Quadrum closes in on EUR 400m-EUR 450m fundraise

The GP, which has extensive experience investing in IT, business services, healthcare and packaging, among others, is expecting to reach its target for QIF IV by Q2 2023, he said, noting that it is in the last stages of discussions with institutional investors for the capital raise.

Around 70% of the capital in Quadrum’s funds have been raised from entrepreneurs and family offices, with the remaining from institutional investors, in particular fund-of-funds.

While much of the fundraising from family offices has largely been completed, the work with its institutional LPs such as fund-of-funds have been slower as those investors are also in the midst of fundraising themselves, Oostenenk said.

Investments
Meanwhile, QIF IV’s investment strategy will follow that of its previous fund, despite a 60% plus increase from QIF III, which raised EUR 250m in 2020, he said.

Its sweet spot for target companies is at EBITDA EUR 3m to EUR 8m, although it has invested in larger companies including via co-investments, he said. Much of the extra capital will fund more bolt-on acquisitions, he said, noting that it could make 3-5 of such deals per platform company. 

“It is in this market where we can really add value, professionalizing companies, streamlining them and internationalizing them,” Oostenenk said. “We have seen that over the last couple of years that our previous funds have been too small while our platform companies have grown at such high speed that we find it harder to support them without having to fund them with co-investment vehicles,” he said.

Quadrum has historically invested in Netherlands and last year made acquisitions in Novature, an IT consultant formed via the merger of recent buyout Companial and existing platform Dycotrade; software group Sigmax as well as Megahout, a producer and wholesaler of finger-jointed wood.

Among its exits include Bark Packaging Group, a supplier of industrial packaging, which was sold to US-based group Berlin Packaging last year.

Strong components of its hunt for targets are self-origination and via family-based LPs, many of whom are entrepreneurs and have a network of business owners, Oostenenk said. On its list are around 200 entrepreneurs it can turn to for target suggestions, meaning that “deal flow is the least of our problems”.

Quadrum also has a network of advisors which invite it to participate in auction processes, he said, adding that the firm is “always open” to conversations to potential buyers for its businesses and is currently prepping five exits for this year.

“Markets in general were a little bit hesitant over the last months. The financing part for potential buyers are less carved-in stone and as it used to be before,” he said. “[But] we now notice a shift to more lively market circumstances, both for exits as well on the acquisition side of our business.”

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• Topics
• Fundraising
• GPs
• Netherlands