Resurge Growth Partners has launched a new venture equity vehicle aimed at bridging the gap between venture capital and private equity for growing companies.
- The firm plans to invest €120m over the next three years, with significant initial funding already committed.
- Resurge targets ‘venture graduates,’ companies that have outgrown venture capital but are not ready for private equity.
- The fund promises to provide both the capital and operational expertise needed for sustainable growth.
- Co-founders Oren Peleg and Eyal Malinger bring extensive experience to the venture.
Resurge Growth Partners has strategically positioned itself in the financial landscape by launching a €120m venture equity vehicle. This innovative fund is designed to address the unique needs of European and Israeli scale-ups that fall between the venture capital and private equity categories.
The firm has already secured nearly half of the capital from its founding general partners and a major family office, reflecting a strong initial commitment. This proactive approach is indicative of a well-considered strategy to support ‘venture graduates’ – firms that demonstrate high potential but have surpassed the venture capital model without yet fitting the traditional private equity mold.
By offering both capital and operational expertise, Resurge aims to transition these companies towards profitable and sustainable growth. Co-founder Oren Peleg, who has an accomplished background as a former Managing Director of Oaktree Capital Management and ex-CEO of Fitness First, highlights the fund’s strategic purpose: “If you look at a typical venture portfolio, there will be a proportion of that portfolio that has delivered high growth and is likely to become sizeable — a unicorn. Then there is a proportion of companies in the portfolio that don’t achieve market fit and fail, and they typically don’t deserve to be funded anymore,” he notes.
The target is the segment of businesses caught in a funding gap, unable to attract further venture capital due to stagnant growth, and yet not profitable enough to appeal to private equity investors. This middle ground represents a significant opportunity for both impact and profitability.
Co-founder Eyal Malinger, who brings experience as a former partner at Beringea and vice president at Oaktree Capital, adds another layer of expertise to the fund’s operations. The fund’s proactive investments are also bolstered by the support of a cohort of high-net-worth individuals and selective family offices, ensuring a robust foundation to commence the onboarding of its first portfolio companies by the end of the year.
Resurge Growth Partners is set to fill a critical market gap with its venture equity vehicle, poised for transformative impact.
