PRINCETON, N.J.–Edison Partners, a well-established growth equity investment firm, has announced the successful closing of its tenth fund, Edison Partners X, with a substantial $450 million in commitments. This oversubscribed fund marks the firm’s third consecutive growth equity focused fund since 2015 and stands as the largest fund raised in its impressive 36-year history. Edison Partners is strategically targeting differentiated deals within underserved markets, a key aspect of its investment approach.
Targeting Underserved Markets for Unique Growth Opportunities
Edison Partners Fund X is specifically designed to address a significant gap in the emerging growth equity investment landscape, focusing on deals ranging from $10 million to $30 million. Crucially, the fund emphasizes geographies often overlooked by traditional Silicon Valley capital, including the Mid-Atlantic, Midwest, Southeast, and Rocky Mountain regions. This strategy positions Edison Partners as a leader in sourcing deal flow from markets with less competition for capital, offering unique opportunities for investment and growth.
The Fund X portfolio already includes seven promising companies, with a strong emphasis on underserved geographies. These initial investments are: Kaiyo (New York), a furniture resale marketplace; MacroFab (Houston), a digital manufacturing platform; Prepaid Technologies (Birmingham, AL), a provider of prepaid and digital payment solutions; Recycle Track Systems (New York), a waste and recycling management technology company; Slingshot Aerospace (Austin, TX), a space simulation and analytics firm; Solutions by Text (Dallas, TX), a compliance-focused text messaging platform; and Spiffy (Charlotte, N.C.), an on-demand car care and maintenance service.
Chris Sugden, Managing Partner at Edison Partners, highlights the firm’s consistent and disciplined investment philosophy. “Fund X continues Edison Partners’ successful track record, reflecting a disciplined, ‘old-school’ approach to investing in capital-efficient, high-growth businesses within fintech, healthcare IT, and enterprise SaaS, particularly outside of Silicon Valley,” Sugden stated. He further emphasized the firm’s focus on sustainable growth and value creation, contrasting it with the current trend of “growth at all costs” within the equity environment. “Capital formation tied to the business’ growth strategy, not simply fund size, is our core principle. We offer more than just capital; we forge meaningful partnerships with our portfolio companies.”
The Edison Edge platform, a cornerstone of their value proposition, provides portfolio companies with centers of excellence, executive education, and a robust director network, all designed to optimize operations and foster strategic growth.
Alpay Koralturk, founder and CEO of Kaiyo, expressed enthusiasm for their partnership with Edison Partners. “We are very excited to partner with Edison Partners, recognizing their extensive operational experience and impressive history of successful investments in innovative, high-growth companies,” said Koralturk. He noted the synergy between Kaiyo’s operational focus and Edison’s hands-on approach. “Their Edison Edge program is particularly valuable, providing resources to accelerate our growth trajectory and unlock new avenues to achieve our mission of making quality furniture accessible and environmentally sustainable.”
The Edison Edge: A Differentiated Value Creation Platform
Edison Partners differentiates itself through its industry-leading Edison Edge value-creation platform. This platform provides portfolio companies with significant operating expertise and best practices at no additional cost. Edison Edge encompasses five specialized centers of excellence, executive education programs, comprehensive board director support through the Edison Director Network (EDN), and dedicated corporate development and exit management services. The platform is highly utilized, with over 90% portfolio company engagement, contributing to an average annual revenue growth rate of 70% to 80% among participating companies.
A Proven Track Record in Growth Equity
Since its founding in 1986, Edison Partners has built a strong legacy in growth equity investing, having invested in over 240 companies and achieved 180 successful exits. Recent notable exits include TripleLift, Zelis, HRS, Solovis, Clearpool, Jornaya, Bento for Business, Gambling.com, and MoneyLion. The firm’s current active portfolio comprises 53 companies, and as of December 31, 2021, Edison Partners managed over $1.6 billion in assets, representing an aggregated market value exceeding $10 billion.
Edison Partners formalized its growth equity model in 2015 and has consistently achieved top-quartile performance. Edison IX, a $375 million growth equity fund closed in 2018, completed its final investment in GoHenry. In 2021, the firm marked its fifth consecutive year of record proceeds, surpassing its 2020 record by 65%.
