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
Plexus Capital has held an above-target close of over $1.3 billion across two investment vehicles—Plexus Fund VII LP (Fund VII) and Plexus Equity Fund II LP (Equity Fund II).
“Plexus is proud of the long-term relationships built with our investors and portfolio company management teams, as well as the culture we’ve established over our 20-year history, which centers on transparency, accountability, and following through on our commitments,” said Alex Bean, a partner at Plexus. “Combined with our disciplined investment approach and track record across market cycles, this partnership mentality seemed to resonate with our investors in a challenging fundraising environment. We are grateful for the overwhelming support from our existing investors and pleased to welcome several new institutional investors in both funds.”
Gemspring Capital Management has closed its second non-control investment vehicle, Gemspring Growth Solutions Fund II LP (GGS II), with $1.1 billion in limited partner commitments. The new fund closed at its hard cap in its first and final close after only three months in the market.
Crux Capital, a Dallas-based private equity firm targeting the lower-middle market, has closed its debut institutional fund, Crux Capital Fund I LP (Fund I), with over $340 million in commitments. Fund I closed above its hard cap following a nine-month fundraising cycle.
“We are incredibly grateful for the conviction and trust shown by our new and existing partners,” said Mr. Moore. “We believe this fundraise is a powerful endorsement of our specialized strategy of partnering with talented founders and management teams in the consumer and commercial services sectors. The firm has deep roots in the Sunbelt, and we are excited to deploy capital to help high-quality businesses in this vibrant region achieve their full potential.”
“The enthusiastic response to our first fund speaks to the compelling opportunities we see in the lower-middle market,” said James Kay, a partner at Crux Capital. “For many entrepreneurs, we are the first institutional partner they’ve had, and we don’t take that responsibility lightly. Our collaborative, hands-on approach is designed to provide not just capital, but the strategic and operational resources necessary to help these companies build lasting value for all stakeholders.”
Aurora Capital Partners has closed Aurora Equity Partners VII LP with just more than $2.1 billion in above-target capital commitments.
“We are grateful for the continued confidence and support of our long-standing limited partners and are equally proud to welcome an exceptional group of new investors to Fund VII,” said Josh Klinefelter, a partner at Aurora. “The successful close of this fund reflects a strong endorsement of our team’s ability to drive scale and strategic transformation across our companies. We look forward to building on this momentum and delivering outstanding results for our stakeholders.”
“We are energized by the significant opportunities we see to build unique, market-leading companies across our target sectors, and we look forward to executing our strategy while further strengthening our capabilities as a firm in the years ahead,” said Mark Rosenbaum, a partner at Aurora.
Platinum Equity has closed its second lower middle market fund, Platinum Equity Small Cap Fund II LP, with $2.28 billion in total commitments—well above its $1.75 billion target. The firm’s first lower middle market fund closed in July 2018 at its hard cap of $1.5 billion.
“We’ve built a powerful lower-middle market franchise that draws on three decades of experience and allows us to create value across the full spectrum of investment opportunities,” said Tom Gores, the chairman and CEO of Platinum. “The team has deep roots and tremendous momentum, and the overwhelming response to our latest fund is a testament to that.”