• Fund V closed on USD 187m, surpassing USD 175m target
• Has made over 15 investments so far, targeting up to 35
• Invests USD 5m-USD 7m of equity in buyout, growth investments in US, Europe

CF Private Equity is targeting high growth segments within software, healthcare and industrial services as it deploys its fifth co-investment fund, which closed on USD 187m last month.

With the fund, the private equity arm of Commonfund is focused on secular growth trends, President and CEO Mark Hoeing told this news service. These include software as a service (SaaS), digital healthcare, the nearshoring of manufacturing to the US and supply chain optimization. There is a particular emphasis on segments characterized by high levels of recurring revenue.

Hoeing believes healthcare is “recession resistant” and cites aging population and the emphasis on lowering costs and advancing value-based care as key investment themes.

He explained that the firm’s supply chain thesis is based on demand for nearshoring to the US and the need of small to mid-size companies to secure supply chains amid tariff challenges. Meanwhile, industrial services opportunities are linked to production shifting to the US or Western Hemisphere from Asia.

Geographically, there is an emphasis on the US, which is expected to account for around 80% of investments. About 20% of the fund will be invested in Europe, with exposure to its “industrial heart,” including the DACH region, Nordics, Italy and France, as well as the UK. These countries are home to many small growth companies and a culture of entrepreneurship, Hoeing said.

Fund V will make 25 to 35 investments overall, writing equity checks of between USD 5m to USD 7m per deal, which are typically for passive stakes.

Deployment kicked off during the 18-month fundraising period. “We invest as we’re raising,” Hoeing said, noting that CF reviewed more than 230 companies and invested in more than 15 with Fund V so far.

He credits the firm’s reputation for the oversubscribed fund, which closed above its initial USD 175m target. “It’s just a continuation of what we’ve been doing. Investors find it helpful for building out their own portfolios,” he said. LPs in Fund V include endowments, foundations, pension funds, insurance companies and sophisticated clients of registered investment advisers.

Realized investments from Fund II, reflecting CF’s co-invest strategy, include Irth Solutions, a Columbus, Ohio headquartered SaaS provider. The business was sold by Gauge Capital to Blackstone Energy Partners in December 2021, and has since been acquired by TPG in August 2025. Other realized investments include: Titan Acquisition Holdings, a ship repair services provider that was sold by Carlyle and Stellex Capital to Lone Star Funds in 2023; Enovation, a Dutch-headquartered healthcare software and services business sold by Main Capital to French corporate Legrand in 2024; and Australia-based SaaS platform Compass Education, sold by Advent Partners to EQT in 2024.

Deal flow is sourced through CF’s extensive network of private equity managers, with active investments alongside 150 GPs. About 75% of opportunities come from CF’s existing primary managers and 25% from other sponsors. The firm partners with specific managers on middle-market buyouts and growth equity deals, almost all of which are control investments.

Hoeing characterized co-investment funds as a “nuanced” part of the market. “It’s almost like the greatest hits” culled from LPs and fund managers, he said.

CF’s 2022 vintage, fourth co-investment fund is essentially fully invested, holding 38 companies, with a small reserve set aside for follow-on deals, Hoeing said. He added that its 2017 Fund II has generated a net MOIC of 2.1x and a net IRR of 16%, as of 30 June 2025, describing it as “reasonably mature at approximately eight years old” and following the same strategy and approach as CF’s subsequent co-investment funds, including Fund V.

CF Private Equity’s parent, Commonfund, manages nearly USD 32bn in AUM. Proskauer was legal advisor on the fundraising and PwC served as accountant.