Less than three years after completing fundraising on its previous vehicle, Veritas Capital has closed its sixth flagship fund on $3.55 billion, topping a $3 billion initial target. That makes it the largest new buyout fund closed in the US so far this year, according to the PitchBook Platform.
Veritas will continue its strategy of investing in tech-focused companies in the middle market that work with customers in government and commercial sectors. The firm’s latest major purchase, for instance, was a $690 million deal last month for a government IT services business formerly owned by Harris.
The new vehicle also represents a major step up in size from its predecessor, which raised $1.875 billion during 2014. That continues a trend for the firm, as Veritas Capital Fund V was also a major increase over its predecessor, which closed on about $1.2 billion in 2010. One likely reason for the firm’s continued fundraising success is strong returns: With a 17.4% IRR as of 3Q 2016, Veritas Capital Fund IV ranks in the top quartile of its benchmark.