Cohere Capital Partners – a Boston-based private equity firm focused on investing in leading tech-enabled lower middle market companies – announced that it has closed Cohere Capital Fund II with over $215 million in commitments. And the firm has also received a strategic minority investment from TPG NEXT, TPG’s strategy focused on seeding and scaling the next generation of investment firms.
With decades of lower middle market investing experience and a distinct, value- and growth-oriented approach, Cohere looks to partner with innovative tech-enabled services businesses to help them reach their next level of success. Cohere was founded by Nik Shah and Daniel Gedney, two experienced private equity executives who worked together for years with a similar investment focus before launching the firm in 2019 and closing Cohere Capital Fund I in 2020.
Cohere supports a portfolio of leading companies across the IT services, cloud consulting, digital advertising and marketing, e-commerce, and consumer engagement and loyalty services sectors. And in Fund II, Cohere will continue to invest across these markets and others, seeking to partner with leading founder- and management-owned businesses looking for a capital partner to help drive success and growth.
Launched with an anchor commitment from CalPERS, TPG NEXT provides strategic minority capital and custom operational support to help emerging managers establish and grow their firms. And through its partnership with TPG NEXT, Cohere will gain access to TPG’s network, operational and investment capabilities, and ecosystem to support strategic business building and expansion, including in areas such as capital formation, investment sourcing, and diligence.
KEY QUOTES:
“Our more than 50 years of combined investing experience in the middle market has provided us a unique view into the opportunities and challenges that come with building a leading technology-enabled services business. With Cohere, we’re applying this knowledge to help founders and management teams achieve sustainable and lasting growth. We’re grateful for the strong support of our investors and new partners at TPG, whose trust in our strategy and firm is a testament to the significant opportunity ahead.”
– Nik Shah, Managing Partner
“Cohere’s targeted investment strategy, partnership orientation, and focus on embracing complexity has positioned the firm as a differentiated lower middle market investor. We are excited to partner with the Cohere team to scale the platform and build upon the firm’s track record of identifying and growing next-generation founder-led businesses.”
– Pamela Pavkov, Managing Partner of TPG NEXT
