Charlotte private equity firm Frontier Capital said Tuesday it has raised $390 million it will use to continue pursuing its strategy of investing in high-growth software and business-services companies.
Founded in 1999 and headquartered in Charlotte’s midtown area, Frontier invests in companies with annual revenues ranging from $5 million to $30 million.
The fund, Frontier’s fourth, will be used to invest in companies with annual revenues ranging from $5 million to $30 million, the company said.
The final amount raised for the fund exceeded the company’s initial goal of $300 million. The fourth fund gives Frontier the ability to invest $10 million to $40 million in minority- and majority-ownership positions, the company said.
“Fund IV represents an exciting new chapter in the growth of our firm,” Andrew Lindner, managing partner for Frontier, said in a statement. “It allows Frontier to build upon our reputation as a premiere partner for lower-middle-market growth companies seeking the playbook and capital required to achieve their next phase of growth.”
Frontier is headed by a team with long-time ties to Charlotte’s big banks.
Lindner once worked in the investment banking division of Bank of America. Richard Maclean, the firm’s other managing partner, worked in the investment banking unit of Charlotte-based NationsBank, which later became Bank of America.
Here’s a description of the firm’s focus from its website:
“With an exclusive focus on software and services companies selling high value solutions to enterprise customers ... the Frontier team understands the needs of these businesses and uses proven processes to help drive value for our portfolio companies and investors.”
The company’s headquarters is at 1111 Metropolitan Ave.