Tech investment firm Francisco Partners has held a $2.2bn hard cap final close for its second opportunistic credit fund, beating its original $1.25bn target. It almost tripled the size of its $750m inaugural credit fund that closed last year.
Credit Partners II attracted a full reup from the investors in Credit Partners I. The firm said the new vehicle will look to deploy capital across a wide array of situations from supporting growth initiatives and M&A to solving short-term liquidity needs.
Scott Eisenberg, head of credit and structured solutions at Francisco Partners, said, “We are seeing growing demand for capital from companies that are seeking partners who are able to provide customized and scalable solutions, often as an alternative to dilutive or restrictive minority equity.”
Dipanjan Deb, co-Founder and CEO of Francisco Partners, added, “Technology is no longer a standalone sector. It is disrupting every industry and market, and we believe there is an incredible opportunity to support this growth across a range of financing needs. With FP Credit Partners II, we can offer our LPs an attractive risk-return investment profile, and we are grateful to all of our new and longtime limited partners who chose to invest with us.”
It emerged last week that Francisco Partners is eyeing up to $10bn for its latest flagship fundraise, with eyes on kicking off marketing later this year.
Credit Partners I was part of the firm’s $10bn fundraise last year. It has also wrapped up fundraising for its sixth flagship fund on $7.45bn and collected about $1.5bn for its second Agility Fund targeting smaller tech deals.
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