Edison Partners often acts as the first institutional capital and lead investor, typically investing in companies with revenues between $10 million and $30 million at the time of initial investment. Throughout its 36-year history, Edison Partners and its portfolio companies have demonstrated resilience and success across diverse economic cycles.
Committed to Diverse and Expert Leadership
Edison Partners is guided by a team of 17 investment professionals, each bringing sector-specific expertise and extensive experience in growth-stage technology companies. Notably, over two-thirds of the team are women and minorities, reflecting a commitment to diversity and inclusion. Edison Partners has allocated $30 million to $50 million of Fund X investments specifically to support companies led by underserved tech CEOs, including women and minorities. This commitment extends to portfolio company management teams and boards, with 72% of management teams and 72% of boards demonstrating gender and/or ethnic diversity. Specifically, 55% of portfolio company boards include women, and 43% are ethnically diverse, with 55% showing gender diversity.
Investor Confidence in Edison Partners’ Approach
Steve Neel, Deputy Chief Investment Officer, New Mexico Educational Retirement Board, underscores investor confidence in Edison Partners: “Our ongoing support for Edison Partners reflects our strong belief in their strategic and unique approach to growth equity. Our multiple investments with Edison Partners have consistently delivered strong ROI, a testament to their capabilities and the value they bring to their portfolio companies.”
Edison’s Fund X investor base includes a diverse range of institutional investors such as corporate and public pension plans, endowments, fund-of-funds, insurance companies, and family offices, including Rutgers University, American Family Insurance, New Mexico Educational Retirement Board, and Renaissance Venture Capital Fund.
About Edison Partners
For 36 years, Edison Partners has been dedicated to supporting CEOs and their executive teams in scaling and growing their businesses. The firm’s investment team collectively brings over 275 years of investing and operating experience to each investment. Through its integrated approach, combining growth capital with the Edison Edge platform – encompassing operating centers of excellence, executive education programs, and the Edison Director Network – Edison Partners accelerates growth and creates significant value for its portfolio companies. Specializing in enterprise solutions, financial technology, and healthcare IT, Edison Partners targets high-growth companies outside Silicon Valley with revenues between $10 million and $30 million. The firm’s investment scope includes buyouts, recapitalizations, spinouts, and secondary stock purchases. Edison’s active portfolio has generated an aggregated market value exceeding $10 billion, and the firm manages $1.6 billion in assets. For more information, visit edisonpartners.com and follow Edison Partners on LinkedIn.
Disclosure
Edison Partners Management, LLC (“Edison”) is an SEC-registered investment adviser based in Princeton, New Jersey. SEC registration does not denote any specific level of skill or expertise. Further details regarding Edison’s advisory services and fee structure can be found in its Form ADV 2A, available upon request.
This release should not be interpreted as an offer to sell or a solicitation to buy any security or interest in any investment fund managed, sponsored, or referenced by Edison or its affiliates. Nor should it be considered an offer to provide investment advisory services. Offers to invest in Edison-managed investment funds are made separately and solely through the confidential offering documents of those specific funds, which should be thoroughly reviewed and are intended only for individuals meeting specific qualifications under federal securities laws, such as accredited investors and qualified purchasers. These investors are generally considered capable of assessing the risks and merits of potential investments and financial matters.
Investment inherently involves risk of loss, and investors should be prepared for potential losses, including the complete loss of invested capital. Past investment performance is not indicative of future results. The content of this release should not be considered or used as investment, legal, tax, or other professional advice.
This release includes statements from representatives of current and former portfolio companies, as well as investors, sharing their experiences with Edison. These testimonials are not representative of every investor or portfolio company’s experience and do not guarantee similar outcomes for future investors. Edison does not provide direct or indirect compensation to any party for endorsements or testimonials.
As Edison Funds invests in these companies, individuals providing testimonials or endorsements may have an incentive to speak positively about their experience with Edison. To manage this potential conflict of interest, Edison does not consider these endorsements in the context of the advisory services it offers to the Funds.
Contacts
Katie Morales
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