Cypress Growth Capital Closes Fourth Royalty Investment Fund
Investment Track Record Leads to Rapid Close & Oversubscription
Cypress Growth Capital is pleased to announce the closing of our fourth royalty-based growth capital fund, CGC Royalty Investments IV, LP. Building on the success of the firm's three prior funds, this $50M vehicle was oversubscribed and raised in less than 60 days.
Fund IV will continue to provide Cypress' distinctive, equity-preserving financing to emerging software and technology-enabled services companies in the Southwest and Southeast U.S. Investors include a diversified group of premier Texas-based family offices and high net worth individuals including several former Cypress portfolio company CEOs who successfully sold their companies.
"We were well positioned to quickly raise this new fund, given our position of being the first and most successful royalty-based growth capital firm in the United States," said Bart Goodwin, Co-Founder and Managing Director of Cypress Growth Capital. "With a decade-long track record of more than 60 investments and consistently successful outcomes for our portfolio companies, our royalty financing model is a compelling alternative to venture capital and traditional debt options."
In fact, more than 85% of the companies Cypress partners with go on to achieve success, usually in the form of completing a large growth capital round, majority recapitalization, or an outright sale.
Royalty-based growth capital is equally attractive to investors. "We look at hundreds of alternative investment opportunities each year," remarked Andrew Swartz, Chief Investment Officer of the J. Cleo Thompson Family Office in Dallas, Texas. "What stands out to us about the leadership team at Cypress Growth Capital is their management background in software and technology services. Historically, their funds have generated consistently high returns with less risk than other alternative investments we’ve seen.”
“Many of our companies are seeking a holistic capital solution - one that provides the right amount of capital at the right time, said Cypress Managing Director Vik Thapar. “Through a combination of flexible debt and select equity investments, we ensure our entrepreneurs have access to expansion capital at each phase of their growth cycle.”
With the closing of this new fund, the Cypress team will continue to offer its deep operating and entrepreneurial experience to its portfolio companies, an important differentiator from other firms who provide only capital.