Serent Capital has raised its inaugural fund with $250 million in capital commitments. The San Francisco-based firm was founded last year with a focus on services businesses. Its founders are David Kennedy, former president of ServiceSource, and Kevin Frick, former head of McKinsey & Co.'s West Coast private equity practice. Limited partners include Harvard Management Co.,
Serent Capital, a private equity firm focused on investing in high growth service businesses, today announced the closing of institutional commitments for its inaugural $250 million fund. The fund exceeds its initial target of $200 million.
David Kennedy and Kevin Frick founded Serent Capital with the goal of building an institution that would be recognized as the premier source of capital and expertise for high growth services businesses. The completion of Serent Capital Partners, L.P. reflects the successful track records of the firm's founders. Serent's fund has a premier investor base of university endowments, fund of funds investors, and family offices, including lead investors Harvard Management Company,
“Our ability to raise the fund from such a distinguished group of investors is a wonderful endorsement of Serent Capital, as it speaks to the differentiated investment strategy we are pursuing and to the confidence our investors have in our team's ability to execute that strategy,” said Kevin Frick, partner and co-founder.
Serent Capital focuses on buy-outs and recapitalizations of fast growing, profitable companies with less than $50 million in revenue, often companies that are pioneering new business models or industries. Serent Capital's operating model is distinct in its focus on business building. Serent strives to be an involved, value-added investor, capable of providing significant operational and strategic support to its portfolio company CEOs on the most critical issues that they face as their companies scale.
Serent Capital's ability to assist its companies is based on its principals' experience as CEOs, strategic advisers, and Board Members, and a deep network of formal and informal advisors. Mr. Kennedy most recently was the President of ServiceSource, where he remains as Chairman, and where he and his partner led the company through a 20X increase in revenue and enterprise value. Mr. Kennedy also sits on the boards of several high growth companies, where he has been a personal investor.
“Having led a successful services company, I have experienced both the thrills and the challenges of driving growth. Helping CEOs navigate those same challenges has been rewarding for me as a personal investor and board member, and I am looking forward to partnering with Serent's portfolio company CEOs to help build great businesses,” said Mr. Kennedy.
Mr. Frick most recently was a partner at McKinsey & Company, leading their West Coast Private Equity Practice, where he advised top tier Private Equity Firms on their investment decisions and worked with portfolio companies to exceed their operating plans. Mr. Frick's track record includes assisting companies achieve equity returns in excess of 5X from both growth and operational improvements.
“Small businesses are the innovation engine that drive the economy, however many small business owners are navigating that journey for the first time. Combining the entrepreneurial energy of small growth businesses with our experience in building great institutions creates a very compelling partnership,” said Mr. Frick.
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