Glade Brook Announces Hard Close of Oversubscribed Growth Equity Fund, With $430 Million in Commitments

BY Business Wire | ECONOMIC | 06/14/22 08:00 AM EDT

Strategic Growth III to Back Emerging Leaders in Internet, Software and FinTech at Series B & C Stages Following Successful Monetizations in Prior Glade Brook Funds

GREENWICH, Conn.--(BUSINESS WIRE)-- Glade Brook Capital Partners (?Glade Brook? or the ?Firm?), a leading global growth equity investment firm, today announced the final closing of Glade Brook Strategic Growth III (?SG III? or the ?Fund?), an oversubscribed $430 million fund focused on growth equity investments at the Series B and C stages.

Through SG III, Glade Brook will seek to partner with 12-15 portfolio companies over the 2022-2024 investment period, focusing on emerging leaders across software, e-commerce, fintech, web3, internet, digital health and digital media.

Paul Hudson, Founder & Chief Investment Officer of Glade Brook, commented:

?After a busy year of successful monetizations in our previous funds, we positioned SG III as strategic dry powder to deploy when markets and valuations corrected in the next downturn. We believe that downturn has commenced, and it puts us in a prime position to play offense. We are excited about the opportunities ahead to invest in high quality secular growth companies at attractive valuations through the cycle.?

Kyle Daniel, Partner and Chief Operating Officer at Glade Brook, added:

?We are thrilled by the strong investor response to the Strategic Growth III fundraise and want to thank our new and many long-time partners for their support and trust in our differentiated strategy. We are incredibly proud of our team?s focus on delivering outstanding returns for our investors across each of the Strategic Growth funds.?

More than 90% of SG III commitments are from Glade Brook?s existing partners across the globe, including leaders from the sovereign wealth, endowment, insurance, family office, RIA and technology founder communities. These partners drove 80% growth in assets under management from Glade Brook?s prior fund.

Glade Brook Strategic Growth I, which began investing in 2017, is fully deployed. It has generated a gross IRR of 41% (35% net), with a gross multiple of 2.8x (net 2.1x), and gross distributions to limited partners of 1.5x (net 1.2x). Glade Brook Strategic Growth II, which began investing in 2019, is 90% deployed and has delivered a gross IRR of 70% (58% net) with a gross multiple of 1.9x (net 1.6x).*

Mr. Hudson concluded:

?Amid a challenging macroeconomic and capital markets backdrop, we have a unique opportunity to put committed capital to work and invest during a compelling valuation window in the next generation of innovative companies. At the same time, we will continue to execute on the investment process that has been so successful in our previous funds, which is centered on deep research, a disciplined approach to valuation, concentrated portfolio construction, value-driving catalysts and deep collaboration with founders and board members.?

* All Glade Brook performance figures cited are as of March 31, 2022 and are rounded as applicable. Past performance is no guarantee of future results. Returns of an actual investor in the Funds may be different from the return information contained herein. The Funds presented herein do not represent all the funds managed by Glade Brook. Additional information is available upon request.

About Glade Brook Capital Partners

Glade Brook Capital Partners is a leading global growth equity firm investing in emerging leaders in the internet and software sectors. With more than $1.5 billion in assets, the firm targets companies at key inflection points and often creates and leads growth financings at the Series B and C stages. Glade Brook?s diverse team leverages extensive industry and capital markets expertise to identify secular themes early and partner with world-class teams to catalyze value. Utilizing its differentiated and disciplined investment framework, Glade Brook crafts highly concentrated portfolios with an emphasis on value creation, often at the board level. The firm has completed 64 private investments across 33 companies. For more information on Glade Brook, please visit: www.gladebrookcapital.com.

Source: Glade Brook Capital Partners

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