Esquare Capital Partners seeks entrepreneur commitments for second, EUR 25m tech platform

Anastasia Gnezditskaia
13 July 2023

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Dutch investment firm Esquare Capital Partners is in fundraising mode as it plans to raise its second, EUR 25m platform next year to finance deals in the Internet-of-Things, smart home and robotics space, managing partner Jules Bernaerts told Unquote.

The sponsor was established last year, when it launched its first, EUR 10m platform. The first platform was deployed across three tech investments, with some dry powder still available for add-ons, while the second one has so far made one investment, he said.

It targets entrepreneurs and family offices as investors, accepting commitments starting from EUR 500,000.

It deploys tickets of EUR 2m-EUR 10m, or EUR 5m on average, as a co-investment alongside entrepreneurs. The firm usually contributes 10%, with the remainder accounted for by entrepreneurs.

Esquare invests on a deal-by-deal basis, raising funds from entrepreneurs when a specific deal comes along, Bernaerts noted, adding that it aims to connect entrepreneurs looking for growth capital with entrepreneurs willing to co-invest alongside Esquare via its platforms.

In addition to its second, EUR 25m platform, Esquare is also mulling raising a third, larger co-investment vehicle in 2025, with the decision on the precise amount and the timing yet to be made, said Bernaerts.

Esquare tends to hold investments for five years on average. It invests in growth and private equity deals but does not back venture capital-type businesses, he noted. It buys minority and majority stakes and does not have an IRR target, focusing instead on money multiples, he said.

The sponsor invests in four technology areas, including B2B software, which includes data, application, integration, cloud and other types of IT infrastructure, and managed services. It also backs platforms including ecommerce, platform-as-a-service and marketplaces, as well as high-tech, or products that combine electronics, mechanics, optics, vision and other technologies, according to its website.

Esquare made two acquisitions recently: Dutch warehouse management software provider Istia Software; and Stockspots, a Dutch on-demand warehousing platform. It has previously invested in Dutch software provider Huss and payroll and SME HR software and services provider BCS.