September 18, 2019 / 10:22 AM / 2 months ago

Advent raises $2 billion debut technology private equity fund

(Reuters) - U.S. private equity firm Advent International said on Wednesday it has completed fundraising for its first technology fund after six months, with total investor commitments reaching its cap of $2 billion.

The buyout firm said the fund, Advent Global Technology, will invest in companies in the software and data sectors, primarily in North America and Europe. Reuters reported on Advent’s being close to completing the fundraising in July.

The new fund will invest alongside Advent’s flagship Global Private Equity fund (GPE IX), which it raised this year at its $17.5 billion cap.

With the new technology-focused fund, Advent is joining a crowded field. Private equity firms such as Silver Lake, Thoma Bravo and Vista Equity specialize in technology investment.

“We have depth and strength in retail, healthcare and financial services, including payments, where technology is becoming important, and we intend to leverage these strengths in how we pursue investments,” said Bryan Taylor, global head of Advent’s 20-member technology team, who joined Advent this year after serving as co-head of buyout firm TPG Capital’s technology group.

Advent Global Technology will also pursue its own deals, investing upwards of $50 million in “high-growth emerging businesses,” the buyout firm said. Together with GPE IX, it can invest up to $2 billion or more in any deal.

Advent opened an office in Palo Alto, California, this year as part of its expansion in technology investments.

“For tech at Advent, we have one team, one investment strategy but two pools of capital,” Taylor said.

Advent said its technology fund has already made two co-investments alongside its flagship fund: the acquisition of majority stake in enterprise software firm Transaction Services Group and an investment in U.S. health data provider Definitive Healthcare.

Advent has been investing in technology since it was mainly a venture capital firm in the 1980s. It launched its private equity strategy in 1990, and since then has invested in technology companies worth a total of more than $14 billion, including debt.

Reporting by Chibuike Oguh in New York; Editing by Gerry Doyle and David Evans

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