PE firm Recognize closes second fund at $1.7B; to back digital services firms

Private equity firm Recognize has made the final close of its second fund, Recognize Partners II/II-A, L.P., securing over $1.7 billion in commitments.

The oversubscribed fund hit its hard cap within five months, attracting strong backing from both existing limited partners and a new group of institutional investors, including endowments, pensions, and family offices across multiple regions, Recognize said in a statement.

Co-founded by Francisco D’Souza, Charles Phillips, and David Wasserman, Recognize focuses on investing in mid-sized digital services businesses—valued between $50 million and $500 million—that aim to leverage AI, software, and digital platforms to drive enterprise transformation.

With this fund, Recognize plans to continue its strategy of partnering closely with founders and management teams to help scale operations and enhance long-term value. The firm combines capital with operational expertise to support growth across its portfolio companies.

Over the past six months, Recognize has added four new companies to its portfolio: SDG Corporation (cybersecurity), Sprout (digital infrastructure), TRANZACT (insurance services), and HealthEdge (healthcare SaaS). It has also recorded several exits, including the sale of AST to IBM and a partial exit from 2X via Insight Partners. Last year, the firm exited AI talent platform Torc in a deal with Randstad.

“We appreciate the continued trust from our investors and remain committed to helping build the next generation of digital services companies,” said Debbie Park Munfa, Partner and Head of Investor Relations at Recognize.

Rede Partners Americas LLC acted as the placement agent for the fundraise, while Goodwin Procter LLP served as the legal and tax counsel.