Diversis Capital Fund III Reaches $1.2 Billion Milestone
Diversis Capital Fund III Reaches Major Financial Milestone
Diversis Capital Management, LP, a renowned private equity firm based in Los Angeles, has announced the successful closing of Diversis Capital Partners III, L.P., achieving a remarkable total of $1.2 billion in commitments. This impressive milestone not only represents a significant capital raise but also illustrates the firm’s innovative approach towards investing in the ever-evolving software and technology sectors.
Strategic Growth and Diverse Investor Participation
Fund III significantly contributes to Diversis’ ongoing strategy to accelerate the growth of software and tech-enabled companies. This newly raised capital showcases the strong backing of both new and existing institutional investors. The fund was oversubscribed at its hard cap, exceeding its original target of $850 million and effectively boosting Diversis’ total assets under management to over $3 billion.
The enthusiastic engagement from a diverse global investor base demonstrates confidence in Diversis’ robust investment philosophy. The firm had previously completed its Fund II fundraising in 2021, securing $680 million of committed capital. This growth trajectory exemplifies the increasing market interest in technology-focused investments.
Investment Philosophy and Target Focus
Emphasizing a disciplined investment approach, Diversis is committed to acquiring companies with strong core foundations that can benefit from the firm's combination of growth capital, operational support, and strategic guidance. The firm primarily targets lower middle-market companies across North America, with selective investments in Europe and Australia.
Founders' Vision for Future Growth
Kevin Ma, Co-Founder and Managing Partner of Diversis, expresses excitement about the future, stating that the firm will focus on collaborating with founders and teams to unlock profitable growth opportunities. Ma notes the importance of applying best practices, innovation, and the integration of AI capabilities to drive success in their portfolio companies. He expresses gratitude towards the firm’s existing investors for their continued support while welcoming new partners to the fold.
Ron Nayot, also a Co-Founder and Managing Partner, highlights the closing of Fund III as a critical point in the firm’s journey. He emphasizes the enduring commitment of Diversis to maximize returns for their investors through strategic partnerships and a focus on building technologically advanced businesses. Nayot believes there are tremendous opportunities within the software and technology sectors, especially as AI continues transforming landscapes.
Investor Landscape and Future Opportunities
The high demand for Fund III reflects confidence within a vast array of global institutional investors including endowments, foundations, public and private pension plans, family offices, and insurance entities. This broad base enhances the firm's strategic capabilities in tackling market challenges and embracing innovations.
In terms of advisory support, renowned firm William Blair served as the exclusive global placement agent, ensuring a well-structured fundraising process. Additionally, the legal framework for this capital raise was reinforced by Paul, Weiss, Rifkind, Wharton & Garrison LLP, affirming the commitment to regulatory excellence.
About Diversis Capital
Founded in 2013, Diversis is a private equity firm focused on software and technology investments targeting lower middle-market companies. By fostering a collaborative investing environment with its Operating Partners and Strategic Advisors, Diversis partners with management teams to enhance long-term growth and success. The firm's commitment to unique value addition propels its motivations in strategically impactful investments.
For more information about their initiatives, visit www.diversis.com.
Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC
914-834-4334
Frequently Asked Questions
What is Diversis Capital Fund III?
Diversis Capital Fund III is a private equity fund focused on investing in software and tech-enabled companies, now closed at $1.2 billion.
How much capital did Diversis raise in Fund III?
Diversis successfully raised $1.2 billion in total commitments for Fund III, surpassing its $850 million target.
Who are the key investors in Fund III?
The fund saw participation from a diverse global base, including institutional investors, endowments, and family offices.
What is Diversis' investment strategy?
Diversis focuses on lower middle-market companies, applying a disciplined approach with operational and strategic support.
What sectors do Diversis invest in?
Diversis primarily targets software and technology-enabled sectors within North America, with selective investments in Europe and Australia.
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