Active in Europe since 2020 and established in Paris since December 2023, PSG Equity is gradually positioning itself as a major private equity fund in Europe, with a sharp focus on B2B software. The fund stands out not only for its focus on SaaS companies but also for its approach to operational and strategic support for its portfolio companies. With expertise in mergers and acquisitions and a transatlantic presence, PSG Equity enables its portfolio companies to achieve significant growth milestones.
In its portfolio, PSG Equity includes prominent French startups that it supports in their European development, such as SKEEPERS, SELLSY, ZENCHEF, and WHOZ. To discuss this in more detail, we welcome Quentin Jonas, Managing Director France, on LE CLUB FRENCHWEB.FR (French tech community with more than 135K members)
A Strategy for Supporting Single-Product and Single-Country Companies
PSG Equity targets B2B software companies in Europe, typically those generating around €10 million in ARR. Its strategy is based on supporting companies that are often “single product” and “single country,” helping them become multi-product and multi-country. The fund supports their growth through targeted acquisitions and geographic expansion, aiming to reach market sizes exceeding €100 million in ARR. PSG Equity relies on a structured Build-Up process that transforms companies into comprehensive software suites, addressing diverse needs within the same customer base.
A Focus on Product-Market Fit and Expansion
The fund focuses its investments on companies that have already validated their product-market fit, ensuring proven demand for their solutions. Before committing funds, PSG analyzes the total addressable market (TAM) and acquisition opportunities that will complement the product offering or enter new geographies.
A B2B SaaS Specialization and Active Support in Build-Up Development
In an increasingly competitive market, PSG Equity stands out for its specialization in B2B SaaS and expertise in mergers and acquisitions. This support translates into active assistance in the search, negotiation, and integration of acquisitions, allowing executives to stay focused on growing their company during the Build-Up phase. With its transatlantic positioning, PSG Equity also facilitates the expansion of its companies into North America, a major advantage for businesses aiming to reach a global scale.
A Pragmatic Approach to Exits
Unlike some funds seeking “unicorns,” PSG Equity adopts a measured exit strategy. The fund targets companies with revenue between €75 and €130 million and favors buyouts by other funds or strategic buyers over IPOs, which are often more restrictive for high-growth companies.
Encouraging Sustainability Without Being an Impact Fund
Although PSG Equity is not explicitly an impact fund, it values ESG initiatives within its companies. In certain sectors, such as maritime transport, solutions aimed at reducing carbon emissions illustrate this commitment. PSG Equity promotes the sharing of best practices among its companies, which are often already aware of environmental and social issues.
