On behalf of Main Capital Partners we wish you a happy, healthy and successful 2018!
2017 was a successful year for Main Capital Partners with the closing of Private Equity fund Main Capital V with a fund size of EUR 236.5 million, the relocation of the Düsseldorf office and many new deals and exits. In addition, the team was expanded to 26 colleagues and many visitors came to our annual events. All news items from the past year can be read on the news page on our website. We would like to share the highlights of last year in this annual review.
For 2018 we expect further growth of our investments, add-on acquisitions and exits, both for Private Equity in the Benelux and DACH region and for mezzanine investments in the Technology, Media & Telecom (TMT) sector in the same regions. Main Mezzanine Capital will also set up a fund with a target size of EUR 100 million.
Finally, we would like to mention the strengthening of our company with the appointment of Wilko Scheurwater as Partner & Chief Finance, Risk and Governance Officer as per the 1st of January 2018 at Main Capital Partners.
We thank you for the cooperation and your interest and look forward to seeing you back in 2018!
Charly Zwemstra and Lars van ’t Hoenderdaal
In 2017, we launched Main Capital V with a fund size of EUR 236.5 million. The fund focuses on growth buy-outs and leveraged buy-outs of successful, profitable and growing software companies in the Benelux and DACH regions. In 2017, we added the following companies to our portfolio.
Main Capital acquired majority stakes in MUIS Software (SaaS accounting and ERP software), Inergy (Managed BI and Analytics), Verklizan (Cloud-based Connected Healthcare platform), evania video (video advertising solutions) Germany, GOconnectIT (Geospatial Information System and Field Service Management) and JobRouter (Workflow and BPM software) Germany. Main Capital focuses on improving the (international) position of its portfolio companies, developing partner networks and achieving a growing level of recurring revenues and profitability. Part of the strategy is the expansion of portfolio companies through targeted add-on acquisitions. We have co-facilitated the following add-on acquisitions in the past year:
In 2017 Main Capital realized a successful exit from Connexys to the American recruitment software company Bullhorn. In addition, its interest in the ABIT/EuroSystems group was sold to an international Private Equity player and Regas was sold to a German buyer in December. All exits have resulted in a high return for our funders.
After the opening of the German office in Düsseldorf, the team has grown rapidly. Due to the continuous growth of the team, the increasing number of investments and many attractive opportunities in the German software market, the German team moved to a new office at the Rathausufer 17 in Düsseldorf.
For the sixth year in a row we have organized the Main Software 50. This event is organized to give more attention to the Dutch software sector. The event, with Roelof Hemmen (BNR Nieuwsradio) as host and Remco Brouwer (Senior Vice President Digital Transformation at Randstad Holding) as keynote speaker, attracted more visitors than earlier editions. The winners of 2017 are:
On www.main50.nl you can find the event video and the company movies of the five winners. In addition to the Main Software 50, we organized the Main Insight Event both in Germany and in the Netherlands. The Dutch edition was all about ‘Customer Success & Customer Experience management for software companies’ with speakers from Accenture, Qualtrics, Exact and Onguard. The first edition of the Main Insight DACH event was dedicated to the ‘Shift towards recurring business models’ with speakers from SAP, artegic and Salesforce.
The Main CTO Event was organized for the fourth time. This event is organized for the CTO’s of our portfolio of companies and is focused on technological developments and development architectures. The main topic if this year’s edition was ‘Security’. The presentations were provided by OWASP, KPMG, Guardian 360, S-Unit and Webweaving.
Main Mezzanine Capital
Main Mezzanine Capital has further expanded its portfolio in 2017 with four leading companies in the Technology, Media & Telecom (TMT) sector and has now invested almost EUR 40 million in capital.
In addition, three successful exits were realized in 2017, whereby attractive returns were achieved for our funders. Due to the strong growth development of the companies in our mezzanine portfolio, there is a lot of interest from (inter) national parties.
In January, MUIS Software was sold to Main Capital. In July, ABIT/EuroSystems was sold to a Private Equity party. In December, Talkwalker was sold to an international Private Equity player.
In 2018 we will launch our Mezzanine Fund with a target size of EUR 100 million. With this fund we will continue our investment strategy and continue to focus on profitable and growing SME companies in the TMT sector in the Benelux and DACH regions.
The mezzanine proposition supports SMEs in realizing their growth ambitions such as (international) expansion, acquisitions and management buy-outs. Main Mezzanine Capital finances companies that meet the following criteria:
- Revenue > € 3.0M
- Profitable (cash flow positive)
- > 20 employees
- Multiple shareholders and strong management team
- Proven business model and track record
- The minimum size of a mezzanine loan is € 2.0M
If you are curious what a mezzanine loan can mean for you, click here for more information or contact us directly.