Advent launches debut tech-focused fund with ex-TPG exec

Advent International, in the market with what will likely be its largest flagship fund yet, quietly launched its first tech-focused pool, sources told Buyouts.

The tech fund is targeting up to $1 billion, one of the sources said.

Leadership of the fund includes Bryan Taylor, whom Advent hired in February as a managing partner to lead the tech-investment team.

Taylor joined Advent from TPG, where he led investments in software, data analytics and technology services. He joined TPG in 2004, prior to which he co-founded Symphony Technology Group.

Taylor is opening a San Francisco-area office for Advent, where he will be joined by Eric Wei, a managing director on Advent’s technology team who is relocating from New York, Advent said in a statement when Taylor was hired.

Wei and Taylor worked together at Bain & Co. “Eric Wei approached me about joining Advent to help expand its technology franchise,” Taylor said in the news release.

Advent’s tech team focuses on growth investments and buyouts across software, data and tech-enabled services, primarily in North America and Europe.

The tech fund is in the market at the same time Advent is raising its ninth flagship vehicle, which may target up to $17.5 billion, PEI reported last year.

Advent’s prior flagship, Fund VIII, which closed on $13 billion in 2016, was generating a 16.13 percent net internal rate of return and a 1.2x multiple as of Sept. 30, 2018, data from Washington State Investment Board shows.

Fund VII, which raised $10.8 billion in 2012, was producing a 20.04 percent net IRR and 1.9x multiple as of that date, according to Washington.

Advent is one of several established PE firms that recently launched tech-specific funds. Charlesbank Capital this year is expected to launch its debut technology opportunities fund, which could target $600 million.

Apax Partners closed its debut tech-growth fund on $1 billion in 2017 and Permira was targeting $2 billion for its first tech vehicle.

Correction: A prior version of this report listed the wrong fund number for Advent’s latest fund in market. The firm is out raising its ninth flagship fund. Also, Advent’s Fund VII was generating a 20.04 percent net IRR, rather than 10.04 percent, according to Washington State Investment Board documents. 

Action Item: Check out Advent’s Form ADV here: https://bit.ly/2WcSEe5