STG Partners has closed its sixth fund at $2 billion. The fund’s limited partners include public and corporate pensions, insurance companies, endowments and foundations, family offices, consultants and asset managers from North America, Europe and Asia. Evercore Private Funds Group was the placement agent. STG invests in the software, data analytics and software-enabled tech services sectors.
PALO ALTO, Calif.–(BUSINESS WIRE)–STG Partners (“STG”, or the “Firm”), a leading private equity firm focused on investing in the software, data analytics and software-enabled technology services sectors, is pleased to announce the final closing of STG VI (the “Fund”) on $2.0 billion of committed capital, including limited partner commitments of $1.85 billion. The Fund exceeded its $1.5 billion target and was oversubscribed at its limited partner hard cap in approximately four months from formal launch of the fundraise, which was executed as an entirely virtual process. Evercore Private Funds Group acted as the exclusive global placement agent for the fundraise.
The Fund will continue STG’s value-oriented investment strategy focused on middle market investments in the enterprise software and software-enabled technology services sectors. STG distinguishes itself through a value-oriented and operationally-focused approach to transforming middle market companies in its sectors into market leaders. Since Symphony’s founding in 2002, STG has cultivated its reputation as a premier investment firm in the space through its continued ability to drive operational efficiencies, top-line enhancement, and breakout innovation within portfolio companies.
STG VI launched in June 2020 amidst the COVID-19 pandemic and resulting shutdown. With investors unable to meet in person, STG moved ahead with a virtual process, driven by high conviction in the robust market opportunity for STG’s differentiated, value-oriented strategy within the technology sector and top quartile performance of STG’s predecessor funds across market cycles. STG made extensive use of video conferencing to meet with limited partners, as well as virtual due diligence sessions including an investor diligence day webcast to further showcase the organization in the absence of in-person meetings or events. STG VI received strong support from existing investors, as well as a diverse group of new investors that includes public and corporate pensions, insurance companies, endowments and foundations, family offices, consultants, and asset managers from North America, Europe, and Asia.
On behalf of the leadership team of the Firm, William Chisholm, Managing Partner and Chief Investment Officer, commented: “We are incredibly grateful to our existing and new investors for their support, especially given the context of the unprecedented environment in which we raised STG VI. We are excited about the opportunity ahead for the Fund, as well as the team and platform we have in place as we head into the next chapter for STG.”
Richard Anthony, CEO of Evercore Private Funds Group, stated: “We are delighted to have once again advised STG on another highly successful fundraise, executed in a fully virtual environment. The expediency of the raise to its hard cap speaks volumes about the caliber of William and his team at STG.”
Kirkland & Ellis LLP acted as legal counsel to STG.
About STG Partners
STG is the private equity partner to market leading companies in software, data analytics and software-enabled technology services sectors. The firm brings expertise, flexibility, and resources to build strategic value and unlock the potential of innovative companies. Partnering to build customer-centric, market winning portfolio companies, STG creates sustainable foundations for growth that bring value to all existing and future stakeholders. The firm is dedicated to transforming and building outstanding technology companies in partnership with world class management teams. STG and its predecessor, Symphony Technology Group (“Symphony”), have raised approximately $5.0 billion in total capital commitments across five funds and their expansive portfolio has consisted of more than 30 global companies. For more information, please visit www.stgpartners.com.