Introducing Fund X – A New Milestone

Fund X

We are excited to announce the closing of Spectrum Equity X, L.P., a $2 billion growth equity fund focused on internet-enabled software and data services companies. While closing our tenth fund is an important milestone for the firm, it’s not lost on us that we did so during a particularly volatile period worldwide. Despite the tumultuous environment, our investors’ support has been unwavering, and we are profoundly grateful for their continued commitment and partnership. As with prior funds, our capital base in Fund X is comprised mostly of existing investors, many of whom have been with Spectrum for decades, as well as several new investors. We are also delighted to welcome over 85 founders and executives from our current and past portfolio companies as partners in this fund. Our relationships with management teams are at the core of who we are as a firm, so it is particularly gratifying to receive their fund commitment.

Our investors’ confidence in our strategy allows us to continue to do what we’ve done best for nearly thirty years – identify attractive, dynamic businesses, and help them scale to become category leaders. Helping to build a great company is the most rewarding aspect of what we do, as it creates enduring value not just for our investors, but also for all key constituencies – including customers, employees, and fellow shareholders.

Closing Fund X represents a significant achievement for the firm and an opportunity to reflect on the principles that have guided us over the last three decades. Consistency and discipline, key tenets of our investment approach at Spectrum, have been critical to our success through many market cycles. They’ve guided our incremental fund size growth and our commitment to originating opportunities with capital-efficient internet and software businesses, irrespective of prevailing trends in the financial markets. In today’s volatile climate, it will be more important than ever to rely on this approach to guide our strategy going forward.

Like prior Spectrum funds, Fund X will provide capital to companies with proven, scalable business models that exhibit high growth with recurring revenue. While Spectrum typically invests between $25 million and $200 million in a mix of control and minority transactions, the firm also closed its third Discretionary Overage Program at $200 million, enabling us to pursue larger transactions or follow-on investments.

Although a great deal of macro uncertainty accompanies this post-pandemic period, we remain steadfast in our belief that the internet will continue to transform every aspect of the economy, leading to a proliferation of innovative technology companies and powerful consumer tools. We are as passionate as ever about the extraordinary potential of business models delivering software and information over the internet, and as we embark upon Fund X, we are excited for the opportunities that lie ahead.

For more information about Fund X, see the press release.

Content contained in this blog post is not intended to and does not constitute investment advice. Your use of the information in this blog post and materials linked is at your own risk. Spectrum Equity does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is not indicative of future results, and there is a possibility of loss in connection with an investment in any Spectrum Fund. To the maximum extent permitted by law, Spectrum Equity disclaims any and all liability in the event any information, commentary, analysis, and/or opinions prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. The specific companies identified above does not represent all of Spectrum’s investments, and no assumptions should be made that any investments identified were or will be profitable. View the complete list of our portfolio companies.