Boston-based Providence Strategic Growth, the growth affiliate of Providence Equity Partners, has closed its fourth fund at a hard cap of $2 billion.The limited partners of PSG Fund IV included state pension funds, sovereign wealth funds, family offices and high-net worth individuals. PSG makes growth equity investments in lower-middle market software and technology-enabled service companies.
BOSTON–(BUSINESS WIRE)–Providence Strategic Growth Capital Partners L.L.C. (“PSG” or the “Firm”), an affiliate of Providence Equity Partners L.L.C., a premier private equity investment firm with over $45 billion in aggregate capital commitments, announced today that it closed its fourth fund (“PSG Fund IV”) with $2.0 billion of limited partner commitments. PSG Fund IV, which closed at its hard cap and was oversubscribed, received commitments from existing and new investors, including state pension funds, sovereign wealth funds, family offices and high net worth individuals. The closing of PSG Fund IV increases the amount of PSG’s aggregate capital commitments to more than $4.0 billion.
Since its inception in 2014, PSG has successfully partnered with founders and entrepreneurs to build category-leading software and technology-enabled service companies. PSG Fund IV will continue the Firm’s ‘buy and build’ strategy, which has resulted in a strong track record of efficiently scaling businesses through organic and inorganic growth strategies. PSG’s talented team of 58 growth equity investment professionals have made 46 platform investments across its portfolio and helped its portfolio companies complete over 200 add-on acquisitions. The team has more than doubled in size in the past year, and in July 2019, PSG relocated its headquarters to Boston.
To date, PSG Fund IV has made four investments: Validity (a leading provider of software solutions for customer data management); GlobalTranz (a technology and third-party logistics solutions company); Chatmeter (a leader in local search marketing and reputation management for multi-location businesses); and a software platform that facilitates the transportation of passengers, goods and workers.
“The closing of PSG Fund IV is a significant milestone and a recognition of the tremendous growth PSG experienced in the last year,” said Mark Hastings, Chief Executive Officer of PSG. “The continued success of our platform is a testament to our exceptional team’s deep industry expertise, broad resources and disciplined approach to helping founders and entrepreneurs expand their businesses and equity value.”
Peter Wilde, Chairman of PSG, added, “PSG’s ability to attract a diversified base of limited partners is a strong endorsement of our strategy and reputation as a best-in-class growth equity partner. The growth of our platform and robust investor demand for this fund positions PSG to continue to pursue and capitalize on exciting investment opportunities that produce outstanding results for investors and partners.”
About Providence Strategic Growth Capital Partners L.L.C.
Providence Strategic Growth (“PSG”) is an affiliate of Providence Equity Partners (“Providence”). Established in 2014, PSG focuses on growth equity investments in lower middle market software and technology-enabled service companies. Providence is a premier global asset management firm that pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 180 companies and is a leading equity investment firm focused on the media, communications, education and information industries. PSG is headquartered in Boston, MA, while Providence has offices in Providence, New York and London. For more information on PSG, please visit www.provequity.com/private-equity/psg, and for more information on Providence, please visit www.provequity.com.