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.