STG announced the final closing of its STG Allegro II fund with more than $1.3 billion in committed capital, surpassing its original $950 million target and reaching its hard cap in under four months.
The Menlo Park–based private equity firm said the fund received $1.26 billion in commitments from limited partners and was significantly oversubscribed. STG Allegro II continues the firm’s operationally focused and value-oriented strategy targeting lower mid-market enterprise software companies.
The fund builds on the momentum of STG’s inaugural Allegro fund and reflects strong investor demand across the firm’s strategies. According to the firm, Allegro II attracted support from both existing investors in its Allegro and flagship mid-market funds as well as new institutional investors globally.
The investor base includes a mix of public and corporate pension funds, insurance companies, endowments and foundations, fund of funds, family offices, consultants, and asset managers.
Founded in 2002, STG focuses on investing in enterprise software, data, and analytics businesses. The firm has partnered with more than 60 global companies and completed more than 140 investments, including platform acquisitions and add-on deals. Across its private equity strategies, STG has raised nearly $14 billion in capital.
Evercore Private Funds Group served as STG’s exclusive fundraising advisor and global placement agent for the fund, while Ropes & Gray served as fund counsel.
KEY QUOTE:
“We are incredibly grateful to our existing and new investors for their support and confidence in our team and the Allegro strategy. We believe STG’s playbook is well positioned to capitalize on the opportunity we see for value-oriented investing in the lower mid-market.”
William Chisholm, Managing Partner And Chief Investment Officer, STG
