STG Partners Closes STG VI With $2 Billion Of Committed Capital

By Annie Baker ● November 17, 2020
  • STG Partners — a leading private equity firm that focuses on investments in the software, data analytics, and technology services sector — announced the final closing of STG VI on $2 billion of committed capital

STG Partners — a leading private equity firm that focuses on investments in the software, data analytics, and technology services sector — announced the final closing of STG VI on $2 billion of committed capital, including limited partner commitments of $1.85 billion. This fund exceeded its $1.5 billion target and was oversubscribed at its limited partner hard cap in approximately four months from the formal launch of the fundraising — which was executed as an entirely virtual process. Evercore Private Funds Group had acted as the exclusive global placement agent for the fundraise.

This fund will continue STG’s value-oriented investment strategy focused on middle-market investments in the enterprise software and software-enabled technology services sectors. And STG distinguishes itself through a value-oriented and operationally-focused approach to transforming middle-market companies in its sectors into market leaders.

Since STG predecessor Symphony Technology Group was founded in 2002, STG has cultivated its reputation as a premier investment firm in the space through its continued ability to drive operational efficiencies, top-line enhancement, and breakout innovation within portfolio companies. And STG and its Symphony predecessor have raised approximately $5 billion in total capital commitments across five funds and their expansive portfolio has consisted of more than 30 global companies. 

STG VI was launched in June 2020 amidst the COVID-19 pandemic and resulting shutdown. And with investors unable to meet in person, STG moved ahead with a virtual process — driven by high conviction in the robust market opportunity for STG’s differentiated and value-oriented strategy within the technology sector and top quartile performance of STG’s predecessor funds across market cycles.

STG had made extensive use of video conferencing to meet with limited partners as well as virtual due diligence sessions including an investor diligence day webcast to further showcase the organization in the absence of in-person meetings or events.

STG VI had received strong support from existing investors as well as a diverse group of new investors that includes public and corporate pensions, insurance companies, endowments and foundations, family offices, consultants, and asset managers from North America, Europe, and Asia.

Kirkland & Ellis LLP had acted as legal counsel to STG.

KEY QUOTES:

“We are incredibly grateful to our existing and new investors for their support, especially given the context of the unprecedented environment in which we raised STG VI. We are excited about the opportunity ahead for the Fund, as well as the team and platform we have in place as we head into the next chapter for STG.”

— William Chisholm, Managing Partner and Chief Investment Officer

“We are delighted to have once again advised STG on another highly successful fundraise, executed in a fully virtual environment. The expediency of the raise to its hard cap speaks volumes about the caliber of William and his team at STG.”

— Richard Anthony, CEO of Evercore Private Funds Group