L Squared Capital Partners announced the closing of its fifth private equity fund, L Squared Capital Partners V, at its $2.0 billion hard cap, marking a significant milestone for the firm as it approaches its 12th anniversary. The fund was oversubscribed, enabling the firm to complete a first and final close efficiently while expanding its base of global institutional investors.
With the completion of Fund V, L Squared has raised approximately $5.3 billion in cumulative capital commitments. The new fund more than doubles the size of its prior $840 million Fund IV, which closed in 2023, reflecting strong investor demand despite a challenging fundraising environment.
The investor base for Fund V includes a mix of returning partners and new institutional investors, including state pension funds, family offices, insurance companies, sovereign wealth funds, and international investors across Asia and Europe. The firm emphasized that these partners align with its long term investment philosophy and disciplined capital deployment approach.
L Squared continues to focus on growth-oriented investments in three core sectors: education technology, technology-enabled services and software, and industrial technology and services. The firm targets companies with recurring revenue models, strong market positions, and multiple avenues for organic and inorganic growth.
The investment strategy centers on partnering with founder-led businesses and supporting them through operational improvements, talent development, and strategic acquisitions. L Squared has completed 70 add-on acquisitions across 23 platform investments to date and expects Fund V to support approximately 9 to 10 new platform investments alongside additional acquisitions.
The firm also highlighted its commitment to long term value creation driven by revenue and earnings growth rather than financial engineering. As part of its forward strategy, L Squared plans to continue expanding its team while leveraging AI-enabled capabilities to enhance operational efficiency.
Support: Eaton Partners, a Stifel company, served as the exclusive placement agent for the fund, with legal counsel provided by Vedder.
KEY QUOTE:
“We are deeply appreciative of the enthusiastic support from our longstanding partners and the strong interest from a broad range of new institutional investors. The significant oversubscription of Fund V enabled us to execute a first and final close efficiently while remaining disciplined in both fund size and investor selection. This outcome reflects the consistency of our strategy, our focus on partnership, and our ability to invest wisely across market cycles.”
Rob Healy, Co-Founder And Managing Partner, L Squared Capital Partners
“What L Squared has achieved with Fund V is truly exceptional. In a fundraising environment that remains incredibly challenging, the speed and scale of this first and final closing stand out. The overwhelming demand we saw speaks directly to the market’s confidence in the L Squared team and their unique, long term approach to value creation.”
Eric Deyle, Managing Director And Global Co-Head, Eaton Partners
