PSG, the growth equity tech investor (formerly Providence Strategic Growth), recently updated the SEC filing for the fundraising of its sixth flagship fund, PSG VI, at $5 billion. The total fund commitment is targeted at $6.5 billion, set in August 2023.
PSG’s investment strategy continues to focus on growth-oriented B2B software companies across North America, Israel, and Europe. They target businesses with revenues around $20 million, enterprise values between $50 to $200 million, or EBITDA of $10 million and under. According to an investment prospectus to State Investment Council of New Jersey, previously seeking a commitment of $100 million to PSG VI, the fund will write cheques between $10 and $150 million per deal.
PSG leverages their own deal-sourcing tool; OPTX, an AI-powered system that helps PSG identify and evaluate potential deals with impressive precision.
The firm currently has a 130-company portfolio in the themes of data infrastructure, cloud business apps, vertical SaaS, integrated software/payments, and cybersecurity.
Leading the sixth fund is CEO and co-founder Mark Hastings, who previously founded Garvin Hill Capital Partners. He’s joined by industry veterans Peter Wilde, Marco Ferrari, Tom Reardon, and Adam Marcus. The fund plans to reach 3.0x gross MOIC.
Their Israeli portfolio has grown in recent years, with investments in companies like CTERA, vHive, Pixellot, and Lusha, among others.
The new fund plans to build a portfolio of about 50 investments, namely in North American companies, especially those bootstrapped, founder and family-led businesses in the lower middle market software, data, and technology-enabled service sectors.
The latest fund commitments brings the firm’s total assets under management to over $27 billion.
