Investcorp Closes $570M Technology Partners V Fund

Investcorp's ITP V Fund Surpasses Initial Target, Raising $570M

Investcorp, a global investment firm, has exceeded the initial target by raising $570 million for its Technology Partners V (ITP V) fund. This fund is set to focus on software, data/analytics, cybersecurity, and fintech startups, representing a positive outlook for these sectors.

Key Takeaways

• Investcorp's ITP V fund closes at $570M, surpassing $500M target
• Fund will invest in software, data/analytics, cybersecurity, and fintech startups
• Investcorp targets controlling stakes in companies with $10M+ revenues, positive EBITDA
• Newest fund has already invested in VEDA, HWG Sababa, Zift Solutions, and NetRom
• Investcorp remains disciplined on entry valuations, focuses on long-term sectors

Analysis

Investcorp's successful closing of the $570M ITP V fund reflects a positive outlook for the software, data/analytics, cybersecurity, and fintech sectors. This development is likely to attract more investors and foster growth in these industries, particularly in vibrant tech ecosystems such as the US and Israel.

The stringent investment criteria for ITP V's investments demonstrate a focus on mature, profitable companies, potentially impacting early-stage startups seeking funding. However, Investcorp’s determined approach to valuations and sector focus suggests a long-term commitment to its portfolio companies' success, encouraging sustainable growth in the tech sector.

Companies that have already received investments from ITP V, such as VEDA, HWG Sababa, Zift Solutions, and NetRom, will benefit directly from this fund. Additionally, competitors of these firms may face increased pressure to innovate and improve their offerings to stay competitive.

Did You Know?

• ITP V: Investcorp's Technology Partners V is a venture capital fund focusing on growth-stage technology companies. The fund raised $570 million, exceeding its initial target of $500 million.
• Equity investments between $30-70M: ITP V targets controlling stakes in technology companies with annual revenues of $10 million or more and positive EBITDA, requiring equity investments between $30-70 million.
• Investcorp's investments: The companies already invested in by ITP V include VEDA, HWG Sababa, Zift Solutions, and NetRom, operating in technology sectors such as software, data analytics, cybersecurity, and fintech.