Princeton Equity Group has closed its third flagship private equity fund with $1.3bn in commitments, more than doubling the size of its predecessor as institutional demand drove a heavily oversubscribed fundraise.
Princeton Equity Partners III reached its hard cap at final close after attracting commitments from existing limited partners as well as new investors across the US and international markets. The fund was raised in just two months, according to the firm.
The investor base includes pension funds, endowments, foundations, sovereign wealth funds, family offices, insurance companies and asset managers, with Princeton highlighting particularly strong expansion of its institutional relationships in Europe.
Fund III will continue Princeton’s strategy of backing franchisors and other multi-location businesses, often working alongside founders and management teams. The firm provides portfolio companies with capital as well as sector expertise and operational support through its GrowthEdge platform.
Princeton also uses FusionPoint, its proprietary AI-enabled technology platform, as part of its investment and portfolio-support capabilities.
Jim Waskovich, Princeton co-founder and managing partner, said the firm has spent almost two decades partnering with founder-led and management-owned businesses in the franchising and multi-location sectors.
Doug Kennealey, co-founder and managing partner, said the latest fund represented an expansion of Princeton’s investor base, particularly in Europe, alongside new relationships with global consultants and major endowments.
Princeton’s investment portfolio has included businesses such as Amped Fitness, Barry’s, D1 Training, Ellie Mental Health, European Wax Center, Five Star Franchising, KidStrong, Massage Envy, Pirtek, StretchZone and Strickland Brothers.
The firm has invested in more than 30 franchisor and multi-location businesses since launching its strategy in 2006.
With the new vehicle, Princeton said it now manages approximately $3bn in assets, including commitments to Fund III.
Lazard acted as exclusive placement agent for the fundraise, while Proskauer Rose provided legal advice to Princeton.
