Bow River Capital has closed Bow River Capital 2019 Software Growth Equity Fund LP with $160 Million of capital commitments. The closing was above target and was oversubscribed.
The strategy of the software fund will be to provide first institutional capital and partner with management teams to drive market positioning and growth in two industry verticals: software as a service (SaaS) and technology-enabled business information services. Limited partners in the new fund include industry executives, CEOs, and technology founders.
Typical equity investments will be between $5 million and $15 million in companies that are near cash flow break-even or profitable and have subscription revenue run rates from $3 million to $10 million.
The fund made its first investment in April 2019 when it acquired AbsenceSoft, a Golden, CO-based SaaS provider of cloud-based absence management software that is used by companies to ensure compliance with regulations under the Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), and all other forms of absence leave and disability (www.absencesoft.com).
“We are grateful for the continued support of our longstanding investors and are extremely pleased with the substantial commitments from new investor partners,” said John Raeder, Jr., managing director and head of software investments at Bow River. “We have a robust pipeline of highly attractive opportunities and look forward to executing our investment strategy and growth initiatives with our management teams.”
Bow River is an investor in buyouts, real estate, energy, and software sectors. For buyouts, Bow River makes control investments in companies with revenues of $10 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include business services, healthcare services, industrial services and products, infrastructure services and products, niche manufacturing, and value-added distribution. Geographically, Bow River prefers companies that are based in the US Rocky Mountains, Midwest, Southwest, and Western Canada. Bow River was founded in 2003 by Managing Partner Blair Richardson and Partner Eric Wolf and is based in Denver (www.bowrivercapital.com).
Perkins Coie was the legal advisor to Bow River on this fundraise.
© 2019 Private Equity Professional | July 15, 2019