PSG, a software-focused investor, is targeting €3.4 billion for its latest Europe fund, according to documents prepared for the Pennsylvania State Employees' Retirement System. The firm expects to hold the final close on PSG Europe III by the end of the first half of this year, with a hard cap still to be determined as fundraising continues across multiple institutional channels.

The size of PSG Europe III reflects continued investor confidence in European software investments despite market uncertainties. The fund represents the firm's third dedicated vehicle for the region, building on previous successful investments in European technology companies that have delivered strong returns for limited partners in the current economic climate.

Pennsylvania State Employees' Retirement System documents reveal PSG's fundraising strategy as the fund targets a mix of institutional investors. The timing of the first-half closure suggests PSG aims to capitalize on current market conditions before potential economic shifts later in the year, positioning the fund to deploy capital during what the firm may view as an advantageous window for software investments.