Allegis closes on initial $100 mln for sixth fund

Allegis Capital has closed on an initial $100 million of capital for a sixth fund that it says will focus exclusively on the cyber-security sector.

The firm, a long-time security investor, said its target for Allegis VI is $150 million.

“We’re just turning hard into cyber security,” said Managing Director Robert Ackerman. “It’s an area where experience matters.”

The new fund, when completed, will represent a modest increase from Allegis’ $130 million fifth fund. Yet it is a substantial shift for the firm. About 20 percent of Allegis’ previous fund went toward security investing.

Bob Ackerman - web version
Robert Ackerman, Managing Director, Allegis Capital

Now, essentially all of the new fund’s resources will target the space and related companies in data analytics, virtualization and the Internet of Things.

Allegis, an early-stage investor, typically focuses three-quarters of its activity on Series A deals with the remainder divided between seed and B rounds.

Already, two investments have been made from the new fund. The firm, which has offices in Palo Alto, Calif., and San Francisco, has backed E8 Security, a threat detection company, and Signifyd, a fraud detection company.

Exits at the firm include IronPort Systems, which was acquired by Cisco Systems for $830 million, and Solera Networks, which Blue Coat Systems bought in 2013.

In addition to Ackerman, managing directors of the new fund are Spencer Tall and Pete Bodine.

Photo illustration courtesy of Shutterstock.

Photo of Robert Ackerman courtesy of Allegis Capital.