New York-based private equity firm Recognize has closed its second fund, Recognize II, at over $1.7bn, marking a significant step in its continued focus on digital services investments.

The fund, which was oversubscribed, closed in under five months, securing strong backing from both returning LPs and new institutional investors across the US, Europe, Asia, and Latin America.

Recognize II targets companies with enterprise values between $50m and $500m. The firm will continue its strategy of accelerating growth in mid-sized digital services businesses through hands-on, partnership-driven value creation.

The investor base includes a curated mix of endowments, foundations, pensions, insurers, family offices, outsourced CIOs, and fund-of-funds. The fund also received a significant general partner commitment.

Recognize was co-founded by Managing Partners Francisco D’Souza (former CEO and Vice Chairman of Cognizant), Charles Phillips, and David Wasserman. The firm raised $1.3bn for its inaugural fund in 2022.

In the last six months, Recognize completed four platform investments: cybersecurity firm SDG Corporation, infrastructure services company Sprout, insurance services provider TRANZACT, and HealthEdge, a healthcare SaaS platform.

On the exit front, Recognize sold AST to IBM, partially exited 2X through Insight Partners, and divested AI-powered talent platform Torc to a Randstad subsidiary. These realisations highlight growing strategic appetite for next-generation digital services platforms.

“We remain focused on building Digital Services businesses for the future and partnering with excellent management teams to deliver long-term value for our investors,” said Debbie Park Munfa, Partner and Head of Investor Relations at Recognize.

The new fund strengthens Recognize’s position as a key player in the digital transformation investment space, particularly as demand accelerates for tech-enabled enterprise solutions.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.