Serent Capital has held a final closing of its latest fund, Serent Capital IV LP (Fund IV), with $750 million of capital. Serent’s new fund was oversubscribed, just as its prior three funds were. In October 2017, the firm’s earlier fund closed with $572 million of capital.
According to Serent, its funds have a consistent and longstanding investor base which has led to abbreviated fundraising timeframes and has allowed limited room for new investors, despite the firm’s growth.
“We are humbled by the loyalty that our existing investors showed in re-subscribing with our latest fund. That level of loyalty is identical to how we feel toward our investors and consistent with our value of partnership,” said Kevin Frick, a partner and co-founder of Serent Capital. “We also welcome the few, select, new investors who we were able to invite to join Fund IV. We look forward to many productive years together.”
Serent Capital invests from $10 million to $50 million in service businesses with revenues of $5 million to $100 million and EBITDAs up to $15 million. Transaction types include buyouts, recapitalizations and growth capital.
“While we all know the future will bring twists and turns, we have never felt more confident in our strategy, the intellectual property that we bring to bear against that strategy, and most of all the team and culture here at Serent,” said Lance Fenton, a partner of Serent Capital.
In tandem with the closing of Fund IV, Serent has named Prital Kadakia and Stewart Lynn as new partners. “We are particularly proud to welcome Prital and Stewart to the partnership,” added Mr. Fenton. “During their years at Serent, they have proven not only to be exceptional investors and business builders but also torchbearers of the firm values to which we hold dear.”
In 2019, Serent closed more than $440 million of transactions in four platforms, four add-ons, and one exit. Since its founding in 2008, San Francisco and Austin-based Serent has invested in over 40 companies and, with the closing of Fund IV, now has approximately $2 billion in committed capital.
© 2020 Private Equity Professional | March 6, 2020