In the tech startup world, Vitruvian Partners – an independent private equity firm that specialises in middle-market buyouts, growth buyouts and growth capital investments in the UK and Northern Europe – is best known for its investment last year in online fast food ordering growth-stage startup Just Eat. That fund raise – led by Vitruvian – totalled $64 million and was joined by Index Ventures, Greylock Partners and Redpoint Ventures.
And clearly the Limited Partners who back Vitruvian like what it does – in terms of doubling down on growth with startups that are clearly showing significant traction in revenues, as Just Eat did pretty much from the word go. Because today it is announcing the closure of the fundraising of its second fund, Vitruvian Investment Partnership II (“VIP II”), at its self-imposed cap of £1 billion ($1.6 billion; €1.2billion).
Vitruvian’s first fund was closed in 2008 with commitments of €925 million. The firm says this second fund attracted “substantial commitments” from both existing and new investors. Who are they? Well, the usual suspects, from corporate and state pension funds, sovereign wealth funds, fund of funds, endowments and foundations across Europe, the US, the Middle East and Australasia.
Thus, in aggregate, Vitruvian is one of largest growth funds in Europe.
Vitruvian will now “continue to invest in partnership with entrepreneurial management teams in ‘dynamic situations’ characterised by growth and change in industries such as business services, information technology, media, telecoms, financial services and healthcare.
How much will they invest? They are looking at £25 million to £125 million in companies with enterprise values of £40 million to £250 million.
Mike Risman, one of the Managing Partners and Founders of Vitruvian, commented: “We would like to thank the entrepreneurs, management teams and investors…. with whom we have partnered in our first fund.”
One industry observer who wished to remain off the record commented that this fund raise now sends the signal that LPs are “back in the game” and far more upbeat about technology as an investment class than in previous years.
It also speaks to the fact that Vitruvian has gained a reputation as very much a partner alongside VC firms rather than a competitor.
Vitruvian has offices in London, Munich and Stockholm