BID Equity closes debut fund at EUR125 million hard cap

BID Equity, a DACH-region software buyout specialist, has closed BID Equity Fund II at its hard cap of EUR125 million in its second and final close, with a significant additional commitment by the BID Equity team.

Hamburg-based private equity firm BID Equity is pleased to announce the successful final closing of its advised BID Equity Fund II, the first institutional fund following three years of deal-by-deal investment activity in the small-cap software space in Europe.

BID Equity Fund II attracted a diversified group of institutional blue-chip investors, international family offices and entrepreneurs from Europe and the US. The Fund was oversubscribed and reached its hard cap with total capital commitments of EUR125 million with a significant additional commitment by the BID Equity team.

BID Equity Fund II will continue the successful strategy with a focus on majority investments in established B2B software firms in Europe (focus on the DACH region) with EBITDA between EUR0.5-5 million.

The Fund, which made its first investment in clinical research software firm XClinical within three weeks of the first close this July, envisages building 9-10 platforms in its target region.

The founding partners of BID Equity say: “We are very pleased with the strong interest our first-time fund has generated amongst international investors and that the fundraising took us just 9 months to complete from formal launch. We firmly believe that our specialist software sector focus and expertise give us an edge in identifying, sourcing and adding value to small-cap companies in a market segment that enjoys strong demand growth. In addition to seeking defensive attributes of recurring revenues, high entry barriers and margins, there is significant potential to accelerate growth and to build leading platforms through buy & build in the small-cap software space. We look forward to delivering excellent returns for our investors across the investment cycle”.

The fundraising process was supported by AXON Partners, exclusive placement agent for the Fund as well as P+P Pöllath + Partners Rechtsanwälte und Steuerberater for legal and tax matters.

“Investors were attracted by a combination of several factors including a well-differentiated strategy, the compelling market opportunity and a strong alignment of interest with above average team commitment,” says Dominik Meyer, Managing Partner at AXON Partners.