STG Partners races to close $860m fund for lower mid-market software investments


Software and data analytics-focused buyout house STG Partners has collected $860m for STG Allegro which will predominantly make investments in lower mid-market software companies.

The fund was closed in four months from the formal launch of the entire virtual raise, beating its initial target of $500m and hitting its limited partner hard cap of $750m.

The firm said STG Allegro attracted new investors that include public pensions, asset managers, foundations and endowments, family offices, and consultants in North America and Europe.

William Chisholm, managing partner and CIO, said, “We are incredibly grateful to our existing and new investors for their support as we established STG Allegro to capitalize on the vast opportunity we see for value-oriented investing in the lower mid-market. We look forward to leveraging STG’s playbook to continue to find, transform, and build great software companies and partner with lower mid-market entrepreneurs.”

Evercore Private Funds Group acted as the exclusive global placement agent for the fundraise. Kirkland & Ellis LLP acted as legal counsel to STG.

STG, which was formerly known as Symphony Technology Group closed its flagship STG VI last year on its $2bn hard cap, beating its $1.5bn target  just four months after formally launching the vehicle.

It raised $870m for its fourth fund in 2012, and  was eyeing at least $850m for Fund V a couple of years ago, but has not publicly revealed that fund’s final close total.

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