TA Associates, a growth private equity firm, has closed a USD4bn private equity fund, TA XI.
TA Associates, a growth private equity firm, has closed a USD4bn private equity fund, TA XI.
The fund is the successor to TA X, a USD3.5bn fund organised in March 2006.
The objective of TA XI is to achieve first quartile capital appreciation with relatively modest risk by originating investments in profitable, private companies in growth industries. Investment structures will be flexible and range from minority investments to buyouts.
The fund will be invested in growth industries in which TA Associates has demonstrated expertise and in which the underlying fundamentals of profitability and growth are superior to those for the overall economy, thereby presenting the opportunity for superior returns. These targeted industries include technology, financial services, business services, healthcare and consumer.
The equity investments targeted by TA XI and affiliated funds will generally range from USD60m to USD350m.
‘Despite a challenging fundraising environment, there was notable investor interest in TA XI,’ says C. Kevin Landry (pictured), chairman and managing director of TA Associates. ‘We not only exceeded the original target of USD3.5bn, but also did so in a relatively short time. We believe this is indicative of investors’ desire for quality in this very difficult economy, and I would like to thank our limited partners for their commitment to this Fund and to TA Associates.’
Goodwin Procter provided legal counsel to TA Associates during the formation of the fund.
