Rubicon Technology Partners Closes $1.7 Billion Fund IV, Continuing to Drive Growth in Enterprise Software

Private equity firm Rubicon Technology Partners successfully raises $1.7 billion for its latest fund, Fund IV, to support the growth of market-leading enterprise software companies.

Rubicon Technology Partners, a prominent private equity firm specializing in enterprise software investments, has recently closed its latest fund, Rubicon Technology Partners IV, at approximately $1.7 billion. This marks a significant increase in size from its predecessor fund, Rubicon Technology Partners III. The successful fundraising effort reflects the strong support from both existing and new investors, including leading global institutions such as pension funds, foundations, and family offices. With this capital infusion, Rubicon is poised to continue its mission of partnering with founders and management teams to build market-leading enterprise software companies.

A Proven Track Record of Success

Rubicon Technology Partners has established itself as a force in the enterprise software investment space since its inception in 2012. With a focus on value creation, Rubicon has completed a total of 66 transactions, including 19 platform investments and 47 add-on acquisitions. The firm’s expertise lies in accelerating growth for software businesses by leveraging its proprietary value creation framework. This framework encompasses strategies to increase market share, execute mergers and acquisitions, and implement operational best practices that drive scale and efficiency.

Investment Strategy and Criteria

Rubicon’s investment strategy revolves around making control equity investments ranging from $50 to $350 million in businesses with annual recurring revenue between $15 to $75 million. The firm seeks companies that hold a leadership position in their respective markets and have significant potential for operational efficiency improvements and growth acceleration. This targeted approach allows Rubicon to partner with software companies that can benefit from its expertise and resources.

Fund IV’s Recent Investments

Fund IV has already made two platform investments, showcasing the firm’s commitment to identifying and supporting promising enterprises. In October 2022, Rubicon made its first investment in Aline, a strategic deal that merged three leading software vendors in the Senior Living industry. This consolidation created a market leader capable of addressing the full range of senior living operators’ software needs. In July 2023, Rubicon announced its investment in Tacton, the leading provider of Configure, Price, Quote (CPQ) software-as-a-service (SaaS) solutions for manufacturers of complex configurable products. These investments demonstrate Rubicon’s dedication to partnering with companies that have the potential to disrupt and dominate their respective markets.

A Trusted Partner for Founders and Management Teams

Rubicon’s success lies in its ability to forge strong partnerships with founders and management teams. By leveraging its deep industry knowledge and operational expertise, Rubicon supports these teams in building market-leading companies. The firm’s differentiated strategy and conviction in the enterprise software market have positioned it as a partner of choice for founders and management teams seeking growth and success.

Recognition and Advisory Support

Rubicon’s successful fundraising efforts were supported by PJT Park Hill, which served as the placement agent, and Simpson Thacher & Bartlett LLP, which provided legal counsel to the Fund and Rubicon. These trusted advisors played a crucial role in ensuring a smooth and efficient fundraising process.

Rubicon Technology Partners’ closing of Fund IV at $1.7 billion marks another milestone in the firm’s journey of driving growth in the enterprise software sector. With a proven track record, a focused investment strategy, and a commitment to partnership, Rubicon is well-positioned to continue its mission of building market-leading software companies. As the firm embarks on this new chapter, it remains dedicated to leveraging its expertise and resources to support founders and management teams in achieving their growth objectives.

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