Diversis Capital has closed its second software-focused fund on $675m within three months of its formal launch, surging past its initial $500m target.
The new vehicle is almost three times the size of the firm’s inaugural fund, which it closed on $255m two years ago.
Founded in 2013, Diversis focuses on making operationally focused control private equity investments in lower mid-market companies. The firm said it would use Fund II to invest primarily in businesses based in North America, and selectively in Europe and Australia.
Diversis co-founder and managing partner Kevin Ma said, “As we have built Diversis over the past eight years, we have focused predominantly on investing in software and technology-enabled services companies to drive innovation and growth. We partner with management teams to build scale and extend market leadership, which has, in some cases, led to the doubling or tripling of revenues at our portfolio companies organically.
“We are excited to continue to execute on our strategy with this latest fund. We are fortunate to have a strong, dynamic and growing team of investment professionals, operating advisors, and portfolio company management teams who are integral to our success. Our entire team is grateful and proud that we were able to exceed our target and complete our fund-raise in a relatively short period of time and we want to thank our new and existing limited partners for their support and vote of confidence.”
Diversis had remained active during the pandemic by adding four new investments to its portfolio including content intelligence and contract analytics company Adlib Software, data-driven insights provider RFi Group and video games developer Performance Designed Products. It also made an exit from Arrow Stream in December last year.
The firm has more than $1bn of assets under management.
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