Five Arrows invests £120m in Causeway Technologies

Following the investment, Five Arrows partner Vivek Kumar and managing director Sacha Oshry will join Causeway's board.

The fresh capital is intended to support Causeway's organic growth, as well as to fund strategic add-on acquisitions, according to a statement.

Unquote sister publication Mergermarket reported in February 2021 that Causeway had hired Goldman Sachs to explore potential funding options, including a minority investment. The company posts EBITDA of around £10-15m, sources told Mergermarket.

Five Arrows is currently deploying equity via Five Arrows Principal Investments III, which held a final close in March 2019 on €1.25bn. The fund makes buyout and growth investments, backing European companies with enterprise values in the €75-300m range. The vehicle focuses on businesses in the healthcare, education, data, software and technology-enabled business services sectors.

The investment in Causeway will be Five Arrows' fourth platform deal of 2021, according to Unquote Data. Most recently, the firm acquired UK-based drug discovery company Sygnature Discovery from Phoenix Equity Partners in a £300m SBO, as reported. The GP also reinvested in the €1.2bn buyout of real estate agent network IAD in February in a deal that saw Insight Partners take a minority stake in the company for a €300m investment; Five Arrows had held a stake in the business since 2016.

The GP has announced two exits in 2021 to date, most recently selling its stake in software platform White Clarke Group to Thoma Bravo portfolio company International Decision Systems. In March 2021, the GP sold its stake in legal disputes platform Opus 2 to Astorg in a €350m SBO.

Company
Founded in 1999 and headquartered in London, Causeway develops software for use in the construction sector, allowing companies to manage planning, building and maintenance projects. The company posted revenues of £32.6m in 2019, versus £24.8m in 2018.

People
Causeway Technologies – Phil Brown (chief executive, executive chairman).
Five Arrows Principal Investments – Vivek Kumar (partner); Sacha Oshry (managing director).

Advisers
Equity – Torch Partners (corporate finance).
Vendor – Goldman Sachs (corporate finance).

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