Bengaluru: Former Cognizant CEO Francisco D’Souza’s tech investment firm, Recognize, has raised $1.7 billion for its second fund—just three years after closing its $1.3 billion debut.The fund targets companies with enterprise values between $50 million and $500 million, where Recognize’s hands-on, partnership-driven model can accelerate growth and long-term value creation.“As we enter Fund 2, we do so with sharper focus and stronger conviction, as generative AI is significantly reshaping the services landscape. We’re focused on high-growth areas like cloud, cybersecurity, and digital infrastructure services—especially amid a global infrastructure buildout. At the same time, we’re leaning into emerging themes such as the AI-powered enterprise and automation driven by AI,” D’Souza told TOI.The fund was oversubscribed and closed in under five months, drawing robust support from existing LPs—including a substantial GP commitment—and a selective group of new investors. The diverse LP base includes premier institutions across the US, Europe, Asia, and Latin America, such as endowments, foundations, pensions, insurers, family offices, OCIOs, and fund-of-funds.In the past six months, Recognize has made four platform investments—SDG Corporation (Cybersecurity Services), Sprout (Digital Infrastructure Services), Tranzact (Insurance Services), and HealthEdge (SaaS for Healthcare Payers)—while also completing notable exits, including the sale of AST to IBM, a partial exit of 2X through a strategic investment by Insight Partners, and the sale of Torc, an AI-driven talent platform, to a Randstad subsidiary, underscoring Recognize’s belief in the growing appeal of Digital Services businesses to strategic acquirers.D’Souza led Cognizant’s explosive growth, scaling revenue from $1.4 billion in 2006 to $16 billion by 2018. During his tenure, headcount soared from 39,000 to over 280,000, the company cracked the Fortune 200, and revenue surpassed both Infosys and Wipro.Founded by managing partners D’Souza, Charles Phillips, and David Wasserman, Recognize partners with digital innovators to drive transformative enterprise outcomes through AI, software, and digital platforms.
