London-based growth equity investor Kennet Partners has raised €266 million for its largest fund to date, Kennet VI. The investor has already begun to deploy this capital into efficient B2B SaaS companies across Europe. With this fund, the assets under management (AUM) of the investor has surpassed €1.3 billion.
Kennet VI was raised as part of a partnership with Edmond de Rothschild Private Equity which began in 2017. Edmond de Rothschild is a cornerstone investor in the Kennet VI fund and the bank’s global client base has had priority access to the fund. British Patient Capital, Federated Hermes Private Equity and Bpifrance also committed to the fund.
Investment strategy
Bootstrapping a company is hard. It requires a compelling product that customers love, strong gross margins, and an efficient go-to-market strategy. Realising this, Kennet works with founders who have built their companies in a bootstrapped way, but are ready to take the next step to accelerate the growth of their businesses.
Kennet focuses exclusively on investing in established, high growth B2B SaaS technology companies which are founder-owned and either highly capital efficient or fully bootstrapped. The investment from Kennet is the first external funding that companies receive and is used to scale and expand internationally, build world class management teams and build strategic value.
The firm’s investment model focuses on bootstrapped companies with €3 million to €50 million in revenue which are often founder-managed and have previously received little external investment. Kennet provides knowledge, contacts and investment to SaaS companies where there is significant potential for growth.
More about the investor
Led by Michael Elias, Javier Rojas, Eric Filipek, and Hillel Zidel, the investor has offices in London and the Bay Area. It is touted to be structured to assist companies with global expansion, particularly businesses looking to scale in the US. Kennet has over 25 years of experience and a proven track record across multiple market cycles.
The SaaS business model has enabled regional European businesses to access bigger/broader markets with capital efficient sales/marketing programs.
Investment portfolio
The company has continued to deliver exits, such as Eloomi in January 2024 generating a 3.1x cash multiple. This follows numerous exits in recent years, including Nuxeo, Dext, CrossBorder Solutions, Rimilia, and Impartner. The recent investments in the company include Screendragon in Ireland and the UK and Fluid Topics in France.
Michael Elias, Managing Director, Kennet Partners, said: “This fundraise marks another important milestone for Kennet as we close our largest fund to date, with a significant number of previous investors participating in this fund. At a time when the market has recognised that ‘growth at any cost’ is no longer rational, our long-standing conservative strategy has appealed to investors. Kennet’s risk-balanced strategy provides investors with the growth associated with innovative technology, while maintaining a low failure rate. We have proven over numerous fund cycles that capital efficient B2B SaaS businesses offer attractive investment opportunities and that helping entrepreneurs build outstanding management teams and enter global markets remains a winning formula.”
Francois-Xavier Vucekovic, CIO at Edmond de Rothschild Private Equity, added: “We firmly believe that technology plays a critical role in the transformation of our economies and societies. Our commitment is to support and nurture companies that are at the forefront of innovation and value creation. The success of this fundraising effort, particularly in the current challenging environment, is a testament to the strength and relevance of Kennet’s strategic approach. By leveraging cutting-edge tech solutions, Kennet ensures the sustainability and growth of their clients’ business models, enabling them to thrive in a rapidly evolving market.”
Hillel Zidel, Managing Director, Kennet Partners, said: “Our proven approach is based on the relationships we establish with bootstrapped founders, understanding that this will be a long-term trusted partnership. Unlike venture-backed businesses, our founders have typically not taken external investment before – they need to know they are working with the right team to realise their global ambitions. We are very proud that founders choose to work with Kennet because of our deep market knowledge, and reputation for fairness and integrity. This has enabled us to invest in great companies at sensible valuations regardless of the hype cycle. B2B software has become the engine room of many sectors, and Kennet VI will be at the forefront of the next generation of mission critical, scaling businesses.”
What do we think about?
Kennet Partners Fund VI demonstrates a strategic focus on high-growth, capital-efficient B2B SaaS companies. By investing in bootstrapped, founder-managed firms, Kennet leverages its expertise to scale these businesses globally. This approach, coupled with their proven track record and extensive experience, positions them well for future success. The fund’s significant capital and robust support network suggest strong potential for impactful growth and solid returns in the B2B SaaS sector.
