Durable Capital Partners

Durable Capital Partners, based in Chevy Chase, Maryland, is an investment firm founded by Henry Ellenbogen, a former portfolio manager at T. Rowe Price. The firm employs a distinctive hybrid investment strategy, focusing on high-growth, small and mid-cap companies across both public and private markets. Durable seeks to identify businesses with strong fundamentals, durable competitive advantages, and significant long-term growth potential, aiming to be a long-term partner rather than a short-term investor.

The firm's approach combines deep fundamental research, typically associated with public equity investing, with the patient capital and strategic support characteristic of private growth equity. This allows Durable to invest in companies at various stages of their growth trajectory, from late-stage private rounds to established public entities. They often take significant minority stakes, providing capital for expansion, market leadership, and technological innovation.

Durable Capital Partners manages a substantial asset base, with reports indicating assets under management (AUM) around $6.5 billion as of late 2021. A significant portion of this capital is allocated to private investments, with approximately $2.5 billion earmarked for such opportunities. This substantial capital base enables them to make meaningful investments, often leading or co-leading large funding rounds.

Their investment history includes leading significant growth rounds for prominent private companies. For instance, Durable led a $400 million Series E round for Toast in 2020, a leading restaurant management platform. They also participated in and led a portion of the $750 million Series G round for fintech giant Chime in 2021. These examples underscore their capacity and willingness to deploy substantial capital into high-potential companies, supporting their journey towards market leadership and sustained growth.