Rubicon Technology Partners is coming back in quick time with its next flagship fund, targeting $2 billion for investments in enterprise software companies, a person with knowledge of the firm told Buyouts.
Rubicon is among a handful of tech-focused firms who are deploying at a quick pace and coming back to market sooner than has been traditional in private equity. Thoma Bravo is another firm that has come back to market relatively quickly with its main fund and smaller pools.
“Everybody’s dance cards are full right now with all sorts of new and existing firms coming back,” said a fund-of-fund LP in a recent interview about fundraising.
Rubicon is expected to launch Fund IV in October, the person said. The fund will likely gather most of that amount through existing investors, the person said. Park Hill Group is working as placement agent on the fundraising.
Rubicon closed its third fund on $1.2 billion last year, beating its $850 million target. The firm raised most of Fund III before the pandemic essentially shut down the fundraising market in March and April. The firm also had been investing Fund III during fundraising, so it was already fairly well-deployed, the person said.
Partners John Hodge and Steve Carpenter did not return a call for comment Friday. Rubicon was launched in 2012 and is principally owned and led by Hodge, who formerly worked in Blackstone’s technology group; Carpenter, who worked at Ventyx, a division of ABB, where he was CEO; and Andrew Gesell, who previously worked at Court Square making technology and telecom investments.
Jason Winsten, partner, is a non-owner member of management, according to Rubicon’s Form ADV. Winsten joined from Court Square.
The firm makes control equity investments of $30 million to $75 million in software companies with proven management teams. The firm closed its debut fund on $305 million in 2014, beating its $250 million target.
As of Dec. 30, 2020, Rubicon managed about $2.1 billion in assets, the Form ADV said. It closed its second fund on at least $536.8 million, according to a Form D document filed in 2017. And it closed its debut pool on $305 million in 2014, beating a $250 million target.
Fund III, still in its j-curve period, was generating a 0.91x multiple as of Dec. 31, 2020, according to performance data from Florida State Board of Administration. The second fund was producing a 1.36x multiple and a 20 percent internal rate of return, according to Florida SBA.
And the first fund was producing a 1.54x multiple and a 15 percent IRR as of the same date, Florida said.