ABS Capital Raises $500M for Fund VII, Above Target

ABS Capital announced today that it has raised $500 million for its latest growth equity fund, ABS Capital Partners VII, which closed $100 million above target.

The 21-year-old firm, which has offices in Baltimore and San Francisco, raised $420 million for its previous fund, which closed in 2009.

Managing General Partner Phil Clough told me last week that the firm added new LPs, which helped to make the fund size larger than before. New LPs included Top Tier Capital and The Wellcome Trust while returning LPs consisted of Abbott Capital, Johns Hopkins University and WP Global.

Clough wouldn’t disclose returns of the previous funds, but he said, “We talk with our LPs about being north of 2x and that’s where we’ve been.”

ABS, which makes late stage bets in business and education services, health care, media and communications and technology sectors, last saw one of its copanies go public in April 2009 when Rosetta Stone in a $115 million IPO. Meanwhile, recent sales of the firm’s portfolio companies include Innovation Interactive (bought by Dentsu Inc. of Japan in January 2010 for an undisclosed amount), Cobalt Group (sold to Automatic Data Processing Inc. doe $400 million in mid-2010), Metastorm (acquired by OpenText Corp. for $182 million in February 2011) and Restaurant Technologies, Inc. (purchased by EQT Infrastructure Fund in April 2011 for an undisclosed amount).

No partnership changes have come with the latest fund close. With Fund VII, Clough said that the firm has now been together for four funds, or 11 years.

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