Software PE investor Turn/River Capital closed its sixth buyout fund with $2.5 billion on the heels of a major exit. The flagship buyout fund, oversubscribed like its predecessor, surpassed its $2 billion target.
San Francisco-based Turn/River sold Redwood Software in September to Vista Equity Partners and Warburg Pincus as sponsors reestablished themselves as leading acquirers in IT deals. Turn/River had been seeking $2.5 billion including debt for the automation solutions provider, equivalent to a valuation 25x the company’s EBITDA, Reuters reported in September.
The final terms of the Redwood deal were not disclosed. Turn/River invested €315 million (about $344 million) into Redwood in 2021.
PE exits rebounded in 2024, with deal value rising 49% and deal count up close to 17% year-over-year, reversing a two-year decline, according to PitchBook’s 2024 Annual US PE Breakdown.
The increase in exits was due in part to PE sponsors bringing their highest-quality assets to market. Although the exit environment has improved considerably, the inventory of companies held by firms rose to nearly 12,000 by Q4.
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