Francisco Partners (FP) has successfully closed its third credit fund, FP Credit Partners III, with total capital commitments reaching $3.3 billion. This amount exceeds the initial target of $2.3 billion and surpasses the $2.2 billion raised by its previous fund in October 2021.

The closing of FP Credit Partners III comes on the heels of Thoma Bravo's third credit fund, which raised $3.6 billion, highlighting the increasing competition and investor interest in credit strategies focused on technology. FP Credit Partners III will continue the firm’s strategy of investing in various structures, including traditional credit financing and flexible capital solutions.

Scott Eisenberg, Head of Credit and Structured Solutions at Francisco Partners, emphasized the firm’s commitment to providing tailored financing options for technology-driven companies. Since launching its credit business in 2018, FP Credit has established itself as a reliable partner for companies seeking growth and strategic financing.

The fund attracted a diverse array of institutional investors globally, with significant commitments from major pension funds. Noteworthy contributions included $125 million from the State of Wisconsin Investment Board and the Teachers’ Retirement System of Louisiana, $100 million from the California State Teachers’ Retirement System, and $500 million from the New York State Common Retirement Fund through an aggregator and a fund-of-one co-investment sidecar.

FP’s credit platform has already backed prominent companies such as Zotec Partners, Zocdoc, and Eventbrite, showcasing its ability to support high-profile technology firms. With the closing of this latest fund, Francisco Partners has raised over $50 billion in capital since its inception 25 years ago and has invested in more than 450 technology companies, reinforcing its status as a leading investor in the tech sector.