Capza Growth Tech Fund eyes €250-300m target

Alessia Argentieri
19 March 2021

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Capza has raised €140m for its new Growth Tech Fund, which has a target of €250-300m.

The fund expects to hold a final close between April and May 2021.

Capza Growth Tech Fund targets profitable businesses with EBITDA of less than €5m and a sustainable level of sales. It takes minority positions alongside managers and founders, with the aim of fuelling the development of companies operating in a wide range of segments across the technology industry. The vehicle deploys tickets of €10-30m, providing growth equity and quasi equity.

"We decided to apply our expertise in the tech industry to the launch of a new strategy dedicated to help small businesses scale up commercially and strategically, and further expand internationally," said Capza founding partner Christophe Karvelis Senn. "Many of these businesses need both capital and professional support in order to reach a critical size."

He added: "With our Growth Tech Fund, we invest across all tech verticals, with a special focus on software and cybersecurity. These two segments have grown exponentially after the global shift to remote working and virtual networking caused by the pandemic, and are forecast to become even more predominant across the world economy in the coming years. They represent an unmissable opportunity for private equity investors, and we plan to expand our exposure to these promising sectors."

Capza has already started to build the fund's portfolio by acquiring French financial ESG measurement software developer Sirsa in December 2020. The company was bought via a special vehicle and will be transferred to the fund as soon as it reaches its first closing.

In the meantime, Capza is also working on a second deal for the fund. Negotiations have reached the exclusivity stage and the deal is expected to close by mid-April.

The launch of this new strategy followed the acquisition of Time for Growth, an investment company specialised in growth investments in technology companies, integrated within Capza in September 2020.