DPE raises EUR 708m continuation fund for two IT consultancies

Min Ho
28 September 2022

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Deutsche Private Equity has transferred two of its portfolio companies Eraneos Group and valantic Group to its first continuation fund.

At EUR 708m, DPE Continuation Fund I is the largest continuation fund ever raised in Germany, according to a statement by the GP.

Secondary investors led by AlpInvest Partners, co-led by HarbourVest Partners and Pantheon Ventures invested in the fund, it said.

The GP originally invested in IT consultancies Eraneos and valantic in 2017 and 2019, respectively, with its DPE Fund III.

DPE CF I has offered DPE Fund III investors the option to crystallize returns or continue to support the growth strategies of Eraneos and valantic by participating in the continuation fund, it said.

DPE Fund III closed on EUR 575m in 2017 after a year of fundraising.

DPE CF I will continue deploying additional capital that has been raised in this transaction across a number of add-on transactions and broader organic growth initiatives. Deutsche Private Equity is currently investing via DPE Deutschland IV, which raised EUR 1bn in 2020.

Eraneos and valantic have increased their revenues by over 270% and 240%, respectively, under DPE's ownership, while completing over 20 add-on acquisitions combined, it said.

Valantic was marketed off at around adjusted EBITDA of around EUR 20m-EUR 21m when DPE bought it from AUCTUS Capital in 2019, according to sister publication Mergermarket. The company is expected to generate around EUR 400m in 2022.

Eraneos, formerly known as AWK Group, was marketed off at around CHF 12.5m (EUR 10.9m) adjusted EBITDA and CHF 53m revenues when it was sold from its previous private owners, Mergermarket reported then.

Companies
Eraneos is an independent management and technology consulting group offering services ranging from the development of digital business models and data analytics to cyber security, and from sourcing and IT advisory to the management of complex transformation projects. Eraneos has around 1,000 staff through its Switzerland, Germany, Luxembourg, Spain, the Netherlands, China, and Singapore offices.

Valantic provides software solutions for digital transformation and works with more than 500 blue chip clients, including 32 of 40 DAX companies. It has around 3,000 consultants and developers based in Germany, Austria, Switzerland, Belgium, the Netherlands, Portugal, and other locations.

People
DPE - Marc Thiery (managing partner), Guido Prehn (managing director).
Eraneos - Oliver Vaterlaus (CEO).
Valantic - Holger von Daniels (CEO).

Advisers
DPE - PJT Park Hill (financial advisory), Pöllath + Partners (structuring), Stephenson Harwood, Latham & Watkins, Walder Wyss, Arendt, Gleiss Lutz and Proskauer (legal), Alvarez & Marsal (financial due diligence) and Lincoln International (fairness opinion).