2024 and 2025 up and coming funds
I saw a similar post from over a year ago and thought I'd pose the topic again given the good comments...what are some up-and-coming MM funds that are performing well and will continue to grow into a UMM in the future?
Coalesce
HAHA - they can't even get a deal across their internal IC.
How do you know?
I’m confused by this guys post history the fuck is this man on…dude why are you weirdly obsessed with coalesce
Thanks! Any others?
also interested
How early in the firm’s lifecycle are we talking? Is the goal to identify firms that are in Fund 2/3/4 that have the fundraising trajectory to become a Francisco or a TA?
Yes, that is how I was thinking of the trajectory. Like fund 2, then fund 3 is double the size of fund 2 etc. But def dont need to be too formulaic for sure
Kingswood and Gemspring fit the bill for doubling fund sizes, but there’s always a challenge for any MM firm to scale up their strategy to UMM. Many MM firms will likely remain in the MM
From ChatGPT:
Gemspring Capital
• Fund II: Closed in 2019 with $750 million in commitments.
• Fund III: Closed in 2022 with $1.7 billion, more than doubling the previous fund size.
• Focus: Lower middle-market companies.
CCMP Growth Advisors
• Fund III: Closed in 2021 with $350 million in commitments.
• Fund IV: Closed in 2023 with over $500 million, showing substantial growth.
• Focus: Buyout and growth equity.
Turn/River Capital
• Fund IV: Closed in 2020 with $420 million in commitments.
• Fund V: Closed in April 2022 at $1.35 billion, more than tripling the size of its predecessor.
• Focus: Growth-oriented SaaS and software companies.
Diversis Capital
• Fund I: Closed in 2019 with $255 million in commitments.
• Fund II: Closed in September 2021 with $675 million, nearly tripling the size of the first fund.
• Focus: Software and technology sectors.
Resurgens Technology Partners
• Fund II: Closed in 2022 with $500 million, doubling the size of Fund I.
• Fund III: Closed in 2024 with $800 million, indicating continued growth.
• Focus: Software and IT-enabled services.
Sumeru Equity Partners
• Fund III: Closed in November 2020 with $720 million in commitments.
• Fund IV: Closed in November 2022 at $1.3 billion, nearly doubling the size of Fund III.
• Focus: Growth-stage technology and software companies.
ParkerGale Capital
• Fund II: Closed in 2020 with $375 million in commitments.
• Fund III: Targeting $600 million for its next raise, showing growth.
• Focus: Technology companies with an operational focus.
Serent Capital
• Fund III: Closed in 2017 with $750 million in commitments.
• Fund IV: Closed in 2020 with $1.1 billion, indicating significant growth.
• Focus: Growth investments in technology and business services.
Mill Point Capital
• Fund II: Closed in 2021 with $886 million in commitments.
• Fund III: Closed in 2023 with $1.7 billion, nearly doubling the previous fund size.
• Focus: Lower midmarket companies in North America, mainly in the industrials, business services, and information-technology services sectors.
Bump
Morgan Stanley Capital Partners. Heard their recent funds are all top quartile and they are in the market for a much larger fund
Wow, could be really interesting if their team spins out down the road too
Why would they spin out
They won’t spin out. You have access to Morgan Stanley wealth channels , RIAs. They’ll launch an evergreen fund and make insane money
Spin-outs would be dumb from MS given that MS is a top-tier WM in the America's, much more worthwhile for the leadership to stay and grow using the huge AUM that MS WM has. It'd only make sense for them to spin-out if the MS Cap Partners team was the next Orlando Bravo or something in terms of investor returns (Ik last fund hasn't done too well, but over the long-run dude has returned really well), and I doubt that's the case.
Surprised to see this as i know they have a near-zero currently in their portfolio
What fund size they are targeting? They haven't grown that large over the past few years relative to GS PE (similar in terms of another PE fund housed in an bank)
Following
Longshore
Who?😂
You must be the guy in the last thread calling H&F and HIG up and coming firms
Bumping this as many of the funds listed in the last iteration of this exercise (think Brighstar) have had flat fundraises or been listed as “on the decline” firms in those types of threads. I also haven’t seen continued acceleration or consistency in Charlesbank or Motive. What funds are doing well after hitting thr $2-5 bn mark? Doesn’t mean they have to keep doubling fund size, but who’s returning well / has LPs hungry for more?
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