Private
equity fund Vector Capital today announced the closing of Vector Capital IV, L
P, a $1.2-billion private equity fund. Vector IV will be invested in buyouts,
spinouts and recapitalisation of established technology companies, as well as
acquiring long-term stakes in undervalued public companies. Technology
sector investor, Vector is particularly focused on software, online services,
communications equipment, and security products. The
majority of capital in Vector IV was committed by existing Vector investors, though
new investors also contributed to the fund. Limited partners in the new fund include
university endowments, foundations, non-profits, family offices, financial institutions,
funds of funds and pension funds. Peter
Dolan, director of private equity at the Harvard Management Company, a significant
new investor in the new fund, said, "In deciding to invest in Vector, we
were attracted by the strength and experience of its team, its differentiated
strategy and process, and its track record of delivering superior returns across
a variety of market cycles." The
successful fund-raising of Vector IV takes the firm''s capital under management
to more than $2 billion and will allow it to continue to expand its team and its
footprint in technology investing. It
will also allow Vector to complete more large transactions, such as the recent
acquisition of SafeNet Inc., a buyout valued at $634 million. Other past investments
have included the buyouts of Register.com and Watchguard Technologies, the spinouts
of LANDesk Software from Intel Corporation and Savi Technology from Raytheon Corporation,
and the successful turnaround of Corel Corporation, which Vector took private
in 2003 and then public again in 2006. "For
more than a decade, we''ve successfully identified and invested in undervalued
companies that required strategic guidance and capital to get back on track,"
said Alex Slusky, Vector Capital''s founder and managing partner. "Our distinct
approach combines creative financial execution with deep technology industry expertise
and intense operational focus. The resources of a larger fund will enable us to
bring more value to a greater number of portfolio companies and enable us to continue
delivering superior results to our investors." "As
Vector''s founding investor, we have watched the firm grow from a start-up to a
major force in technology private equity," said Robert Ziff, co-chairman
of Ziff Brothers Investments. "Vector''s keen understanding of the actual
value drivers in technology
companies has enabled them to consistently improve the operating performance of
their portfolio companies and thus deliver great outcomes for us and their other
investors."
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