Spectrum Equity has held a final close of Spectrum Equity IX LP at its hard cap of $1.5 billion. In addition, the firm closed its second Discretionary Overage Program at $150 million to allow it to pursue larger transactions or make follow-on investments.
Many of the limited partners in the new fund have been investing with Spectrum across multiple funds and across decades. In addition to its institutional limited partners, more than 65 founders and executives from the firm’s current and past portfolio companies are investors in Fund IX.
Spectrum was founded in 1994 and is led by managing directors Vic Parker, Chris Mitchell, and Ben Spero. “We deeply appreciate the continued support from our investors. We believe the strong demand for Fund IX reflects confidence in our commitment to proactive origination, our focus on resilient, highly recurring revenue businesses and the ability to produce distinctive returns over many cycles,” said Messrs. Parker, Mitchell and Spero in a released statement. “In times of macroeconomic uncertainty like the present, we rely on the consistent execution of our growth equity investment strategy more than ever.”
Boston and San Francisco-headquartered Spectrum invests from $25 million to $150 million of growth capital in control and non-control transactions in the information industry. The firm has a specific interest in internet-enabled software and information services companies.
Earlier this month, Spectrum provided $144 million of growth capital to DispatchTrack, a San Jose-based provider of SaaS-based last-mile logistics products used across a range of industries including furniture, appliances, food and beverage, and building supplies. Each year, the company’s software is used to track more than 60 million scheduled deliveries.
The firm’s earlier fund, Spectrum Equity VIII LP, closed with $1.25 billion in capital commitments in October 2017.
Private Equity Professional | May 27, 2020