Kansas City-based Five Elms Capital has closed its $780 million Five Elms V growth equity fund.
The fund includes existing and new institutional investors and brings Five Elms’ total assets under management to more than $1.5 billion. In 2019, Five Elms closed its fourth fund with more than $300 million in limited partner commitments.
"We are incredibly grateful for the longstanding support of our existing limited partners. Our team is particularly excited about the number of founders from Five Elms portfolio companies that personally invested in Five Elms V," founder and Managing Partner Fred Coulson said in a release. "The new fund will allow us to continue supporting world-class founders in hiring amazing talent, scaling culture, optimizing operations and pursuing M&A as they continue to build platforms that users love."
Five Elms targets growth-stage, business-to-business software companies with $2 million to $20 million in revenue. Its typical equity investments range from $5 million to $75 million.
The growth equity firm has looked beyond the typical tech markets, such as Silicon Valley, for investments. Local companies in its current portfolio are: LaborChart, RFP360, Smart Warehousing LLC and Spring Venture Group, which recently opened an Orlando office and plans to hire hundreds more in Kansas City.
A core aspect Five Elms looks for in prospective investments is a solid company culture.
“Our best performing companies are obsessed with company culture — it's crucial to their success,” Five Elms said on its website. “We have a very simple playbook … great products + great people = great outcomes.”
Five Elms notched several wins last year, including eight exits that created $3.8 billion in exit value, 10 promotions and 19 new members added to the investment team, and portfolio companies hiring more than 70 people in senior leadership roles.
To date, Five Elms has invested in 50 software companies with operations in 16 countries.
