Diversis Capital Announces Completion of $675m Fund II

Sep 13, 2021 | News

Diversis Capital Management, a Los Angeles-based private equity firm focused on investing in software and technology-enabled services organizations, today announced the completion of Diversis Capital Partners II, with $675m of total commitments just three months after formal launch.

The oversubscribed fund includes a broad group of global investors and surpassed its target of $500m, as well as exceeded its inaugural fund raise of $255m raised in 2019.

The latest fund continues Diversis’s focus on making operationally focused control private equity investments in lower middle-market companies.  Led by Managing Partners Ron Nayot and Kevin Ma, who co-founded the Firm in 2013, Diversis’s Fund II will invest primarily in businesses based in North America, and selectively in Europe and Australia, with a focus on companies that desire a true partnership approach and require both growth capital and operational guidance.

Diversis Co-Founder and Managing Partner, Kevin Ma, said, “As we have built Diversis over the past eight years, we have focused predominantly on investing in software and technology-enabled services companies to drive innovation and growth. We partner with management teams to build scale and extend market leadership, which has, in some cases, led to the doubling or tripling of revenues at our portfolio companies organically. We are excited to continue to execute on our strategy with this latest fund.  We are fortunate to have a strong, dynamic and growing team of investment professionals, operating advisors, and portfolio company management teams who are integral to our success.  Our entire team is grateful and proud that we were able to exceed our target and complete our fund-raise in a relatively short period of time and we want to thank our new and existing limited partners for their support and vote of confidence.”

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Diversis will continue to apply its disciplined investment philosophy to acquire assets with strong core foundations that can use the Firm‘s combination of growth capital, operational support and a unique strategic approach to excel beyond their current limitations. The Diversis team has already significantly expanded and will continue to expand its investment professionals, operating partners and strategic advisors who play a pivotal role during due diligence and the ownership cycle.

Diversis Co-Founder and Managing Partner, Ron Nayot, said, “We have remained extremely active during the pandemic by adding four new platform investments in addition to several highly strategic add-on acquisitions. We have also successfully sold one of our portfolio companies. This shows our ability to adapt to various economic climates and find success for our LPs and portfolio companies despite a turbulent backdrop. Fund II will continue to build upon our team‘s proven track record utilizing partnerships and collaboration with the existing management teams to build successful technology companies. We want to thank our limited partners who have demonstrated conviction in our strategy, team and leadership and we want to express our gratitude for their support and thank them for the opportunity to be stewards of their capital.”

Since inception, Diversis has built a portfolio of market-leading software and tech-enabled services companies, most recently investing in Adlib Software, a leader in content intelligence and contract analytics solutions. Over the past 14 months, Diversis has also made platform investments in RFi Group, a data-driven insights provider and thought leader to the global financial services industry, Black Box Intelligence, the leader in data and actionable insights for the restaurant industry, and Performance Designed Products, LLC, a leading developer of video game accessories and peripherals.  In December 2020, Diversis sold ArrowStream, Inc., the leading cloud-based provider of end-to-end supply chain management software for the foodservice industry.

Fund II generated high demand from a diverse global base of new and existing institutional investors, including leading endowments and foundations, investment advisers and fund-of-funds, public and private pension plans, family offices, and financial institutions.  Diversis today has over $1bn of assets under management.

Evercore Private Funds Group acted as exclusive global placement agent, and Kirkland & Ellis served as legal counsel.

Source: PR Newswire

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 It scheduled the disposal process to end this year, although it seems 2022 would be a more likely date now.

Analysts at Hargreaves Lansdown said at the time that the tea sale was “the latest effort by the consumer goods giant to shed some weight in the face of rapidly changing customer habits”, as “boosting agility and becoming more streamlined” were a core pillar of the strategy under Jope to get sluggish pre-Covid sales moving in the right direction.

The sale could be an opportunity to reappraise the consumer goods behemoth’s sprawling business as the public adjusts to the ‘new normal’.

Shares in Unilever rose 1% to 4,003p on Monday before close.

Source: Proactive Investors

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