We’re excited to share that Alpha Partners has been featured in Venture Capital Journal following the successful close of our third flagship fund, raising $153 million. Despite the challenging fundraising environment, we were able to secure nearly 3x the capital compared to our second fund, and we couldn’t be more proud of this achievement.
Our Managing Partner, Steve Brotman, highlighted the strength of our pro-rata strategy, which is gaining significant traction with LPs. As Steve shared in the article, “After 10 years executing on a new strategy, a big factor for LPs is that we could show disciplined investment execution backed up by DPI performance for a full cycle.”
At Alpha Partners, we focus on helping early-stage VC firms maximize ownership in their portfolio companies through pro-rata participation rights. This strategy allows us to step in when early investors don’t have the capital to participate in later rounds, ensuring they can maintain their equity position. In return, we share in the profits when these companies experience substantial growth.
Fund III’s journey wasn’t without its challenges. It took about three years to close, with initial commitments coming in during 2021. However, global events like the COVID-19 pandemic, the Russian war, and rate hikes extended the final close into 2024. Despite these hurdles, we stayed disciplined and continued to identify high-growth opportunities.
As Steve said, “This is one of the best times in history for pro-rata deals. The current capital constraints, longer hold periods, volatility and resetting valuations have created a highly favorable environment for disciplined growth equity investments.”
Fund III has already deployed over $50 million into companies experiencing remarkable growth, particularly in AI-enabled software and health tech—two sectors we believe are undervalued and ripe for opportunity.
We’re grateful for the continued support of our LPs, including institutions, family offices, and sovereign wealth funds. Together, we’re excited to invest in innovative companies with the potential for long-term success.
Stay tuned for more updates as we continue deploying Fund III and identifying the next big opportunities in growth equity.
