Bracket Capital Raises Third Flagship Fund Focused on Growth and Special Situations Investments in Technology-Enabled Businesses

Rhea-AI Summary

Bracket Capital has successfully closed its third flagship funds, totaling $150 million. They also raised an additional $300 million in co-investment and evergreen funds. The funds will be used to invest in growth and later-stage, technology-enabled companies primarily through secondary market purchases and special-situation primary investment rounds. Fund III has already made investments in Stripe, ThatGameCompany, Clutter, and Soundhound. Bracket Capital has a track record of investing in successful pre-IPO technology companies and providing capital and liquidity solutions to businesses and early employees. They have invested in over 50 companies, resulting in 23 exits and over $300 million in realized proceeds in the last three years alone.

LOS ANGELES--(BUSINESS WIRE)-- Bracket Capital (“Bracket”), a global multi-asset investment manager focused on growth and later-stage, technology-enabled companies, today announced the successful close of its third flagship funds, Bracket Capital Fund III, LP, Bracket Capital Fund III-A, LP and related vehicles (collectively “Fund III” or the “Fund”), totaling $150 million. Bracket also raised an additional $300 million in co-investment and evergreen funds to invest alongside Fund III for a total of $450 million in equity to deploy. Bracket’s investors are comprised of some of the world’s leading institutions, prominent global family offices, high net worth individuals, and other investment management firms.

Since its inception in 2017, Bracket has developed a reputation as a partner of choice to C-Suites, employees and investors at some of the world’s most successful and renowned pre-IPO technology companies. Building on the firm’s proven approach, Fund III will again be capacity constrained by design, with large co-investment opportunities. The Fund will target later-stage, private, technology-enabled companies primarily through secondary market purchases from employees and early investors at these businesses, as well as through special-situation primary investment rounds.

Fund III received significant support from existing investors, with Fund II LP’s comprising ~90% of Fund III commitments, a testament to the firm’s exceptional track record to date. To date, Fund III has made four investments: Stripe, ThatGameCompany, Clutter, and Soundhound (NASDAQ: SOUN), in which the firm led a private investment in public equity (PIPE) deal in late January 2023, becoming one of the company’s largest shareholders.

Jihan Bowes-Little, Co-founder and Managing Partner of Bracket Capital, said, “We are grateful for the support we received for Fund III from our new and existing investor partners. Bracket Capital has worked hard to distinguish itself as a premier provider of capital to businesses and a trusted liquidity partner to early employees and investors. Further, our flexible investment mandate enables us to creatively structure investments to create win-win solutions that benefit employees and management teams over the long-term, while providing our LPs with downside protection and high-quality risk adjusted returns.”

Yalda Aoukar, Co-Founder and Managing Partner of Bracket Capital, added, “As a first mover, we possess extensive knowledge of the issues facing employees, investors, founders, and management teams at highly innovative, successful late-stage technology companies shaping our digital future. To that end, we seek to serve as a partner of choice for all stakeholders and are proud of our track record as highly complementary and value-added investors to our portfolio companies. We believe the market opportunity remains strong and look forward to continuing to identify attractive investment opportunities for our investors.”

In January 2021, Bracket announced the successful close of Bracket Capital Fund II, LP, which raised $150 million in capital commitments, as well as an additional $300 million in co-investment vehicles to invest alongside Fund II, fully deploying over $450 million during the investment period. Since inception, Bracket Capital has invested in more than 50 companies, resulting in 23 exits, with over $300 million in realized proceeds in the last three years alone. Notable prior investments include: SpaceX, AirBnB, Coinbase, Palantir, SoFi, Hive.AI, Synthesis AI and others.

Additionally, Bracket manages the Bracket Foundation, the firm’s privately funded philanthropic arm that seeks to harness the power of technology for social good and contribute to global conversations on pressing social issues. Recently, the Foundation published a white paper identifying the threats that exist in relation to child exploitation across online social gaming platforms and the Metaverse and made recommendations to Big Tech providers on how to enhance their safety by design features to make these environments safer for children. The Bracket Foundation is also currently engaged with the United Nations on a multi-year project to combat online sexual abuse of children using artificial intelligence.

About Bracket Capital

Founded in 2017, Bracket Capital is an alpha-driven global investment manager focused on later-stage, technology enabled companies with asymmetric risk-reward profiles. Bracket leverages decades of buy-side experience at global financial institutions, optimizing returns for investors while providing valuable and necessary liquidity for early employees and investors. Bracket is based in Los Angeles and manages more than $1 billion in assets on behalf of a distinguished group of global investors. For more information, please visit https://www.bracketcapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230721728772/en/

Media:

Nathaniel Garnick / Sara Widmann

Gasthalter & Co.

(212) 257-4170

Source: Bracket Capital

FAQ

What is the name of the investment manager that announced the successful close of its third flagship funds?

The investment manager is called Bracket Capital.

How much money did Bracket Capital raise in its third flagship funds?

Bracket Capital raised a total of $150 million in its third flagship funds.

What is the total amount of equity that Bracket Capital has to deploy?

Bracket Capital has $450 million in equity to deploy, including the $150 million from its third flagship funds and an additional $300 million in co-investment and evergreen funds.

What types of companies will Fund III target for investments?

Fund III will target later-stage, private, technology-enabled companies primarily through secondary market purchases and special-situation primary investment rounds.

What are some of the companies that Fund III has already invested in?

Fund III has already made investments in Stripe, ThatGameCompany, Clutter, and Soundhound.

What is Bracket Capital's track record?

Bracket Capital has invested in over 50 companies, resulting in 23 exits and over $300 million in realized proceeds in the last three years alone.

What is the name of Bracket Capital's philanthropic arm?

Bracket Capital's philanthropic arm is called the Bracket Foundation.

What is the focus of the Bracket Foundation's work?

The Bracket Foundation focuses on harnessing the power of technology for social good and combating online sexual abuse of children using artificial intelligence.