Elsewhere Partners, the investment company from Austin, Texas, has raised us$285 million for its third fund to invest in small, fast-growing software companies located outside major tech hubs like Silicon Valley and Boston. The firm targets us$20 million to us$50 million investments, typically for majority stakes in business-software companies generating us$3 million to us$12 million in annual revenue.
Co-founder and Partner Chris Pacitti emphasized the firm’s focus on self-funded companies needing support in sales and marketing, in a recent interview with the Wall Street Journal.“The company founders love building products, but they don’t really like managing sales,” Pacitti said.
Founded in 2016 by Pacitti and John Thornton, Elsewhere Partners often fills managerial gaps, leveraging their operational experience. The firm’s portfolio includes companies like Learnsoft, BurstIQ, OpsCompass, and rater8, which are based outside traditional tech centers.
Elsewhere has already started deploying capital from its new fund, recently investing us$25 million for a majority stake in Deskpro, a customer-support software provider. With a new sales and marketing team in Austin and plans to expand U.S. operations, Deskpro aims to enhance its growth under the leadership of CEO Brad Murdoch.
The firm also draws on a network of operating advisers and has three full-time operating partners: Michele Perry, Rita Selvaggi, and Rod Favaron. Selvaggi highlighted the need for different types of leadership depending on the growth stages of the company.
Pacitti envisions creating a feeder system for private equity and growth equity firms through investments in these «elsewhere» regions. The firm’s hands-on approach and operational expertise make it an attractive partner for software companies seeking more than just capital.
