DTCP Raises $300M to Invest in Digital Transformation Firms

Independent investment management firm Digital Transformation Capital Partners (DTCP) has raised $300 million for its Growth Equity III Fund (GE III) to invest in companies focused on cloud-based enterprise software and business Software-as-a-Service (SaaS).

DTCP launched the fund in March and aims to close fundraising in 2023, according to a Tuesday (Sept. 20) press release.

“The current market environment and the recent valuation reset offer unique opportunities to invest in great companies and the category leaders within the enterprise software market,” DTCP Growth Managing Partner Jack Young said in the release. “We will be patient and disciplined in deploying the fund carefully balancing risks and rewards.”

The GE III fund focuses on category leaders in Europe, Israel and the United States, and equity investments of $20 million to $25 million in businesses in the early growth or growth stage. Its first deal is a $15 million investment in conversational artificial intelligence (AI) and automation platform Cognigy.ai, according to the release.

GE III’s predecessor funds — GE I and GE II — have invested in 32 enterprise software companies, 11 of which have been acquired or gone public and realized high multiples, the release stated.

“With one of the largest specialist teams focusing on cloud-based enterprise software in Europe, we’re excited about the continued opportunity to back outstanding entrepreneurs and category leaders in the fast-growing cloud-based enterprise software ecosystem and to create attractive co-investment opportunities for our investors,” DTCP Growth Managing Partner Thomas Preuss said in the release.

In related news, the PYMNTS ConnectedEconomy 100 (CE100) Index lost 5% in the past week. FedEx was down 23% on news that it’s effectively idling some operations as eCommerce slows, package volumes decline and the buy now, pay later (BNPL) sector faces increased regulatory scrutiny.

Read more: FedEx Rout, BNPL Scrutiny Help Drive CE100 Index Down 5.3%

Each of the 10 pillars of the CE100 lost ground, with the best performers down by relatively muted low-single-digit percentage points.

For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.