Top Tier Capital Partners raises $925m to invest in its Velocity strategy

Top Tier Capital Partners raises $925m to invest in its Velocity strategy

Published: 05-08-2022 11:55:00 | By: Pie Kamau | hits: 1493 | Tags:

Top Tier Capital Partners (TTCP) announced it has closed on $925 million in new capital commitments for Top Tier Venture Velocity Fund 4 (VVF4), as well as a collection of separate accounts, one of which focuses on late-stage climate tech co-investments. As a well-established venture investment firm, TTCP invests primarily in category-leading venture funds and high-growth, expansion-stage software and technology startups across the globe. With these new closings, the firm's total regulatory assets under management increases to more than $8.1 billion.

Led by Managing Directors Garth Timoll, and Sean Engel, the new capital commitments will be invested as part of the firm's Venture Velocity Strategy. The total amount includes $503.5 million for VVF4, which was raised with the goal of continuing TTCP's prior achievements of investing directly into companies as either a co-investor or secondary buyer as well as buying venture capital fund interests in the secondary marketplace. The remaining $421 million to be invested from related separate accounts will be used primarily for investing alongside the Velocity program. Velocity's strategies include investing in vehicles such as venture capital fund secondaries, general partner restructurings, continuation funds, portfolio strip purchases, direct co-investment, secondary activity, and tender offerings.

The closes follow a highly active 2021, where TTCP saw 89 IPOs across the firm's entire investment portfolio. As one of the longer-historied asset managers in the space, TTCP has longstanding relationships with some of the most sought-after venture fund managers in the world. Led by a dedicated team of investors, the Velocity strategy was initially developed to focus on the investment profile of fund-of-funds, including on investments of a shorter duration than a more typical fund-of-funds strategy. The Velocity strategy has evolved over the last decade into its own dedicated set of investment funds and, for example, has invested in growth companies such as Anaplan, Draftkings, and Smartsheet, and done deals like the continuation fund TTCP led on behalf of B Capital Group, earlier this year.

Garth Timoll, Managing Director, Top Tier Capital Partners: "We're humbled by the opportunity to continue to invest in the Velocity strategy, and proud of the franchise we've built. Despite the difficult environment, we are excited about having closed a new fund and we believe that our Venture Velocity strategy is still an attractive place for Top Tier to invest for the long and short-term."

Sean Engel, Managing Director, Top Tier Capital Partners: "In the current environment, we believe it's both financially strategic and morally important to work on increasing our investing in climate-focused initiatives. Our history with our Venture Velocity investment strategy across prior funds enables us to do this, and we're pleased to be in a position where we can help directly support companies tackling one of the biggest problems of our time."

In addition to the closings, TTCP is also announcing some internal promotions and the official opening of its new Boston office, located at 101 Arch St., 18th Floor, Boston, MA 02110, with Managing Director Eric Fitzgerald leading. Chief Financial Officer Promit Bhattacharya, who previously led finance and operations at multi-billion dollar funds including SVB Capital, WestBridge Capital, and Hall Capital Partners, has been tapped for the additional role of COO. Previously Managing Director with Capstone Partners, Brian DeFee was hired as Director of Corporate Development EMEA, to lead business development in Europe; he is now the firm's Head of Capital Partnerships and Solutions.