Francisco Partners Raises $21 Billion in New Funds Amid Tech PE Slowdown
Technology-focused private equity firm Francisco Partners has raised a total of $21 billion across two new funds, defying the broader slowdown in tech-oriented fundraising. The flagship fund, Francisco Partners VIII, secured $16.4 billion—surpassing its target—and Agility IV gathered $4.6 billion. Institutional investors such as Boston Retirement System and Calpers backed both vehicles. The firm plans to deploy capital across sectors like healthcare IT, education technology, cybersecurity, fintech, and industrial software. Francisco Partners emphasized that while AI is driving innovation in these areas, adoption remains slow due to regulatory barriers and high switching costs for customers. The fund will also target founder-owned businesses and high-growth tech companies. The fundraising success contrasts with a broader decline in capital raised by technology-focused private equity funds this year compared to previous years like 2025 and the peak of 2022.