GRO Capital announces first close of GRO Fund II at EUR180m
GRO Capital is pleased to announce a first close of GRO Fund II (“Fund II”), a B2B software focused fund targeting growth companies in Northern Europe.
Fund II is a continuation of the strategy pursued in GRO Fund I with focus on accelerating mature software companies and a geographical investment mandate covering the Nordic region and DACH. Fund II targets well-established market leading companies with turnover in the range of typically EUR10-100m and intrinsic profitability.
In the first close, Fund II has received capital commitments from institutional investors and multi-lateral organisations, including leading Nordic institutional investors such as Danica Pension, Sampension, Dansk Vækstkapital II and Argentum. Through the European Investment Fund, Fund II furthermore benefits from the financial backing of the European Union under the European Fund for Strategic Investments set up under the Investment Plan for Europe. The planned final close of Fund II is in Q1 2019.
GRO Capital’s investment and operating teams will be expanded in connection with Fund II to accommodate the increasing level of activity across the regions. In its market segment, GRO Capital has become a recognized leading investor and owner of SaaS and on-premise based software companies.
The first close of Fund II follows a period of high investment activity by GRO Fund I. Since 2015, the investment team has completed six platform investments and made eight add-on investments. Today, GRO Capital furthermore welcome Omada as the first investment in Fund II. Omada is a global leader of Identity Governance and Administration software and services that GRO Capital will acquire in partnership with CVC Capital Partners’ Growth Fund.
Lars Dybkjær, Managing Partner of GRO Capital, said: “We are very pleased to see substantial interest from investors in our new fund as they recognize that software plays an increasingly important role across industries. GRO Capital are committed to create substantial value in market leading and accelerating software companies through capital and our deep operational experience from more than 20 B2B software company investments.”
Bruun & Hjejle provided legal advice and Asante advised on the fundraising.
Lars Dybkjær, Managing Partner