JMI Equity Research
Investment Thesis
JMI Equity is a growth equity firm that describes itself as a leading partner and investor in software and AI-driven companies. Founded in 1992, it has stayed on one focus through several technology and economic cycles: software businesses with proven business models, rich intellectual property, high recurring revenue and long-term growth potential. The firm says it backs companies with capital, strategic guidance, team-building and a repeatable value creation process, and that it works with management teams to use data, automation and AI to improve performance and scalability. Its stated values are respect, integrity and discipline.
Stage Focus
JMI invests at the growth stage in companies that already have a proven model and recurring revenue. It provides growth capital and/or shareholder liquidity, so deals include minority growth rounds and secondary or liquidity transactions. It is not a seed or early-stage investor. Recent examples include an $80M strategic growth investment in EdSights (September 2025, JMI lead) and a growth investment in First Due made in 2025 and announced publicly in August 2026.
Check Size
The firm states that it typically invests between $20 million and $500 million in each company.
Lead Tendency
JMI led the EdSights round and describes partnering with management teams as its core approach, so it appears to both lead and take significant positions. The public record is thin on co-investment structure, so lead tendency is recorded as both.
Recent Activity
- JMI closed its twelfth flagship fund, JMI XII, at $3.1 billion in August 2025, about four months after launch in March 2025. The fund was oversubscribed, capped at $3.1B, and 29% larger than the $2.4B predecessor, per WSJ and the firm's announcement.
- Total capital commitments since inception are now more than $11 billion.
- EdSights announced an $80M strategic growth investment led by JMI in September 2025.
- JMI announced its investment in First Due, an AI-powered fire and EMS software platform, in August 2026.
- The firm was named to GrowthCap's Top Private Equity Firms of 2026 for the fifth consecutive year and to Inc.'s 2026 Founder-Friendly Investors list for the sixth consecutive year.
- It hosted a 2026 AI Product & Technology Roundtable (July 2026).
- The fund is actively deploying given the recent close.
Portfolio Highlights
JMI has completed nearly 200 investments and 120 exits. The portfolio page lists more than 130 companies, all software. Notable names include ServiceNow, Kronos/UKG, Clio, Blackbaud, Applied Systems, Vertafore, DoubleClick, DoubleVerify, PointClickCare, Seismic, Ellucian, Granicus, Huntress, HackerRank, Workfront, Eloqua and Autotask. Many are vertical software businesses. It reports more than $1 billion invested since 2007 in software for public sector and public safety, including Intergraph, Appriss, Raptor Technologies, AlertMedia, Granicus, Ontic, SimpliGov, Swiftly and First Due.
Sector Focus
The firm organizes its portfolio into ten verticals: education; energy, utilities and real estate; finance, insurance and legal; government and nonprofit; digital health; human resources; IT and infrastructure; sales and marketing; security and compliance; and workforce management.
Team
- Peter Arrowsmith, Managing Partner
- Harry Gruner, Founder and Executive Chairman
- Charles Noell, Founder
- Partners: Larry Contrella, Matt Emery, David Greenberg, Brian Hersman, Bob Nye, Chase Thomet, Suken Vakil, Mac Williams
- Randy Guttman, Partner and Chief Operating Officer
- Maggie Schmitt, Partner and Chief Financial Officer
- Operational Excellence Group: Krishna Potarazu and Vincent Prajka (Partners), plus directors for product, portfolio talent, data science and AI
- Principals: Jack Duane, Preston Horner, Stephen Jones, Andy Knox
- More than 40 investment professionals in total, with a network of independent operating advisors
Decision Process
JMI is a partnership with a deal team of partners, principals and vice presidents, supported by an in-house Operational Excellence Group (product, talent, data science, AI) and operating advisors. The exact investment committee structure is not published, so it is recorded as partnership.
Founder Preferences
JMI targets founder-led and management-led software companies with strong product fundamentals and recurring revenue. It stresses alignment with management and is named to Inc.'s Founder-Friendly Investors list. It is a poor fit for pre-revenue or early-stage startups.
Geographic Focus
Offices are in San Diego (La Jolla), Washington, D.C. and Baltimore. Portfolio companies are mainly in North America, with some in the UK, Canada and Australia (for example Avecto, CoreHR, Vena Solutions and Ignition).