Bracket Capital – a global multi-asset investment manager focused on growth and later-stage, technology-enabled companies – recently announced the successful close of its third flagship funds Bracket Capital Fund III, LP, Bracket Capital Fund III-A, LP and related vehicles (collectively known as Fund III), totaling $150 million. And Bracket also raised an additional $300 million in co-investment and evergreen funds to invest alongside Fund III for a total of $450 million in equity to deploy. Bracket’s investors comprise some of the world’s leading institutions, prominent global family offices, high net worth individuals, and other investment management firms.
Since being founded in 2017, Bracket has developed a reputation as a partner of choice to C-Suites, employees, and investors at some of the world’s most successful and renowned pre-IPO technology companies. Building on the firm’s proven approach, Fund III will again be capacity constrained by design, with large co-investment opportunities. The fund is going to target later-stage, private, technology-enabled companies primarily through secondary market purchases from employees and early investors at these businesses and through special-situation primary investment rounds.
Fund III had received significant support from existing investors, with Fund II LP’s comprising about 90% of Fund III commitments, a testament to the firm’s exceptional track record to date. To date, Fund III has made four investments: Stripe, ThatGameCompany, Clutter, and Soundhound (NASDAQ: SOUN), in which the firm led a private investment in public equity (PIPE) deal in late January 2023, becoming one of the company’s largest shareholders.
In January 2021, Bracket announced the successful close of Bracket Capital Fund II, LP – which raised $150 million in capital commitments as well as an additional $300 million in co-investment vehicles to invest alongside Fund II, fully deploying over $450 million during the investment period. And since inception, Bracket Capital has invested in more than 50 companies, resulting in 23 exits, with over $300 million in realized proceeds in the last three years alone. The notable prior investments include: SpaceX, AirBnB, Coinbase, Palantir, SoFi, Hive.AI, Synthesis AI and others.
Plus, Bracket manages the Bracket Foundation, the firm’s privately funded philanthropic arm that seeks to harness the power of technology for social good and contribute to global conversations on pressing social issues. Recently, the Foundation published a white paper identifying the threats that exist about child exploitation across online social gaming platforms and the Metaverse and made recommendations to Big Tech providers on how to enhance their safety by designing features to make these environments safer for children. The Bracket Foundation is also engaged with the United Nations on a multi-year project to combat online sexual abuse of children using artificial intelligence.
KEY QUOTES:
“We are grateful for the support we received for Fund III from our new and existing investor partners. Bracket Capital has worked hard to distinguish itself as a premier provider of capital to businesses and a trusted liquidity partner to early employees and investors. Further, our flexible investment mandate enables us to creatively structure investments to create win-win solutions that benefit employees and management teams over the long-term, while providing our LPs with downside protection and high-quality risk-adjusted returns.”
— Jihan Bowes-Little, Co-founder and Managing Partner of Bracket Capital
“As a first mover, we possess extensive knowledge of the issues facing employees, investors, founders, and management teams at highly innovative, successful late-stage technology companies shaping our digital future. To that end, we seek to serve as a partner of choice for all stakeholders and are proud of our track record as highly complementary and value-added investors to our portfolio companies. We believe the market opportunity remains strong and look forward to continuing to identify attractive investment opportunities for our investors.”
— Yalda Aoukar, Co-Founder and Managing Partner of Bracket Capital
