital commitments. The San Francisco-based firm closed its prior fund with around $350 million in 2004, but decided to bulk up after more and more of its deals required large co-investments from limited partners. For example, Vector provided a $60 million equity check when taking Corel Corp. private in August 2003 ? but only $20 million came from Vector’s actual fund. In other words, it decided to raise additional fund capital so all of its LPs could gain substantially from future returns, rather than just those with co-investment programs.