#USA #Los Angeles #Private Equity #Fund III #Diversis Capital

Diversis Capital Fund III: Significant Closure at $1.2 Billion

In a decisive move that underscores the growing confidence in the private equity landscape, Diversis Capital Management, LP has officially closed its latest fund, Diversis Capital Partners III, L.P., with impressive commitments totaling over $1.2 billion. The Los Angeles-based firm specializes in investments in software and technology-driven services, mirroring the increasing reliance on these sectors in the modern economy.

This fund, which has seen significant oversubscription, exceeded its initial target of $850 million, becoming a notable success story in the realm of private equity. The completion of Fund III boosts Diversis’ assets under management to a remarkable total of over $3 billion, highlighting the firm’s trajectory of growth since it raised $680 million through its previous Fund II in 2021.

A Strategic Focus on Growth

Diversis is committed to maintaining a disciplined investment strategy that targets assets with solid foundational capabilities. The firm employs a unique combination of growth capital and operational support to enhance the potential of the companies it partners with. Their focus primarily lies within the lower middle-market segment, particularly in North America, with selective ventures into Europe and Australia.

Kevin Ma, Co-Founder and Managing Partner of Diversis, expressed enthusiasm about the fund's launch, stating, "Our mission is to work closely with founders and management teams to foster sustainable growth and cultivate market leaders in the tech sector. Wholly leveraging our expertise in operational best practices, innovation, and artificial intelligence, we are set to create enduring value for both our portfolio companies and investors."

His partner, Ron Nayot, echoed this sentiment by proclaiming the completion of Fund III as a pivotal landmark for the firm. He affirmed the validation of their investment strategy, the strength of their personnel, and the importance of collaboration with investors, stating, “Our collective efforts in deploying Fund III promise substantial opportunities, particularly as technology continues to evolve and redefine competitive standards. Our core objective remains the generation of superior returns through meticulous execution and strategic partnerships."

A Diverse Investor Base

The fund attracted widespread interest from a robust global network of investors, comprising leading foundations, endowments, public and private pension plans, family offices, and financial institutions. This diverse participation not only speaks to the trust and confidence investors place in Diversis, but also signifies a demand for thoughtful, technology-oriented investment strategies in today’s market.

William Blair played a pivotal role as the exclusive global placement agent, ensuring a robust framework for the fund's successful closure. Additionally, Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal support, further adding to the professional legitimacy of the fund's launch.

Looking Ahead

Founded in 2013, Diversis has carved out a niche within the private equity landscape by focusing on lower middle-market companies ripe for transformative growth. Their collaborative investment approach allows them to infuse their portfolio companies with both capital and the strategic insight necessary to thrive in competitive markets. This new fund will allow Diversis to expand its reach and impact in the software and technology sectors.

As the industry continues to experience rapid transformation, particularly with the advent of advancements in artificial intelligence, Diversis is more committed than ever to nurturing technology-driven businesses that promise long-term growth. The firm’s ongoing dedication to its investors, portfolio companies, and innovation-driven strategy are sure to position it favorably as it embarks on this exciting new chapter.

For those interested in exploring more about Diversis Capital and its investment approach, further information can be found at www.diversis.com.