HomeFrancePSG Equity Closes Second European Fund, at Over €2.6 Billion

PSG Equity Closes Second European Fund, at Over €2.6 Billion

PSG Equity

PSG Equity, a global growth equity firm partnering with software and technology-enabled services companies in Europe, North America and Israel, closed PSG Europe II, its second Europe-focused fund, at over €2.6 billion.

PSGE II received support from both new and existing investors globally including state pension funds, sovereign wealth funds, family offices and high net worth individuals. The fund exceeds the size of its predecessor, PSG Europe I, which held its final close in January 2021 with more than €1.3 billion in commitments.

PSG’s investment strategy focuses on scaling single-country, single-product software companies through organic and inorganic growth into multi-country, multi-product pan-European champions across multiple markets, supporting its portfolio companies’ global growth ambitions. Given its origins, resources and track record in the U.S., the firm can be a meaningful supportive partner to enable market expansion in North America.

Founded in 2014, PSG Equity is a growth equity firm that partners with software and technology-enabled services companies. Having backed more than 130 companies and facilitated over 470 add-on acquisitions, the firm brings extensive investment experience, expertise in software and technology, and a commitment to collaborating with management teams.

PSG has a team of almost 200 professionals across Europe, North America and Israel. The European team, which was established in 2019 and consists of 57 professionals, is headquartered in London with additional offices in Paris and Madrid. To date, PSG has made 22 platform investments in Europe with the acquisitions of Hostaway, Artur’in, Billwerk+, Hornetsecurity, Imaweb, Mapal Group, Nalanda Global, N2F, Nomentia, Powens, Rapid Data, Rodeo, Sellsy, Sesame, Signaturit, Skeepers, Sport Alliance, Tellent, Visualfabriq, Whoz, Zenchef and ZeroNorth, and facilitated over 60 add-on acquisitions with operations in 15 European countries. 

Globally, PSG operates out of offices in Boston, Kansas City, London, Paris, Madrid and Tel Aviv.

Commenting on the fund raise, Mark Hastings, Chief Executive Officer of PSG, said: “With PSGE II, we will be well-positioned to further capitalize on the growing investment opportunities generated by the ongoing digitalization of the European economy. We see substantial investment opportunities as companies of all sizes across all economic sectors are increasingly adopting digitization and automation tools to improve their customer service, increase productivity and secure their operations.”

Peter Wilde, Chairman of PSG, added: “We are grateful for the support that our second European fund has received from both new and existing PSG limited partners. The strong demand from a high-caliber and diversified group of investors globally demonstrates the attractiveness of Europe’s software market as well as the strength of the PSG platform and our investment approach, both in Europe and North America. The successful closing of our second European fund cements our position as one of Europe’s leading growth equity investors in the software sector.”  

Finally, Dany Rammal, Managing Director and Head of Europe at PSG, said: “The tremendous growth we have experienced in Europe since our inception is a testament to the success of our investment strategy and to the quality and depth of our growing team. Our cross-border M&A expertise, local knowledge and relationships, and the operational support we can provide to management teams, make us a partner of choice for ambitious and innovative founders looking to create pan-European software champions and expand internationally, including in North America. We will leverage our global software expertise to accelerate investment in innovative businesses that are using cutting edge technologies like generative AI, to drive growth and automation across cybersecurity, fintech, payments, verticalized ERP and CRM and workforce management, among others.”

VCWire

07/11/2023