Fortino Capital Partners has created a second fund, Fortino Capital II Growth, with EUR200 million dedicated for investments in scale-ups and growth companies in the Benelux. Commitments worth EUR125 million have already been secured with the first closing having taken place.
The new growth fund accompanies the original EUR80 million fund, Fortino Capital I, which currently holds 13 companies in its portfolio. With the first fund, Fortino invested mainly in successful young companies active in the software and E-commerce sectors. The second fund allows Fortino the chance to expand its investments into larger and more traditional companies who commit to accelerate growth by embracing digital transformation.
The fund expansion is a natural evolution for Fortino and responds to the increasing need for digital transformation at traditional organisations. Companies that feel increased pressure to embrace digital in order to remain relevant and competitive require investment, organisational change, and new management methods. With this new second fund, Fortino capitalises on these market opportunities.
Duco Sickinghe, Managing Partner Fortino, says: “In the Benelux, we have already built a strong reputation in specific sectors such as Software as a Service and E-commerce. Deloitte’s selection of Teamleader for the Fast50 award attests to this fact. We are now extending our expertise and skills to traditional companies throughout the Benelux to guide them in their digital transformation.”
Fortino wants to finance both a renewal and expansion of its existing products and services portfolio, and as well as, broaden the geographic reach. The new fund offers excellent opportunities for investors in the Benelux because of the relatively low risk profile of these investments and Fortino’s accumulated expertise in digital transformation and technology. Between the venture capital and buy-out funds there is room in the Benelux for larger, but locally-based growth capital funds.
Several companies have been identified for the second growth fund. Fortino provides investment tickets from EUR5 to EUR25 million for minority or majority shareholdings in scale-ups and growth companies with a turnover of minimum five to ten million euros.
In addition to reputable private investors and entrepreneurs, a number of strong institutional investors such as BNP Paribas Fortis, AG, Belfius and PMV have signed to be “cornerstone investors” in the new fund.
Max Jadot, CEO of BNP Paribas Fortis, says: “Supporting the growth of promising scale-ups in the Benelux is an important anchor point in BNP Paribas Fortis’ strategy. The choice of Fortino is obvious; the team uses their expertise, individual capacities and an extensive network to guide entrepreneurs in the development of a successful company. Furthermore, Fortino also has access to an attractive deal flow.”
Through its first fund in Belgium, Fortino invested in successful start-ups such as Teamleader (management software for SMEs), Trendminer (analytics for chemical companies) and Aproplan (software for the construction industry). In the Netherlands, Fortino contributed to the growth of Bloomon (online flower service) and BuyBay (solutions for return products in e-commerce and retail).
