Venture capital is “not the only fruit” for entrepreneurs, as the often quieter ‘Growth Capital’ can also see great returns for entrepreneurs who prefer to retain a lot of ownership and control but are also willing to bootstrap over a longer period in order to reach revenues and profits. With the COVID-19 pandemic pushing millions of people online, tech investors of all classes are now reaping the dividends in this accelerated, Coronavirus-powered transition to digital.
Thus it is that Kennet Partners, a leading European technology growth equity investor, has raised $250m (€223m) for its fifth fund, 'Kennet V', in partnership with Edmond de Rothschild Private Equity, the Private Equity division of the Edmond de Rothschild Group.
Kennet is perhaps best know for its involvement in companies such as Receipt Bank, Spatial Networks and its exist from Vlocity, IntelePeer, and MedeAnalytics. It’s also invested in Eloomi, Codility, Nuxeo and Rimilia. In raising this new fund, Kennet says it exceeded its target and secured new investors from across Europe and Asia.
The Kennet V fund has already started to deploy the capital into new investments in B2B, SaaS across the UK, Europe and the US.
Typically, Kennet invests in the first external funding that companies receive and is used to finance sales and marketing expansion, particularly internationally. Its cumulative assets managed are approximately $1 billion.
"We were fortunate in that most of the capital was raised just before Covid hit," Hillel Zidel, managing director of Kennet Partners, told me by phone. "But we were still able to bring additional investors in. Had we been designing a fund for now, then this would have been it, because people have rushed towards technology out of necessity. So this has brought forward digitization but at least five years.”
Johnny El-Hachem, CEO, Edmond de Rothschild Private Equity said in a statement: “We partnered with Kennet, because we liked the dynamism of the team coupled with their strategy of financing businesses providing mission-critical technology solutions. The COVID crisis has underscored the importance of many of these tools to business continuity.”