San Francisco’s Luminate Capital Partners has flipped the off switch on the fundraising process for its second private equity vehicle after raising $425m.
The firm has closed its sophomore fund, which it will use to invest in software and software-enabled services businesses in the middle market. Fund II has greatly surpassed the $265m of commitments raised for Luminate’s inaugural fund in 2017.
Moelis & Company was listed as placement agent for the fund.
Luminate founder and managing partner Hollie Haynes said, “We are very pleased with the investor response to Fund II which exceeded our expectations.
“As we have demonstrated our ability to generate attractive returns, we have continued to build additional institutional support from investors who understand our emphasis on the software sector.
“We look forward to building strong partnerships with our investors as we continue our track record of building leading companies.”
The firm has invested into a number of RegTech solutions over the years. Last year the firm made its first investment through its $265m-plus debut fund by backing aviation content management provider Comply365.
Another one of the firm’s portfolio companies is financial services compliance software developer StarCompliance, accounting solution AMTdirect, which received a investment from Luminate last year.
Some of the other RegTechs to feature in its current portfolio are secure payment and compliance solution fintech and automated spending compliance platform Oversight.
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