Insight

Silversmith collects $1.25bn for fourth fund

Silversmith Capital Partners IV's limited partners include endowments, foundations, fund-of-funds and pension funds.

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  • Fund IV will target technology and healthcare companies
  • Kirkland & Ellis provided fund formation counsel
  • Founded in 2015, Silversmith has $3.3 billion of capital under management

Silversmith Capital Partners has closed its fourth fund at a hard cap of $1.25 billion.

Silversmith Capital Partners IV’s limited partners include endowments, foundations, fund-of-funds and pension funds.

In addition to the $1.25 billion from limited partners, the Silversmith team will contribute $90 million to Fund IV.

Fund IV is the firm’s largest to date and brings total capital raised to more than $3.3 billion since its founding in 2015. Consistent with the strategy of its predecessor funds, Fund IV will target technology and healthcare companies.

Silversmith closed its first fund at $460 million in 2015, its second fund at $670 million in 2018, and its third fund at $880 million in 2020.

“Our investment strategy was built on four bedrock tenets that have not changed over the past seven years – invest in markets we know, invest in companies as they inflect, invest in companies that are capital efficient, and partner with truly exceptional entrepreneurs,” said Jim Quagliaroli, managing partner of Silversmith, in a statement. “The steadfast support we received from our investors speaks volumes to how much the limited partner community values a disciplined approach. We are grateful for the trust and confidence our investors have in Silversmith and look forward to continuing to execute on our investment strategy.”

Since its founding, Silversmith has invested in 41 growth-stage companies, had 16 full or partial realizations representing $1.7 billion in cash proceeds, expanded its team to more than 35 people, and grown its senior advisor network to 10 senior executives from leading technology and healthcare companies. Consistent with previous Silversmith funds, Fund IV will make minority and majority investments of $20 million to $125 million in SaaS & Information Services and Healthcare IT & Services companies that are primarily founder-led, profitable and have not previously raised institutional capital.

Kirkland & Ellis provided fund formation counsel.

Founded in 2015, Silversmith Capital Partners is a Boston-based growth equity firm with $3.3 billion of capital under management.