Growth Equity Matures with Frontier Capital’s New $390 Million Fund
Over the last 15 years, we have been very fortunate to partner with promising growth stage technology-enabled business services companies, providing them with the capital and guidance required to take a good business and build it into a great business. When we started making these investments, many limited partners (LP’s) did not have allocation for this segment of the market called “Growth Equity.” Over time, LP’s have continued to seek out more consistent performance from their managers while maintaining significant upside. As a result, we have started to see them allocate more capital to growth equity funds rather than just venture capital or traditional buyout funds.
These findings are good news for us at Frontier, especially as we announce the final close 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 15 years we’ve spent successfully partnering with lower middle market growth companies to achieve their next phase of growth has certainly positioned Frontier as the leader among Growth Equity providers to our target industries. Our reputation is so strong, in fact, that the fund exceeded its $300 million target, the third consecutive oversubscribed fund raised by Frontier. The fund was supported by many return investors as well as by many new institutional investors.
What’s especially exciting is that with Fund IV, we now have the ability to invest $10 million to $40 million – quite a bit more than before – in minority and majority ownership positions. We’ll continue to provide shareholder liquidity and fund both organic and acquisition-related growth initiatives, but will be able to fund them at a higher level so our portfolio companies can do more to reach even greater success.
To find out more about the new fund, or how Frontier Capital can help you and your business, visit http://frontier.atypicinteractive.com, or reach out to Seth Harward, principal at Frontier, at firstname.lastname@example.org.