Cohere Capital Partners, a Boston-based private equity firm focused on investing in leading tech-enabled lower middle market companies, has closed Cohere Capital Fund II with more than $215 million in commitments. The firm has also received a strategic minority investment from TPG NEXT, TPG’s strategy focused on seeding and scaling the next generation of investment firms.
In Fund II, Cohere will continue to invest across these markets and others, seeking to partner with leading founder- and management-owned businesses looking for a capital partner to help drive success and growth.
This investment follows the funds closed by VC firms Superhero Capital and Syndicate One.
Partnership with TPG NEXT
Launched through an anchor commitment from CalPERS, TPG NEXT provides strategic minority capital and custom operational support to help emerging managers establish and grow their firms.
Through its partnership with TPG NEXT, Cohere will gain access to TPG’s network, operational and investment capabilities, and ecosystem to support strategic business building and expansion, including in areas such as capital formation, investment sourcing, and diligence.
Invests in tech-enabled businesses
Cohere Capital Partners was founded by former HIG Capital executives Nik Shah and Daniel Gedney in 2019. Both founders are private equity executives who worked together for years and have decades of lower middle market investing experience and a distinct, value- and growth-oriented approach. They closed the Cohere Capital Fund I in 2020.
It supports a dynamic portfolio of leading companies across the IT services, cloud consulting, digital advertising and marketing, e-commerce, and consumer engagement and loyalty services sectors.
Investment portfolio
Cohere Capital’s investment portfolio includes the following companies:
- Boostability: A provider of SEO and digital marketing services for small businesses.
- iPromote: A company specialising in digital advertising solutions.
- Promevo: A startup focusing on cloud-based solutions and services.
These investments reflect the investor’s commitment to partnering with tech-enabled services businesses to drive sustainable growth.
“Our more than 50 years of combined investing experience in the middle market has provided us a unique view into the opportunities and challenges that come with building a leading technology-enabled services business. With Cohere, we’re applying this knowledge to help founders and management teams achieve sustainable and lasting growth,” said Mr. Shah, Managing Partner. “We’re grateful for the strong support of our investors and new partners at TPG, whose trust in our strategy and firm is a testament to the significant opportunity ahead.”
“Cohere’s targeted investment strategy, partnership orientation, and focus on embracing complexity has positioned the firm as a differentiated lower middle market investor,” added Pamela Pavkov, Managing Partner of TPG NEXT. “We are excited to partner with the Cohere team to scale the platform and build upon the firm’s track record of identifying and growing next-generation founder-led businesses.”
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