labels: banks & institutions
Vector Capital closes $1.2-billion private equity fundnews
07 August 2007

Private equity fund Vector Capital today announced the closing of Vector Capital IV, L P, a $1.2-billion private equity fund. Vector IV will be invested in buyouts, spinouts and recapitalisation of established technology companies, as well as acquiring long-term stakes in undervalued public companies.

Technology sector investor, Vector is particularly focused on software, online services, communications equipment, and security products.

The majority of capital in Vector IV was committed by existing Vector investors, though new investors also contributed to the fund. Limited partners in the new fund include university endowments, foundations, non-profits, family offices, financial institutions, funds of funds and pension funds.

Peter Dolan, director of private equity at the Harvard Management Company, a significant new investor in the new fund, said, "In deciding to invest in Vector, we were attracted by the strength and experience of its team, its differentiated strategy and process, and its track record of delivering superior returns across a variety of market cycles."

The successful fund-raising of Vector IV takes the firm''s capital under management to more than $2 billion and will allow it to continue to expand its team and its footprint in technology investing.

It will also allow Vector to complete more large transactions, such as the recent acquisition of SafeNet Inc., a buyout valued at $634 million. Other past investments have included the buyouts of Register.com and Watchguard Technologies, the spinouts of LANDesk Software from Intel Corporation and Savi Technology from Raytheon Corporation, and the successful turnaround of Corel Corporation, which Vector took private in 2003 and then public again in 2006.

"For more than a decade, we''ve successfully identified and invested in undervalued companies that required strategic guidance and capital to get back on track," said Alex Slusky, Vector Capital''s founder and managing partner. "Our distinct approach combines creative financial execution with deep technology industry expertise and intense operational focus. The resources of a larger fund will enable us to bring more value to a greater number of portfolio companies and enable us to continue delivering superior results to our investors."

"As Vector''s founding investor, we have watched the firm grow from a start-up to a major force in technology private equity," said Robert Ziff, co-chairman of Ziff Brothers Investments. "Vector''s keen understanding of the actual value drivers in technology companies has enabled them to consistently improve the operating performance of their portfolio companies and thus deliver great outcomes for us and their other investors."


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Vector Capital closes $1.2-billion private equity fund