Francisco Partners (FP), a leading global investment firm specializing in technology, announced the final closing of its FP Credit Partners III, L.P. fund. This opportunistic credit fund significantly exceeded its target of $2.3 billion, securing a total of $3.3 billion in commitments. This impressive fundraising follows the success of its predecessor, FP Credit Partners II, L.P., a $2.2 billion fund.
Francisco Partners Management: A Flexible Approach to Credit Investments
FP Credit Partners III will continue the strategy of its predecessors, leveraging the firm’s deep industry expertise to invest across a broad range of structures. This includes traditional credit financing as well as more flexible capital solutions tailored to the specific needs of technology-driven businesses. This flexible approach allows Francisco Partners Management to provide customized financing options, ranging from senior secured loans to structured equity.
Scott Eisenberg, Head of Credit and Structured Solutions at Francisco Partners, emphasized the firm’s commitment to providing tailored solutions. “Our differentiated and flexible approach to each situation allows us to creatively structure credit and hybrid capital designed to meet the specific needs of companies,” he said. He further highlighted the firm’s ability to act as a “one-stop” partner, providing comprehensive financing options that align with the goals of management and existing owners.
A Track Record of Success in Technology Investing
The Francisco Partners credit platform boasts a diverse portfolio of successful investments in leading technology companies. Past investments include Zotec Partners, a provider of revenue cycle management solutions for healthcare providers; Zocdoc, a platform for online healthcare discovery and appointment booking; and Eventbrite (NYSE: EB), a self-service event ticketing and experience technology platform. These successful investments demonstrate the firm’s ability to identify and support promising technology companies across various sectors.
Leveraging the Broader Francisco Partners Platform
Dipanjan “DJ” Deb, Co-Founder and CEO of Francisco Partners, highlighted the strategic importance of the credit platform within the broader firm. “Taking a “one firm” approach and incorporating credit and structuring expertise alongside our private equity platform has broadened Francisco Partners’ reach in the technology ecosystem,” Deb stated. He expressed enthusiasm for the continued opportunistic investment approach enabled by FP Credit Partners III. This integrated approach allows Francisco Partners to offer a comprehensive suite of financial solutions, spanning private equity and credit investments.
The fund received strong support from a diverse group of limited partners, including new and existing investors from North and South America, Europe, Asia, and the Middle East. This investor base comprises public and corporate pension funds, foundations, endowments, insurance companies, sovereign wealth funds, and family offices. Kirkland & Ellis LLP served as legal advisor for the fundraise.
Francisco Partners: A Quarter Century of Technology Investing
Francisco Partners has a long and established track record in the technology investment space, spanning 25 years. With over $50 billion in capital raised to date and more than 450 technology company investments, the firm possesses significant sectoral knowledge and operational expertise. This deep understanding of the technology landscape positions Francisco Partners Management to effectively deploy capital and support the growth of its portfolio companies.
