Fidelity closes Venture Growth Fund II at nearly $760 million

Fidelity Investments raised nearly $760 million from high-net-worth individuals, family offices, registered investment advisors and other investors in the Nov. 2 close of Fidelity Venture Growth Fund II, Alternatives Watch first reported. Most of the capital came in about two months.

The fund makes direct, minority investments in mid- to late-stage private companies around the world, with an emphasis on the U.S. and the technology, media and telecommunications sectors. Karin Fronczke, global head of private equity investments in Fidelity's equity division, manages it, as she did Fidelity Venture Capital Fund I, the $250 million 2024 predecessor that took four months to raise and was fully invested less than two years after its final close.

For advisors, Fund II is a second Fidelity vehicle to diligence for clients seeking late-stage private-company exposure. It closed at roughly three times the predecessor's size and gathered its capital in about half the time. Both funds share the same portfolio manager.

Fronczke, who joined Fidelity in 2020 and is based in Boston, has overseen more than $24 billion in investments in private companies for the firm, including SpaceX, OpenAI, Anthropic, CoreWeave, Anduril, Databricks, Revolut and Canva. The private investment team works from Boston, Silicon Valley, London and Hong Kong and draws on more than 300 equity investment professionals for due diligence.

Over nearly two decades, Fidelity funds have deployed more than $40 billion across more than 400 private companies, with about 250 exits, most often through IPOs, according to the firm. The venture close follows Fidelity's September close of Fidelity Real Estate Debt Opportunities Fund II, which raised about $451 million.