Spectrum Equity closed its 11th fund, Fund XI, at $2.5 billion, in an oversubscribed, single close.
Fund XI is the firm’s largest fund since its founding in 1994.
Investment focus: rapidly growing, capital-efficient, founder-led companies across software, artificial intelligence and data services.
The firm will seek to partner with exceptional management teams to build durable competitive advantages, particularly amid rapid AI-driven innovation and competitive pressures.
Spectrum has 78 employees and 48 active portfolio companies, providing hands-on support and industry expertise.
Fund XI attracted long-standing limited partners as well as new investors.
More than 50 investors are founders, executives or board members of Spectrum portfolio companies.
Ben Spero, Managing Director: “Over the last 30 years, our funds have invested across each wave of innovation, while avoiding the volatility of the hype cycles that are prevalent in our industry.”
The fund will target founder-owned companies with little or no prior institutional capital, typically investing $25 million to $250 million per company.
Mike Farrell, Managing Director: “With Fund XI, we are fortunate to have the support of our long-standing limited partners, along with several new investors that we’ve been excited to build relationships with.”
Since 1994, Spectrum has raised more than $12.5 billion across 11 main funds and invested in over 190 companies.
