PSG Equity Holds Final Close of Second European Fund at more than €2.6 Billion. PSGE II, one of the largest growth equity funds raised to invest exclusively in European software companies, exceeded PSG’s initial target.
The successful fundraise reflects the strong support received from both new and existing investors globally including state pension funds, sovereign wealth funds, family offices and high net worth individuals.
Peter Wilde, Chairman of PSG, said, “We are grateful for the support that our second European fund has received from both new and existing PSG limited partners. The strong demand from a high-caliber and diversified group of investors globally demonstrates the attractiveness of Europe’s software market as well as the strength of the PSG platform and our investment approach, both in Europe and North America. The successful closing of our second European fund cements our position as one of Europe’s leading growth equity investors in the software sector.”
PSG’s investment strategy focuses on scaling single-country, single-product software companies through organic and inorganic growth into multi-country, multi-product pan-European champions across multiple markets, supporting its portfolio companies’ global growth ambitions.
Europe represents the second largest IT and software market globally after North America. The software segment continues to be one of the fastest growing in the European IT market, driven by innovations such as generative AI, and is expected to reach $309 billion in size by 2026.
Mark Hastings, Chief Executive Officer of PSG, commented, “With PSGE II, we will be well-positioned to further capitalize on the growing investment opportunities generated by the ongoing digitalization of the European economy. We see substantial investment opportunities as companies of all sizes across all economic sectors are increasingly adopting digitization and automation tools to improve their customer service, increase productivity and secure their operations.”
Dany Rammal, Managing Director and Head of Europe at PSG, added, “The tremendous growth we have experienced in Europe since our inception is a testament to the success of our investment strategy and to the quality and depth of our growing team. Our cross-border M&A expertise, local knowledge and relationships, and the operational support we can provide to management teams, make us a partner of choice for ambitious and innovative founders looking to create pan-European software champions and expand internationally, including in North America. We will leverage our global software expertise to accelerate investment in innovative businesses that are using cutting edge technologies like generative AI, to drive growth and automation across cybersecurity, fintech, payments, verticalized ERP and CRM and workforce management, among others.”
About PSG Equity
PSG’s European team, which was established in 2019 and consists of 57 professionals, is headquartered in London with additional offices in Paris and Madrid.
PSG Equity (“PSG”) is a growth equity firm that partners with software and technology-enabled services companies to help them navigate transformational growth, capitalize on strategic opportunities and build strong teams.