Bregal Sagemount held the final close for its latest growth equity fund at $2.5 billion — 66% larger than the New York-based firm’s previous fund close at $1.5 billion back in 2020.
Investors included the Teachers’ Retirement System of Illinois ($100 million) and the Indiana Public Employees Retirement System ($100 million).
“We are extremely grateful and humbled by the continued confidence and support from our existing investors and are excited to welcome a select number of new thought-leading institutional investors to the Sagemount family,” said Gene Yoon, founder and managing partner of Bregal Sagemount in a press statement. “Despite macro headwinds, this support showcases the confidence our investor group has expressed in Sagemount’s ability to partner with market leading entrepreneurs to generate attractive investments across market cycles.”
Bregal Sagemount Fund IV is a continuation of the firm’s flagship strategy, launched in 2012, in that it will invest in durable growth businesses with high recurring revenues, operating in end-markets with uncorrelated secular growth characteristics.
Sagemount launched the fund earlier this year and was fully allocated over the summer.
“In a tight fundraising market where the term ’flat is the new up’ best describes high conviction re-ups, we benefitted from substantial existing investor loyalty and new investor interest,” added Shea Goggin, head of capital formation at Sagemount. “We haven’t lost an investor since inception and have never taken that vote of confidence for granted.”
To date the firm has raised more than $5.5 billion and has invested in over 60 companies across a variety of sectors including software, financial technology and specialty finance, digital infrastructure, healthcare IT and business and consumer services.
The firm made a strategic growth investment in SOLO, LLC, a provider of solar sales, proposal and design software, as reported last month in the AW Deal Watch.