Francisco Closes On $10 Billion

Francisco Partners has held a final closing of three funds, two equity funds and one credit fund, with an aggregate $10 billion of capital.

The three new funds are Francisco Partners VI LP with $7.45 billion in capital, Francisco Partners Agility II LP with $1.5 billion in capital, and FP Credit Partners LP with $750 million in capital. Each fund was oversubscribed and exceeded its original target.

More than 130 new and existing limited partners including public and corporate pension funds, foundations, endowments, insurance companies, sovereign wealth funds and family offices from Asia, Europe, the Middle East, South America, Africa and the United States, participated in the three new funds.

“We are grateful to our longtime limited partners as well as our new partners who have entrusted us with their capital,” said Andrew Brown, partner and head of marketing and investor relations. “We believe investors appreciated the consistency of our strategy and team as well as our history of helping companies grow and improve operations to create value.”

Francisco Partners (FP) makes investments in technology companies with transaction values ranging from $50 million to $5 billion. Sectors within technology that are of specific interest include software, communications, financial technology, healthcare IT, infrastructure software, internet, security, and semiconductors. The firm’s transaction structures include buyouts, divisional divestitures, recapitalizations, restructurings, and growth equity financings. FP’s credit fund is a new strategy that will make opportunistic credit investments in private companies. In its 20-year history, the firm has invested in or acquired more than 275 technology companies.

“FP was built on the belief that through deep domain expertise, the firm can be the partner of choice for management teams to help build great companies with enduring value,” said Dipanjan “DJ” Deb, co-founder and CEO. “Through our three pools of capital, our team has the flexibility to pursue opportunities across the globe and help management teams and portfolio companies execute operational and strategic transformation.”

“The $3 trillion IT market continues to outgrow GDP, and it is no longer only a vertical market. Technology is now pervasive across all sectors of the economy, impacting every aspect of our lives,” added Mr. Deb. “We are very grateful to our limited partners, who have supported us during a global pandemic, and to our management teams, who continue to work tirelessly to help create value for shareholders.”

Kirkland & Ellis provided legal services for the two equity funds and Simpson Thacher & Bartlett provided legal services for the credit fund.

Francisco Partners is headquartered in San Francisco with additional offices in New York City and London.

Private Equity Professional | June 5, 2020

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