Buyout firm Vector Capital to raise more than $1 billion

Vector Capital also is about to bust its target for a new fund, with plans to finish raising more than $1 billion within the next few weeks, according to PE Wire.

A regulatory filing showed that the San Francisco-based firm had secured $691.5 million through June 7.

This is a very large amount for a firm that had previously managed a $350 million fund, but then large investors are seeking to put their money somewhere, and private equity firms like Vector are drawing a lot of it.

According to the report:

The firm closed its prior fund on around $350 million, and decided to bulk up after more and more of its deals required large co-investments from limited partners. For example, Vector provided a $60 million equity check when taking Corel Corp. private in August 2003 – but only $20 million came from Vector’s actual fund. In other words, it decided to raise additional fund capital so all of its LPs could gain substantially from positive returns, rather than just those with co-investment programs.

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