Francisco Partners raises $3.3bn for tech-focused credit fund

Francisco Partners announced the final close of FP Credit Partners III at $3.3bn, exceeding its initial $2.3bn target and surpassing its predecessor fund, which closed at $2.2bn in 2021.

This milestone reflects growing investor appetite for credit investments in the technology sector and follows Thoma Bravo’s recent $3.6bn fund close.

The fund attracted commitments from a diverse range of institutional investors. Notable contributions include $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 via aggregated and co-investment vehicles.

Scott Eisenberg, Head of Credit and Structured Solutions at Francisco Partners, highlighted the firm’s role in providing tailored financing solutions for technology-driven businesses. “FP Credit has become a partner of choice for growth-focused and strategic financing needs,” Eisenberg said.

Francisco Partners Co-Founder and CEO Dipanjan “DJ” Deb emphasised the firm’s integrated approach to credit and private equity investing, which has enhanced its presence in the technology ecosystem. The firm has partnered with leading companies such as Zotec Partners, Zocdoc, and Eventbrite, providing strategic capital for growth.

Since its founding 25 years ago, Francisco Partners has raised over $50bn and invested in more than 450 technology companies. This helped solidify its position as a leading investor in the tech sector. Kirkland & Ellis served as legal advisor for the fund.

Source: Alternatives Watch

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