GMT spinout Apse buys Kallidus from FPE

Christopher Papadopoullos
15 March 2019

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FPE Capital has sold Kallidus, a human capital software developer, to new private equity firm Apse Capital.

It achieved a 3x multiple on capital contributed (MoC) after a four-year holding period and a blended 2.7x MoC and 34% IRR in combination with funding for a bolt-on. FPE funded the bolt-on of Advorto, a software recruitment provider, in 2017. It also supported the company's software-as-a-service platform.

Apse was recently established by the core team of GMT Communications Partners and closed an initial fund for an undisclosed amount. It aims to complete a larger fundraise in the next year. The firm will focus on European tech-enabled B2B information and services businesses with an enterprise value of €50-200m.

GMT closed its third fund, a €250m buyout vehicle that held a final close in July 2007 and was 86% invested by December 2011, according to Unquote Data.

The third fund was restructured in a GP-led transaction in April 2017, with Park Hill Group advising. IT-Ernity was transferred into the Guernsey-registered GMT Realisation Fund along with MeetingZone and Primesight to give GMT longer to realise the assets.

Approximately 80% of the LPs sold their stakes to Newbury Partners, Altamar Capital Partners and Montana Capital Partners for around €120m. GMT Communications Partners III is understood to have returned more than 2x money to its original LPs. MeetingZone has since been sold to trade buyer LoopUp Group for a cash consideration of £61.4m, leaving Primesight as the last asset in the fund after the sale of IT-Ernity.

GMT's Timothy Green spoke to Unquote last year about the challenges of deal-by-deal investment, suggesting that the firm may raise a new fund.

Previous funding
Westbridge invested £1.2m to support the management buyout of e-learning business e2train (Kallidus's previous name) in November 2009. The deal was supported with a £400,000 senior debt package from RBS.

In February 2011, Westbridge made a further investment in the company to support its purchase of Intraventure, a provider of talent management systems.

Company
Headquartered in Cirencester, Kallidus provides HR management software to mid-market European companies and public sector organisations.

People
FPE Capital – Henry Sallitt (managing partner); Henry Ropner (investment director).
Kallidus – Rob Caul (CEO).
Apse Capital – Timothy Green (managing partner).

Advisers
Vendor – Houlihan Lokey (corporate finance); Charles Russell Speechlys (legal); RSM (financial due diligence).
Company – Capital Law (legal); Momentum Corporate Finance (corporate finance).