Atlanta-based Fulcrum Equity Partners set out to raise $300 to $350 million for its Fund V. But it turns out that a lot of new and returning investors wanted into the limited partner (LP) pool…and today Fulcrum announced it has closed the round at an impressive $372 million.
Raising an oversubscribed round in today’s macroeconomic environment is no small feat. US venture capital fundraising hit a six-year low in 2023, with the dollar amount raised dropping 60% year-over-year. But Fulcrum seems to be bucking that trend. Fund V has attracted insurance companies, endowments, registered investment advisors (RIAs), as well as a number of entrepreneurs and executives.
A good amount of those LPs come from Atlanta and the great Southeast region, Partner Philip Lewis told Hypepotamus.
“We think this speaks to the fact that the Southeast is the fastest growing economic region in the country but is still underserved from a capital & funding perspective,” Lewis said.
Founding Partner Tom Greer added that the Fulcrum team is “grateful for both the commitment of our LPs and the professional network that our CEO LPs bring to the table. It is a true differentiator and significant value creation driver for our portfolio companies.”
Fulcrum will look to target making 16 to 18 investments out of the fund.
Fulcrum Equity Partners’ Investing Thesis
Founded in 2006, Fulcrum invests in healthcare services and B2B companies across the country. Its Fund IV, which closed in 2021, totaled $275 million.
Its portfolio includes Southeast-based startups like QASymphony, RevBoss, Stax, SaaSOptics, Florence Healthcare, Kobiton, Kevel, and Hatch.
The firm looks to back “high growth” B2B software companies in the $2 million – $15 million in ARR and healthcare-related businesses with $1 million to $5 million in EBITA. The firm will continue with its same investment strategy, though Fund V will help Fulcrum provide additional capital for “faster growth, tuck-in acquisitions or shareholder liquidity,” according to a company press release.
While out fundraising, Fulcrum invested in four companies: Defining Wellness Centers (Brandon, Mississippi), FieldPulse (Dallas, Texas), Canvs (New York), and SurgNet Health Partners (Brentwood, Tennessee).
“Overall, deal flow remains healthy. It feels like we are through a lot of the peak/valley of the prior few years, and we are seeing a number of high quality companies looking to raise capital to grow their businesses,” Lewis added.
