Francisco Partners closes second credit fund at $2.2bn

The opportunistic credit fund exceeded its $1.25bn target and reached its hard-cap.

Technology investment firm Francisco Partners has closed its second opportunistic credit fund at $2.2 billion, according to a release. The fund, which launched in June, exceeded its $1.25 billion target and reached its hard-cap.

FP Credit Partners II will be focused on the technology market, from growth initiatives and M&A activity to business model transitions and short-term liquidity needs, according to the firm.

“We are seeing growing demand for capital from companies that are seeking partners who are able to provide customised and scalable solutions,” said Scott Eisenberg, head of credit and structured solutions at Francisco Partners, in the release, “often as an alternative to dilutive or restrictive minority equity”.

“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,” added Dipanjan “DJ” Deb, co-founder and CEO of Francisco Partners, in the release. “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 long-time limited partners who chose to invest with us.”

Francisco Partners’ credit platform has a history of partnering with technology companies such as Eventbrite, a self-service ticketing technology platform, and Spire Global, a space-based data and analytics provider, among others.

The firm’s second credit fund saw participation from the School Employees’ Retirement System of Ohio, a public pension fund, with a $150 million commitment, and the State of Wisconsin Investment Board with $50 million, according to PDI research.

San Francisco-based Francisco Partners is a global investment firm that focuses on partnerships with technology and technology-enabled businesses. The firm has more than $25 billion in assets under management and has invested in more than 300 technology companies.