Glade Brook Capital Partners announced the oversubscribed close of its Glade Brook Gondola Fund with more than $1 billion in capital commitments, marking a significant expansion of the firm’s growth equity strategy focused on global technology companies.
The fund was anchored by StepStone Group-managed funds and accounts, which served as the lead investor. Additional participation came from funds and accounts managed by BlackRock affiliates. The fundraising was completed in under four months and increased Glade Brook’s total assets under management to more than $4 billion, representing year-on-year growth of over 100%.
The Gondola Fund was designed to acquire and manage a concentrated portfolio of growth equity investments originally held by Glade Brook Strategic Growth III, the firm’s 2021-vintage growth equity fund. The transaction structure offers existing investors the option to generate full or partial liquidity on their invested capital or roll their positions into the new fund. At the same time, it introduces new long-term capital partners into the portfolio.
The portfolio underlying the new vehicle includes a set of technology companies that Glade Brook believes still have significant growth potential. The firm said the fund deepens its exposure to sectors such as artificial intelligence, spacetech, defensetech, internet platforms, and fintech.
StepStone’s participation reflects its existing familiarity with the portfolio. The firm has previously participated in direct and co-investments alongside Glade Brook’s Strategic Growth platform and collaborated closely with the firm to structure the new fund.
Advisors to Glade Brook during the Gondola Fund process included Jefferies, Morgan Stanley, and Kirkland & Ellis.
Founded in 2011 and headquartered in Miami and Greenwich, Connecticut, Glade Brook focuses on growth equity investments in technology and technology-enabled businesses. The firm partners with founders and management teams from the growth stage through IPO and beyond, and has previously invested in companies including SpaceX, Revolut, Stripe, Ramp, Zepto, xAI, Databricks, Stoke Space, Saronic, Physical Intelligence, EliseAI, Airbnb, Alibaba Group, Uber, and Zomato.
KEY QUOTES:
“We are grateful for the support from our existing and new partners in the Gondola Fund, which we believe will continue to compound value at an attractive rate through our investments in some of the world’s most innovative technology companies and founders. StepStone’s longstanding relationship with our firm, deep asset-level knowledge, and conviction in our portfolio made them an ideal lead investor for this transaction. Through the Gondola Fund and across our greater portfolio, we remain optimistic on the pace of innovation to come in the years ahead.”
Paul Hudson, Founder And Chief Investment Officer, Glade Brook
“We are excited to partner with Glade Brook as lead investor in the Gondola Fund. Our relationship with Glade Brook spans multiple funds and investments, and we have developed deep familiarity with a concentrated set of high-quality, category-defining technology companies within Strategic Growth III. The Gondola Fund structure allowed us to scale exposure to assets we know well, while supporting a thoughtful liquidity solution for existing investors. We believe the quality of the underlying assets, combined with Glade Brook’s long-term orientation, enhances the Fund’s ability to compound value over time.”
Brian Borton, Partner, StepStone Group
