WAYNE, PA — Inverness Graham recently closed its fifth flagship buyout fund at $400 million, expanding the Philadelphia-area firm’s capital base as competition intensifies for founder-led businesses in healthcare, software, and advanced manufacturing.
The final close of Inverness Graham Investments V increased the firm’s total assets under management to more than $1.8 billion, with more than $825 million raised across its investment strategies over the past three years.
The fund will continue the firm’s focus on lower middle-market acquisitions, targeting founder-owned companies where operational restructuring, technology adoption, and acquisition-driven expansion can accelerate growth.
Private equity firms have increasingly pursued smaller founder-led businesses as larger buyout markets face higher financing costs, elevated valuations, and slower deal activity.
Inverness Graham has already deployed capital from Fund V into two companies: Cognito Forms, a workflow automation platform serving regulated industries including healthcare and legal services, and Axcel Learning, an education and certification platform focused on industries requiring licensing and credentialing exams.
The investments reflect continued investor demand for businesses tied to compliance-heavy sectors and recurring digital-service revenue models, areas that private equity firms have increasingly targeted for consolidation and operational scaling.
“The successful closing of Fund V and more than $825 million of newly raised capital across our platform are a testament to the trust and confidence that our investors place in our Strategic Platform Build approach,” Co-Founder and Chairman Ken Graham said.
The firm also indicated it is expanding internal operational capabilities tied to acquisitions and portfolio management, including hiring focused on artificial intelligence enablement and value creation initiatives.
Inverness Graham manages two fund strategies and has spent recent years expanding resources tied to deal sourcing, mergers and acquisitions execution, and operational advisory functions.
Rede Partners served as fundraising adviser for the fundraise, while Latham & Watkins acted as legal counsel.
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