(Bloomberg) -- Activant Capital is seeking to raise at least $500 million for a new growth-equity fund, according to a person with knowledge of the matter.
The firm has begun early-stage discussions with investors ahead of a formal launch of Activant Capital V LP, and is targeting a first close by January, said the person, who requested anonymity as the talks are private.
Greenwich, Connecticut-based Activant has told investors it sees “compelling opportunities” amid a softening in consumer spending, hiring freezes and layoffs in the technology sectors and beyond, lowering of earnings targets, and down-rounds or increased structure in financing of closely held companies.
Founded in 2015, the firm, which has offices in New York, Berlin and Cape Town, is led by founder Steve Sarracino. Through funds which have a 15-year life, it seeks to make bets on fast-growing technology companies, focusing on sectors including commerce, supply chain, financial technology and workflow, its website shows.
Activant, which targets annualized net internal rates of return of 30%, posted returns of 35% and 80% as of June 30 for vehicles raised in 2017 and 2019, according to an investor presentation reviewed by Bloomberg. Its $400 million fourth vehicle, which was raised in 2021 and is still being invested, delivered a net IRR of 6% as of June 30.
An Activant representative declined to comment.
The firm has backed companies including software-maker Celonis; fraud, identity, and payments infrastructure platform Sardine; one-click checkout commerce startups Bolt and Deuna; South Korean agriculture and food trading platform Tridge; and mortgage lender Better. Deliverr, one of Activant’s portfolio companies, was acquired by Shopify Inc., while another, Turvo, was bought by Lineage Logistics.
Investors in prior Activant funds include the State of Wisconsin Investment Board, according to data compiled by Bloomberg.
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