Diversis Capital Management, a Los Angeles-based private equity firm focused on software and technology-enabled services, has announced the close of Diversis Capital Partners III, L.P. with total commitments exceeding $1.2 billion, reaching its hard cap.
The fund was oversubscribed and drew participation from a diverse global base of institutional investors, surpassing its original target of $850 million. This closing brings Diversis’ total assets under management to more than $3 billion, marking a major milestone in the firm’s continued expansion.
The successful close of Fund III underscores investor confidence in Diversis’ disciplined investment strategy, which focuses on acquiring lower middle-market companies with strong core foundations and helping them achieve accelerated growth through operational support, strategic insight, and growth capital. The firm primarily invests in businesses across North America, with selective investments in Europe and Australia.
Diversis plans to leverage its deep operational expertise, innovation-driven approach, and experience in artificial intelligence to enhance portfolio performance and build market-leading enterprises. The new fund follows the firm’s previous Fund II, completed in 2021 with $680 million in committed capital, continuing the firm’s rapid growth trajectory in the private equity space.
The firm’s investor base includes a wide range of endowments, foundations, investment advisers, fund-of-funds, pension plans, family offices, and financial and insurance institutions, reflecting its strong appeal across global capital markets.
Support: William Blair acted as the exclusive global placement agent, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel.
KEY QUOTES:
“As we continue to build Diversis, we will focus on working with founders, corporations and teams to help unlock the next stage of profitable growth to create market leaders. We’ve seen a lot of success bringing the best practice, innovation and AI experience of our deep bench of operating partners to create scale and build long term value in our portfolio. We are excited to double down on the execution of this strategy in our new fund. We’d like to thank our existing LPs who have supported us over the last several years and welcome our new LPs to the team.”
Kevin Ma, Co-Founder and Managing Partner, Diversis Capital
“We believe the successful completion of Fund III marks an important milestone for Diversis, validating our proven track record, disciplined investment strategy, and the strength of our people, portfolio leadership teams, and investors. Each of these groups plays a vital role in our continued success, and we are deeply grateful for their partnership as we begin deploying Fund III. Looking ahead, we see tremendous opportunity across the software and technology-enabled sectors, particularly as artificial intelligence reshapes the competitive landscape. As always, our goal remains to deliver superior returns for our investors through thoughtful execution, strategic partnership, and a relentless commitment to building enduring, technology-driven businesses.”
Ron Nayot, Co-Founder and Managing Partner, Diversis Capital
