Interesting to see European private equity fund CVC raise a $1bn tech growth fund, investing $50-200mn in software and tech enabled services. By and large this is an area in Europe where the US PE funds have had little competition, as most of the European private equity funds in this range are generalist funds. Good news for growing, successful tech companies in the mid market.
European private equity heavy-weight CVC Capital Partners has held the final close of its technology-focused growth fund on $1bn. CVC Growth Partners closed above its $750m, adding further LPs commitments from a sidecar co-investment vehicle to reach the size of $1bn. The fund already has two investments under its belt – it acquired US online fraud detection service provider Kount last December and this month agreed the purchase of European managed services provider Wireless Logic. Investment targets for CVC Growth Partners are mid-market companies with high-growth potential operating in the software and technology-enabled business services sectors in North America and Europe. The fund will provide backing of $50m to $200m for individual deals.