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Arrowroot Capital Raises USD177m for third fund

Arrowroot Capital Management has held the closing of its third fund, Arrowroot Capital III with over USD177 million in limited partner and general partner commitments.

The fund was oversubscribed and closed at its fundraising cap. The firm has already completed a number of investments throughout 2017 and expects to close additional opportunities prior to the end of the year.
 
Founder & Managing Partner, Matthew Safaii, says: “We are pleased to have brought in an impressive core of leading endowments, foundations, consultants, pensions, alternative asset managers, and other institutions who we look forward to working with in the months and years ahead. Arrowroot recognises the confidence our partners have placed in us and will continue to work diligently to execute our strategy.”
 
Fund III will continue Arrowroot’s focus on providing growth capital for healthy, recurring revenue enterprise software companies in the lower-middle market. Arrowroot seeks to capitalise on the funding gap between early stage venture capital and larger traditional growth equity firms looking to make larger investments. The firm also brings disproportionate support to their portfolio at this smaller end of the market through their Strategic Resources Group (“SRG”) which provides direct consulting, recruiting, and thought leadership for best practices as they scale across Sales & Marketing, Human Capital, Technology, and Operations.
 
Craig Marmer, Managing Director of Probitas Partners, the fund’s placement agent, says: “We are extremely thrilled for the entire Arrowroot team. The market strongly recognised Arrowroot’s unique strategy, demonstrated success, and the team’s sincerity and enthusiasm.”
 
Probitas Partners served as placement agent and Kirkland & Ellis LLP served as legal counsel in the fund formation of Fund III.

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