Arrowroot Capital raises $177m

The US growth equity firm closes oversubscribed flagship fund.

Arrowroot Capital III has held a final close at $177 million, just north of its $175 million target. The firm’s third fund will continue to pursue Arrowroot’s focus on providing growth capital to software companies in North America.

Endowments, pension funds, foundations and asset managers were among the fund’s investor base.

Arrowroot Capital II held a final close at $50 million in 2015.

Probitas Partners served as the third fund’s placement agent and Kirkland & Ellis provided legal counsel.