PSG Equity closes third European growth fund above €4.4 billion at its hard cap

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PSG Equity has closed PSG Europe III, its third European growth equity fund, at more than €4.4 billion of committed capital. That was the hard cap, the fundraising version of a restaurant turning people away at the door. Its predecessor, PSG Europe II, closed at €2.6 billion in October 2023.

The money came from new and returning backers, among them state pension funds, sovereign wealth funds, insurers, family offices and wealthy individuals. It is meant for software and tech-enabled services businesses in Europe, with a particular interest in AI: both companies built around it and established enterprise software adding it to products customers already use. Recent European deals include Mistral AI, Aikido Security, Namirial and Glasswall. Recent exits include Sellsy, Signaturit, Hornetsecurity and Mapal.

The European arm, set up in 2019, has 83 people, a London headquarters and a Paris office. It has made 43 platform investments and 98 add-on acquisitions, which is to say it buys companies and then has those companies buy more companies. "It's an exciting time to partner with leading software scale-ups in Europe," said chief executive Mark Hastings.