Insight Partners slashes fund target amid tech recovery: FT
Make us a preferred source
Make us a preferred source on Google
The news: Insight Partners is set to close a new USD10 billion ($14.91 billion) fund, raising about half of its initial target of $20 billion, according to anonymous sources cited by the Financial Times.
The numbers: The USD80 billion private equity firm plans to finalise the fund in early 2025, with the possibility of reaching USD12 billion, two of the sources said.
Insight, which raised USD20 billion in 2022, is selling over USD1 billion in start-up stakes to return cash to investors.
The context: The tech investment landscape, battered since 2022, is slowly recovering, with venture firms including Andreessen Horowitz, Thrive Capital, Iconiq Growth and General Catalyst also raising big funds recently, the paper said.
Insight has backed prominent companies like Wiz, Twitter and FTX but has reduced spending since 2022.
The VC investor has set up a continuation fund for limited partners to sell their positions in portfolio companies to other investors while Insight retains its share of the underlying company.
One such company is Israeli cybersecurity firm Wiz, which recently abandoned a USD23 billion acquisition by Google.
In the past two weeks Insight has also reached agreements to sell as many portfolio companies, including Recorded Future to Mastercard for USD2.65 billion and Own to Salesforce for USD1.9 billion.
The source: The Financial Times
