Frontier Capital has closed its oversubscribed fifth fund at $700 million, beating its $500 million. Frontier Fund V will focus on lower middle-market software and tech-enabled business services companies. Lazard was the placement agent while Choate Hall & Stewart provided legal counsel.
CHARLOTTE, N.C. (Dec. 6, 2017) – Frontier Capital, a Charlotte-based growth equity firm focused exclusively on software and tech-enabled business services companies, today announced the close of its significantly oversubscribed $700 million Frontier Fund V. This is the fourth consecutive oversubscribed fund raised by Frontier and brings the total capital commitments received since Frontier’s inception in 1999 to $1.5 billion.
The announcement marks the successful conclusion of a six-month fundraising effort launched in May 2017 with an initial target of $500 million. The capital raise reflects strong demand from both new investors and investors in existing Frontier funds.
“Frontier is extremely pleased at the response to Fund V and we appreciate the trust and confidence that our limited partners have placed in Frontier and its ability to drive growth and create enterprise value for the companies we partner with,” said Richard Maclean, managing partner at Frontier Capital. “We have added a number of prominent institutional investors to our already strong institutional investor base, many of whom have been with us since our start.”
As a leading growth equity partner for lower middle-market software and tech-enabled business services companies, Frontier will continue to implement its “Smart Growth” strategy, which seeks to transform high-growth companies into market leaders through shared values, alignment and a thoughtful and measured approach. Frontier Fund V has the ability to invest $15 million to $75 million per position.
“While we will maintain our focus on minority and majority stakes in growth-stage, lower middle-market software and tech-enabled business services companies, Fund V will enable us to make larger investments and provide the technology, talent and other resources that we believe the companies we invest in need to succeed,” said Andrew Lindner, managing partner at Frontier Capital.
Lazard acted as placement agent for Frontier Fund V and Choate Hall & Stewart provided legal counsel.
About Frontier Capital
Frontier Capital is a Charlotte-based growth equity firm focused exclusively on software and technology-enabled business services companies. Founded in 1999, Frontier partners with management teams that it believes can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity. The firm makes minority and majority equity investments in high growth companies. For more information, please visit frontiercapital.com.