Frontier Capital Closes $390 Million Growth Equity Fund

March 03, 2015

Oversubscribed Fund Continues 15-year Focus of Investing in High-Growth Software and Services Companies

CHARLOTTE, N.C.–(BUSINESS WIRE)–Frontier Capital today announced the final closing of Frontier Fund IV, L.P., a $390 million growth equity fund investing in lower middle market software and technology-enabled business services companies. The fund exceeded its $300 million target and represents the third consecutive oversubscribed fund raised by Frontier.

“We are pleased to announce the final close of Fund IV,” said Richard Maclean, managing partner, Frontier. “We are grateful to our existing investors, who represented two-thirds of our commitments, for their continued support and confidence. Exceeding our target in a short period of time, while adding a number of leading institutional investors to our limited partner base, is a testament to the strength of our team and strategy.”

Frontier will continue its 15-year focus on investing in high-growth software and services companies with $5 million to $30 million of revenue. With Fund IV, the firm has the ability to invest $10 million to $40 million in minority and majority ownership positions. Frontier investments provide shareholder liquidity and fund both organic and acquisition-related growth initiatives. Targeted industries include B2B SaaS, Health and Benefits Solutions, Human Capital Management Software and Services, Managed-IT Infrastructure and Technology-Enabled Services.

“Fund IV represents an exciting new chapter in the growth of our firm,” said Andrew Lindner, managing partner, Frontier. “It allows Frontier to build upon our reputation as a premiere partner for lower middle market growth companies seeking the playbook and capital required to achieve their next phase of growth.”

Lazard acted as placement agent for Frontier Fund IV and DLA Piper provided legal counsel.

About Frontier Capital

Frontier Capital is a North Carolina-based growth equity firm focused exclusively on software and technology-enabled business services companies. Founded in 1999, Frontier partners with management teams that can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity.