Serent closes inaugural fund on $250m

The San Francisco-based private equity newcomer has closed its oversubscribed fund without the help of a placement agent.

Serent Capital has held the first and final close of its inaugural fund on $250 million (€160 million), exceeding its $200 million target. The fund will target high growth, services-based businesses in the smaller end of the mid-market, typically making commitments of $10 million to $50 million.

The San Francisco firm’s investor base includes university endowment Harvard Management Company, fund of funds firms Horsley Bridge and Adams Street Partners and the private office of the Ziff family. It did not employ a placement agent.

Serent was founded by David Kennedy and Kevin Frick in November 2007. The two-person investment team is supported by chief financial officer Mark Shang.

Kennedy was previously the chief executive of outsourcing company ServiceSource before which he was a founding partner of private equity firm Crystal Springs Capital, while Frick formerly led the West Coast private equity practice of consulting firm McKinsey & Company.

“Having led a successful services company, I have experienced both the thrills and the challenges of driving growth… I am looking forward to partnering with Serent’s portfolio company CEOs,” said Kennedy in a statement.

Frick added: “Small businesses are the innovation engine that drive the economy, however many small business owners are navigating that journey for the first time. Combining the entrepreneurial energy of small growth businesses with our experience in building great institutions creates a very compelling partnership.”

Serent has yet to make its first investment.