Recognize Partners Fund II Achieves Closure at $1.7 Billion Mark Successfully

Recognize Partners Fund II Reaches $1.7 Billion Closing

In a significant milestone for the investment landscape, Recognize announced the closure of its second fund, Recognize Partners II/II-A, L.P., amassing a remarkable total of $1.7 billion in commitments. This fund aims to catalyze growth in next-generation Digital Services companies, a sector that is increasingly pivotal in today's tech-driven economy.

Founded by industry veterans Francisco D'Souza, Charles Phillips, and David Wasserman, Recognize has rapidly carved out its place as a leading investor-operator in the digital sphere. Their strategy focuses on identifying and fostering visionary founders and management teams dedicated to creating impactful businesses that harness the power of AI, software, and digital platforms. The firm’s commitment lies in supporting companies with enterprise values ranging between $50 million and $500 million, identified as prime candidates for accelerated growth via a partnership-centric approach.

One of the standout aspects of Recognize II is its swift oversubscription, closing in under five months from its inception. This robust interest from investors is a testament to the fund's perceived value and the credibility of its management team. The Limited Partner (LP) base for the fund boasts a diverse array of prestigious global institutions—including endowments, foundations, and family offices—spanning across North America, Europe, Asia, and Latin America.

Recently, Recognize made headlines with four new platform investments, targeting cutting-edge enterprises such as SDG Corporation, specializing in cybersecurity services, Sprout, which focuses on providing digital infrastructure services, TRANZACT, a player in the insurance sector, and HealthEdge, a SaaS solution tailored for healthcare payers. These strategic investments underline Recognize's commitment to nurturing companies that not only promise growth but also push the boundaries of innovation in their respective fields.

In addition to new investments, Recognize also recorded two successful exits earlier this year, including the sale of AST to IBM and a partial exit of 2X, bolstered by a strategic investment from Insight Partners. Furthermore, in 2024, Recognize divested Torc, an AI-based talent platform, to a subsidiary of Randstad. These accomplishments reinforce the investment firm’s view that next-generation Digital Services companies are increasingly attractive to strategic buyers, thereby validating their investment thesis.

Debbie Park Munfa, Partner and Head of Investor Relations at Recognize, stated, "We are incredibly grateful for the continued support of our partners. Our focus remains on building Digital Services businesses for the future and collaborating with exceptional management teams to create long-term value for our investors."

Recognize was guided throughout this fundraising process by Rede Partners Americas LLC, with legal and tax counsel supplied by Goodwin Procter LLP. With its headquarters located in New York, Recognize persists in its mission of fostering next-generation digital transformations.

As the digital landscape continues to evolve, investment firms like Recognize are not just seeking financial returns; they are committed to nurturing innovation that creates meaningful change across industries. For more information about Recognize and its initiatives, visit www.recognize.com.