Diversis Capital has held an above-target and hard-cap close of its third fund, Diversis Capital Partners III LP, with more than $1.2 billion in total commitments.
Fund III limited partners include endowments, foundations, pension plans, family offices, investment advisers, and financial institutions.
Diversis Capital’s earlier fund, Diversis Capital Partners II LP, closed in September 2021 with an oversubscribed and above-target $680 million of capital. The firm’s first fund closed in 2019 with $255 million of capital. With the close of Fund III, Diversis now has $3 billion of assets under management.
Diversis invests from $10 million to $150 million of control equity in lower middle-market enterprise software and technology-enabled companies headquartered in North America. The firm will also pursue selective transactions in Western Europe and Australia. Los Angeles-based Diversis was founded in 2013 by managing partners Ron Nayot and Kevin Ma.
“As we continue to build Diversis, we will focus on working with founders, corporations and teams to help unlock the next stage of profitable growth to create market leaders,” said Mr. Ma. “We’ve seen a lot of success bringing the best practice, innovation and AI experience of our deep bench of operating partners to create scale and build long term value in our portfolio. We are excited to double down on the execution of this strategy in our new fund. We’d like to thank our existing limited partners who have supported us over the last several years and welcome our new limited partners to the team.”
The software and tech-enabled services sector continues to grow steadily, driven by the adoption of cloud computing, AI integration, and broader enterprise digitization efforts. According to McKinsey & Company, generative AI has the potential to add between $2.6 trillion and $4.4 trillion in annual global productivity, with notable impact across sectors like financial services, retail, and life sciences. These shifts are reshaping demand across vertical software markets and creating new opportunities for scaled platforms backed by institutional capital.
“We believe the successful completion of Fund III marks an important milestone for Diversis, validating our proven track record, disciplined investment strategy, and the strength of our people, portfolio leadership teams, and investors,” said Mr. Nayot. “Each of these groups plays a vital role in our continued success, and we are deeply grateful for their partnership as we begin deploying Fund III.”
Last year, Diversis acquired Decision Lens, a Virginia-headquartered provider of integrated planning and prioritization software used by the Department of Defense, intelligence agencies, and federal, state, and local governments. For example, the U.S. Air Force uses the company’s software to support its Program Objective Memorandum, a five-year budget plan the military uses to prioritize and fund programs. The Decision Lens platform helps the Air Force evaluate and prioritize funding requests based on criteria like mission relevance, risk, and cost, to ensure that its spending aligns with its long-term strategic goals.
“Looking ahead, we see tremendous opportunity across the software and technology-enabled sectors, particularly as artificial intelligence reshapes the competitive landscape,” concluded Mr. Nayot. “As always, our goal remains to deliver superior returns for our investors through thoughtful execution, strategic partnership, and a relentless commitment to building enduring, technology-driven businesses.”
William Blair served as placement agent, and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal services.
© 2025 Private Equity Professional | October 22, 2025
