Elsewhere Partners: Company Profile

Background

Founded in 2016 by seasoned investors Chris Pacitti and John Thornton, Elsewhere Partners is an Austin, Texas-based private equity firm specializing in growth-stage investments in B2B software companies. The firm focuses on businesses that have achieved significant customer traction and revenue growth without substantial external funding, often located outside traditional venture capital hubs. Elsewhere Partners aims to provide both capital and operational expertise to help these companies scale effectively.

Key Strategic Focus

Elsewhere Partners targets lower middle-market software companies, particularly in sectors such as IT infrastructure, cybersecurity, business applications, and healthcare IT. The firm seeks to invest in companies with annual recurring revenue (ARR) between $3 million and $15 million, primarily headquartered in North America, Europe, and Israel. Investment sizes typically range from $20 million to $50 million, focusing on majority recapitalizations. The firm's strategy emphasizes partnering with technical founders to enhance go-to-market strategies and operational efficiencies.

Financials and Funding

Since its inception, Elsewhere Partners has successfully closed three funds:

Fund I: Launched in 2016, details undisclosed.

Fund II: Closed in May 2022 with $175 million in capital.

Fund III: Closed in June 2024, raising $285 million. This fund attracted investments from an Ivy League endowment and several prominent institutional investors, underscoring confidence in Elsewhere Partners' investment model.

The capital from these funds is allocated to support majority investments in growth-ready software companies, providing both financial resources and strategic guidance to accelerate growth.

Pipeline Development

Elsewhere Partners has invested in 17 companies across North America, Europe, and Israel. Notable investments include:

Deskpro: A London-based helpdesk software provider. In 2024, Elsewhere Partners invested $25 million, facilitating the opening of Deskpro's North American headquarters in Austin, Texas.

ActivTrak: A workforce analytics platform. In 2019, Elsewhere Partners led a $20 million Series A investment to enhance product development and market expansion.

Vyopta: A provider of video management software. Elsewhere Partners' investment supported the company's growth and product innovation.

These investments reflect the firm's commitment to supporting software companies poised for significant growth.

Technological Platform and Innovation

While Elsewhere Partners does not develop proprietary technologies, it distinguishes itself through a robust network of operating advisors—seasoned executives with extensive experience in scaling software companies. This network provides portfolio companies with strategic guidance in areas such as product development, go-to-market strategies, talent acquisition, and financial management. This hands-on approach ensures that investments are not only financially supported but also strategically positioned for success.

Leadership Team

The leadership team at Elsewhere Partners comprises experienced professionals with deep expertise in software investments:

Chris Pacitti: Founder and Partner. Prior to founding Elsewhere Partners, Pacitti was a General Partner at Austin Ventures, where he led numerous successful software investments.

John Thornton: Co-founder and Operating Partner. Thornton also served as a General Partner at Austin Ventures and co-founded The Texas Tribune.

Sloane Child: Promoted to Partner in January 2025. Child previously served as Vice President and Principal at the firm, contributing significantly to investment strategies and portfolio management.

Nick Stoffregen: Promoted to Partner in January 2025. Stoffregen has been instrumental in sourcing and managing investments, previously serving as Vice President and Principal.

The firm's extensive network of operating advisors includes industry veterans such as:

Mark McClain: CEO and Founder of SailPoint Technologies.

Mike Bennett: Former CEO and Chairman of SolarWinds.

Rita Selvaggi: Former CEO of ActivTrak and current Elsewhere Operating Partner.

These advisors play a crucial role in guiding portfolio companies through growth and scaling challenges.

Leadership Changes

In January 2025, Elsewhere Partners announced key promotions within its leadership team:

Sloane Child: Promoted to Partner.

Nick Stoffregen: Promoted to Partner.

These promotions reflect the firm's commitment to recognizing and advancing internal talent to support its growing investment pipeline.

Competitor Profile

Market Insights and Dynamics

The private equity landscape for B2B software investments is competitive, with numerous firms targeting growth-stage companies. The market is characterized by a focus on companies with proven products and customer traction, seeking capital to scale operations and expand market reach.

Competitor Analysis

Key competitors include:

TT Capital Partners: Focuses on healthcare IT and services companies, providing capital and strategic insight.

Ardan Equity: Specializes in healthcare and life sciences software and data companies, offering growth equity and buyouts.

Health Velocity Capital: Invests in innovative healthcare software and services businesses, aiming to create a more affordable and sustainable future.

These firms, like Elsewhere Partners, provide capital and strategic guidance to software companies, each with specific sector focuses and investment strategies.

Strategic Collaborations and Partnerships

Elsewhere Partners leverages its extensive network of operating advisors to provide portfolio companies with strategic guidance and operational support. This collaborative approach ensures that investments are not only financially supported but also strategically positioned for success.

Operational Insights

Elsewhere Partners differentiates itself through a focus on companies located outside traditional venture capital hubs, often referred to as "Elsewhere Outliers." By targeting capital-efficient software companies with proven products, the firm addresses a gap in the VC/PE ecosystem, offering a low-risk/high-reward investment model.

Strategic Opportunities and Future Directions

With the successful closing of Fund III, Elsewhere Partners is well-positioned to continue its strategy of investing in growth-ready B2B software companies. The firm plans to further sharpen its focus on majority investments in companies led by strong technical founders, providing both capital and operational expertise to drive growth and innovation.