Francisco Partners (FP) has held the final close of its third credit fund, FP Credit Partners III, with $3.3bn in total capital commitments – surpassing its initial $2.3bn target and its predecessor fund, which closed at $2.2bn in October 2021.
The announcement follows Thoma Bravo’s recent close of its third credit fund at $3.6bn, signalling growing competition and investor interest in tech-driven credit strategies.
Consistent with the firm’s prior two funds, FP Credit Partners III will invest in a variety of structures ranging from traditional credit financings to flexible capital solutions.
In a press statement, Scott Eisenberg, Head of Credit and Structured Solutions at Francisco Partners, said: “Since launching our credit business in 2018, FP Credit has become a trusted partner for technology-driven companies seeking growth and strategic financing solutions,” noting the firm’s focus on delivering flexible, tailored financing options to align with the objectives of management teams and business owners.
The fund attracted a broad range of institutional investors worldwide, including significant commitments from major pension funds. Notable contributions included $125m each from the State of Wisconsin Investment Board and the Teachers’ Retirement System of Louisiana, $100m from the California State Teachers’ Retirement System, and $500m from the New York State Common Retirement Fund through an aggregator and a fund-of-one co-investment sidecar.
FP’s credit platform has already supported high-profile companies including: Zotec Partners, a healthcare revenue cycle management provider; Zocdoc, an online healthcare booking platform; and Eventbrite, the public event technology company.
With this latest fund, Francisco Partners has now raised over $50bn in capital since its founding 25 years ago and has invested in more than 450 technology companies, solidifying its position as a leading investor in the tech sector.
Kirkland & Ellis served as the legal advisor for the fund.
