Spectrum Equity Closes Fund IX at $1.5 Billion
Firm's Ninth Fund Will Continue Spectrum's Internet-enabled Software and Information Services-focused Investment Strategy
BOSTON and SAN FRANCISCO, May 21, 2020-- Spectrum Equity, a leading growth equity firm, today announced the closing of Spectrum Equity IX L.P. at a hard cap of $1.5 billion. In addition, Spectrum closed its second Discretionary Overage Program at $150 million, enabling the firm to pursue larger transactions or follow on investments opportunistically.
The firm focuses exclusively on investments in internet-enabled software and information services companies. Similar to Spectrum's prior funds, Fund IX will provide capital to companies with proven, scalable business models and which exhibit high growth with persistent customer relationships. Spectrum makes growth equity investments ranging in size from $25 million to $150-plus million in a mix of control and minority transactions. The firm is the lead investor in capital-efficient companies operating in industry verticals in which Spectrum has developed deep domain expertise and an established track record.
The firm is led by Vic Parker, Chris Mitchell and Ben Spero. "We deeply appreciate the continued support from our investors. We believe the strong demand for Fund IX reflects confidence in our commitment to proactive origination, our focus on resilient, highly recurring revenue businesses and the ability to produce distinctive returns over many cycles. And in times of macroeconomic uncertainty like the present, we rely on the consistent execution of our growth equity investment strategy more than ever," they said.
"For over 25 years, our specialized investment approach has resonated with world-class founders and entrepreneurs. Our partnerships with portfolio company management teams serve as the foundation to the success of our value creation efforts. We are grateful that they continue to entrust us to support their next stage of growth and navigate unforeseen challenges that may arise."
Proskauer served as fund counsel.
For more information about Spectrum Equity and Fund IX, please see our related blog post here.
About Spectrum Equity
Spectrum Equity is a leading growth equity firm providing capital and strategic support to innovative companies in the information economy. For over 25 years, the firm has partnered with proven entrepreneurs and management teams to build long-term value in market-leading internet-enabled software and information services companies. Representative investments include Ancestry, Bats Global Markets, Definitive Healthcare, GoodRx, Grubhub, Lucid, Lynda.com, SurveyMonkey, The Knot Worldwide and Verafin. For more information, including a complete list of portfolio investments, visit www.spectrumequity.com.
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