PSG Equity Closes Third European Fund with Over €4.4 Billion

Munich, London, Boston – PSG Equity (“PSG”), a leading growth equity firm, has announ­ced the closing of its third Euro­pean fund, PSG Europe III (“PSGE III” or “the Fund”), with total commit­ted capi­tal of over 4.4 billion euros. PSG specia­li­zes in part­ne­ring with soft­ware and tech­­no­­logy-based service compa­nies to drive trans­for­ma­tive growth. The fund has thus reached its hard cap and recei­ved strong support from its exis­ting and new investors.
PSGE III surpas­ses its prede­ces­sor fund, which closed defi­ni­tively in Octo­ber 2023 at €2.6 billion. Subscri­bers to the Europe-focu­­sed fund included, among others, govern­ment pension funds, sove­reign wealth funds, insu­rance compa­nies, family offices, and high-net-worth individuals. 

With PSGE III, PSG is conti­nuing its stra­tegy of selec­tively forming part­ner­ships with ambi­tious Euro­pean soft­ware and tech­no­logy compa­nies and support­ing them as they grow into pan-Euro­­pean indus­try leaders with a global reach. The fund targets compa­nies that use AI to rede­fine enter­prise soft­ware, as well as the next gene­ra­tion of AI-native compa­nies. PSG’s most recent invest­ments in Europe include Mistral AI, Bright­Ana­ly­tics, Aikido Secu­rity, Quali­ty­Hos­ting, Emotion Mobi­lity, Nami­rial, and Glass­wall, among others. 

Accor­ding to PSG, Europe is on the cusp of a new phase of soft­ware innovation—driven by the incre­asing adop­tion of AI, growing demand for trus­ted Euro­pean tech­no­logy provi­ders, and a focus on digi­tal sove­reig­nty. PSG is convin­ced that these struc­tu­ral trends present signi­fi­cant oppor­tu­ni­ties for soft­ware provi­ders that combine deep indus­try exper­tise with Europe-focu­­sed infra­struc­ture and proprie­tary data capa­bi­li­ties, while also bene­fiting from the substan­tial momen­tum of AI. 

PSG has been active in the Euro­pean market with its own team since 2019; that team now consists of 83 employees. The team includes inves­tors and func­tional soft­ware and tech­no­logy experts who work closely with the manage­ment teams of the port­fo­lio compa­nies. The team is head­quar­te­red in London and has an addi­tio­nal office in Paris. 

To date, PSG has made 43 plat­form invest­ments in Europe, comple­ted 12 (partial) exits, and closed 98 add-on acqui­si­ti­ons, with loca­ti­ons in 24 Euro­pean cities. These include the most recent exits from Sellsy, Signa­tu­rit, N2F, Artur’in, Hornet­secu­rity, and Mapal. 

Peter Wilde, Chair­man of PSG, commen­ted: “We are very plea­sed with the broad support that PSGE III has recei­ved from both exis­ting and new inves­tors world­wide. This result unders­cores the strength of PSG’s global plat­form and confirms our consis­tent and sustainable approach to value crea­tion. In doing so, we support high-growth soft­ware compa­nies with the capi­tal and opera­tio­nal resour­ces neces­sary to build endu­ring indus­try leaders.”

Mark Hastings, Chief Execu­tive Offi­cer at PSG, says: “This is an exci­ting time to be working with leading soft­ware scale-ups in Europe. We see that AI is signi­fi­cantly expan­ding oppor­tu­ni­ties in the enter­prise soft­ware sector, foste­ring the next gene­ra­tion of indus­try leaders, and at the same time acce­le­ra­ting the pace of inno­va­tion among estab­lished soft­ware plat­forms. We are very much looking forward to conti­nuing to support AI-native compa­nies that have a clear tech­no­lo­gi­cal and compe­ti­tive advan­tage. At the same time, we want to help provi­ders of busi­­ness-criti­­cal core systems and infra­struc­ture use AI to improve exis­ting products, acce­le­rate inno­va­tion, and drive their growth.”

Dany Rammal, Mana­ging Direc­tor and Head of Europe at PSG, adds: “The closing of PSGE III marks an important mile­stone for PSG Equity and reflects our confi­dence in the momen­tum of the Euro­pean soft­ware and tech­no­logy market. We are seeing outstan­ding soft­ware and AI compa­nies emerge at an ever-faster pace in Europe. Our plat­form enables us to iden­tify what we believe are Europe’s best compa­nies and to form part­ner­ships with their foun­ders and manage­ment teams to shape them into pan-Euro­­pean market leaders with global reach. As digi­tal sove­reig­nty beco­mes incre­asingly important to custo­mers, we see a major oppor­tu­nity for Europe to produce a multi­tude of inter­na­tio­nally compe­ti­tive soft­ware champions.”

About PSG

PSG Equity is a growth equity firm that helps soft­ware and tech­­no­­logy-enab­­led service compa­nies successfully navi­gate trans­for­ma­tive growth phases, capi­ta­lize on stra­te­gic oppor­tu­ni­ties, and build high-performing teams. With a total of more than 170 plat­form invest­ments and over 550 add-on acqui­si­ti­ons, PSG Equity brings exten­sive invest­ment expe­ri­ence, deep soft­ware and tech­no­logy exper­tise, and a clear commit­ment to part­ne­ring with manage­ment teams. PSG Equity was foun­ded in 2014 and has offices in Boston, London, and Paris. For more infor­ma­tion about PSG Equity, visit www.psgequity.com.