Oakley Capital has made a hefty 6.7x money multiple selling its stake in web hosting automation software business WebPros Group to CVC Capital Partners.
The deal scores Oakley’s Fund III a 140 per cent IRR, two years after the firm bought the business.
Oakley made six bolt-ons for WebPros during its ownership. The firm said it would tap its fourth fund to invest $200m alongside CVC Fund VII as a minority partner “to benefit from long-term growth opportunities and new product developments”.
Oakley managing partner Peter Dubens said, “The success of WebPros to date is the result of many features that are typical of an Oakley investment.
“A partnership with entrepreneurs we have backed before, a buy-and-build strategy which tackled a high degree of complexity and a sector in which we have deep experience.”
CVC senior managing director Leif Lindbäck added, “CVC has a proven track record of teaming up with entrepreneurs and like-minded investors to support and build better businesses.
“WebPros brings critical automation and security tools to hosting providers, web agencies and their customers.”
Arma Partners acted as WebPros’ financial adviser in connection with the deal.
Oakley smashed the target for its fourth buyout fund in July by reaching €1.46bn for its final close.
The western Europe-focused firm was initially targeting €1.2bn for Fund IV, but surpassed that amount to raise its largest fund to date.
Oakley closed its third fund on €800m in October 2017, four years after closing its vintage second fund on €525m.
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