Private Equity Firm Invictus Growth Partners Secures $574M for Fund II

News

Published by Stephen Oluwadara at June 4, 2025

Invictus Fund II

Founded in 2019 by John DeLoche and William Nettles, Invictus focuses on growth buyouts of enterprise software companies, particularly those in cloud, cybersecurity, and fintech. The firm backs bootstrapped businesses with $10M+ in annual revenue, often founder-led and under the radar.

Invictus is betting on artificial intelligence powering key sectors such as manufacturing, automotive, and energy. “AI and machine learning are at an inflection point, where those companies that adopt them can become winners and those [that] don’t are going to be left behind like Blockbuster was,” said John DeLoche.

The San Mateo, California-based venture firm collected $488 million for Fund II and $86 million for co-investments. The firm had originally set a $450 million goal for the flagship fund. Invictus’ new flagship vehicle is double the size of the firm’s debut pool, which closed on $216 million, along with $106 million for co-investments in 2022.

Investors in the latest fund include the New York State Common Retirement Fund, which had also backed the firm’s debut fund, and the New Mexico State Investment Council, a new investor. The leading private equity firm collected over two-thirds of the fund’s capital from new institutional investors, including foundations and university endowments.

So far, Invictus has committed more than a quarter of the fund’s capital across three deals and has set the fourth in motion. The acquisition of cybersecurity company ThreatModeler represented the first investment from the new fund.

Invictus Growth Partners’ Strategy

Invictus focuses on buyouts of lower middle-market enterprise software businesses, including those in the cybersecurity and financial sectors. The firm targets companies that generate at least $10 million of annual recurring revenue and are profitable or near the break-even point.

“We’re investing in must-have, mission-critical software companies that are really solving critical pain points for large enterprises,” Nettles said. Since the firm raised its debut fund, DeLoche said artificial intelligence has risen in prominence to become a core element for software businesses where the firm invests.

Invictus targets startups with strong product-market fit that are profitable or nearly profitable at the time of investment. Ten of twelve investments were sourced using DIANE, Invictus’ AI-powered sales tool. DIANE is an acronym for Deal Intelligence Assessment Neural Engine, which was built in-house in 2019.

The firm is now on its third-generation machine learning for operational enhancements powered by DIANE. The first generation was an in-house investment sourcing. The second and third generations focused on GTM operational enhancements exclusively available to Invictus portfolio companies. Leveraging the platform, Invictus’ portfolio companies have seen a 90% increase in direct sales efficiency, providing access to thousands of potential new enterprise customers.

Furthermore, the portfolio companies benefit from access to the Invictus Guild, a team of operating executives with experience working at some of the most successful technology companies. Invictus Guild Members operate across ten crucial disciplines for scaling technology companies: sales, marketing, customer success, business development, corporate development, data science, human resources, product development, finance, and CEO coaches.

They serve as mentors, operational advisors, and sources of best practices and talent for Invictus’ portfolio companies. They also personally invest in each one of the portfolio companies.

Main Image: William Nettles, left, and John DeLoche, right. Image Credit: Dass Alamillo/Anchor Estudio