Five Elms Capital announced the October 2024 closing of Five Elms VI, with total commitments of $1.1 billion. This oversubscribed fund attracted strong participation from existing and new limited partners, significantly expanding Five Elms’ global investor base.
With the closing of Fund VI, Five Elms has increased assets under management (AUM) to over $3 billion and is empowered to continue acting as a trusted partner for fast-growing and founder-led software companies.
For Fund VI, Five Elms will continue partnering with software companies that have proven business models, differentiated products, strong customer loyalty, and are prepared for meaningful scale. And these companies typically have strong foundations and are at a growth inflection point, where their focus shifts to expanding leadership teams, creating scalable operations, and enhancing products to stay ahead of their competitors.
Five Elms’ value creation team is a foundational part of the firm’s strategy, supporting portfolio companies with practical, hands-on expertise as they scale. The team features 17 in-house software operators with extensive experience across executive recruiting, finance, sales and marketing, customer success, product development, and AI enablement.
Created to complement founder-led organizations, the value creation team works closely with portfolio company management to accelerate revenue growth, strengthen customer retention, optimize product and AI enablement, and implement scalable operations to support long-term success.
Five Elms VI has already made four platform investments in high-growth software companies:
1.) Magma Math – AI-enabled digital learning platform helping students and teachers engage with math through intuitive, open-ended problem solving.
2.) RoomPriceGenie – Revenue management solution empowering independent hotels to optimize pricing through automation and AI.
3.) Pathify – A student experience platform that connects higher education institutions with their students through personalized communication and workflow tools.
4.) Motivity – Practice management and data platform purpose-built for behavioral health providers.
Agent/counsel: Evercore Private Funds Group acted as the exclusive global placement agent for Five Elms VI, and Foley & Lardner LLP served as fund formation counsel.
KEY QUOTES:
“We’re very grateful for the continued support of our existing investors and thrilled to welcome new limited partners to Fund VI. Since 2006, we’ve partnered with founders who have built strong products and distinct company cultures to help them scale into category leaders. Our team is purpose-built to support that transition and is ready to roll up their sleeves alongside our partners.”
Fred Coulson, Founder and CEO of Five Elms Capital
“As a founder, it was important to find a partner who understood what we were building—not just in terms of product, but in how we think about team and culture. With Five Elms, we found a team that shares our values, brings meaningful operating experience, and is willing to engage on the things that actually move the business forward. They’ve been thoughtful, collaborative, and focused on helping us scale the right way.”
Henrik Appert, Founder and CEO of Magma Math
