Serent Capital Announces $1.1 Billion Fund to Invest in Founder-Led Software Companies

Serent Capital Announces $1.1 Billion Fund to Invest in Founder-Led Software Companies

The oversubscribed fund is the fifth fund for the Firm and will invest in growing, bootstrapped B2B software companies

March 15, 2022

Serent Capital, a growth-focused private equity firm that invests in founder-led B2B software companies, announced the closing of its fifth and largest fund to date, Serent Capital Fund V, at $1.1 billion.

Serent Capital Fund V was oversubscribed. With the closing of Fund V, it now has nearly $5 billion in assets under management.

“We are humbled and honored by the support from our existing investors and to welcome a select group of new investors,” stated Kevin Frick, Partner at Serent Capital. He continued, “The enthusiastic support is a testament to the strategy we’ve designed, the values-driven firm we continue to build, and the hard work of the founders and CEOs with whom we partner.”

The fund’s strategy will remain unchanged from previous funds. Serent will continue to focus on founder-led, bootstrapped B2B software companies where Serent’s sector expertise and resources can drive future growth.

Prital Kadakia, Partner at Serent Capital, added, “Partnering with founders and providing strategic, operational resources to help them achieve their growth goals has been part of Serent’s DNA from inception. We’re excited to continue to create meaningful value in our companies and evolve and expand our growth resources with Fund V.”

To help founders scale their companies, Serent has built an in-house Growth Team that works shoulder-to-shoulder with founders and their companies to create value by identifying and executing strategic initiatives in areas such as sales and marketing strategy, payments integration, M&A, product innovation and launches, and executive recruiting.

Stewart Lynn, Partner at Serent Capital, added, “We are thrilled to be embarking on the next chapter of growth with our investors, our current and future portfolio companies, and the Firm. Our sector expertise, genuine relationships, and bringing our toolkit of growth resources to our companies are all part of a solid foundation to set Serent up for success.”

“Each year, we have raised the bar and broken new records,” stated Lance Fenton, Partner at Serent Capital. He continued, “With the closing of this fund, we look forward to leveraging the pattern recognition we have developed to propel innovation and exceptional performance for our companies and our investors.”

Serent Capital invests from $20 million to $200 million in B2B software companies with a strong product-market fit, annual recurring revenues of $10 million to $50 million, annual growth from 20-100%, and EBITDA margins from 0-50%.  Transaction types include buyouts, recapitalizations, and growth capital.

In 2021, Serent Capital completed 38 transactions, including 14 platform investments, 17 add-on investments, and 7 realizations. Since its founding in 2008, the Firm has invested in over 60 companies and been recognized for three consecutive years by Inc. magazine as a “Founder Friendly Private Equity Firm” for its purpose-driven partnership approach.

Connect with a Team Member to Learn More About Why Founders Choose Serent

Serent Capital invests in growing businesses that have developed compelling solutions that address their customers' needs. As those businesses grow and evolve, the opportunities and challenges that they face change with them. Principals at Serent Capital have firsthand experience at capturing those opportunities and navigating these difficulties through their experiences as CEOs, strategic advisors, and board members to successful growing businesses. By bringing its expertise and capital to bear, Serent seeks to help growing businesses thrive. Learn more about our portfolio companies.

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