TVC Capital, a boutique private equity firm based in San Diego, has raised $75 million for its second growth equity and buyout fund. The firm targets software companies and software-enabled service businesses that are profitable or growing to profitability, provide customers with a “mission-critical” service or product, and are seeking capital to accelerate growth.
TVC said limited partners in its new fund including existing and new investors, including private equity “fund of funds,” institutional asset managers, and family offices. The firm did not name any of its investors.
The firm realized two successful exits from its first fund last year—the sale of Accordent Technologies to Pleasanton, CA-based Polycom (NASDAQ: PLCM) in a $50 million cash acquisition, and the sale of Del Mar Datatrac to Pleasanton, CA-based Ellie Mae (NYSE: ELLI) in a deal valued at more than $25 million. Current investments include Seattle-based Mercent, which provides retailing data and intelligence for online merchants, and San Diego-based iQ for Business.
TVC Capital was founded in 2006 by Jeb Spencer and Steven Hamerslag. Spencer has told me the firm’s investment philosophy emphasizes value creation by working “in the trenches” with management teams. In a statement, the managing partners said, “We are very focused on continued strong performance by investing with strong management teams who have created unique businesses with great long term potential.”
Author: Bruce V. Bigelow
In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here.
Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University.
Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.
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