PSG Equity closes third European fund with over 4.4 billion EUR

PSG Equity has closed its third European fund, PSG Europe III, with total committed capital exceeding 4.4 billion EUR. The fund reached its hard cap, significantly surpassing its predecessor, PSG Europe II, which closed in October 2023 with 2.6 billion EUR.

The capital is earmarked for European software and technology companies, specifically targeting those that use artificial intelligence to redefine enterprise software or are built as AI-native companies from the ground up. The investment strategy aims to transform regional players into pan-European market leaders with global reach, driven by a growing demand for digital sovereignty and automation.

Investors in the fund include sovereign pension funds, sovereign wealth funds, insurance companies, family offices, and high-net-worth individuals. PSG Equity maintains an operational presence in Europe with offices in London and Paris, employing 83 staff members. Recent European portfolio companies include Mistral AI, BrightAnalytics, Aikido Security, QualityHosting, Emotion Mobility, Namirial, and Glasswall.