Insight Partners Bags $2B In Two Funds

Firm: Insight Venture Partners

Fund: Insight Venture Partners Fund VII

Target: $1.5 billion

Fund: Insight Ventures Coinvestment Fund II

Target: $450 million

Insight Venture Partners has set up two funds with about $2 billion to manage, marking the latest in a rapid series of announcements from investors of billion-dollar fundraising totals as the industry as a whole seemingly faces a dearth of willing investors, according to peHub, a sister Web site to Buyouts.

Insight Venture Partners Fund VII reeled in $1.5 billion in commitments, and $70 million more from affiliates and friend commitments, the firm announced, and Insight Venture Partners Coinvestment Fund II, which tags along on bigger deals, received $450 million in commitments. Staying in line with Insight’s existing strategy, Fund VII will seek out global software and Internet services deals. Insight provides late stage venture capital, as well as growth equity investments to more mature portfolio companies.

Buyout firms and venture capitalists have struck some major funding commitments with LPs lately, coinciding with a meteoric rise in secondary markets at which many VCs’s assets are listed. Further, venture capital firms have been buying into secondary markets at a growing rate, making new investments in assets they initially missed an opportunity to buy into, or doubling down on deals with the expectation that secondary markets will give investments a continued lift as sponsors build toward an IPO and an exit.

“Fund VII demonstrates our ongoing commitment to help companies achieve their strategic and operational goals while building value for customers and investors,” said Jeff Horing, Insight Venture Partners’s co-founder and managing director. “Our investors support our dual approach of providing portfolio companies with financial flexibility and dedicated business expertise. We appreciate their ongoing guidance and their continued commitment to Insight through these investments in Fund VII.”

Investors have been supportive of top-tier sponsors this year. The European private equity firm Cinven has kicked off fund-raising in March for its fifth buyout fund, planning to raise €5 billion ($7.1 billion) for new deals, sister news agency Reuters reported. That followed rival buyout firm BC Partners, which raised €4 billion towards its latest buyout fund, beating initial expectations

On the VC side, Bessemer Venture Partners announced this month it is closing its eighth fund with $1.6 billion, and Accel Partners also revealed it completed two separate fundraisings for about $1.3 billion.