Technology-focused Francisco Partners has secured more than $18bn across two new private equity funds, marking its largest fundraising to date and defying a cautious backdrop for tech buyouts shaped by AI-related disruption concerns, according to a report by Reuters.
The San Francisco-based firm is expected to formally close its flagship Francisco Partners VIII LP alongside its Agility Fund IV LP in the coming weeks, according to people familiar with the process. The flagship vehicle exceeded its $14bn target, while the smaller fund also came in above its $4bn goal.
Backers of the latest fundraising round include major US public pension investors such as the Nebraska Investment Council, the Pennsylvania State Employees’ Retirement System, and the California Public Employees’ Retirement System.
The new haul surpasses the roughly $17bn raised across the prior vintages of both strategies in 2022, underscoring continued institutional appetite for established technology-focused buyout managers even as exit conditions remain constrained.
The fundraising comes at a time when the private equity sector has been navigating heightened uncertainty linked to generative AI. Investors have increasingly questioned exposure to software-heavy portfolios, with concerns that new AI tools could disrupt traditional SaaS business models and weigh on valuations — a dynamic that has contributed to pressure in public markets and slowed exit activity.
Speaking earlier this year, Francisco Partners co-founder Dipanjan Deb noted that while AI is likely to disrupt parts of the software ecosystem, it may also create new areas of strength and opportunity across the sector.
Since its founding in 1999, Francisco Partners has raised more than $50bn and continues to focus on technology investments spanning healthcare, financial services, education, cybersecurity, and infrastructure.
