Invictus Growth Fund II Closes at $574M, Surpassing Fundraising Goals
Invictus Growth Partners, a prominent private equity firm specializing in lower middle-market enterprise software businesses, announced the final closing of its second growth fund. Fund II closed with $574 million in capital commitments, significantly exceeding its fundraising goals. This milestone reinforces Invictus’ strategic focus on high-growth sectors like cloud software, cybersecurity, and fintech.
Key Highlights
1. Fund II Overview and Oversubscription Success
- Total capital commitments: $574 million, including core and co-investment funds.
- Fund II raised $488 million directly, overshooting the $350 million target and $450 million hard cap.
- Strong demand from new and returning institutional investors.
2. Diverse and High-Caliber Investor Base
- Backed by pension plans, endowments, foundations, insurance companies, healthcare institutions, and family offices.
- Over two-thirds of the capital came from new investors, enhancing institutional diversity.
3. Strategic Investment Focus
- Targets enterprise software companies in cloud, cybersecurity, and fintech sectors.
- Invests in companies with:
- At least $10 million in annual recurring revenue.
- Strong product-market fit.
- Little or no prior equity capital raised.
- Profitability or near-profitability.
4. Machine Learning-Powered Deal Sourcing: DIANE Platform
- 10 of 12 investments sourced via DIANE (Deal Intelligence Assessment Neural Engine).
- Three generations of ML innovations since 2019:
- Gen 1: Automated investment sourcing.
- Gen 2 & 3: Go-to-market (GTM) operational enhancements for portfolio companies.
- Results:
- 90% increase in direct sales efficiency.
- Access to thousands of new enterprise customers.
5. The Invictus Guild: Deep Operating Support
- Dedicated team of operators from top tech companies.
- Covers 10 critical growth domains:
- Sales
- Marketing
- Customer Success
- Business Development
- Corporate Development
- Data Science
- Human Resources
- Product Development
- Finance
- CEO Coaching
- Members act as advisors, mentors, and talent sources.
- Guild members invest personally in each portfolio company.
With the successful close of Fund II, Invictus Growth Partners is poised to continue its mission of scaling high-potential enterprise software firms through a blend of capital, AI-driven tools, and deep operational support. By integrating machine learning with hands-on industry expertise, Invictus sets a new standard for growth-stage private equity in the cloud software, cybersecurity, and fintech arenas.
