Princeton Equity Group has successfully closed its third fund, raising total commitments of $1.3 billion. This private investment firm specializes in franchisor companies and multi-location enterprises. The Princeton Equity Partners III fund was significantly oversubscribed in just two months.
The new fund exceeded its initial fundraising target of $875 million. It is more than twice the size of the previous Princeton fund of $575 million, which was closed three years ago. Both existing limited partners and international institutional investors participated in the new fund.
New investors include pension funds, endowments, charitable foundations, and sovereign wealth funds. Family offices, insurance companies, and asset managers also contributed capital. The investment base has expanded, particularly in Europe.
Princeton stated that it will continue to follow the investment strategy established in 2006. The firm collaborates with management teams, providing them not only with capital but also with operational resources. The company's portfolio covers sectors such as fitness, healthcare, consumer services, and others.
Princeton's main focus is on businesses that use franchising models or have multiple locations. The strategy covers companies from various service and consumption categories. Over its history, the firm has invested in more than 30 such enterprises.
The portfolio includes brands such as Barry’s, D1 Training, Massage Envy, and European Wax Center. Other investments include KidStrong, Ellie Mental Health, and Strickland Brothers. Princeton has also supported companies like Amped Fitness, Pirtek, and StretchZone.
KidStrong, one of Princeton's recent investments, is a children's development business that operates over 180 centers across North America. KidStrong offers classes, camps, and parties focused on children's physical and mental development. The company's programs are developed in collaboration with child development specialists.
Princeton emphasized that its strategy is based on long-term partnerships with founders and management teams, providing capital and industry expertise to support the growth of companies in its portfolio. To support its investments, the firm utilizes a specialized operating group, GrowthEdge, as well as the AI-powered technology platform FusionPoint.
Co-founder and Managing Partner Jim Waskovich noted that the firm focuses on founder-led businesses, emphasizing their unit economics and ability to operate in a changing economic environment. The new fund provides Princeton with additional capital to support companies within its investment strategy and expands opportunities to work with franchisors and multi-site businesses.
Princeton currently manages approximately $3 billion in assets, including commitments from the recently closed third fund. The firm was founded about two decades ago, and its strategy has remained unchanged since 2006.
Fund III attracted commitments from both existing and new institutional investors. The latest round of fundraising strengthened Princeton's ties with international capital providers. Co-founder and Managing Partner Doug Kennealey stated that the fund helped expand the firm's investor base, specifically noting new relationships in Europe, as well as establishing connections with global consultants and leading endowments.
The firm reported that these commitments came amid continued support from existing investors. Lazard acted as the exclusive placement agent for the fund, and Proskauer Rose provided legal counsel to Princeton. The new capital gives Princeton the resources to seek additional investment opportunities, and the firm will continue to target businesses with a franchise and multi-site model.