Investcorp Technology Partners raises UDS500m fund

ITP Fund III, which had an original target of USD400m, was heavily oversubscribed and exceeded the USD300m capital committed to Investcorp Technology Ventures II, which closed in 2005.

ITP Fund III received support from institutional, individual and family trust investors as well as a significant financial commitment from Investcorp. In the US, investors included Grove Street Advisors for the California Public Employees’ Retirement System, Cornell University, the Doris Duke Charitable Foundation, QVT Financial and Broward Health.

European investors included AlpInvest Partners, Bank of Scotland, CNP Assurances and UBS Sauerborn, while ITP’s own team committed more than USD11m to the fund.

Investcorp Technology Partners focuses on buyouts, corporate carve-outs, public-to-private transactions and control-oriented private investment in public equity in four areas of the technology market, mobile data applications, enterprise software, communications infrastructure and digital content enablement.

Savio Tung, who with Hazem Ben-Gacem and Alex Guira makes up ITP’s management, says: ‘We experienced extraordinary demand for ITP Fund III, reflecting our team’s consistent execution of our strategy over two funds, and our accumulation of an exceptional track record in 14 fully and partially realised investments over the past six years.

‘Investors also have noted that ITP stands apart in its focus on creating value by generating growth and operational improvements at portfolio companies, rather than depending on significant leverage – a quality that we believe will continue to serve us well in the current lending environment.

‘We see an increasing number of carve-out and buyout opportunities involving growing small- and medium-sized technology businesses. These opportunities are being driven by technology’s continued expansion, and the focus by large technology conglomerates on core competencies.’