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Frontier Capital closes fourth fund on $390 million

The fund beat its $300 million target

North Carolina-based Frontier Capital has closed its fourth fund on $390 million. The fund beat its $300 million target and was oversubscribed.

The fund will focus on growth equity investments in lower middle market software and technology-enabled business and services companies.

Frontier declined to comment on fundraising, beyond a statement which noted that a significant number of investors from previous funds invested in Fund IV.

Known investors in the fund include the Maryland State Retirement & Pension System which invested $50 million in December.

Like its predecessor funds, Fund IV will focus on companies with $5 million to $30 million of revenue. With Fund IV, the firm has the ability to invest $10 million to $40 million in minority and majority ownership positions.

The firm plans to target a range of industries including business-to-business, software-as-a-service, health and benefits, human capital and information-technology infrastructure.

Lazard acted as placement agent for the fund.