Growth equity investor Edison Partners has closed its latest fund, Edison Partners IX LP, with $365 million of capital. The new fund was significantly oversubscribed and surpassed its original target of $300 million. Fund IX is the largest fund raised by the firm.
Edison Partners invests from $5 million to $20 million of growth capital in companies that are active in enterprise solutions, financial technology, and healthcare IT. Typical targets will have from $5 million to $25 million in recurring revenue.
“For more than 15 years, we have invested in the underserved part of growth equity: high-growth, capital-efficient technology companies, with revenue of $25 million or less in geographies outside of Silicon Valley. We sized Edison IX to match our strategy, sector and company stage focus,” said Chris Sugden, Managing Partner, Edison Partners. “We are very appreciative of the confidence and commitment our investors continue to share in our differentiated strategy and approach to alpha generation.”
In addition to its growth equity strategy, Edison will also consider buyouts, recapitalizations, spinouts and secondary stock purchases. More than 90 percent of the firm’s current investments are in the MidAtlantic, Midwest, Southeast and South, with active and recently exited investments in Florida, Georgia, Indiana, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Texas and Virginia.
Fund IX has already closed on four investments: Blue Medora (September 2018), a Grand Rapids, MI-based provider of IT monitoring integration services (www.bluemedora.com); Emplify (September 2018), a Fishers, IN-based provider of employee engagement services (www.emplify.com); Sigstr (September 2018), an SaaS platform for employee email signature marketing (www.sigstr.com); and Giant Oak (July 2018), an Arlington, VA-based data analytics software company (www.giantoak.com).
“With 12 partners, who each bring more than 15 years of investing and operating experience, our depth and breadth is unmatched by firms with similar AUM, and investing at the same stage and size,” added Mr. Sugden. “Our resources, programs and content are proprietary and true value-add to portfolio companies — not the industry’s typical third-party or in-house consulting model.”
Fund IX investors include corporate and public pension plans, endowments, fund-of-funds, insurance companies and family offices, including New Mexico Educational Retirement Board, Rutgers University, Hirtle Callaghan, American Family Insurance and Renaissance Venture Capital Fund.
“We have invested in each of Edison’s last three funds. Their team and investment strategy are proven and differentiated. Growth equity provides us with upside return opportunities similar to venture capital, but with the downside risk profile of buy-outs. We are very pleased to continue to invest with the Edison Partners team,” said Steve Neel, Deputy Chief Investment Officer, New Mexico Educational Retirement Board.
Edison’s earlier fund, Edison Partners VIII LP, closed in June 2016 with $276 million in committed capital. This fund recently closed its final investment in June 2018 with a $9 million growth equity investment in Chicago-based Bento for Business, a provider of financial management services focused on employee spending and expense reimbursement (www.bentoforbusiness.com).
Since its inception in 1986, Edison Partners has invested in more than 200 companies and completed 180 exits. The firm’s active portfolio currently consists of 42 companies.
Edison Partners is headquartered in Princeton, NJ (www.edisonpartners.com).
© 2018 Private Equity Professional | October 12, 2018