Maguar marks first exit with HRworks move to continuation fund

Min Ho
10 May 2023

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Munich-based GP Maguar Capital has made its first exit by transferring HRworks, a human capital management (HCM) software portfolio company, to a continuation fund.

Total equity funding of more than EUR 235m has been secured as part of the transaction, according to a press release. The funding will be contributed via the Maguar Continuation Fund, the successor fund Maguar Capital II, as well as the company's management team, it said.

Asante Capital acted as placement agent for the continuation vehicle, while Macquarie and Berenberg provided financing. Clifford Chance, Dechert, Deloitte, Houlihan Lokey, KPMG, Lupp + Partner, Milbank and wdp also advised Maguar Capital on the deal, according to the press release.

Maguar CF I drew high interest and demand that was "significantly above its capacity" from institutional investors globally who were attracted by HRworks' growth potential, it said.

The transaction is subject to regulatory approval, it said. When completed, it will mark the first successful exit from its EUR 104m, 2021-vintage Maguar Fund I, returning a significant portion of the fund's drawn capital to its investors, the press release added.

Maguar intends to continue its investment strategy by providing additional capital for add-on transactions and a range of organic growth initiatives, it said.

Maguar invested in HRworks in August 2020 as part of the GP's first deal from its debut fund, as reported. Maguar Fund I focuses solely on investing in small-cap B2B software deals across the DACH region.

LPs for Maguar Fund I include Aberdeen Standard Investments (abrdn), Adams Street, Commonfund, Bregal, Golding Capital and the European Investment Fund, as reported.

Company
HRworks was founded in 1998 by Thomas Holzer as an integrated Software-as-a-Service HCM software provider, primarily for small and medium-sized businesses in Germany. The software provides HR functions such as time management, travel expenses, personnel management, recruiting and corporate benefits. HRworks has more than 120 employees across four offices in Germany, serving more than 2,500 customers.

People
Maguar Capital - Arno Poschik, Matthias Ick and Gunther Thies (founding partners).
HRworks - Markus Schunk (CEO).