Insight Partners Preps New Fund Targeting At Least $12 Billion

Insight Partners, one of the oldest private investment firms focused on technology deals, soon plans to pitch its next flagship fund with a goal of at least $12 billion, according to people familiar with the matter.

The New York firm—which could start the fundraising process as early as next month—will come to market less than a year after it corralled $9.5 billion for Insight Partners XI in April, the people said. Insight is also currently seeking $875 million for its first fund focused exclusively on preferred equity investments.

Insight provides between $10 million and $350 million of equity for technology companies, particularly software companies, across a range of capital structures that span venture rounds to larger buyouts of public companies.

The firm focuses on subsectors that include software-enabled services and internet companies, as well as software-as-a-service companies, which have subscription-based business models that often generate strong recurring revenue, according to documents from Pennsylvania Public School Employees’ Retirement System. The pension system committed $150 million to Insight Partners XI.

Insight Partners’ latest fundraise will benefit from the increased investor demand for technology-focused private-equity funds, one of the people said. During the pandemic, increased need for new software collaboration tools drove the growth of software cloud services. The market for such services is poised to hit $312.25 billion in 2021, a 19% increase from $262.45 billion in 2020, according to research firm Gartner Inc.

Read more: Wall Street Journal