Officials from Providence Strategic Growth (PSG) announced Wednesday that the company had closed its Fund III with $1.3 billion of equity commitments. The firm closed its hard cap and was oversubscribed, receiving commitments from existing as well as new investors. The list of investors includes several state pension funds and high net worth individuals.
To date, the firm’s Fund III has invested in seven businesses, including: Arcoro, Jobcase, Evercommerce, Patron Technology, Property Brands, Government Brands, and Formstack.
The fresh infusion of cash into PSG’s Fund III will in part be used to invest in a proprietary deal sourcing engine and to continue the firm’s trend of employing organic and inorganic strategies to drive growth and build equity value.
Since being founded in 2014, PSG has deployed a “buy and build” strategy, quickly scaling small software ventures. The firm touts its entrepreneurial culture and founder-friendly approach for much of its success. The company is currently led by CEO Mark Hastings. The 27 platform investments in PSG’s portfolio have benefited from over 100 add-on acquisitions.
Providence Strategic Growth focuses on North American-based lower middle market software and technology-enabled service companies. The firm currently employs 27 growth equity professionals.
PSG is an affiliate of Providence Equity Partners, with $57 billion in capital under management in a diverse portfolio of private equity and credit businesses. Providence Equity Partners is well-known in the industry for originating a sector-focused approach to private equity investing where those with industry-specific expertise are charged with building companies with lasting value.
Since its inception the firm has invested in over 150 companies in the media, communications, IT and education sectors. Providence Equity Partners, which was founded in 1989, is headquartered in Providence, RI, with offices in New York and London.