FT Ventures seeks $600M

Financial Technology Ventures (FT Ventures) is pre-marketing its third fund with a $600 million target capitalization.

The San Francisco-based firm invests in companies that provide software or business services that help financial institutions expand and operate more efficiently.

Recent portfolio additions include Web analytics company Coremetrics Inc. and Chinese technology outsourcing company Freeborders. Pending exits include business process outsourcing company ExlService Holdings Inc. (in registration for an IPO) and exhange-traded funds provider PowerShares Capital Management LLC (to be acquired by AMVESCAP).

FT Ventures is backed by 38 limited partners in the financial services sector, including AIG, Allianz, Citigroup, Credit Suisse and Visa. Its inaugural fund was capped at $200 million in 1998, while its successor secured about $425 million in 2001.