Enterprise News

Tech fund raises $500 million

Feb 08 issue

Savio Tung
Savio Tung
Investcorp Technology Partners (ITP), a private equity investor in technology businesses, has closed a new $500 million fund, bringing its total assets under management to $1 billion.

The firm’s management contributed $11 million of their own money to ITP Fund III, with the balance coming from institutional and individual investors including US and European pension funds, as well as Bank of Scotland.

Like the firm’s previous funds, ITP Fund III will focus on three types of transactions: buy-outs; the partial spinning-off of subsidiaries by large corporates (known as carve-outs); and “public situations”. This last category encompasses both public-to-private deals and investments in listed entities with the object of gaining control.

Investee businesses are likely to be in one of four sectors: mobile data applications; enterprise software; communications infrastructure; or digital content enablement. The fund’s typical investment will be between $25 million and $50 million.

Savio Tung, head of ITP (pictured) says the fund’s original target was $400 million. He adds: ‘We experienced extraordinary demand for ITP Fund III, reflecting our team’s exceptional track record in 14 fully and partially realised investments over the past six years.’

ITP has offices in New York and London and is part of asset management group Investcorp, which has more than $13 billion under management and specialises in private equity, hedge funds and real estate.