Princeton Equity Group closes $1.3bn Fund III at hard cap
Princeton Equity Group has closed its third flagship private equity fund with $1.3bn in commitments, more than doubling the size of its predecessor as institutional demand drove a heavily oversubscribed fundraise.
## Princeton Equity Group Closes $1.3 Billion Fund III at Hard Cap
Princeton Equity Group has announced the final close of its third flagship private equity fund, Princeton Equity Partners III, securing $1.3 billion in commitments. This fundraise significantly surpasses its predecessor, more than doubling its size, as institutional demand drove a heavily oversubscribed fund. The fund achieved its hard cap following a fundraising period of just two months.
The new fund attracted commitments from a diverse group of investors, including both existing limited partners and new participants from across the US and international markets. The investor base comprises pension funds, endowments, foundations, sovereign wealth funds, family offices, insurance companies, and asset managers. Princeton specifically noted a strong expansion of its institutional relationships in Europe.
Fund III will maintain Princeton's established investment strategy, focusing on backing franchisors and other multi-location businesses. The firm typically partners with founders and management teams, providing not only capital but also sector expertise and operational support through its proprietary GrowthEdge platform. Additionally, Princeton leverages FusionPoint, an AI-enabled technology platform, to enhance its investment and portfolio support capabilities.
Princeton Equity Group's co-founder and managing partner, Jim Waskovich, highlighted the firm's nearly two-decade history of collaboration with founder-led and management-owned businesses within the franchising and multi-location sectors. Doug Kennealey, co-founder and managing partner, emphasized that this latest fund represented an expansion of Princeton's investor base, particularly in Europe, and the establishment of new relationships with global consultants and major endowments.
While the article does not mention Roark Capital Group, Princeton's investment portfolio has included several prominent businesses, such as Amped Fitness, Barry’s, D1 Training, Ellie Mental Health, European Wax Center, Five Star Franchising, KidStrong, Massage Envy, Pirtek, StretchZone and Strickland Brothers. The firm has invested in over 30 franchisor and multi-location businesses since launching its strategy in 2006. With the close of Fund III, Princeton Equity Group now manages approximately $3 billion in assets. Lazard served as the exclusive placement agent for the fundraise, with Proskauer Rose providing legal counsel.