Alpha Partners Closes Oversubscribed $153 Million Third Fund

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Sep 09, 2024, 13:00 ET

Fund III addresses a significant need in the venture capital industry by allowing early-stage investors to maximize returns on their best deals.

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Alpha Partners, a leading growth equity firm that invests in top-tier growth equity rounds led by the world's best investors, today announced the final close of its oversubscribed third fund, Alpha Partners Fund III ("Fund III") with $153 million in commitment. Alpha will continue the mission it pioneered in 2013, of investing in the best growth stage opportunities by partnering with over 1,000 early-stage venture firms who have insider access to their own top-returning portfolio companies. These early-stage funds often have the access to the best opportunities, but 5-10 years after their initial seed or early stage investment, lack existing fund capital to fund these companies' de-risked later rounds. Alpha estimates that the size of this emerging investment opportunity amounts to tens of billions annually.

Alpha Fund III investors include returning investors and a diverse group of new backers, including prominent U.S. and international institutions, family offices, and registered investment advisors. This interest has propelled Alpha Fund III to become nearly three times larger than its previous fund, growing their assets under management to over $300 million.

"We are grateful that nearly all of our limited partners renewed their commitment with us," said Steve Brotman, Managing Partner at Alpha Partners. "We're excited to add a number of institutions from around the world as new limited partners."

With Fund III, Alpha Partners will continue to focus on the proven investment strategy that it pioneered in 2013. Alpha helps early-stage investment firms access fresh reserve capital to maximize their ownership in their best-performing companies. Alpha's collaborative approach enables it to invest with little competition into companies that attract over-subscribed rounds from the world's best investment firms.

Recent investments include Pearl, an FDA approved AI platform that allows dental professionals to review dental x-rays more efficiently; Second Front, a software company that enables commercial software vendors to sell their products to the US government in a secure, cost-effective, and rapid manner; Shield AI, a developer of autonomous drone systems and AI piloting software; Rad AI, an AI platform for radiologists that streamlines their workflows; and Chainguard, a software supply chain cybersecurity firm that's protecting the integrity of open source code.

Alpha's portfolio company exits by IPO include Coupang, Coursera, Rover, Udemy, Vroom, and Wish, as well as exits by acquisitions including HPE's acquisition of Cloud Technology Partners and by Uber's acquisition of Careem.

About Alpha Partners

Alpha Partners is investing out of its third fund, a $153 million growth fund, that invests $3 million to $15 million into primary financing rounds. The Alpha pioneering investment model is to partner with companies' early investors, versus competing with them, and help them continue to invest in their winning portfolio companies. Alpha selects the best growth stage investments from a deep network of more than 1,000 venture capital firms, and has deployed nearly $200 million into 30 companies to date. Learn more at alphapartners.com.

SOURCE Alpha Partners