BOSTON—Silversmith Capital Partners, a growth equity firm focused on enabling exceptional entrepreneurs, has announced the successful closing of its fourth fund, Silversmith Capital Partners IV (Fund IV), hitting its hard cap of $1.25 billion. This milestone, achieved in May 2022, underscores strong investor confidence in Silversmith Partners and their consistent investment strategy. Fund IV was significantly oversubscribed, demonstrating high demand and trust from both returning and new limited partners. The Silversmith team is also committing $90 million to Fund IV, further aligning their interests with those of their investors. This latest fund brings Silversmith’s total capital raised since its inception in 2015 to over $3.3 billion. Continuing their established approach, Fund IV will concentrate on partnering with and empowering outstanding entrepreneurs leading high-growth, profitable companies in the technology and healthcare sectors.
Image: The Silversmith Capital Partners team, including Jim Quagliaroli, Sri Rao, Marc Munfa, Brian Peterson, Todd MacLean, Lori Whelan, and Jeff Crisan, celebrate the successful close of Fund IV. This image represents the experienced professionals behind Silversmith Partners’ growth equity strategy.
Silversmith Capital Partners has garnered substantial support from its existing investor base for Fund IV, including prominent endowments, foundations, fund-of-funds, and pension funds. The firm also welcomed a select group of new institutional investors to this fund. In addition to institutional backing, Fund IV saw investment from 50 CEOs, founders, and industry executives, highlighting the broad network and respect silversmith partners command within the business community. The firm’s previous successful fundraises include a $460 million first fund in 2015, a $670 million second fund in 2018, and an $880 million third fund in 2020, showcasing a consistent pattern of growth and increasing investor commitment over time.
Jim Quagliaroli, Managing Partner at silversmith partners, emphasized the firm’s unwavering investment philosophy. “Our investment strategy is anchored by four core principles that have remained constant over the past seven years,” he stated. These tenets include: focusing investments in well-understood markets, engaging with companies at key inflection points in their growth, prioritizing capital-efficient businesses, and most importantly, forging partnerships with truly exceptional entrepreneurs. Quagliaroli added, “The strong support from our investors reflects the limited partner community’s appreciation for a disciplined investment approach. We are thankful for their trust in silversmith partners and are committed to continuing to execute our established investment strategy.”
Since its founding, silversmith partners has built a robust track record, investing in 41 growth-stage companies and achieving 16 full or partial exits, generating $1.7 billion in cash proceeds. The firm has also expanded its team to over 35 professionals and developed a Senior Advisor network of 10 experienced executives from leading technology and healthcare organizations. Fund IV will maintain Silversmith’s strategy of making both minority and majority investments, ranging from $20 million to $125 million. The focus remains on SaaS & Information Services and Healthcare IT & Services companies that are primarily founder-led, profitable, and are often raising institutional capital for the first time.
Jeff Crisan, also a Managing Partner at silversmith partners, spoke to the firm’s culture and mission. “We established Silversmith with the goal of creating a firm characterized by a collaborative, team-oriented culture, dedicated to supporting and partnering with outstanding entrepreneurs,” Crisan explained. “Our firm’s success is a direct result of the dedication of our team and the remarkable entrepreneurs who work tirelessly to build exceptional businesses.”
Kirkland & Ellis served as fund formation counsel for Fund IV.
About Silversmith Capital Partners
Founded in 2015 and based in Boston, Silversmith Capital Partners is a growth equity firm managing $3.3 billion in capital. The firm’s mission is centered on partnering with and supporting top-tier entrepreneurs in rapidly growing and profitable technology and healthcare companies. Silversmith partners‘ notable investments include companies like ActiveCampaign, Appfire, DistroKid, impact.com, Iodine Software, LifeStance Health, and Webflow. For further information about Silversmith Capital Partners, please visit www.silversmith.com or connect with the firm on LinkedIn.
Contacts
Press:
Kate Castle
Chief Marketing Officer
Silversmith Capital Partners
P: 617.670.4345
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