Main Capital Partners, a European enterprise software investor, announced that it has closed its latest buyout funds, Main Capital VIII and Main Foundation II, with a total of €2.44B in commitments.
These funds have nearly doubled in size compared to the firm’s predecessor funds, bringing Main’s total Assets under Management to around €6B.
Charly Zwemstra, Founder and Chief Investment Officer at Main, says, “Main was one of the first movers in the European Software space, focusing on buyouts of profitable and resilient Enterprise Software businesses with the aim of building larger international software groups.”
“We are very proud of our 20-year track record and the continued support and trust we have received from a highly institutional and global LP base. The successful closing of both Main Capital VIII and Main Foundation II reinforces Main’s position as a European leader in software buyouts.”
“With these new funds, we continue to play a key role in the consolidation of the fragmented software market by building international leading European and Cross-Atlantic software groups.”
Transaction overview
Main Capital Partners have experienced a re-up rate of 115 per cent from existing investors.
The firm attracted around €1B in commitments from new investors, including institutional players like APG (on behalf of ABP), Tecta Invest, and Texas County and District Retirement System.
Existing investors like Hamilton Lane also increased their commitments.
Main Capital VIII and Main Foundation II began fundraising in October 2023 with targets of €1.6B and €400M, respectively. Despite challenging market conditions, both funds exceeded expectations, reaching their hard caps of €1.9B and €500M in under six months.
Jorn de Ruijter, Head of Investor Relations and Investment Director at Main, says, “Closing two funds significantly above target and almost double the size of the prior funds in just six months, is a testament to Main’s exceptional track record and close relationship with our LP base.”
“We are thankful for the strong and continued support of both our existing and new LPs. Main’s proven model of building larger resilient software groups has enabled us to deliver consistent top-quartile returns to our LPs, and we will do our utmost to continue doing so with these new funds and future funds.”
Strategic partner for software companies
Founded in 2003, Main Capital Partners is a buyout investor in enterprise software that specialises in the lower-middle market. It invests between €5M to €150M in equity tickets in profitable small- to medium-sized businesses.
Main provides operational support and fosters deep connections within software ecosystems. The firm’s activity in 2023 alone included over 40 transactions, with close to 30 exits to date boasting a weighted average return over 4x and a loss rate below 0.5 per cent.
With a team of 70+ across Benelux, DACH, Nordics, and the US, Main Capital Partners fosters connections with the local software ecosystems, enabling exclusive relationships with software founders and entrepreneurs.
Main operates cross-border in approximately 10 product markets like healthtech, govtech, HRtech, and cybersecurity. Some of its investments include Pointsharp, Oribi, BCS, Textkernel, Enovation, SDB Groep and xxllnc among others.
Main oversees a portfolio of 45+ software companies. These companies have more than 12,000 workers altogether. Main also helps students by giving them grants and scholarships to study IT and Computer Science at Technical Universities and Universities of Applied Sciences. They do this through their Main Social Institute.
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