Silversmith Capital Partners Closes $1.25 Billion For Fourth Growth Equity Fund

By Amit Chowdhry ● Aug 1, 2022
  • Silversmith Capital Partners recently announced the first and final close of its fourth fund. These are the details.

Silversmith Capital Partners recently announced the first and final close of its fourth fund Silversmith Capital Partners IV (Fund IV). Launched in May 2022, Fund IV was significantly oversubscribed and closed at its target and a hard cap of $1.25 billion. 

Along with $1.25 billion from limited partners, the Silversmith team will contribute $90 million to Fund IV. And Fund IV is the firm’s largest to date and brings total capital raised to more than $3.3 billion since its founding in 2015. Consistent with the strategy of its predecessor funds, Fund IV will focus on partnering with and supporting the best entrepreneurs leading growing, profitable technology and healthcare companies.

Silversmith had received strong support from its existing investor base of leading endowments, foundations, fund-of-funds and pension funds, while also adding a small number of new institutional investors. And 50 CEOs, founders, and industry executives invested in Fund IV. The firm had closed its first fund of $460 million in 2015, its second fund of $670 million in 2018, and its third fund of $880 million in 2020.  

Since being founded, Silversmith has invested in 41 growth-stage companies, had 16 full or partial realizations representing $1.7 billion in cash proceeds, expanded its team to more than 35 people, and grown its Senior Advisor network to 10 senior executives from leading technology and healthcare companies. And consistent with previous Silversmith funds, Fund IV will make minority and majority investments of $20 million to $125 million in SaaS & Information Services and Healthcare IT & Services companies that are primarily founder-led, profitable and have not previously raised institutional capital.  

Kirkland & Ellis had provided fund formation counsel.

KEY QUOTES:

“Our investment strategy was built on four bedrock tenets that have not changed over the past seven years – invest in markets we know, invest in companies as they inflect, invest in companies that are capital efficient, and partner with truly exceptional entrepreneurs. The steadfast support we received from our investors speaks volumes to how much the limited partner community values a disciplined approach. We are grateful for the trust and confidence our investors have in Silversmith and look forward to continuing to execute on our investment strategy.”

— Jim Quagliaroli, Managing Partner of Silversmith

“We started Silversmith with the mission to build a firm with a collaborative, team-based culture that was focused on partnering with and supporting the best entrepreneurs. The success we have achieved as a firm is a testament to the dedication of our team and the strength of the entrepreneurs who work tirelessly to build great businesses.”

— Jeff Crisan, Managing Partner of Silversmith