Insight Venture Partners is expected to hold a first close this month on its ninth flagship fund, which has been in the market targeting $2.75 billion, according to two people with knowledge of the fundraising.
Insight Venture also has been raising a co-investment fund targeting $800 million, which will likely hold a close in December, said one of the sources, an LP who has heard the fund pitch. The co-investment fund allows Insight Venture to expand its focus to larger investments, the firm said in a statement earlier this year.
The funds are expected to hold additional closes through early 2015, the LP said. Insight Venture did not respond to a request for comment.
The funds will target minority and control growth investments in software and Internet-focused companies.
Insight Venture closed its eighth flagship fund on $2.57 billion in May 2013 and its third co-investment fund in May of this year on $510 million. Fund VIII is at least 75 percent drawn, while Insight Venture Partners Coinvestment Fund III is about 80 percent deployed, the LP said.
Insight’s eight fund posted a negative 11.31 percent IRR as of March 31, according to the Washington State Investment Board, an investor in the fund. Performance information on the co-investment fund was unavailable.
Earlier this month, Insight Venture announced the hiring of Nick Sinai as a venture partner. Sinai was previously the U.S. Deputy CTO. Prior to his stint in the government, Sinai worked at Lehman Brothers Venture Partners (now Tenaya Capital) and Polaris Partners.
Managing Director Larry Handen earlier this year left Insight Venture to join Macquarie Capital as a senior managing director in the U.S. principal transactions group.