Software-Focused TVC Capital Raises $75M, Emphasizes Value Creation

9/14/12Follow @bvbigelow

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.”

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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