PSG Closes Two Funds Totaling $8 Billion
Sixth North American Flagship Fund Closes at $6 Billion
Continuation Fund, PSG Sequel, Closes at $2 Billion
PSG, a leading growth equity firm that specializes in partnering with software and technology-enabled services companies to capitalize on transformational growth, today announced that it has closed two new funds, totaling $8 billion in capital commitments.
PSG's sixth North American flagship fund, PSG VI, closed with $6 billion in capital commitments, surpassing its $4.7 billion predecessor fund. The fund received commitments from new and existing investors, including state and corporate pensions, sovereign wealth funds and family offices.
In addition, PSG closed a continuation fund, PSG Sequel, with $2 billion in capital commitments from blue-chip institutional investors, including Canada Pension Plan Investment Board (CPP Investments), GIC, StepStone (NASDAQ:STEP) and funds managed by Hamilton Lane (NASDAQ:HLNE). Through PSG Sequel, PSG is retaining its stakes in six portfolio companies, continuing to support their growth while providing its fund limited partners optionality to remain invested in these companies for the next phase of growth or receive liquidity at an attractive valuation. Assets in the fund are Arcoro, LivTech, Nextlane, Semarchy, Singlewire Software and Transit Technologies.
With a team of 269 professionals, including 160 investment professionals, and complemented by a group of 39 Senior Advisors, PSG makes majority and minority investments in growth-stage software and technology-enabled services companies. Since its founding in 2014, PSG has executed 75 realization events and grown to over $28 billion in assets under management. The firm has a deep bench of seasoned software investors, leaders and functional experts dedicated to working alongside portfolio company management teams to identify and navigate transformational growth opportunities. Over the years, PSG has thoughtfully expanded its footprint beyond its Boston headquarters to include offices in London, Kansas City, Paris, Madrid and Tel Aviv. The firm closed its second European fund in 2023 with more than €2.6 billion in capital commitments.
"We're eager to put PSG VI to use. As our team tracks the progress of over 600,000 companies through our proprietary AI-powered sourcing engine, we're excited about what we are seeing in the next generation of software companies, particularly in AI, that are transforming markets and creating new ones," said Mark Hastings, Co-Founder and CEO of PSG. "Through PSG Sequel, we're able to extend our partnerships with some of our portfolio companies that we believe have vibrant chapters of growth ahead. We're thrilled to be able to continue to support them as they scale to the next level and provide our existing investors with an opportunity to participate."
"We have always described our investment strategy as ‘small software at scale,' which refers to our commitment to our sweet spot, investing in growth-stage software businesses, even as our fund sizes increase," said Peter Wilde, Co-Founder and Chairman of PSG. "We're grateful for the support of new and longstanding investors as we continue to apply our expertise in a market where our team thrives and sees tremendous opportunity to create value."
Throughout its history, PSG has invested in 19 companies that have AI-driven business models. In addition, the firm continuously partners with its portfolio companies to help them identify ways to leverage AI to create value.
About PSG
PSG is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed over 150 companies and facilitated over 500 add-on acquisitions, PSG brings extensive investment experience, deep expertise in software and technology, and a firm commitment to collaborating with management teams. Founded in 2014, PSG operates out of offices in Boston, Kansas City, London, Madrid, Paris and Tel-Aviv. For more information, visit www.psgequity.com.
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Jackie Ryan
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