Insight Venture Partners, a private equity firm whose investments include Twitter and ExactTarget, is back in the fundraising market. Not for a general vehicle – that would be silly, since it hasn’t even called 60% of the $1.25 billion it raised in 2007 – but rather for a co-invest vehicle that would support larger investments.
No huge surprise that Insight is doing this, considering that it also had a co-invest sidecar to its prior fund. The difference, however, is that the previous effort was raised in concert with the general fund. This one comes three years later. Insight isn’t commenting (natch), but the suggestion is that the firm today is seeing more large opportunities than it had originally anticipated.
Like other co-investment funds (think Bain Capital), the Insight effort will have particularly favorable economics for limited partners. No word yet on a target.
According to March 31 data from CalPERS, Insight’s current fund had a net IRR of 2.2 percent. But it didn’t have any disbursements yet, so a better figure is probably the 23.2% net IRR from its 2005 vehicle.
This story originally appeared in The Term Sheet daily email.
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