Resurge Growth Partners has launched a €120m venture equity fund to support scale-ups in Europe and Israel.
- The fund targets companies that have outgrown venture capital but are not suitable for private equity.
- Nearly half of the fund’s capital is already committed by founding partners and a leading family office.
- The venture equity model offers capital and expertise for profitable growth transitions.
- Founders include industry veterans Oren Peleg and Eyal Malinger.
Resurge Growth Partners has introduced a new €120 million venture equity fund aimed at supporting high-potential scale-ups across Europe and Israel. This strategic move addresses the funding gap between venture capital and private equity, offering a viable solution for businesses that are too mature for venture capital yet not fully ripe for private equity investments.
The newly launched fund will invest over three years, with a significant portion of the capital already secured from the founding general partners and a prominent family office. This early commitment provides a solid foundation for the fund’s operational strategy, which seeks to bridge the divide and offer necessary financial and operational support to its target companies.
The core mission of Resurge is to partner with ‘venture graduates’, firms that occupy the space between venture capital’s traditional growth parameters and the thresholds expected by private equity. These companies often exhibit strong growth potential but lack the profitability metrics demanded by larger equity players. The venture equity model introduced by Resurge offers the needed capital, operational expertise, and transitional time to achieve sustainable growth trajectories.
Co-founded by Oren Peleg and Eyal Malinger, Resurge Growth Partners brings together extensive experience from the finance and investment sectors. Oren Peleg, a former Managing Director at Oaktree Capital Management, emphasised the importance of supporting companies in this transition phase: “If you look at a typical venture portfolio, there will be a proportion that has delivered high growth and is likely to become sizeable — a unicorn. Then, there are those who don’t achieve market fit and typically don’t deserve to be funded anymore. In between, there is a group who can no longer attract venture funding and aren’t profitable enough for private equity. These are the companies that we support.”
With nearly half of Resurge’s investment capital already committed, the remaining funds are expected to be sourced from a select group of family offices and high-net-worth individuals. These funds will be allocated on a deal-specific basis, ensuring strategic alignment with the fund’s objectives. The anticipation is to have the first portfolio companies onboarded by year-end, further demonstrating Resurge’s commitment to this innovative funding model.
Resurge Growth Partners’ initiative signals a strategic effort to fill the funding gap for scale-ups transitioning between venture capital and private equity.
