Frontier Capital Closes Fund V

Demand from new, existing investors pushes fund well above target

Frontier Capital has held a final close of its fifth fund at an oversubscribed $700 million. The firm began fundraising in May 2017 with an initial target of $500 million. The firm’s earlier fund closed in 2015 with $390 million of capital.

Fund V is the fourth consecutive oversubscribed fund raised by Frontier and brings the total capital commitments received since Frontier’s inception in 1999 to $1.5 billion.

Limited partners in Fund V include both new investors and investors in existing Frontier funds. “Frontier is extremely pleased with the response to Fund V and we appreciate the trust and confidence that our limited partners have placed in Frontier and its ability to drive growth and create enterprise value for the companies we partner with,” said Richard Maclean, a Managing Partner at Frontier Capital. “We have added a number of prominent institutional investors to our already strong institutional investor base, many of whom have been with us since our start.”

Frontier typically makes minority and majority equity investments of $10 million to $50 million in software and technology-enabled business services companies that have revenues from $10 million to $30 million. The firm is based in Charlotte, NC (www.frontiercapital.com).

“While we will maintain our focus on minority and majority stakes in growth-stage, lower middle-market software and tech-enabled business services companies, Fund V will enable us to make larger investments and provide the technology, talent and other resources that we believe the companies we invest in need to succeed,” said Andrew Lindner, a Managing Partner at Frontier Capital.

Lazard was the placement agent for this fundraise and Choate Hall & Stewart provided legal services.

© 2017 Private Equity Professional | December 6, 2017

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