Firm: JMI Equity
Fund: JMI Equity Fund VII
Target: $875 million
Placement Agent: None
The Baltimore-based technology and software specialist closed the fund after a six-month fundraising campaign in a deeply challenging fundraising market, without the help of a placement agent. JMI Equity still has 15 percent of Fund VI left to invest, Harry Gruner, a managing general partner who co-founded the firm in 1992, told Buyouts. “In general I think the process went rather smoothly,” he said of the fundraising process.
The firm, which also has an office in San Diego, will continue its strategy of investing $10 million to $100 million in buyouts and growth equity investments in software, internet businesses, business services and health care information technology. Gruner said the firm expects to start investing from Fund VII in the first quarter of next year.
About 85 percent of JMI Equity’s investors re-upped on
Some of JMI Equity’s recent exits have been blockbusters. In 2008, for example, Google paid $3.1 billion to acquire online marketing company DoubleClick, which
JMI Equity’s fifth fund also has distributed a lot of investment capital. Of the $30 million the
JMI Equity Fund IV LP, a 1999 pool, posted a 4.5 percent IRR and a 1.3x investment multiple as of March 31, according to the
A prominent fund-of-funds manager said it’s no shocker that JMI Equity was able to raise the fund so fast despite the challenges. “JMI has a loyal following,” he wrote in an e-mail. A placement agent who has helped the firm raise capital in the past added, “They do really interesting deals, where they are considered the experts in software and services.”
Luisa Beltran, a senior private equity reporter at peHUB, contributed to this report.
Correction: The headline on the original version of this story incorrectly stated that JMI Equity has lacked in recent exits. The fifth paragraph also incorrectly stated that JMI Equity has lacked in recent exits.