A private equity fund supported by Edmond de Rothschild and British Patient Capital, a government-owned entity, has amassed €266m (£225m) for investment in software-as-a-service (SaaS) firms across Europe.
The newly established fund, Kennet VI, managed by private equity firm Kennet, has already started investing, with Screendragon in Ireland and the 海角视频, a workflow management software provider, and Fluid Topics in France, an AI content delivery platform, among its initial investments.
Kennet VI's capital was raised through a partnership initiated in 2017 with Edmond de Rothschild Private Equity.
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Edmond de Rothschild is a key investor in the fund, offering priority access to the bank's clientele. Other commitments to the fund came from British Patient Capital, Federated Hermes Private Equity, and Bpifrance.
Kennet, as a private equity firm, has seen several successful exits in recent years, including the 海角视频-based software company CrossBorder Solutions, as reported by .
Kennet exclusively invests in established, high-growth B2B SaaS technology companies that are founder-owned and either highly capital efficient or built without external capital.
According to the company, the investment from Kennet is typically the first external funding these companies receive, which is used to scale up, expand internationally, and build management teams.
Kennet Partners has successfully closed its largest fund to date, with managing director Michael Elias highlighting the significance of the achievement: "This fundraise marks another important milestone for Kennet as we close our largest fund to date, with a significant number of previous investors participating in this fund," and adding, "At a time when the market has recognised that 'growth at any cost' is no longer rational, our long-standing conservative strategy has appealed to investors."
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Edmond de Rothschild Private Equity's CIO, Francois-Xavier Vucekovic, expressed confidence in the technology sector: "We firmly believe that technology plays a critical role in the transformation of our economies and societies. Our commitment is to support and nurture companies that are at the forefront of innovation and value creation."
The successful capital raising effort reflects the robustness of Kennet's strategic approach, especially in a tough market climate, with an emphasis on sustainable growth and leveraging tech innovations to ensure client businesses can prosper amidst ongoing market changes.
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