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Cohere Capital Announces Close of Fund II and Strategic Partnership with TPG

1. Cohere Capital Fund II closed with over $215 million in commitments. 2. TPG NEXT made a strategic minority investment in Cohere Capital. 3. Cohere focuses on tech-enabled services in the lower middle market. 4. The partnership aims to support management teams in achieving growth. 5. TPG NEXT provides operational support to emerging investment managers.

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FAQ

Why Bullish?

TPG's investment in Cohere enhances its portfolio and market position.

How important is it?

Cohere's growth strategy aligns with TPG's objectives, potentially boosting investor confidence.

Why Long Term?

Strategic investments typically yield benefits over several years, as seen with past TPG investments.

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TPGCohere Capital
BOSTON & SAN FRANCISCO & FORT WORTH, Texas--(BUSINESS WIRE)--Cohere Capital Partners (“Cohere”), a Boston-based private equity firm focused on investing in leading tech-enabled lower middle market companies, announced today that it has closed Cohere Capital Fund II with more than $215 million in commitments. The firm has also received a strategic minority investment from TPG NEXT, TPG’s strategy focused on seeding and scaling the next generation of investment firms. Through decades of lower middle market investing experience and a distinct, value- and growth-oriented approach, Cohere seeks to partner with innovative tech-enabled services businesses to help them reach their next level of success. Cohere was co-founded by Nik Shah and Daniel Gedney, two experienced private equity executives who worked together for years with a similar investment focus before launching the firm in 2019 and closing Cohere Capital Fund I in 2020. “Our more than 50 years of combined investing experience in the middle market has provided us a unique view into the opportunities and challenges that come with building a leading technology-enabled services business. With Cohere, we’re applying this knowledge to help founders and management teams achieve sustainable and lasting growth,” said Mr. Shah, Managing Partner. “We’re grateful for the strong support of our investors and new partners at TPG, whose trust in our strategy and firm is a testament to the significant opportunity ahead.” Cohere supports a dynamic portfolio of leading companies across the IT services, cloud consulting, digital advertising and marketing, e-commerce, and consumer engagement and loyalty services sectors. In Fund II, Cohere will continue to invest across these markets and others, seeking to partner with leading founder- and management-owned businesses looking for a capital partner to help drive success and growth. “Cohere’s targeted investment strategy, partnership orientation, and focus on embracing complexity has positioned the firm as a differentiated lower middle market investor,” said Pamela Pavkov, Managing Partner of TPG NEXT. “We are excited to partner with the Cohere team to scale the platform and build upon the firm’s track record of identifying and growing next-generation founder-led businesses.” Launched through an anchor commitment from CalPERS, TPG NEXT provides strategic minority capital and custom operational support to help emerging managers establish and grow their firms. Through its partnership with TPG NEXT, Cohere will gain access to TPG’s network, operational and investment capabilities, and ecosystem to support strategic business building and expansion, including in areas such as capital formation, investment sourcing, and diligence. About Cohere Capital Cohere Capital is a Boston-based private equity firm focused exclusively on lower middle market growth companies. Cohere Capital has a flexible mandate across growth markets, but primarily targets recapitalizations and growth investments in rapidly growing technology-enabled services companies. For more information, visit www.coherecapital.com. About TPG TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $239 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.

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