Insight Partners, along with HarbourVest Partners and Lexington Partners as leads of a group of LPs, closed its Continuation Fund II with $1.3 billion.
The new fund will acquire stakes in software companies across six Insight funds in a bid to support their growth while providing liquidity to Insight Partners LPs that choose whether to participate in the transaction or take the liquidity.
“Insight’s Continuation Fund II is a vehicle we are proud to launch, allowing us to extend our relationship with portfolio companies from earlier funds, while enabling us to provide the option of more near-term liquidity to our LPs,” said Ian Sandler, managing director and COO at Insight Partners. “We are grateful for the shared conviction in the value of this portfolio with HarbourVest and Lexington and the continued commitment by a large portion of existing LPs in these specific assets. We look forward to working together to see these companies reach their fullest potential.”
The new continuation vehicle follows the February 2022 closing of Insight Partners Fund XII with over $20 billion, which made it the New York-based firm’s largest close ever. As of the end of 2022, the firm had $75 billion and had invested in more than 600 companies worldwide with over 55 portfolio companies issue and IPO. Leveraging one of the software industry’s largest data sets, Insight Partners’ pattern recognition and rigorous diligence process is the backbone of its investment approach and fuels each fund, officials said.
“HarbourVest is pleased to have expanded our long-standing partnership with Insight in co-leading the Continuation Fund II transaction,” said Mike Pugatch, managing director at HarbourVest in Boston. “Our experience executing these creative secondary liquidity solutions, and Insight’s deep experience in the sector aligned well around this portfolio of high-quality software businesses.”
HarvourVest itself raised $4.2 billion for its sixth co-investment fund last year.
New York-based secondaries specialist Lexington Partners has been growing its offering set as well. “We are pleased to partner with Insight, with whom we have a long-standing relationship, to provide additional capital to maximize the value of this portfolio of companies,” said Jennifer Kheng, partner at Lexington Partners. “We believe this continuation vehicle offered strong alignment and a transparent option for investors to access liquidity.”
Lazard acted as financial adviser and Willkie Farr and Gallagher served as legal counsel to Insight Partners. Ropes & Gray served as legal counsel to HarbourVest and Lexington.