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Glade Brook Capital raises $430m to ‘play offense’ during downturn

Glade Brook Strategic Growth III plans to back 12 to 15 portfolio companies, with a focus on software, e-commerce, fintech, web3, internet, digital health and digital media.

  • Glade Brook Strategic Growth III will target growth equity investments in companies’ second and third funding rounds
  • Over 90 percent of the fund’s commitments are from Glade Brook’s existing partners
  • Debut growth fund produced a gross multiple of 2.8x, second generated gross multiple of 1.9x, firm says

Glade Brook Capital Partners, a growth equity investment firm based in Greenwich, Connecticut, announced the final close of its third fund, Glade Brook Strategic Growth III. The focus will be on software, e-commerce, fintech, web3, internet, digital health and digital media. The fund will aim to back 12 to 15 companies, investing in Series B and C rounds.

“After a busy year of successful monetizations in our previous funds, we positioned SG III as strategic dry powder to deploy when markets and valuations corrected in the next downturn,” Glade Brook founder and CIO Paul Hudson said in a press release. “We believe that a downturn has commenced, and it puts us in a prime position to play offense. We are excited about the opportunities ahead to invest in high quality secular growth companies at attractive valuations through the cycle.”

Glade Brook’s first fund, launched in 2017, is fully deployed. The firm’s second fund, Glade Brook Strategic Growth II, which began investing in 2019, is 90 percent deployed, the firm said.

As of March 31, Glade Brook Strategic Growth I has generated a gross IRR of 41 percent (net 35 percent), a gross multiple of 2.8x (net 2.1x), and gross distributions to limited partners of 1.5x (net 1.2x), the firm said.

Glade Brook Strategic Growth II has produced a gross IRR of 70% (58% net) with a gross multiple of 1.9x (net 1.6x) as of March 31, the firm said.