Dan Primack

The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley

Twitter investor sees larger deals ahead

September 15, 2010: 1:38 PM ET

Insight Venture Partners, a private equity firm whose investments include Twitter and ExactTarget, is back in the fundraising market. Not for a general vehicle - that would be silly, since it hasn't even called 60% of the $1.25 billion it raised in 2007 - but rather for a co-invest vehicle that would support larger investments.

No huge surprise that Insight is doing this, considering that it also had a co-invest sidecar to its prior fund. The difference, however, is that the previous effort was raised in concert with the general fund. This one comes three years later. Insight isn't commenting (natch), but the suggestion is that the firm today is seeing more large opportunities than it had originally anticipated.

Like other co-investment funds (think Bain Capital), the Insight effort will have particularly favorable economics for limited partners. No word yet on a target.

According to March 31 data from CalPERS, Insight's current fund had a net IRR of 2.2 percent. But it didn't have any disbursements yet, so a better figure is probably the 23.2% net IRR from its 2005 vehicle.

This story originally appeared in The Term Sheet daily email. Sign up here.

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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