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In a powerful move that cements its status among the most dynamic players in private equity, Diversis Capital Management LP, advised by Paul Weiss Rifkind Wharton & Garrison LLP, announced Monday it has closed its third fund — Diversis Capital Partners III LP — after raising more than $1.2 billion.

The fund, which hit its hard cap and surpassed its initial $850 million target, was heavily oversubscribed, underscoring investor confidence in Diversis’ sharp focus on software and technology-enabled services. The new fund nearly doubles the size of its predecessor, which closed in 2021 with $680 million in commitments.

A Defining Moment for Diversis

“We believe the successful completion of Fund III marks an important milestone for Diversis,” said Ron Nayot, co-founder and managing partner. “It validates our disciplined strategy, strong leadership, and proven track record. As artificial intelligence continues to reshape the competitive landscape, we see enormous opportunity across software and tech-driven sectors.”

The fund’s $1.2 billion war chest will target control investments in lower middle-market companies, with a focus on North America, and selective expansion into Europe and Australia. The strategy centers on acquiring companies with solid fundamentals and unlocking their potential through operational expertise, growth capital, and strategic support from Diversis’ Los Angeles base.

Investor Confidence at an All-Time High

Diversis’ latest closing drew robust global backing from both new and returning investors — including endowments, foundations, pension plans, fund-of-funds, family offices, and financial and insurance institutions.

The success of Fund III pushes Diversis’ total assets under management to over $3 billion, marking a period of rapid growth for the firm as it continues to refine its investment philosophy around operational excellence and innovation.

Doubling Down on Tech and AI-Driven Growth

“We’re focused on helping founders and corporations unlock the next stage of profitable growth,” said Kevin Ma, Diversis co-founder and managing partner. “Our deep bench of operating partners brings best practices, innovation, and AI expertise to scale our portfolio companies and create lasting value. Fund III lets us double down on that strategy.”

By blending human insight with technological advancement, Diversis aims to reshape the mid-market investment space, targeting firms poised for transformation in a world increasingly defined by digital acceleration.

The Legal Power Behind the Deal

The Paul Weiss team guiding the fund formation included partners Steven Yoo and Ted McBride, known for their work with high-profile private equity clients. Their legal counsel ensured the fund’s smooth closing amid a volatile market landscape.

With Fund III in the books, Diversis now stands at the intersection of capital and innovation — armed with billions and a clear mission: to build the next generation of market leaders in the global technology arena.