PSG, a leading growth equity firm that specializes in partnering with software and technology-enabled services companies to capitalize on transformational growth, announced that it has closed two new funds totaling $8 billion in capital commitments.
PSG’s sixth North American flagship fund, PSG VI, closed with $6 billion in capital commitments, surpassing its $4.7 billion predecessor fund. This fund received commitments from new and existing investors, including state and corporate pensions, sovereign wealth funds, and family offices.
PSG also closed a continuation fund called PSG Sequel, with $2 billion in capital commitments from blue-chip institutional investors, including Canada Pension Plan Investment Board (CPP Investments), GIC, StepStone, and funds managed by Hamilton Lane. Through PSG Sequel, PSG is also retaining its stakes in six portfolio companies, continuing to support their growth while providing its fund-limited partners the option to remain invested in these companies for the next growth phase or receive liquidity at an attractive valuation. The fund’s assets are Arcoro, LivTech, Nextlane, Semarchy, Singlewire Software, and Transit Technologies.
With a team of 269 professionals, such as 160 investment professionals, and complemented by a group of 39 Senior Advisors, PSG makes majority and minority investments in growth-stage software and technology-enabled services companies. Since the founding in 2014, PSG has executed 75 realization events and grown to over $28 billion in assets under management.
The firm has a wide bench of seasoned software investors, leaders and functional experts dedicated to working alongside portfolio company management teams to identify and navigate transformational growth opportunities. And over the years, PSG has expanded its footprint beyond its Boston headquarters to include offices in London, Kansas City, Paris, Madrid and Tel Aviv. The firm also closed its second European fund in 2023 with over €2.6 billion in capital commitments.
During its history, PSG has invested in 19 companies with AI-driven business models. The firm also continuously partners with its portfolio companies to help them identify ways to leverage AI to create value.
KEY QUOTES:
“We’re eager to put PSG VI to use. As our team tracks the progress of over 600,000 companies through our proprietary AI-powered sourcing engine, we’re excited about what we are seeing in the next generation of software companies, particularly in AI, that are transforming markets and creating new ones. Through PSG Sequel, we’re able to extend our partnerships with some of our portfolio companies that we believe have vibrant chapters of growth ahead. We’re thrilled to be able to continue to support them as they scale to the next level and provide our existing investors with an opportunity to participate.”
- Mark Hastings, Co-Founder and CEO of PSG
“We have always described our investment strategy as ‘small software at scale,’ which refers to our commitment to our sweet spot, investing in growth-stage software businesses, even as our fund sizes increase. We’re grateful for the support of new and longstanding investors as we continue to apply our expertise in a market where our team thrives and sees tremendous opportunity to create value.”
- Peter Wilde, Co-Founder and Chairman of PSG
