Fund hits hard cap; commitments significantly exceed size of PSG Europe II

Strong support from new and long-term investors signals continued demand for PSG Equity’s investment strategy

Focused on scaling up European software and technology companies and building them into pan-European category leaders with global reach

LONDON & BOSTON: PSG Equity (“PSG”), a leading growth equity firm that specializes in partnering with software and technology-enabled services companies to drive transformational growth, today announced the final close of PSG Europe III (“PSGE III” or the “fund”) at over €4.4 billion in total committed capital. The fund reached its hard cap, receiving strong support from new and returning investors.

PSGE III surpasses its €2.6 billion predecessor fund, which held its final close in October 2023. The Europe-focused fund saw commitments from state pension funds, sovereign wealth funds, insurance companies, family offices and high net worth individuals.

PSGE III will continue the firm’s strategy of partnering with ambitious European software and technology companies, helping them to scale up as they seek to become pan-European category leaders with global reach. The fund aims to support businesses that are harnessing AI to redefine enterprise software and the next generation of AI-native companies, with recent investments made by PSG in Europe in Mistral AI, BrightAnalytics, Aikido Security, Quality Hosting, Emotion Mobility, Namirial and Glasswall.

PSG sees Europe entering a new phase of software innovation, driven by AI adoption, increasing demand for trusted European technology providers and a focus on digital sovereignty. PSG believes these structural trends are creating strong opportunities for software providers that combine deep business domain expertise with European-first infrastructure, proprietary data capabilities, and which are also able to benefit from the significant tailwinds created by AI.

PSG’s European team was established in 2019 and consists of 83 professionals, including investors and software and technology functional experts dedicated to working alongside portfolio company management teams. The team is headquartered in London with an additional office in Paris.

To date, PSG has made 43 platform investments in Europe, had 12 realization events and completed 98 add-on acquisitions with operations in 24 European cities. This includes recent exits from Sellsy, Signaturit, N2F, Artur’in, Hornetsecurity and Mapal.

Peter Wilde, Chairman of PSG, said: “We are delighted by the strong support PSGE III has received from both long-standing and new investors globally. This outcome underscores the strength of PSG’s global platform and our consistent, disciplined approach to creating value, with a focus on supporting high growth software companies with the capital and operational resources needed to build enduring category leaders.”

Mark Hastings, Chief Executive Officer of PSG, said: “It’s an exciting time to partner with leading software scale-ups in Europe. We see AI materially expanding the enterprise software opportunity, creating the next generation of category leaders while accelerating innovation across established software platforms. We are excited to continue to support AI-native businesses with differentiated technology and clear competitive advantages, while helping mission critical systems of record and infrastructure harness AI to enhance their products, accelerate innovation and drive growth.”

Dany Rammal, Managing Director and Head of Europe at PSG, added: “The close of PSGE III marks an important milestone for PSG Equity and reflects our conviction in the vibrant European software and technology ecosystem. We see Europe accelerating its pace of producing exceptional software and AI businesses. Our platform allows us to identify what we believe are some of the best businesses across the region and partner with founders and management teams as they build pan-European market leaders with global reach. As digital sovereignty has become increasingly important for customers, we believe Europe has a real opportunity to create competitive software champions at scale.”

About PSG
PSG Equity is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams. Having backed more than 170+ companies and facilitated over 550+ add-on acquisitions, PSG Equity brings extensive investment experience, deep expertise in software and technology and a firm commitment to collaborating with management teams. Founded in 2014, PSG Equity operates out of offices in Boston, London and Paris. To learn more about PSG Equity, visit www.psgequity.com.

Fonte: Business Wire