TA Associates nears $3B for fund XI

TA Associates Inc. has secured roughly $2.83 billion in pledges for its latest fund, according to a regulatory filing last month.

Although the filing doesn’t provide a target for the pool, PE Week online affiliate publication peHUB reported in March that the Boston-based firm was seeking $3.5 billion for TA XI. That figure is also reflected in a document from the Montana Board of Investments, which approved a $10 million pledge to the fund in April.

TA Associates wasn’t immediately available for comment.

The hard cap for TA XI is $4 billion, according to the Montana document, which also states that the carried interest rate for the fund will be 20%, rather than 25%, as peHUB previously reported.

The fund is targeting equity investments ranging from $60 million to $350 million with an expected average deal size of about $90 million, according to the Montana document.

The fund expects to invest in roughly 30 companies, starting in the second or third quarter of 2009, with the pace of deals anticipated to be 11 per year. About 70% of the fund will target the United States and 30% in Europe, India and other emerging markets.

The firm targets the technology, financial services, health care, business services and consumer sectors.

The most recently announced deal for TA Associates is a $60 million minority investment in e-Rewards, a Dallas-based provider of online market research products and services.

TA Associates didn’t use a placement agent during the fund-raising. The target for TA XI is about the same as the firm’s predecessor pool, TA X, which held a single, final close on its $3.5 billion in pledges in March 2006. TA X had an IRR of negative 13.1%, as of Sept. 30, 2008, according to data provided by the California Public Employees’ Retirement System, which pledged $100 million to the fund. —Michael Baron