Main Capital raises €100m towards fifth fund

Oscar Geen
07 July 2017

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Main Capital Partners has held a first close for its fifth buyout fund on more than €100m.

The vehicle has a target size of €200m and a €225m hard-cap, which the GP expects to hit before the end of the year based on the current subscription rate.

The fund is substantially larger than its predecessor, Main Capital IV, which held a final close on its €85m hard-cap in September 2015.

Like its predecessor, the vehicle will make investments in DACH- and Benelux-based small to medium-sized software companies.
The target return is thought to be around 20% with a standard management fee structure of 2% with 20% carry and an 8% hurdle.

The fund will run a five-year investment period and has a 10- to 13-year lifespan. After a one-year extension, it will need approval from the advisory board for further extensions.

Investors
LPs in the fund have not been disclosed. The GP received commitments from new and existing investors, mainly large institutional investors, family offices and private individuals.

Investments
The vehicle will make roughly 14 investments with an initial ticket size of €3-5m and add-ons of up to €20m. It will focus on majority buyouts and growth equity investments in DACH- and Benelux-based software companies. One investment is set to be transferred from the fourth fund.

People
Main Capital – Charly Zwemstra (managing partner).