Stone-Goff Partners Closes Fund IV at $175 Million
Boston, MA & New York, NY – June 22, 2023
Investment strategy focused on founder-led, tech-driven B2B service companies in the lower middle market.
Stone Goff Partners ("SGP"), a growth-oriented private equity firm focused on tech-driven B2B service companies, today announced the final closing of Stone-Goff Partners IV ("Fund IV") at $175 Million, reflecting significant increases in commitments from SGP's existing investor base as well new institutional investors. Consistent with its predecessors, Fund IV will target majority investments as the first institutional investors in founder-led companies focused on B2B services where technology plays a critical role.
The investor base for Fund IV, which closed on June 15, is comprised of insurance companies, fund of funds, wealth managers and family offices in North America.
"Our emphasis on partnering with founder-led businesses in the lower middle market has been and will remain at the core of what has made us successful," said Laurens Goff, Co-Founder & Managing Partner of Stone-Goff. "We're extremely grateful for the support of both existing and new investors and are excited to continue to deploy capital in companies at the intersection of services and technology."
In anticipation of the new fund, SGP added three new members to its investment team within the past year, all with experience in the firm's core services verticals.
"We remain committed to investing in the lower middle market because it's where one finds the greatest concentration of founder-led companies, where we have the experience to source and execute, and where we see tremendous opportunities for growth, particularly with business-to-business knowledge-economy companies," said Hannah Stone Craven, Co-Founder & Managing Partner of Stone-Goff. "In the midst of what continues to be an uncertain environment, we see a robust deal pipeline in the lower middle market. Founders are looking for partners, lenders are still active, and we're confident the support of our investors and the strength of our team positions us well for continued growth."
Fund IV has already closed on its first two investments. In April, Fund IV invested in FS Vector, a Washington, D.C.-based strategic consulting firm that delivers a range of advisory and advocacy solutions to companies in the innovative financial services ecosystem including lending, payments, fintech, insurance, and other financial services companies. Last August, Fund IV acquired JSI, a leading provider of specialty consulting, engineering and managed services to rural broadband telecommunications operators.
Fund counsel was provided by David Sherman and Erin Bergey of Latham and Watkins.
About Stone-Goff Partners
Stone-Goff Partners is a lower middle market private equity firm investing in technology-driven business-to-business service companies. Our companies combine service offerings with technology, focus on clearly-defined end markets, and are active participants in the growing knowledge economy. Core verticals include business services, consulting services, marketing services, IT services, human capital and training, and outsourced services. We partner with company founders and executive leadership teams to provide capital, M&A origination and execution, and value-creation expertise to our portfolio companies. Since the firm’s founding in 2010, Stone-Goff’s sector knowledge and deal experience has helped drive successful outcomes for company founders, limited partners, and portfolio management teams.