Firms & Funds

Insight Partners closes huge fund-restructuring totaling more than $1.5 bln

The restructuring involved seven funds, including Funds IV and V, which the firm was winding down.

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Insight Partners completed its transaction to move more than 30 assets out of seven older funds and into a continuation vehicle, giving the firm more time to manage out the investments, three people with knowledge of the deal told Buyouts. 

Total deal value was more than $1.5 billion, the people said. Lazard worked as secondary adviser on the deal. The deal closed in the fall, sources said. 

HarbourVest Partners and Coller Capital were lead investors on the deal, with HarbourVest being the largest, the people said. A deal of this size likely included a large group of co-investors. Other investors in the deal included Hamilton Lane and Partners Group. 

Pricing on the deal was said to be at a slight discount, around 96 percent of net asset value across each fund, Buyouts previously reported. 

Insight Partners moved the assets out of older funds and into the newly created vehicle. LPs in the older funds had the option to cash out of their interests in the older funds, or roll their exposure into the new vehicle. 

The restructuring involved seven funds, including Funds IV and V, which the firm was winding down. Assets were also being moved out of newer funds, sources said in previous interviews. 

Nikki Parker, spokeswoman for Insight Partners, declined to comment. Spokespeople for Coller and HarbourVest declined to comment.

Insight Venture Partners IV, a 2000 vintage that closed on more than $740 million, was generating a 9.4 percent net internal rate of return and a 1.7x multiple as of June 30, 2019, according to performance data from California Public Employees’ Retirement System.

Fund V, a 2005 vintage that raised $675 million, was producing a 22.7 percent net IRR and a 3x multiple as of the same date, CalPERS said.

Insight Venture, formed in 1995 by Jeff Horing and Jerry Murdock, manages more than $20 billion. The firm invests in high-growth tech companies and has exposure to some of the biggest names in the tech world, including Twitter, Hootsuite, Mimecast and Zenefits.

Most recently, the firm closed its 10th fund on $6.3 billion in 2018. It closed Fund IX on $3.3 billion in 2015 and $2.5 billion for Fund VIII in 2013.

Action Item: Check out Insight Partners’s Form ADV here: https://bit.ly/3a9jjA9