JMI doubles with $600m fund close

US firm JMI has doubled the size of its previous fund – and its capital under management – with the closing of its sixth fund on $600 million.

US firm JMI Equity has raced to a close of its sixth fund on $600 million (€437 million) and almost doubled its capital under management, just two months after launching the private placement memorandum.

JMI Equity Fund VI is also double the size of the software- and business services- focused firm’s last fund, which closed in June 2005.
Harry Gruner, general partner and co-founder of JMI, said: “We had nearly 100 percent re-up rates from our existing limited partners and we had good interest from new limited partners.”

Returning limited partners include the Pennsylvania State Employees’ Retirement System, which approved a commitment of up to $50 million, as well as the Los Angeles County Employees Retirement Association and Pathway Capital Management.

New investors include Ohio State University and the New Mexico Public Employees Retirement Association.

The fund had a first close on just over $400 million in June, and made its first investment earlier this month in Appriss, a provider of software applications to criminal justice and law enforcement agencies.

JMI’s sixth fund will make around 20 investments of $10 million to $50 million in multi-stage software and business services companies.

The 15-year old firm recently had a huge hit with the $3.1 billion sale of digital marketing firm DoubleClick to Google. Once the sale is completed, JMI will have made roughly an 8x return on the $20 million it invested in 2005.