HgCapital makes 2.3x on Personal & Informatik exit

As part of the deal, HgCapital retained a minority stake worth €70m. The exit marks the first realisation from HgCapital 7 fund, which has now returned 25% of its invested cost, according to the GP.

HgCapital claimed in a statement P&I had delivered double-digit EBITDA growth during its tenure. P&I expanded its product and cloud-based offering and sold new human capital management, recruiting and analytics software to existing and new customers.

Besides organic growth, new owner Permira hopes to draw on consolidation opportunities in P&I's home market of Germany. The buyer invested via its fifth fund, which closed on its €5.3bn hard-cap in June 2014.

Previous funding
HgCapital initially invested in P&I in December 2013, marking the first investment from the HgCapital 7 fund. The GP claimed the investment in P&I followed a decade of tracking the business prior to investing.

P&I was refinanced in January 2016, returning 0.6x original cost to the fund.

Company
Founded in 1968 and headquartered in Wiesbaden, P&I is a supplier of integrated HR software for payroll, strategic HR and analytics. The company serves 15,000 customers across Germany, Switzerland and Austria. It generates 99% of its revenues in the DACH region, while revenues from other European countries account for the rest. 

People
HgCapital – Kai Romberg, Justin von Simson (partners).
Permira – Jörg Rockenhäuser (head of DACH region).

Advisers
Seller – Arma Partners (corporate finance); GCA Altium (M&A).

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• Topics
• Exits
• Buyouts
• DACH
• Technology
• Germany
• HgCapital
• Permira
• Secondary buyout