PE firm Recognize closes second $1-bn fund in 3 years

Recognize, a New York-based private equity firm that invests in new-age tech businesses globally, has closed its second fund with more than $1.7 billion. Recognize had raised $1.3 billion in its maiden fund in 2021.

Launched by former Cognizant vice chairman Francisco D’Souza, along with Charles Phillips and David Wasserman, Recognize invests in tech-focused companies that leverage artificial intelligence (AI), software, and digital platforms with differentiated offerings. The firm looks to invest the fresh funds in companies with an enterprise value between $50 million and $500 million. Recognize Fund-II was oversubscribed and closed within a short span of less than five months since its launch, the firm stated. 

The limited partner base for the fund includes existing investors who have made significant commitments towards the fund, along with 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.  

Earlier this year, even as Recognize continued to invest from its first fund, co-founder and managing partner D’Souza had told Fortune India that capital was not constraining the firm. According to him, there are multiple ways to create value as investors. “At Recognize, we are entirely focused on one sector. Since we know the companies in the sector [and their] founders, I think that gives us a bit of an edge because of our familiarity with the industry. We tell founders and entrepreneurs that we work with [that] we bring two things–capital and capability. Because you need both to have a successful partnership and for the investment to be successful”, he had said.  

Recognize has invested in close to 12 firms, including Ciklum, Egen, Blend360, Mediamint, Qubika, AST, Blue Mantis, SDG Corporation, Tranzact, and Thunder. The firm exited AST after its sale to IBM. It also realised a partial exit of 2X through a strategic investment by Insight Partners. In 2024, it sold Torc, an AI-powered talent platform, to the Randstad subsidiary, Randstad Digital.