Princeton Equity Group has closed its third flagship fund, Princeton Equity Partners III, at its $1.3bn hard cap—nearly 50% above its original $875m target. The final close was achieved in just two months of fundraising, more than doubling the size of its predecessor fund. Existing limited partners provided substantial re-ups, while new investors from the US and internationally joined, including pension plans, endowments, foundations, sovereign wealth funds, family offices, insurers, and asset managers.

Co-founder and managing partner Doug Kennealey noted the meaningful expansion of the investor base, particularly in Europe, alongside new relationships with global consultants and leading endowments. Fund III will continue the firm’s strategy since 2006: backing entrepreneurs—often founders—with capital, sector expertise, and operational support through its Growth Edge team and Fusion Point, a proprietary AI-enabled technology platform.

Co-founder Jim Waskovich emphasized targeting companies with strong unit economics, recession resiliency, and long-term durability. Princeton has invested in over 30 franchisor and multi-location businesses, including European Wax Center, Massage Envy, Barry’s, Pirtek, Strickland Brothers, and Kid Strong. With this fund, the firm manages approximately $3bn in assets.