As lines blur between asset classes and their participation in venture capital deals, it should come as no surprise that one of the oldest hands in crossover investing took advantage of the current market to close the largest fund in its history.

Technology Crossover Ventures closed on $3 billion in a new TCV VII fund to continue its focus on growth equity investments in later-stage technology companies, including recapitalizations and PIPE deals. The new fund brings the firm's total capital under management to about $7.7 billion, which will help TCV to hold its own as tech-focused buyout firms such as Silver Lake Partners, Francisco Partners and others remain active, while traditional buyout firms and even hedge funds increasingly participate across the venture spectrum.

Just about every decent-sized late-stage venture round now includes a hedge fund or two, essentially playing in the space TCV had largely to itself for several years following its formation in 1995. And with more traditional venture funds such as Mayfield and 3i specifically targeting late-stage deal flow, TCV felt the need to maintain its position with a large commitment, raising more than double the amount of its $1.4 billion sixth fund of November 2005.

The deal is the largest venture fund to close this year. But rather than doubling its activity, TCV hopes that the new fund can stretch out over four years to reduce the burden of raising funds every couple of years, as it has in the past. TCV goes into the new fund with the same roster of general partners and will continue to target deals in the Internet, financial technology, infrastructure and communications, software and services, and health care IT sectors. - Clifford Carlsen

See Nov. 6 story from Tech Confidential