On behalf of Main Capital Partners, we wish you a happy, healthy and successful 2017!
The year 2016 was a successful year for Main Capital Partners with the opening of an office in Germany and many successful deals. The team has expanded to 20 colleagues and our events were brought to a next level. The Main Software 50 website has a complete new look (www.main50.nl). All news articles of the past year can be found in the Knowledge Center on our website (www.main.nl).
In recent years, the software – and software-related industries have been characterized by strong (international) growth and consolidation. We expect this trend to continue in 2017. We would like to share the highlights with you in this overview. For 2017 we expect a further growth of our investments in both new private equity investments in software companies in the DACH region and the Benelux as well as new Mezzanine loans to successful companies in the TMT sector. We also expect to realize several add-on acquisitions for the companies in our portfolio which currently consists of 28 companies. In the year 2017 investment fund Main Capital V with a target size of EUR 200 million will be launched, again having a focus on growth and buyout investments in established software groups in the Netherlands, Belgium and Germany. Later in 2017/early 2018 Main Mezzanine Capital will follow with a mezzanine fund with a target size of EUR 100 million. We thank you for the pleasant cooperation in the past year and look forward to an active year again in 2017! Lars van ’t Hoenderdaal Charly Zwemstra
Main Capital Given the good deal opportunities in Germany, Main Capital opened an office in Düsseldorf in 2016. Four investment professionals are working there, supported by the Dutch investment team, on several promising software deal opportunities. In 2016, we added the following companies to our portfolio: Main Capital acquired majority stakes in Denit (managed hosting provider), Axxerion (Facility Management Software), OBI4wan (SaaS social media monitoring) and the German company Artegic (SaaS Marketing Automation). Main Capital’s focus is on improving the (international) position of its portfolio companies, the development of partner networks and achieving a growing level of recurring revenues and profitability. Part of the strategy is expanding portfolio companies through targeted add-on acquisitions. In 2016, the following add-ons have been realized for the portfolio of Main Capital:
Main Capital managed to realize a high return for its funders with the partial exit of EuroSystems and reinvestment in the ABIT Europe combination.
For the fifth year in a row, we organized the Main Software 50. This event really puts the software sector in the spotlights. The event, with René de Monchy (BNR News radio) as host and Jurrie van Rooijen (CIO bol.com) as key note speaker, again attracted more visitors than past editions. The winners of 2016 are:
You can watch the video of the event here. On the new www.main50.nl website you can watch the company movies of the winners. Next to the Main Software 50, we organized the Main Insight Event again. This year’s topic was Sales Performance Improvement and Sales Effectiveness for software companies.
Last but not least, we organized the Main CTO day for the third time. This event is organized especially for the CTO’s of our portfolio companies and warm relations and is focussed on trends and developments in the fields of technology platforms and software development. Guest speaker was Joost Visser, CTO of the Software Improvement Group (SIG).
Main Mezzanine Capital
In 2016, Main Mezzanine Capital provided a record amount of mezzanine loans to successful companies in the sectors Technology, Media & Telecom (“TMT”). We have provided a total of almost € 20M to the following six companies that have used the loans for various purposes. In addition, three mezzanine loans have been repaid and attractive returns have been realized.
The mezzanine proposition supports SME companies in the TMT sector in realizing their growth ambitions such as (international) expansion, acquisitions and management buyouts. Main Mezzanine Capital finances companies that meet the following criteria:
- Revenue > € 3,0M
- Profitable (positive cash flow)
- > 20 employees
- Multiple shareholders and a strong management team
- Proven business model and track record
- The minimum size of a mezzanine loan is € 2,0M
We thank the funders for their participation in the various mezzanine loans. In 2017 we expect a further growth of our mezzanine portfolio, both in number of loans as in invested capital.
A selection of our transactions: