Recognize Closes $1.7B Fund to Back Next-Gen Digital Services, AI-Driven Platforms 

Recognize, an investor focused on building next-generation digital services companies, has announced the final close of its second flagship fund, Recognize Partners II/II-A, L.P., securing over $1.7 billion in total commitments. The fund, which was oversubscribed and closed in less than five months, attracted strong backing from existing investors and a curated group of new limited partners spanning global endowments, foundations, pensions, insurers, family offices, outsourced CIOs, and fund-of-funds across the U.S., Europe, Asia, and Latin America. 

Founded by managing partners Francisco D’Souza, Charles Phillips, and David Wasserman, Recognize focuses on partnering with visionary founders and management teams leveraging AI, software, and digital platforms to transform industries. Fund II will continue the firm’s strategy of targeting companies with enterprise values between approximately $50 million and $500 million. 

Over the past six months, Recognize has made four new platform investments through its second fund: SDG Corporation (cybersecurity services), Sprout (digital infrastructure services), TRANZACT (insurance services), and HealthEdge (SaaS for healthcare payers). The firm also marked two realization events this year, including the exit of AST, sold to IBM, and a partial exit of 2X, which secured a strategic investment from Insight Partners. In 2024, Recognize also sold Torc, an AI-powered talent platform, to a subsidiary of Randstad. 

“Our firm’s mission is to partner with companies building the next generation of digital services at the intersection of talent, technology, and AI,” said D’Souza. “Fund II’s strong reception reflects the conviction our investors have in our vision and our portfolio.” 

Recognize was advised on the fundraise by Rede Partners Americas LLC, with Goodwin Procter LLP serving as legal and tax counsel.