DACH-focused BID Equity hits €125m hard cap for debut fund


Software investor BID Equity has hit a €125m hard cap for the final close of its debut institutionally-raised fund, BID Equity Fund II.

The oversubscribed-fund will be used to make majority investments in European B2B software companies with EBITDA of between €500,000 and €5m.

The firm is looking to make 9 to 10 portfolio investments through the fund, BID said.

The firm has already tapped the fund to make its first investment in clinical research software firm XClinical in July.

AXON Partners served as placement agent for Fund II.

“We are very pleased with the strong interest our first-time fund has generated amongst international investors and that the fundraising took us just 9 months to complete from formal launch,” said BID’s founding partners in a statement.

“We firmly believe that our specialist software sector focus and expertise give us an edge in identifying, sourcing and adding value to small-cap companies in a market segment that enjoys strong demand growth.

“In addition to seeking defensive attributes of recurring revenues, high entry barriers and margins, there is significant potential to accelerate growth and to build leading platforms through buy & build in the small-cap software space. We look forward to delivering excellent returns for our investors across the investment cycle”.

The German private equity firm was founded in 2016, by former Boston Consulting Group consultants Helge Hofmeister, Axel Jansen and Lars Kloppsteck.

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