Advent International: raises $4B

  1. Advent Tech II reaches $4 billion hard cap and surpasses its $3 billion target in just six months
  2. The new fund is twice the size of Advent Tech’s predecessor and has made investments in 20 companies since its inception in 2019.
  3. Advent’s cross-sector network, global reach and ecosystem of resources for company building will be used by a dedicated tech team to assist businesses in scaling up.

PALO ALTO (New York, New York, Boston, and London, December 9, 2021) – Advent International, one the most experienced and large global private equity investors in the world, announced today that it had successfully raised funds for Advent Global Technology II (“Advent Tech II”) its second dedicated technology fund. Advent Tech II exceeded its $3 billion target by 33% and reached $4 billion hard cap after six months on the market.

Advent Tech II is twice the size of the previous fund. It has invested in 20 cybersecurity, software and data companies since its inception in 2019.1 Advent Tech II follows the same strategy as its predecessor fund. The fund will support innovative companies that are led by visionary management teams. They will focus on high-growth acceleration opportunities and complex transformations. It will invest mostly in North America and Europe, with a few exceptions in other global markets in which Advent is already present. The new fund will be managed by a dedicated team of 27 technology specialists, based in Palo Alto and New York, Boston, Boston, London, and Boston.

Bryan Taylor, the Managing Partner and head technology of Advent Tech, stated that Advent Tech was launched two years ago. “The strong support we received from both existing and new investors in the second fund is a testament to our strategy and approach. We believe that we are uniquely positioned to assist businesses in innovation and growth with our global reach, extensive cross-sector network, and large ecosystem of resources for company-building.

David Mussafer (Managing Partner, Co-Chair of Advent’s Executive Committee) stated that “Core to the strategy is two underlying beliefs.” “First, tech is horizontal and can impact virtually every industry. The second is that tech is a single ecosystem where disruption and incumbents can be understood. These beliefs allow us to partner with today’s most promising innovators with the aim of making them market leaders of tomorrow.

Deep cross-sectoral network

“Our 30-year investment history in multiple industries gives our knowledge and relationships the ability to help tech companies disrupt these markets,” stated James Brocklebank (Managing Partner and Cochair of Advent’s Executive Committee). “At the exact same time, our tech team gives us greater visibility into disruption in all our sectors and improves how we can apply technology-driven value generation plans in our portfolio businesses worldwide.”

Flexible capital, one team

The tech team also invests in the new fund and makes technology investments in Advent’s $17.5 million Global Private Equity IX (“GPE IX”) fund. Lauren Young, a managing director on Advent’s tech team, said that this gives them the flexibility to invest in a wide range of deal sizes and types. “With the technology fund, we can make smaller investments – starting at $50 million of equity – in early disruptors. We can invest $2 billion in market-leading incumbents if we combine GPE IX.

Eric Wei, a Managing director on Advent’s tech team, stated that “the tech ecosystem thrives because of a constant cross-pollination between ideas, talent, and customers.” “Having one team that has extensive experience in all aspects of the growth continuum allows us to identify and support ambitious companies whether they are seeking a minority round or a billion dollar investment to accelerate growth or major transformation.

Strong investment momentum

Advent Tech has already made four investments in Advent Tech II, building on the momentum.2 It led an investor group that purchased McAfee Corp. (Nasdaq : MCFE), a world leader in online security, for more than $14 billion.3 Tekion is a SaaS platform that uses cloud technology to protect the automotive retail sector. The fourth investment by the fund has yet to be announced.

Diverse investor base

Advent Tech II has received commitments from diverse institutional investors worldwide. These include endowments, foundations and family offices, public pension funds, corporate pension funds, insurance companies, corporate pension funds, sovereign wealth funds, fund of funds, foundations, sovereign wealth funds, family offices, sovereign assets funds, funds or funds of funds, as well as public pension funds, endowments and foundations. Advent’s existing investors accounted for more than 90% of the capital committed, while a few new investors provided the remainder.