Strattam Capital said Feb. 26 that it second fund closed on $230 million. Fund II plans to make seven to nine majority equity investments each ranging from $20 million to $50 million in companies across the enterprise software, digital infrastructure and technology-enabled services sectors.
AUSTIN, Texas and SAN FRANCISCO, Feb. 26, 2019 /PRNewswire/ — Strattam Capital, a private equity firm focused on founder-led business information technology (IT) companies, today announced the closing of Strattam Capital Investment Fund II, L.P. (“Fund II”) at $230 million. With strong support from both existing and new investors, Fund II closed ahead of its target and builds on the firm’s 2015 inaugural fund of $109 million. Strattam also manages in excess of $100 million in co-investment vehicles, bringing total capital commitments since Strattam’s inception in 2013 to more than $450 million. With the new fund, Strattam will continue to implement its unique, fit-for-purpose engagement strategy, which helps portfolio companies overcome growth constraints and reach their true potential.
“My colleagues and I would like to thank our investors for the trust they have placed in us and in the potential of our business IT-focused value-creation process,” Bob Morse, Managing Partner of Strattam, said. “We bring more than capital to our investments – the Strattam Essentials program and our Executive Advisors help founder-owners overcome the challenges constraining their companies’ growth. The 18 founder-led businesses that have chosen to become part of the Strattam portfolio are a testament to the positive response to the Strattam approach, and Fund II enables us to continue this proven and repeatable strategy.”
Strattam believes that the trends towards outsourcing, utilization of software as a service (“SaaS”), consumerization of enterprise IT, and Big Data analytics are causing secular shifts in the use of IT by businesses. As demonstrated in each of its investments to date, Strattam’s process and engagement model are designed to accelerate portfolio growth by addressing the common hurdles to scaling. Founders align goals with Strattam via the 5-Point Plan process prior to signing, and Strattam then supports implementation through the Strattam Essentials, a fit-for-purpose package of process tools and knowledge to address opportunities in key business areas. Through active involvement in its companies’ operations, strategy and governance, Strattam seeks to unlock growth potential and scale, and, in turn, achieve superior value creation.
Strattam’s team comprises 11 professionals with diverse talents and backgrounds across the firm’s target market segments. The Strattam team is supported by the firm’s Executive Advisors, who specialize in company improvement, and Advisory Board members, who guide strategy and serve as independent directors across the portfolio. Strattam’s network is further enhanced by its Founders Group, which comprises more than 50 technology executives who are investors in the Strattam funds and play an important role in Strattam’s sourcing and diligence processes.
Fund II was activated and began investing in February 2018 with its majority investment in SSB, a data management and analytics provider serving the sports and education industries. Fund II plans to make seven to nine majority equity investments each ranging from $20 million to $50 million in established companies with high-quality products across the enterprise software, digital infrastructure and technology-enabled services sectors. Strattam’s portfolio companies typically have $10 million to $30 million in revenue and enterprise values of up to $80 million at investment. In addition to SSB, Fund II has made control investments in Rock Solid Technologies, a SaaS-based government software and IT services company, and Acendre, a cloud-based talent management platform for regulated industries.
Notable prior investments include Doxim, a customer engagement platform for community banks, and Blacksmith, a provider of trade promotion management software to leading CPG companies.
Weil, Gotshal & Manges LLP served as legal counsel in the formation of Fund II. UBS Securities LLC was engaged as placement agent.
About Strattam Capital
Strattam Capital is a private equity firm with an innovative and focused approach to scaling and unlocking growth at established business IT companies. Our team’s alignment and engagement practices are designed to deliver a better future for our companies. Strattam has offices in Austin and San Francisco. To learn more, please visit www.strattam.com.
SOURCE Strattam Capital