Rothschild-backed private equity fund racks up £225m in funding
A private equity fund backed by Edmond de Rothschild and the government-owned British Patient Capital has raised €266m (£225m) to invest in software-as-a-service (SaaS) companies across Europe.
The new fund Kennet VI, run by private equity house Kennet, has already begun to deploy capital, including in Screendragon in Ireland and the UK, which makes workflow management software, and Fluid Topics in France, an AI content delivery platform.
Kennet VI’s capital was raised as part of a partnership with Edmond de Rothschild Private Equity, which began in 2017.
Edmond de Rothschild is a cornerstone investor in the fund, with the bank’s client base having had priority access to the fund. British Patient Capital, Federated Hermes Private Equity and Bpifrance also committed to the fund.
As a private equity house, Kennet has made a number of successful exits in recent years, including UK-based software outfit CrossBorder Solutions.
The company focuses exclusively on investing in established, high growth business-to-business SaaS technology companies which are founder-owned and either highly capital efficient or built without external capital.
The investment from Kennet is typically the first external funding that companies receive, the company said, and is used to scale and expand internationally, while building management teams.
“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,” said Michael Elias, managing director at Kennet Partners. “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.”
Francois-Xavier Vucekovic, CIO at Edmond de Rothschild Private Equity, added: “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 success of this fundraising effort, particularly in the current challenging environment, is a testament to the strength and relevance of Kennet’s strategic approach. By leveraging cutting-edge tech solutions, Kennet ensures the sustainability and growth of their clients’ business models, enabling them to thrive in a rapidly evolving market.”