The private equity arm of investment bank Baird Capital has closed its third private equity fund after raising $450 million.

Global Fund III, focuses on growth equity and buyout investments between $25 and $75 million in business-to-business technology and services companies generating $10 million to $100 million in revenue, the firm stated.

The fund is already 30% larger than Baird's prior vehicle. The firm noted that it turned away additional investor demand citing its "differentiated approach of being first institutional investors into lower-middle market, founder-led companies in the U.S. and U.K."

Baird Capital has already made three investments into the fund including U.K.-based native artificial intelligence platform Evolute IQ; U.K.-based Rapid Energy, which provides emergency and planned temperature-control hire solutions; and autoLOTO, a U.S.-based software and services company that helps organizations automate and manage Lockout/Tagout (LOTO) safety procedures.

"Our footprint across the U.S. and the U.K. is a key differentiator, particularly in the lower middle market. With longstanding experience supporting B2B technology and services companies on both sides of the Atlantic, we have a clear right to win in an increasingly homogenous private equity market. With our new fund, we look forward to building on this momentum by backing more founder-led businesses seeking flexible capital and a true partnership approach," said James Benfield, Partner at Baird Capital.

Baird Capital is the direct private investment arm of Robert W. Baird & Co.The firm invests in B2B technology and services companies across North America and the U.K., partnering with entrepreneurs to build "exceptional" companies.