Capza holds EUR 200m first close for Growth Tech fund

Capza Growth Tech Fund was launched in December 2020 and is the first vehicle in Capza's growth technology strategy, which targets European digital and technology companies.

The fund had expected to raise EUR 150m at its first close, but has exceeded this target, Capza Growth Tech partner Jean-Luc Cyrot told Unquote. He added that the fund expects to hold a final close in early 2022.

Capza is currently working with its internal team on the fundraise, but intends to work with PwC to bring in new European LPs beyond France to meet its final close, Cyrot said.

The fund's ESG goals are specific to issues in the technology sector, including value sharing, talent retention, employer brand development and environmental footprint, the GP said in a statement.

Cyrot told Unquote that the growth of the technology sector could well affect Capza's future fundraising for the Growth Tech strategy: "The current market is excellent, companies are developing strongly and this has not slowed down. In many cases, Covid was also a booster for them in terms of growth, with companies using more IT services. If the tech business continues to develop as it is now, the cycle will be faster for us, since it is linked to overall tech development."

Investors
The first close is backed by both new and existing investors, including insurance companies, public institutions, banks, entrepreneurs and family offices. The majority of the fund's current LPs are existing French investors as of its first close, although it expects to draw in LPs from other European countries given that the fund will also invest elsewhere in Europe, Cyrot said.

Investments
Capza Growth Fund will invest in growing technology and digital companies, focusing on software and software-as-a-service. The fund will deploy EUR 10m-30m per deal, making minority investments alongside management teams.

The fund has made four investments to date and expects to make 12-15 deals in total. Its portfolio companies include cybersecurity business Advens, as well as predictive recruitment software AssessFirst.

The vehicle will principally invest in France but will target businesses in other countries, too. "The fund focuses on the French market but has an international footprint – one third of the fund will be invested outside France, but still in Europe, and mainly in the DACH region," Cyrot told Unquote. "We are also looking at opportunities in the Nordic and Benelux regions, as well as Italy and Spain, where we have offices, since it is important to be close to management teams."

The fund has a strong deal pipeline and expects to continue to deploy at pace. "I think if the market continues at it is, 2022 should also be an excellent year for deals," Cyrot told Unquote. "We have been seeing a lot of activity in H2 2021 and can expect the same for 2022, so four deals seems a good target for next year. As it is right now, we will be deploying faster than we thought – we had originally aimed for four to five years, but we are now expecting three to four."

People
Capza – Jean-Luc Cyrot (partner).

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