Tech buy-out fund raises $500 million

Investcorp Technology Partners (ITP), which invests in growing technology businesses, has closed a new $500 million (£252 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.


Investcorp Technology Partners (ITP), which invests in growing technology businesses, has closed a new $500 million (£252 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.

Investcorp Technology Partners (ITP), which invests in growing technology businesses, has closed a new $500 million (£252 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.

Savio Tung, head of ITP, 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 realized investments over the past six years.

‘ITP stands apart in its focus on creating value by generating growth and operational improvements at portfolio companies, rather than depending on significant leverage – a quality that we believe will continue to serve us well in the current lending environment.’

Like the firm’s previous funds, ITP Fund III will focus on three types of transaction: 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 the mobile data applications, enterprise software, communications infrastructure or digital content enablement sectors.

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.

Marc Barber

Raven Connelly

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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