FP Credit Partners III, L.P.

FP Credit Partners III, L.P. is the third opportunistic credit fund managed by Francisco Partners, a San Francisco-based technology-focused private equity and credit investment firm managing over $50 billion in assets. The fund closed at $3.3 billion in January 2025, representing a 48% step-up from its predecessor FP Credit Partners II ($2.23 billion) and reflecting growing institutional appetite for technology-focused credit strategies. Structured as a Cayman Islands limited partnership, FP Credit Partners III deploys capital globally across technology and technology-enabled business sectors through flexible credit instruments.

FP Credit Partners III leverages Francisco Partners' deep sector expertise across its entire platform to invest in a broad range of credit structures — from traditional senior secured loans and mezzanine debt to flexible capital solutions including convertible notes, structured equity, and hybrid instruments. The fund's opportunistic mandate targets technology, software, and technology-enabled businesses where Francisco Partners' operating networks, sector knowledge, and technical expertise provide a differentiated edge in credit underwriting and portfolio monitoring. This includes complex situations such as stressed credits, growth capital, rescue financing, and sponsor-backed capital solutions where generalist credit providers lack the domain depth to accurately assess software-specific risk factors such as recurring revenue quality, churn dynamics, and competitive moat sustainability.

FP Credit Partners III's $3.3 billion close reflects strong LP demand for Francisco Partners' credit franchise, which was established with the firm's inaugural credit vehicle and scaled through FP Credit Partners II. The fund builds on a track record of deploying flexible capital alongside the firm's flagship buyout strategies, giving the credit team proprietary deal flow, operational insight into borrowers, and deep relationships throughout the technology ecosystem. Francisco Partners manages assets across both equity and credit in the technology sector, providing credit portfolio companies with potential equity upgrade paths and operational support resources that are unavailable through traditional lending channels.