TA Associates raises fourteenth flagship growth private equity fund with USD12.5bn of commitments
TA Associates, a global growth private equity firm, has completed its fundraising for TA XIV with total commitments at the hard cap of USD12.5 billion.
TA XIV was launched in January 2021 and quickly became significantly oversubscribed, with demand exceeding its original USD10.5 billion target. In addition, TA announced the closing of TA Select Opportunities Fund II (TA Select Opps II), also launched in January 2021, with total commitments at its hard cap of USD1.5 billion.
TA XIV will continue TA’s long-term investment strategy of investing in companies with high-quality business models capable of delivering sustainable growth within the technology, healthcare, financial services, consumer and business services sectors. Investments are expected to range in size from USD100 to USD600 million. Like its predecessor fund, TA Select Opps II will make investments in independent, third-party priced recapitalisations of high-performing TA portfolio companies that the firm believes offer significant prospects for continued organic and inorganic growth.
“For more than 50 years, TA has helped scale leading growth companies across industries, borders and financial cycles through our relentless focus on building lasting value,” says Brian Conway, Chairman of TA. “Many of TA’s investors have been our partners for decades, and we are extraordinarily grateful for their long-term support. We are pleased to have earned our investors’ continued commitment to TA’s unique approach to growth private equity. The entire TA team is energised by the opportunity, and deeply respectful of the responsibility to invest and work for our limited partners.”
The raising of TA XIV and TA Select Opps II builds on TA’s significant momentum and follows an active period for the firm. TA XIV is the successor fund to TA XIII, an USD8.5 billion private equity fund that commenced investing in July 2019. TA Select Opps II is the successor fund to TA Select Opportunities Fund, a USD1 billion private equity fund that commenced investing in February 2020. It is expected that both TA XIV and TA Select Opps II will begin their investment periods during the second half of 2021.
“This successful fundraise is an exciting milestone that reflects investor confidence in our core investment strategy,” says Ajit Nedungadi, Chief Executive Officer of TA. “We are committed to investing in the highest quality growth businesses in our target industries and leveraging the depth and experience of the organisation to drive proprietary opportunities in these sectors. The strength of our value creation capabilities and our extensive global network positions TA to help leading companies continue their growth journeys and transform into strategic platforms.”
A diverse group of largely existing global investors in prior TA funds, including leading public pension plans, sovereign wealth funds, foundations and endowments, committed capital to TA XIV and TA Select Opps II.
“We want to thank our limited partners for their thoughtful engagement throughout the fundraising process and for their steadfast support and enthusiastic conviction in TA’s strategy and culture,” says Andrew Harris, Director of Investor Relations at TA. “We are privileged to have earned the trust of so many high-quality institutional investors around the world, and we are excited about our ongoing partnership in this next generation of TA funds.”
Goodwin Procter LLP served as fund counsel for TA XIV and TA Select Opportunities Fund II.