Recognize Partners Fund II Closes at $1.7 Billion

Recognize, a proven investor in and builder of next-generation Digital Services companies, today announced the final close of its second fund, Recognize Partners II/II-A, L.P. (“Recognize II”), with over $1.7 billion in total commitments. Co-founded by Managing Partners Francisco D’Souza, Charles Phillips, and David Wasserman, Recognize has quickly established itself as a notable investor-operator and trusted partner to digital services innovators.

Recognize seeks to back visionary founders and management teams who are building differentiated businesses that leverage AI, software, and digital platforms to deliver transformative outcomes to enterprises. With Recognize II, the firm continues to focus on investing in companies with enterprise values between approximately $50 million and $500 million – businesses that Recognize believes offer strong potential for accelerated growth with the support of Recognize’s partnership-driven value creation approach.

Recognize II was oversubscribed and closed less than five months from launch, with strong support from existing investors, including a significant GP commitment, and a curated group of new investors. The LP base includes leading global institutions such as endowments, foundations, pensions, insurers, family offices, outsourced CIOs and fund-of-funds across the U.S., Europe, Asia, and Latin America.

Over the last six months, Recognize has made four new platform investments: SDG Corporation (cybersecurity services), Sprout (Digital Infrastructure Services), TRANZACT (insurance services), and HealthEdge (SaaS for healthcare payers).

The firm also completed two realization events earlier this year: the exit of AST, sold to IBM (NYSE:IBM), and a partial exit of 2X through a strategic investment by Insight Partners. In 2024, Recognize also sold Torc, an AI-powered talent platform, to a subsidiary of Randstad (AMS:RAND). These realizations, in Recognize’s view, further reinforce the firm’s thesis that next-generation Digital Services firms are increasingly attractive to strategic buyers.

“We are incredibly grateful for the continued support of our partners,” said Debbie Park Munfa, Partner and Head of Investor Relations at Recognize. “We remain focused on building Digital Services businesses for the future and partnering with excellent management teams to deliver long-term value for our investors.”

Recognize was advised on the fundraise by Rede Partners Americas LLC, with Goodwin Procter LLP serving as legal and tax counsel.