Recognize closes $1.7 billion fund to back next-gen digital services firms

Recognize, a global investor focused on next-generation Digital Services companies, has announced the successful close of its second fund, Recognize Partners Fund II, securing over $1.7 billion in commitments. The fund reached its hard cap in under five months, reflecting strong support from existing limited partners (LPs) and new blue-chip institutional investors across the US, Europe, Asia, and Latin America.

Co-founded by industry veterans Francisco D’Souza, Charles Phillips, and David Wasserman, Recognize aims to back companies harnessing AI, software, and digital platforms to create transformative enterprise solutions. Fund II continues the firm’s strategy of targeting companies with enterprise values ranging from $50 million to $500 million.

“We remain focused on building the digital services businesses of the future,” said Debbie Park Munfa, Partner and Head of Investor Relations at Recognize. “The strong interest in this fund reinforces confidence in our partnership-driven growth model.”
The fund has already backed four platform companies, including SDG Corporation (cybersecurity), Sprout (digital infrastructure), TRANZACT (insurance services), and HealthEdge (healthcare SaaS). In addition, Recognize completed exits from AST (sold to IBM) and Torc (sold to Randstad), with a partial exit of 2X to Insight Partners, showcasing investor confidence in the digital services segment.

Legal counsel for the fundraise was provided by Goodwin Procter LLP, with Rede Partners Americas LLC advising on fundraising.

With India’s digital transformation accelerating, this fund could also open up opportunities for Indian founders building AI-powered, service-driven platforms globally.