BV Investment Partners announced it has closed its latest fund at $1.75 billion.
The Boston private equity firm said “Fund XI” hit its hard cap after initially targeting $1.5 billion for this raise. BV focuses its investments on tech-enabled business services, software and IT services sectors.
The firm said on Tuesday that it has already committed to seven platform investments from the 11th fund. Since its founding in 1983, BV says it has invested about $4.8 billion in 117 platform companies across its 11 funds. BV reported that these investments have generated over $9.8 billion of total value.
Several other Boston-area firms are in the midst of raising funds. Last month Elephant Partners, the eight-year-old firm started by one of the co-founders of Warby Parker, raised $791.5 million for its fifth fund. Brewer Lane Ventures has also nearly finished raising $203 million for “Brewer Lane Ventures Fund II LP” The fundraising was laid out in a series of filings with the U.S. Securities and Exchange Commission, the latest of which was made Aug. 10.
BV’s last fund was announced in March 2020 at $1.1 billion. Fund IX raised $750 million in 2017.
BV’s current portfolio companies include Franklin-based Intentsify and Wakefield-based Veracross LLC, as well as companies from around the U.S., such as the Hardenbergh Group and Imagenet.
Current investment environment
Vikrant Raina, chief executive and managing partner of BV, said existing and new investors participated in its 11th fund. The investor base includes global sovereign wealth funds, foundations, public and corporate pension plans, financial institutions, family offices and individual investors, including management of portfolio companies.
“As we begin our fifth decade, we look forward to leveraging our deep industry experience to capitalize on exciting tech-driven middle market opportunities. Fund XI is already off to a great start with seven exceptional platform investments committed in the portfolio and several exciting new opportunities in the pipeline,” Raina said.
Nearly 75% of the capital raised in Fund XI came from existing relationships, according to Maggie Carter, BV’s president and chief operating officer.
“Faced with strong headwinds in the current fundraising environment, I believe the successful outcome of the Fund XI capital raise is a testament to the firm’s consistency in strategy, team and performance,” Carter said. “Our goal now is to deliver on the performance expected of us in Fund XI. With a strategy that has succeeded through multiple economic cycles coupled with significant investments to the team over the last year, we believe we are in a great position to achieve this goal.”
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