Serent Closes its Fifth Straight Oversubscribed Fund

Serent Closes its Fifth Straight Oversubscribed Fund

Fundraising aside, Serent was busy in 2021 closing 38 transactions including 14 platforms, 17 add-ons, and 7 exits

Serent Capital has held a final oversubscribed closing of its fifth fund, Serent Capital Fund V LP, with $1.1 billion of capital.

Fund V was raised in less than 100 days and follows the firm’s fourth fund which closed with $750 million of capital in March 2020.

Serent Capital invests from $20 million to $200 million in business-to-business software companies that have revenues from $10 million to $50 million and EBITDA margins from 0% to 50%. Transaction types include buyouts, recapitalizations and growth capital.

“We are thrilled to be embarking on the next chapter of growth with our investors, our current and future portfolio companies, and the firm,” said Stewart Lynn, a partner at Serent. “Our sector expertise, genuine relationships, and bringing our toolkit of growth resources to our companies are all part of a solid foundation to set Serent up for success.”

“We are humbled and honored by the support from our existing investors and to welcome a select group of new investors,” said Kevin Frick, a partner at Serent. “The enthusiastic support is a testament to the strategy we’ve designed, the values-driven firm we continue to build, and the hard work of the founders and CEOs with whom we partner.”

A recent transaction closed by Serent was its December 2021 investment in Raintree Systems, a California-based provider of electronic health record (EHR) and revenue cycle management (RCM) software to therapy and rehabilitation clinics. Other recent investments include Millennium Systems International, a New Jersey-based provider of business management software – customer acquisition and retention, operations and billing – to the spa and salon industry (September 2021); and ParentSquare, a California-based provider of school-to-home engagement software used to coordinate school district announcements, attendance, surveys, sign-ups and daily classroom communications (August 2021).

Serent Capital closed 38 transactions in 2021 including 14 platform investments, 17 add-on acquisitions, and 7 exits. Since its founding in 2008, San Francisco and Austin-based Serent has invested in over 60 companies.

“Partnering with founders and providing strategic, operational resources to help them achieve their growth goals has been part of Serent’s DNA from inception,” said Prital Kadakia, a partner at Serent. “We’re excited to continue to create meaningful value in our companies and evolve and expand our growth resources with Fund V.”

With the closing of Fund V now completed, Serent has just under $5 billion in assets under management.

© 2022 Private Equity Professional | March 31, 2022

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