STG raises over $860 million for inaugural STG Allegro Fund in a four-month fully virtual fundraise
STG Allegro exceeded its $500 million target and was heavily oversubscribed
Menlo Park, CA – October 28, 2021 – STG Partners (“STG”, or the “Firm”), a leading private equity firm focused on investing in the software, data analytics, and software-enabled technology services sectors, is pleased to announce the final closing of STG Allegro (together with its related vehicles, the “Fund” or “STG Allegro”) on over $860 million of committed capital, including limited partner commitments of $750 million. STG Allegro will be an extension of the STG platform focused on lower mid-market software investments, continuing the Firm’s heritage and commitment to value-focused investing in the sector. The Fund exceeded its $500 million target and was oversubscribed at its limited partner hard cap in approximately four months from the formal launch of the fundraise, which was executed as an entirely virtual process. Evercore Private Funds Group acted as the exclusive global placement agent for the fundraise.
The Fund will continue STG’s value-oriented investment strategy and will target lower middle market investments in the enterprise software and software-enabled technology services sectors. STG distinguishes itself through a value-oriented and operationally-focused approach to transforming middle-market companies in its sectors into market leaders. Since Symphony’s founding in 2002, STG has cultivated its reputation as a premier investment firm in the space through its continued ability to drive operational efficiencies, top-line enhancement, and breakout innovation within portfolio companies.
The fundraise for STG Allegro was driven by high conviction in the opportunity for STG to apply its differentiated, value-oriented strategy within the technology sector to help drive value creation for lower mid-market companies. STG Allegro received strong support from existing investors, as well as a diverse group of new investors that includes public pensions, asset managers, foundations and endowments, family offices, and consultants in North America and Europe.
On behalf of the leadership team of the Firm, William Chisholm, Managing Partner and Chief Investment Officer, commented: “We are incredibly grateful to our existing and new investors for their support as we established STG Allegro to capitalize on the vast opportunity we see for value-oriented investing in the lower mid-market. We look forward to leveraging STG’s playbook to continue to find, transform, and build great software companies and partner with lower mid-market entrepreneurs.”
Richard Anthony, CEO of Evercore Private Funds Group, stated: “We are delighted to have once again advised STG on another highly successful fundraise, and to have played a role in helping to establish the STG Allegro strategy. The expediency of the raise and strong support of both new and existing investors speaks volumes about the caliber of Bill and the team at STG.”
Kirkland & Ellis LLP acted as legal counsel to STG.
STG is a private equity partner to market leading companies in software, data analytics and software-enabled technology services sectors. The firm brings expertise, flexibility, and resources to build strategic value and unlock the potential of innovative companies. Partnering to build customer-centric, market leading portfolio companies, STG seeks to create sustainable foundations for growth that bring value to its companies. The firm is dedicated to transforming and building outstanding technology companies in partnership with leading management teams. STG and its predecessor, Symphony Technology Group (“Symphony”), have managed approximately $6 billion in total capital.