TA Associates, the US private equity and buyout firm, has raised a US$800m private equity fund primarily for non-US investors. TA Atlantic and Pacific V is the successor to TA Atlantic and Pacific IV, a US$500m fund that was organised in 1999. The addition of TA AP V brings the total capital managed by TA Associates to nearly US$6bn and currently invested funds to approximately US$3.5bn.
The vehicle will invest alongside TA IX, a US$2bn fund organised in mid-2000 primarily for US investors, and TA Subordinated Debt Fund, a captive US$500m mezzanine fund formed in early 2000. The firm targets an annual investment pace of US$1bn.
The objective of the new fund is to achieve above-average capital appreciation with relatively modest risk through minority investments in and buyouts of profitable, private companies. It will concentrate on industries in which TA Associates has demonstrated expertise, including the technology, healthcare and consumer sectors.
Targeted equity investments will range in size from US$30m to US$300m. The fund will invest primarily in North America, but also will pursue investments in Western Europe.
“Our successful investment history and strong relationship with our limited partners enabled us to quickly raise this fund, which is US$300m larger than its predecessor,” said C Kevin Landry, managing director and CEO of TA Associates.
“We will continue to target investments in profitable growth companies in focused industry segments we know well. This strategy, which we have employed since the firm’s inception, has enabled us to provide our LPs with consistent top-quartile returns,” he said.