Growth Street Partners Closes $200M Fund III, Lifts AUM Above $400M and Expands Investment Team

New updates have been reported about Growth Street Partners.

Growth Street Partners has closed its third fund, Growth Street Partners III, LP, at $200 million, lifting the firm’s total assets under management to more than $400 million and reinforcing its position as an early growth capital provider to B2B SaaS and tech-enabled services companies. The oversubscribed vehicle, raised on an accelerated timetable with strong backing from both existing and new limited partners including leading university endowments, institutions, foundations, family offices, and portfolio company founders, will continue the firm’s founder-focused strategy while enabling it to deploy larger check sizes and provide more intensive support to portfolio companies. Since its launch in 2017, Growth Street Partners has invested in 17 companies, about half of which have executed add-on acquisitions, and has already realized 11 liquidity events from nine investments, indicating a high rate of capital recycling and execution in lower- to mid-market software and services. Co-founders Steve Wolfe and Nate Grossman emphasized that Fund III will allow the firm to expand its team and deepen engagement at key inflection points in a company’s scale-up phase, targeting entrepreneurs with first-hand experience in the markets they serve.

The new fund is accompanied by a series of internal promotions that expand the firm’s investment and operating capacity, including elevating Nick Mahowald and Ben Tryba to Principal, Josh Kramer to Senior Associate, Skyler Kessenich to Manager, and Griffin Doherty to Senior Analyst. These promotions signal an intention to increase deal throughput and portfolio support as Growth Street Partners deploys Fund III into underserved verticals where founder-operators are solving niche but mission-critical business problems with SaaS and technology-enabled offerings. The firm’s track record includes backing companies such as Visual Lease, whose founder and CEO, Marc Betesh, credited Growth Street with helping the company scale in a disciplined way ahead of its acquisition by CoStar, highlighting the firm’s role as an operational partner rather than a purely financial sponsor. With Fund I ($70 million, 2017), Fund II ($130 million, 2022), and now Fund III ($200 million, 2026), the firm has materially grown its capital base, positioning it to pursue more opportunities, support follow-on financings, and potentially drive further M&A within its portfolio as competition intensifies in the B2B SaaS and tech-enabled services landscape.