Bessemer closes $1bn, third party fund

New York-based Bessemer Venture Partners has closed its latest fund, the first backed by outside investors, on more than $1 billion.

New York-based Bessemer Venture Partners has closed a new fund on more than $1 billion (€724 million). It is the firm’s first fund to include outside limited partners in addition to its longtime backer Bessemer Securities, the Phipps family office.

The new fund’s limited partners include family offices, universities and foundations and was “significantly oversubscribed”, according to a statement.

“We felt as our platform had scaled globally, we had an ability to put some more capital to work,” said Bessemer managing partner Rob Stavis. “So a secondary bucket of capital made sense to us.”

Approximately $350 million of Bessemer Venture Partners VII is earmarked for India, where the firm opened offices three years ago.

“We saw opportunities in India that were among the most interesting deals we were seeing globally,” Stavis said.

Stavis defined three sectors of particular interest to Bessemer in India. Bessemer has already invested heavily in companies that can service the emerging Indian middle class, as well as companies involved in infrastructure buildout. The firm is also looking to target companies that export knowledge-based service products, such as engineering and financial services. Bessemer has made 12 investments in India to date, and Stavis estimated that the new fund will add another 20 companies to the new fund’s India portfolio.

In conjunction with the fund’s close, Bessemer has added several members to its India team, including Anil Sarin, former co-head of equities at Prudential ICICI Asset Management, Sridar Iyengar, former chairman and chief executive officer of KPMG India, Mandeep Khaira, a former executive at Dell India, and Yagnesh Sanghrajka, former global chief financial officer for HTMT.