Five Elms Capital Raises $1.1 Billion Fund VI to Back High-Growth Software Companies

Software investment firm continues to back ambitious founders with shared values, long-term vision, and a focus on building enduring market leadership.

KANSAS CITY, Mo., May 28, 2025 /PRNewswire/ -- Five Elms Capital, a software-focused growth equity firm, today announced the October 2024 closing of Five Elms VI with $1.1 billion in total commitments, the largest fund in firm history. The oversubscribed fund drew strong participation from both existing and new limited partners and meaningfully expanded Five Elms' global investor base. With the close of Fund VI, Five Elms has increased assets under management to over $3 billion and is empowered to continue acting as a trusted partner for fast-growing, founder-led software companies.

In Fund VI, Five Elms will continue partnering with software companies that have proven business models, differentiated products, strong customer loyalty, and are poised for meaningful scale. These companies typically have strong foundations and are at a growth inflection point, where focus turns to expanding leadership teams, creating scalable operations, and enhancing products to stay ahead of competitors. Founders typically choose Five Elms for its unique culture and hands-on support, backed by nearly two decades of experience partnering with over 70 software companies globally.

"We're very grateful for the continued support of our existing investors and thrilled to welcome new limited partners to Fund VI," said Fred Coulson, Founder and CEO of Five Elms Capital. "Since 2006, we've partnered with founders who have built strong products and distinct company cultures to help them scale into category leaders. Our team is purpose-built to support that transition and is ready to roll up their sleeves alongside our partners."

Five Elms' value creation team is a foundational part of the firm's strategy and supports portfolio companies with practical, hands-on expertise as they scale. The team includes 17 in-house software operators with deep experience across executive recruiting, finance, sales and marketing, customer success, product development, and AI enablement. Built to complement founder-led organizations, the value creation team works closely with portfolio company management to accelerate revenue growth, strengthen customer retention, optimize product & AI-enablement, and implement scalable operations to support long-term success.

Five Elms VI has already made four platform investments in high-growth software companies:

• Magma Math - AI-enabled digital learning platform helping students and teachers engage with math through intuitive, open-ended problem solving.
• RoomPriceGenie - revenue management solution empowering independent hotels to optimize pricing through automation and AI.
• Pathify - student experience platform connecting higher education institutions with their students through personalized communication and workflow tools.
• Motivity - practice management and data platform purpose-built for behavioral health providers.

"As a founder, it was important to find a partner who understood what we were building—not just in terms of product, but in how we think about team and culture," said Henrik Appert, Founder and CEO of Magma Math. "With Five Elms, we found a team that shares our values, brings meaningful operating experience, and is willing to engage on the things that actually move the business forward. They've been thoughtful, collaborative, and focused on helping us scale the right way."

Evercore Private Funds Group acted as the exclusive global placement agent for Five Elms VI, and Foley & Lardner LLP served as fund formation counsel.

Please direct all inquiries to [email protected].

About Five Elms
Five Elms Capital is a growth investor in software businesses that users love, providing capital and resources to help companies accelerate growth and further cement their role as industry leaders.

With over $3 billion in assets under management and a team of over 80 professionals, Five Elms has invested in more than 70 software platforms worldwide. Beyond providing capital, Five Elms delivers strategic and operational expertise, focused on executing initiatives that move the needle on growth, retention, product, and AI to set companies up for long-term success. For more information, visit fiveelms.com.

SOURCE Five Elms Capital