Centana Growth Partners Closes Fund III at $600 Million

Marking a Decade of Growth, Firm Reinforces Its Commitment to Help Shape Innovation in the Financial Services Ecosystem

NEW YORK & PALO ALTO, Calif.: Centana Growth Partners, a specialized growth equity firm investing in the future of finance, today announced the closing of its oversubscribed third fund, Centana Growth Partners III, L.P. with $600 million in capital commitments from limited partners.

Coinciding with Centana’s 10-year anniversary, this milestone marks a decade of empowering transformative companies across financial services, fintech, and related enterprise technology. The latest closing builds on the successes of Centana’s previous funds, including its Fund II, which closed with $375 million in limited partner commitments.

Like Centana’s prior funds, Fund III focuses on companies with a strong track record of growth, experienced management teams, and meaningful customer traction with $7 to $75 million in recurring revenue. Investments will continue to target businesses in core verticals such as asset management, insurance, banking, digital identity, wealth management, payments, capital markets, and enterprise technologies that support these sectors. Centana typically makes targeted investments of $10 million to $50 million or more, and portfolio companies should benefit from access to Centana’s Strategic Network, and Centana’s partners’ decades of experience working with companies in this ecosystem.

“The financial services landscape is undergoing major changes, with evolving technology and regulations driving disruption across every sector. We see tremendous potential in helping businesses navigate these shifts,” says Ben Cukier, Partner. “Our latest fund continues to allow us to do more than provide capital – it empowers us to partner with innovative companies, offering strategic insights, industry expertise, and resources to help them address challenges and accelerate growth.”

This closing reflects an ongoing substantial market opportunity within financial services and fintech, which are areas that remain underinvested relative to their economic significance despite the increased hype a few years ago. Financial services continue to constitute over 20% of U.S. GDP and remain in the top 3 sectors of the S&P 500 by market capitalization. Yet, compared to other sectors, the industry continues to see relatively less focus from private equity investors.

“The retreat of some generalist investors has left opportunities in fintech and financial services, and Centana has had a long-term, consistent focus on this area,” says Eric Byunn, Partner. “These shifts in the market present opportunities for Centana to continue investing where innovation can deliver meaningful impact and present real solutions to real problems.”

Centana Growth Partners has made investments in 27 companies. In 2024 so far, Centana led investments in five companies, including Adroit Trading Technologies, which secured $15 million for its end-to-end execution management system designed for fixed income and OTC traders; Cayosoft, which raised $22.5 million to support its unified solution for secure management and recovery of Microsoft Active Directory platforms; Gradient AI, which received $56 million to enhance its AI-driven predictive analytics platform for the insurance industry; WarrCloud, which garnered $20 million to expand its automated warranty processing solution; and First Connect, which secured $60 million to grow its digital insurance aggregator linking independent agents with carriers and MGAs worldwide.

Lazard served as placement agent, and Proskauer Rose LLP served as legal counsel.

About Centana Growth Partners

Centana Growth Partners is a specialized growth equity firm that invests in the future of finance. Centana collaborates with companies across the entire financial services ecosystem, from institutions to fintech disruptors, to add strategic and long-term value to their portfolio companies. Centana empowers entrepreneurs with a combination of capital, network, and expertise to accelerate their growth. The Centana team taps into decades of financial services expertise and insight to invest in companies that bring real value and innovation to the industry. Visit centanagrowth.com for more information.

Fonte: Business Wire