Demopolis Equity Partners Announces Strategic Partnership with TPG

Rhea-AI Summary

Demopolis Equity Partners, a technology-focused growth and buyout firm, has announced a strategic minority investment agreement with TPG (NASDAQ: TPG) through TPG NEXT. Founded in 2022, Demopolis focuses on control and growth equity investments in lower middle market B2B software companies. The partnership will provide Demopolis access to TPG's strategic and operational capabilities, including capital formation, markets, investment sourcing, and diligence. The transaction is expected to close in Q4 2024.

Positive

• Strategic minority investment from TPG enhances Demopolis's operational capabilities
• Access to TPG's extensive resources in capital formation and investment sourcing
• Partnership strengthens Demopolis's market position in B2B technology investments

Negative

• None.

Insights

Financial Analyst

This strategic minority investment showcases TPG's continued expansion in the alternative asset management space through its TPG NEXT initiative. The partnership with Demopolis Equity Partners represents a calculated move to tap into the lucrative lower middle market software sector, particularly B2B technology. Key strategic benefits include:

• Enhanced deal flow and investment sourcing capabilities for TPG
• Access to specialized expertise in B2B software investments
• Potential for synergistic growth through shared operational capabilities

While specific financial terms weren't disclosed, this type of strategic investment typically provides TPG with both revenue diversification and exposure to high-growth technology sectors. The deal's expected closing in Q4 2024 allows time for regulatory approvals and integration planning.

NEW YORK & SAN FRANCISCO & FORT WORTH, Texas--(BUSINESS WIRE)-- Demopolis Equity Partners, a technology-focused growth and buyout firm, today announced that it has signed a definitive agreement to receive a strategic minority investment from TPG (NASDAQ: TPG), a leading global alternative asset management firm. TPG will invest in Demopolis through TPG NEXT, its strategy focused on seeding and scaling the next generation of investment firms by providing growth capital and operational and investment support.

Founded in 2022, Demopolis seeks to make control and growth equity investments in high-quality, lower middle market software companies, with a focus on B2B technology. The team looks to partner with innovative, mission-critical businesses with resilient business models. Demopolis leverages the team’s 60-plus years of combined operating, strategy consulting, and investment experience to help lower middle market companies with strong technology achieve long-term, sustainable growth. The firm is founded by Tim Greenfield, who serves as Managing Partner of the firm and is supported by a core team that has invested together for more than a decade.

“As operators, business builders, and investors, we have seen first-hand what goes into growing and scaling a successful technology business. This perspective allows the Demopolis team to be genuine, long-term thought partners in helping tech companies reach their full potential,” said Greenfield. “TPG shares our collaborative culture, and we believe we will benefit greatly from the firm’s longstanding commitment to investment excellence, early footprint in private equity, and deep sector expertise.”

“Tim and his team bring a unique combination of professional experiences that position Demopolis as a partner of choice to management teams and founders,” said Pamela Pavkov, Managing Partner of TPG NEXT. “Their distinct approach has resulted in strong success previously as an independent sponsor, and we’re excited to work together in this next stage of growth to support and scale the Demopolis platform.”

Through its partnership with TPG, Demopolis will gain access to a suite of strategic and operational capabilities to support the firm’s expansion, including areas such as capital formation, capital markets, investment sourcing, and diligence. The transaction is expected to close in the fourth quarter of 2024.

About Demopolis

Demopolis Equity Partners is a private equity firm founded in 2022 to invest in outstanding B2B technology and software-enabled businesses in the lower middle market space in North America. The principals have more than 60 years of combined experience owning and operating B2B software and technology companies. The Demopolis approach involves active engagement to drive growth by leveraging the team’s deep domain expertise as former operators of B2B technology companies and strategy consultants. For more information, visit www.demopolisequity.com.

About TPG

TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $239 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. For more information, visit www.tpg.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112414386/en/

Media

Courtney Power

media@tpg.com

Source: TPG

FAQ

When will the TPG strategic investment in Demopolis Equity Partners close?

The transaction is expected to close in the fourth quarter of 2024.

What is the focus of Demopolis Equity Partners' investment strategy?

Demopolis focuses on control and growth equity investments in lower middle market B2B software companies, targeting innovative, mission-critical businesses with resilient business models.

What benefits will Demopolis receive from the TPG (TPG) partnership?

Demopolis will gain access to TPG's strategic and operational capabilities, including capital formation, capital markets, investment sourcing, and diligence support.