SaaS-Focused Luminate Beats Target

Luminate Capital Partners has held an above-target close of its third fund, Luminate Capital Partners III LP, with $1 billion of capital commitments.

Luminate’s target for its new fund was $700 million and the firm’s earlier fund closed in December 2018 with $425 million of capital. Limited partners in Fund III include endowments, foundations, public and corporate pensions, asset management firms, and family offices.

“I am particularly proud that we were able to exceed our fundraising target in a relatively short period of time, especially given the uncertainty caused by the pandemic,” said Hollie Haynes, the founder and managing partner of Luminate. “We thank our limited partners for this vote of confidence.”

San Francisco-based Luminate makes control investments in companies operating in the software and software-enabled services sectors. Specific areas of interest include vertical applications, SaaS, back office and supply chain, marketing automation, e-commerce, data and analytics.

In April 2021, Luminate invested in Axonify, a Canada-based SaaS provider of frontline employee training software. The company’s products are used by more than 60 customers – including Walmart, Levi’s and Merck – in more than 150 countries. With the buy of Axonify, Luminate now has nine active portfolio companies.

“As we have built Luminate over the past six years, we have focused solely on growth-oriented market leaders in enterprise software and we work with management teams to build scale and extend market leadership,” added Ms. Haynes. “We are excited to continue to execute on this strategy and are fortunate to have a strong and dynamic team of investment professionals and operating advisors who are integral to our success.”

With the closing of Fund III, Luminate now has $1.7 billion of assets under management.

Moelis & Company was the placement agent for this fundraise and Kirkland & Ellis provided legal services.

© 2021 Private Equity Professional | June 10, 2021