Providence Equity’s ex-growth arm in talks to raise $4bn fund – report

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The former growth capital arm of Providence Equity Partners is reportedly in talks with LPs over raising $4bn for its latest fund – double the total it collected for its predecessor vehicle.

Providence Strategic Growth is currently pitching investors on the PSG V raise according to the Wall Street Journal, which cited unnamed people it said were familiar with the fundraise.

PSG hit a $2bn hard cap close for Fund IV in 2019, doubling its total amount raised since the launch the of strategy.

The firm reached a $1.3bn hard cap for its third flagship vehicle at the end of June 2018, two years after the $640m close of its sophomore growth fund.

Private equity major Providence launched PSG in 2014 to target lower mid-market deals in software and tech-enabled businesses.

PSG became independent last October, regulatory filings show.

The firm struck a €1.25bn final close in February this year for its first fund dedicated to the European market.

PSG Europe will target growth-stage and lower middle-market software and B2B services companies, mirroring the firm’s buy and build strategy in the US.

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