Section Partners has closed on $22.65 million for its second dedicated primary investment fund. The fund is targeting $50 million and has raised its capital from 14 investors since it opened in 2022, according to its most recent regulatory filing.
The Palo Alto-based firm invests primarily in later-stage financial services and IT companies through three strategies; structured financing, direct secondaries and primary investments, according to its website. Its structured financing strategy is its “bread and butter” and is designed to provide personal financing and stock option exercising financing to start-up founders facing significant life events or to minimize tax burdens.
Section Partners, which is a registered investment adviser, has provided financing, secondary capital or primary capital to more than 250 founders, executives and other stockholders in over 75 companies including Airbnb, CrowdStrike, Databricks, Docusign and various other blue-chip names in the venture industry.
The firm appears to raise its capital through at least three fund families: Section Ventures, its dedicated primary investment funds; Section Capital, which is classified as a private fund for equity financing; and Section Partners, which is also classified as a private fund for equity financing, according to the firm’s most recent Form ADV.
Section Partners is also currently raising its fifth fund in its Section Capital family and has closed on $115.23 million of its $300 million target from 85 investors, according to its most recent regulatory filing.
Founded in 2014 by managing partner Dave Crowder following a three-year stint as a partner at investment manager GSV Asset Management, Section Partners has amassed an AUM of $577 million across all of its funds as of December 31, 2024.
