Fortino Capital has announced the final close of its third private equity fund, Fortino PE III, securing an extended hard cap of $821.3 million. This figure significantly surpasses the initial $704 million target, demonstrating robust confidence from the investment community. The successful fundraise positions the firm to accelerate its strategy of backing high-growth B2B software-as-a-service (SaaS) companies across Europe.
Strong Investor Confidence and Strategic Focus
The fund attracted substantial commitments from a diverse group of both new and existing institutional investors across Europe and the United States. This strong demand, which represents an 85% increase in size over its predecessor fund, underscores the market's conviction in Fortino's specialized approach. With this close, the firm's total capital raised now exceeds $1.7 billion, cementing its role as a key player in the European tech landscape.
Targeting a European Market Gap
Fortino’s strategy is specifically designed to address a persistent gap in B2B software adoption within the Benelux and DACH regions. Many mid-sized companies in these markets continue to rely on outdated or manual systems for essential operational functions. The new fund will target companies that provide mission-critical solutions to digitize and automate these complex business processes.
A Hands-On, Operator-Led Approach
Since its founding in 2013, Fortino has differentiated itself with a hands-on, founder-centric model rather than focusing solely on financial engineering. The firm employs a team of seasoned software operators and partners who provide deep expertise in areas like go-to-market strategy, product development, and AI integration. This dual-strategy approach, combining venture capital and private equity, allows Fortino to support companies throughout their entire growth journey.
Initial Investments Signal Future Direction
Fortino PE III has already begun deploying capital, making three new platform investments that reflect its core thesis. These include Modell Aachen, a leader in digitizing quality and compliance processes, and Seenons, a technology provider optimizing waste flows for the circular economy. The third investment, MEHRWERK, is a process-intelligence specialist that uses advanced analytics to drive real-time operational automation and insight.
Future Outlook and Mandate
The mandate for the new fund is to build a concentrated portfolio of profitable, high-impact software platforms across Europe. Fortino plans to leverage its operational expertise to help these companies scale internationally, upgrade their product offerings, and embed AI capabilities into their core workflows. This strategy aims to cultivate the next generation of category-defining European champions in the B2B SaaS and AI sectors.
The successful $821.3 million closing of Fortino PE III marks a significant milestone, reinforcing the firm's position as a leading investor in European B2B software. With substantial capital and a proven value-creation model, Fortino is poised to capitalize on the digital transformation trend in the European mid-market. The fund's focused strategy promises to foster innovation and growth for mission-critical software companies in the years ahead.