Kennet Partners, the technology growth equity investor, closed its third fund, Kennet III, at over €200m, surpassing the €135m raised by its predecessor fund.
The new fund, which is the company’s biggest fund to date, will stick to the firm’s strategy of investing in technology companies operating in the software, IT services, semiconductors and new media sectors, with an emphasis on later stage opportunities in both Europe and the US. Kennet invests in the US and Europe from a single fund.
“High-growth European technology companies often need to succeed in the US to become global market leaders. Our fund structure and US team can be a significant competitive advantage for our portfolio companies,” said Michael Elias, Kennet managing director.
Javier Rojas, Elias’ equivalent in the firm’s Silicon Valley office, agrees: “Kennet’s growth equity strategy is well-timed for the US market, where bootstrapped, founder-led businesses are underserved, since the majority of investment capital is targeted at early-stage venture deals or large buyouts.”
Investors in the London-based VCs latest offering include Access Capital Partners, Adveq, Alpha Associates, BNP Paribas Private Equity, Capital Dynamics, Crédit Agricole Asset Management Capital Investors, Credit Suisse, European Investment Fund, Finama, LGT Capital Partners and Siemens.
The fund has already made two investments. The first was a €7m financing of Telemedicine Clinic (TCM), a Spanish provider of sub-specialised teleradiology services to public and private healthcare providers. TCM was one of the first European providers of teleradiology services and is currently the leader in the UK and Europe. “With Kennet on board, [we] will further accelerate [our] growth and presence in the UK and other geographic markets and to develop new service offerings,” said David Bäckström of TMC.
The second was a €22m investment into NTRglobal, a UK provider of on-demand systems management software. Kennet were joined by Atlas Venture and existing investors Debaeque and Elaia Partners in the €22m investment. These companies join Kennet’s portfolio of businesses with recurring revenue models in a range of high-growth vertical markets.