PSG Equity has completed the final close of its third Europe-focused fund, PSG Europe III, with more than €4.4 billion in total committed capital. The fund reached its hard cap after attracting significant support from new and returning investors. This outcome marks a major step forward for the growth equity firm as it deepens its commitment to the European software and technology sector.
Investor Support and Larger Fund Size
The new fund substantially exceeds the €2.6 billion raised by its predecessor, PSG Europe II, which held its final close in October 2023. Commitments came from a broad mix of state pension funds, sovereign wealth funds, insurance companies, family offices and high net worth individuals. Strong demand from both long-standing and new investors signals steady confidence in PSG Equity’s disciplined investment strategy.
Targeting European Software Scale-ups
PSG Europe III will continue the firm’s focus on partnering with ambitious software and technology companies that are seeking to become pan-European category leaders with global reach. The fund will support businesses that use artificial intelligence to reshape enterprise software and will also back the next generation of AI-native companies. Recent European investments by PSG include Mistral AI, BrightAnalytics, Aikido Security, Quality Hosting, Emotion Mobility, Namirial and Glasswall.
Europe’s AI and Digital Sovereignty Shift
PSG Equity believes Europe is entering a new phase of software innovation driven by AI adoption and an increasing need for trusted European technology providers. Digital sovereignty has become a more important consideration for customers across the region. The firm sees strong opportunities for software providers that combine deep domain expertise with European-first infrastructure and proprietary data capabilities while benefiting from AI tailwinds.
Team and Regional Track Record
PSG established its European team in 2019 and currently has 83 professionals dedicated to working alongside portfolio company management teams. The team is headquartered in London with an additional office in Paris. Since entering the region, PSG has made 43 platform investments, completed 98 add-on acquisitions, recorded 12 realization events and achieved recent exits from companies such as Sellsy, Signaturit and Hornetsecurity.
Recent Exits and Portfolio Momentum
PSG’s European investment activity has also produced a steady series of realizations over time. Recent exits from companies including Sellsy, Signaturit, N2F, Artur’in, Hornetsecurity and Mapal demonstrate the firm’s ability to support growth and generate returns. These outcomes highlight the maturing pipeline of European software businesses within PSG’s portfolio and the broader regional ecosystem.
Leadership Perspectives
Peter Wilde, Chairman of PSG, said the strong investor support reflects the strength of the global platform and the firm’s consistent approach to creating value. Chief Executive Officer Mark Hastings noted that AI is materially expanding the enterprise software opportunity while accelerating innovation across established platforms. Dany Rammal, Managing Director and Head of Europe, added that the fund close is an important milestone and reflects conviction in the European software ecosystem.
The close of PSG Europe III positions PSG Equity to deepen its support for the next generation of European software leaders during a period of significant market change. With a larger fund and an established regional team, the firm has additional resources to help scale-ups expand across Europe and globally. The successful fundraising adds to PSG’s momentum as it continues to back companies that combine software innovation, AI capabilities and digital sovereignty advantages.